/raid1/www/Hosts/bankrupt/TCR_Public/240911.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, September 11, 2024, Vol. 28, No. 254
Headlines
100 & L NORTHEASTERN: Commercial Lot Set ofr Sept. 18 Auction
2U INC: U.S. Trustee Wants Chapter 11 & Disclosures Tossed
86-50 DOGAN: Secured Party Sets Sept. 17 Auction
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 21% Discount
ADVANCED URGENT: Seeks to Tap Tiemeier & Stich as Special Counsel
ADVENT TECHNOLOGIES: E&Y (Hellas) Raises Going Concern Doubt
AFFORDABLE LOGISTICS: Hires Kirby Aisner & Curley LLP as Attorney
AGTJ13 LLC: Taps Newmark of Southern California as Broker
AMKOR TECHNOLOGY: S&P Alters Outlook to Positive, Affirms 'BB' ICR
APPLIED UV INC: Cullen and Dykman Revises Rule 2019 Statement
ASURION LLC: S&P Rates Proposed $1.25BB Term Loan B-12 'B+'
AVENTIV TECHNOLOGIES: $1.04BB Bank Debt Trades at 30% Discount
AVENTIV TECHNOLOGIES: Prospect Capital Marks $85.6M Loan at 46% Off
AVIENT CORP: Moody's Rates Proposed $650MM Unsecured Notes 'Ba3'
BBQ 4 LIFE: Seeks to Tap Johnson May as Bankruptcy Counsel
BEASLEY BROADCAST: S&P Lowers ICR To 'CC' on Debt Restructuring
BELK INC: S&P Withdraws 'CCC-' ICR Due to Insufficient Information
BELLA RAGAZZA: Kathleen DiSanto Named Subchapter V Trustee
BENHAM ORTHODONTICS: Taps Joyce W. Lindauer as Bankruptcy Counsel
BIOLASE INC: Obtains Forbearance; Ready Chapter 11 Filing
BLAIRMARKS LLC: Seeks to Hire Cushner & Associates as Counsel
BLD REALTY: Seeks to Hire Ikenna O. Emeruem as Legal Counsel
BLUE DUCK: Friedman & Feiger Revises Rule 2019 Statement
BLUE DUCK: Hires Bonds Ellis Eppich Schafer Jones as Counsel
BLUE RIBBON LLC: $368MM Bank Debt Trades at 32% Discount
BYLEGACY TEAM: Seeks to Hire Fox Rothchild as Special Counsel
CITGO PETROLEUM: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
CL CRESSLER: Seeks to Hire CGA Law Firm as Bankruptcy Counsel
CLUBHOUSE MEDIA: Chief Financial Officer Resigns
CMTRD LLC: Trustee Seeks to Hire Lessne Law as Counsel
COACH USA: Faces Massive Layoffs Class Suit After Chapter 11 Filing
COBRA HOLDINGS: $560MM Bank Debt Trades at 15% Discount
CONCORDIA ANESTHESIOLOGY: Case Summary & 20 Unsecured Creditors
CONNECT US FINCO: S&P Rates Proposed $1.25BB Secured Notes 'B+'
CREATIVE ARTISTS: S&P Rates Proposed $2.1BB Term Loan B 'B+'
CREDIT.COM HOLDINGS: Prospect Capital Marks $56.9MM Loan at 29% Off
CROWNROCK LP: Moody's Withdraws Ba3 CFR Following Debt Redemption
CSC HOLDINGS: $2.50BB Bank Debt Trades at 12% Discount
D&D ELECTRICAL: Todd & Levi Represents Multiple Creditors
DIAMOND SPORTS: Gets Court Okay for NHL, NBA Ch. 11 Lender Deals
DIOCESE OF OGDENSBURG: Taps Jones Day as Special Appellate Counsel
DJK ENTERPRISES: Seeks to Hire Wade Stables PC as Accountant
DOYLE'S TAVERN: Voluntary Chapter 11 Case Summary
DTH 215 VENTURE: Taps MB Bear, Ackman-Ziff as Financial Advisors
DTH 215: Seeks to Hire Greenberg Traurig as Special Counsel
EDGIO INC: Case Summary & 30 Largest Unsecured Creditors
EEI GLOBAL: Hires Orbitbid.Com Inc. as Auctioneer
EMILY L. LONGWITH: Hires Lane Law Firm PLLC as Counsel
EVEREST LENDING: Hires Patel Tax & Accounting as Accountant
EVEREST LENDING: Seeks to Extend Plan Exclusivity
EVOME MEDICAL: Financial Strain Raises Going Concern Doubt
EXACTECH: $235MM Bank Debt Trades at 58% Discount
EYEPOINT PHARMACEUTICALS: Appoints Fred Hassan as Director
FARADAY FUTURE: Regains Compliance with All Nasdaq Listing Criteria
FARADAY FUTURE: Secures $30 Million in Financing Commitments
FARRELL'S ON ROUND: Voluntary Chapter 11 Case Summary
FAYESON INC: Case Summary & 20 Largest Unsecured Creditors
FEEDEX COMPANIES: Seeks to Tap Daniel L. Drake PA as Accountant
FIESTA PURCHASER: Moody's Affirms B3 CFR & Ups 1st Lien Debt to B2
FOREMOST SPLICING: Seeks to Hire My CPA Guy as Accountant
FRANCISCAN FRIARS: Hires Berliner Cohen as Special Trust Counsel
FULCRUM BIOENERGY: Case Summary & 30 Largest Unsecured Creditors
GC PROPERTIES: Case Summary & Three Unsecured Creditors
GENTING NEW YORK: S&P Assigns 'BB+' Rating on Sr. Unsecured Notes
GRANITE CITY: Hires Essex Richards PA as Bankruptcy Counsel
GULF FINANCE: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
HALL OF FAME: Posts $15.5 Million Net Loss in Fiscal Q2
HERITAGE HOTELS: Hires Hilco Real Estate as Real Estate Agent
HOG FATHER'S: Hearing on Sale of Liquor License Set for Sept. 25
HOLZHAUER MOTORS: Seeks to Hire Dickinson Bradshaw as Counsel
HOLZHAUER MOTORS: Seeks to Hire Moglia Advisors, Appoints CRO
ICM HOLDINGS: Melissa Haselden Named Subchapter V Trustee
IMPRIVATA INC: Moody's Affirms B2 CFR & Cuts First Lien Debt to B2
INMET MINING: Hobson Suit vs. Black Mountain Stays in E.D. Tenn.
INTEGRATED NANO-TECHNOLOGIES: Case Dismissal Order Reversed
INTEGRITY BEHAVIORAL: Hires Landwehr Law Firm LLC as Counsel
J-1-CATTLE FARM: Hires AR Law Partners PLLC as Attorney
JAMES LAGER: Wins Bid to Close Subchapter V Bankruptcy Case
JE LUCAS: Case Summary & Two Unsecured Creditors
JJJ CONTRACTING: Case Summary & 20 Largest Unsecured Creditors
JOHNSON ENTERPRISES: Charles Mouranie Named Subchapter V Trustee
JP NAIL: Seeks to Hire Richard G. Hall as Attorney
KAPS CONSTRUCTION: Hires Villa & White LLP as Bankruptcy Counsel
KENBENCO INC: Hires Richard Lampert Real Estate as Appraiser
KING WHOLESALE: Seeks to Hire Thompson Burton PLLC as Attorney
KOSMOS ENERGY: S&P Rates New $500MM Senior Unsecured Notes 'B'
LA HACIENDA: California Rural Advises Trails End United for Change
LENTZE MARINA: Case Summary & Five Unsecured Creditors
LEROUX CREEK: Seeks to Hire Allen Vellone Wolf Helfrich as Counsel
LIFEPOINT HEALTH: S&P Rates New $1.845BB Term Loan B 'B'
LIGCEDB LLC: Seeks to Hire Pena & Soma as Litigation Counsel
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 14% Discount
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 16% Discount
LUMEN TECHNOLOGIES: Fitch Affirms 'CCC+' IDR on Exchange Offer
MEADOWBROOK SERVICES: Patricia Fugee Named Subchapter V Trustee
MEDICAL SOLUTIONS: Prospect Capital Marks $54.4MM Loan at 17% Off
METHANEX CORP: S&P Affirms 'BB' ICR, Outlook Stable
MGT CAPITAL: CEO Robert Ladd Quits From All Positions
MIRACARE NEURO: Case Summary & 20 Largest Unsecured Creditors
MM 1045: Avenue One's 19% Equity for Sept. 18 Auction
MOGA TRANSPORT: Voluntary Chapter 11 Case Summary
MOUNTAIN SPORTS: Gets Court OK to Sell Assets to Mountain Warehouse
MOUNTAINS OF SABER: Case Summary & Five Unsecured Creditors
NANCY HABER: Secured Party Sets Oct. 29 Auction
NANTAHALA FOREST: Davis Hartman Advises John Deere & First Citizens
NATIONWIDE EXPRESS: Hires FGP Law LLC as Special Counsel
NEXT HILL: Case Summary & Three Unsecured Creditors
NGUYEN RAINBOW: Hires Kevin R. Michaels P.C. as Special Counsel
NORTHPOINT DEVELOPMENT: Case Summary & Four Unsecured Creditors
NORTHWEST CHRISTIAN: Moody's Affirms Ba2 Rating on 2020A/B Bonds
NU RIDE: Posts $1.5 Million Net Income in Fiscal Q2
NUO THERAPEUTICS: Reports Net Loss of $540,091 in Fiscal Q2
NUZEE INC: Randell Weaver Ends Tenure as Co-CEO and CFO
OCEAN POWER: Receives Further Contract for PowerBuoy Deployment
ON POINT DIRECTIONAL: Taps Keech Law Firm as Bankruptcy Counsel
ONE TABLE: Committee Hire Morris James LLP as Delaware Counsel
ONE TABLE: Committee Hires Dundon Advisers as Financial Advisor
ONE TABLE: Committee Hires Lowenstein Sandler LLP as Counsel
ORCHARD ENTERPRISES: Seeks to Hire Ewald Auctions as Auctioneer
PAPER IMPEX: Seeks to Extend Plan Exclusivity to Feb. 10, 2025
PARTNERS REAL: Seeks to Hire Spencer Properties as Listing Agency
PDK LLC: Seeks to Hire McLemore Auction Company as Auctioneer
PENCEL INC: Voluntary Chapter 11 Case Summary
PG&E CORP: S&P Rates Proposed Junior Subordinated Notes 'B'
PITNEY BOWES: S&P Alters Outlook to Stable, Affirms 'B+' ICR
PLA FOUR 24: Seeks to Hire Meglio Group as Accountant
PLA FOUR 24: Seeks to Tap Webber McGill as Bankruptcy Counsel
PLC JETBOX: Hires Gonzalez & Tybor P.A. as Bankruptcy Counsel
POWER SOLUTIONS: Reports $21.5 Million Net Income in Fiscal Q2
PREMIER GLASS: Must Defend Against Christopher Glass' Claim
PRESSURE BIOSCIENCES: Incurs $8.07M Net Loss in First Quarter
PRETIUM PKG: $1.25BB Bank Debt Trades at 17% Discount
PRIME DEVELOPMENT: Seeks to Extend Plan Exclusivity to Feb. 5, 2025
QUALITY INN MOTEL: 100-Unit Hotel, Site Up for Sept. 19 Auction
RADIATE HOLDCO: $3.42BB Bank Debt Trades at 16% Discount
REDSTONE HOLDCO: $450MM Bank Debt Trades at 22% Discount
REED'S INC: Financial Strain Raises Going Concern Doubt
REFRIGERATION TECHNOLOGIES: Zarwin Atty Named Subchapter V Trustee
RELIABLE ROADSIDE: Hires Coyle Law Group as Counsel
RESEARCH NOW: 96% Markdown for Prospect Capital $50MM Loan
RESEARCH NOW: Prospect Capital Marks $8.5MM Loan at 21% Off
RESOLUTE HOLDINGS: Taps Ray Caddell and Co as Real Estate Agent
RETSEL CORPORATION: Case Summary & 11 Unsecured Creditors
RIDGELINE CAPITAL: Hires Alisson James as Real Estate Broker
RINCHEM CO: $300MM Bank Debt Trades at 17% Discount
ROSA MEXICANO: Prospect Capital Marks $22.3MM Loan at 23% Off
ROSA MEXICANO: Prospect Capital Marks $5.2MM Loan at 18% Off
RYAN LLC: S&P Alters Outlook to Negative, Affirms 'B+' ICR
SANDVINE: $400MM Bank Debt Trades at 79% Discount
SENIOR CARE: Court Sends Wills Trust Claims Dispute to Trial
SERES THERAPEUTICS: Swings to $32.9MM Net Loss in Fiscal Q2
SHOMYA TEFILAH: Case Summary & One Unsecured Creditor
SILVER CREEK: Seeks to Tap Joyce W. Lindauer as Bankruptcy Counsel
SMOKIN' DUTCHMAN: Case Summary & 18 Unsecured Creditors
SNOHOMISH COUNTY SD: Moody's Lowers Issuer & GOULT Ratings to Ba1
SONRAVA HEALTH: $552.5MM Bank Debt Trades at 31% Discount
SQRL SERVICE: Hires Joyce W. Lindauer Attorney LLC as Counsel
SSE DEVELOPMENT: Hires W and Partners as Real Estate Broker
STAR WELLINGTON: Hires Kelley Kaplan & Eller as Legal Counsel
STAR WELLINGTON: Soneet Kapila Named Subchapter V Trustee
STEWARD HEALTH: Seeks $42M Help from Mass. to Keep Hospitals Open
STRATEGIC ACQUISITIONS: Posts $22,508 Net Loss in Fiscal Q2
TERRAFORM LABS: Hires PGP Capital Advisors as Investment Banker
THOR INDUSTRIES: Moody's Affirms 'Ba2' CFR, Outlook Stable
THREE SISTERS: Seeks Approval to Hire SevfiN LLC as Accountant
TJ BEAR: Seeks to Hire Brown Law Firm as Bankruptcy Counsel
TLC KID'S CENTER: Eric Terry Named Subchapter V Trustee
TLC KID'S: Seeks to Hire Hacker Law Firm as Bankruptcy Counsel
TOTALLY COOL: Stephen Metz Named Subchapter V Trustee
TRACON PHARMACEUTICALS: Raises Going Concern Doubt
TREE HAUS: Brad Odell of Mullin Named Subchapter V Trustee
TREE HAUS: Seeks to Hire Langley & Banack as Bankruptcy Counsel
TUBULAR SYNERGY: Committee Hire Haynes and Boone LLP as Counsel
TUBULAR SYNERGY: Committee Hires Glassratner as Financial Advisor
TURNKEY SOLUTIONS: Hires Fealy Law Firm PC as Legal Counsel
TURNONGREEN INC: Posts $798,000 Net Loss in Fiscal Q2
TWILLEY AND SON: Case Summary & 20 Largest Unsecured Creditors
UNDEAD PRODUCTIONS: Taps Steidl and Steinberg as Legal Counsel
UNITED SPORTING: Prospect Capital Marks $190.5MM Loan at 95% Off
USES CORP: 95% Markdown for Prospect Capital Markdown $71.8MM Loan
VIEMED INC: $30MM Bank Debt Trades at 15% Discount
WCCM GROUP: Gets OK to Hire Katherine Anderson Law as Attorney
WEISS MULTI-STRATEGY: Examiner Hires Hughes Hubbard as Attorney
WELLFUL INC: Prospect Capital Marks $13.3MM Loan at 20% Off
WELLFUL INC: Prospect Capital Marks $14.3MM Loan at 20% Off
WELLPATH HOLDINGS: Prospect Capital Marks $37MM Loan at 35% Off
WORKSPORT LTD: Posts Net Loss of $4.01 Million in Fiscal Q2
XENETIC BIOSCIENCES: Posts $1.3MM Net Loss in Fiscal Q2
[*] Timothy Fesenmyer Joins Paul Hastings' M&A Practice in N.Y.
*********
100 & L NORTHEASTERN: Commercial Lot Set ofr Sept. 18 Auction
-------------------------------------------------------------
A public auction will take place on Sept. 18, 2024, at 11:00 a.m.,
for the sale of a 52,000 +/- square feet commercial building on a
double lot located at 100 & L Northeastern Boulevard, Nashua, New
Hampshire. A $50,000 deposit by cash, certified check, bank check
or other form of payment satisfactory to the seller at the time of
sale, balance due within 45 days. For complete terms and
additional info, contact JSJ Auctions at 1-800-639-1810.
2U INC: U.S. Trustee Wants Chapter 11 & Disclosures Tossed
----------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that the U.S.
Trustee's Office has urged a New York bankruptcy judge to reject
remote learning company 2U's Chapter 11 plan and proposed
disclosure, saying the plan contained impermissible releases and
that the disclosure didn't offer adequate information, according to
Law360 Bankruptcy Authority.
About 2U, Inc.
Headquartered in Lanham, Maryland, 2U is an online education
platform company. The Company's mission is to expand access to
high-quality education and unlock human potential. As a trusted
partner to top-ranked nonprofit universities and other leading
organizations, the Company delivers technology and services that
enable its clients to bring their educational offerings online at
scale.
2U Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 24-11279) on July 25, 2024. In its
petition, the Debtor reports estimated assets and liabilities
between $1 billion and $10 billion each.
The Debtor is represented by George A. Davis, Esq. at Latham &
Watkins LLP.
86-50 DOGAN: Secured Party Sets Sept. 17 Auction
------------------------------------------------
Jun Jie K. Qia, an individual having an address at 143-44 Franklin
Avenue, Flushing, New York 11355, and Jia Wei Lu, an individual
having an address at 4 Dayton Street, Apt. #3, Worcester,
Massachusetts 01609 and its successors and assigns ("secured
party") will hold a public disposition sale virtually via online
video conference on Sept. 17, 2024, at 3:30 p.m. Eastern Time, to
sell to the highest qualified bidder all of the right, title and
interest of 86-50 Dogan Ave. LLC ("Company") : (a) 13% of the
limited liability company interests of the Company; (b) all
ownership interests, limited liability company interests, shares,
securities, moneys, instruments or property representing a
dividend, a distribution or return of capital upon or in respect of
the pledged interests, or otherwise received in exchange therefor,
and any warrants, rights or options issued to the holders of, or
otherwise in respect of, the pledged interests; (c) all rights of
pledgor, under the relevant documents or any other agreement or
instrument relating to the pledged interests, including, without
limitation, (i) all rights of pledgor to receive moneys or
distributions with respect of the pledged interests due and to
become due under or pursuant to the relevant documents, (ii) all
rights of pledgor to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect to the pledged interests, (iiI)
all claims of pledgor for damages arising out of or for breach of
or default under a relevant document, and (iv) any right of pledgor
to perform thereunder and to compel performance and otherwise
exercise all rights and remedies thereunder; and (d) all proceeds
of and to any of the property of pledgor described in clauses (a)
through (c) above and, to the extend related to any property
described in said clauses or such proceeds, all books,
correspondence, credit files, record, invoices and other papers.
"Relevant Documents" means the borrower operating agreement and all
other organizational documents of borrower, as any of the same may
be amended, restated, replaced, supplemented or otherwise modified
from time to time.
The collateral is pledged to secure the loans with an aggregate
unpaid principal balance amount of $1,708,858 as of May 20, 2024.
The sales are being held to enforce the rights of secured party
under that certain building loan promissory note dated as of Sept.
15, 2021, Term Loan Promissory Noted dated as of Sept. 15, 2021,
and Project Loan Promissory Noted dated as of Sept. 15, 2021, each
given by borrower for the benefit of secured party, and that
certain pledged and security agreement dated as of Sept. 15, 2021,
by the Debtor in favor of Secured Party.
The public sale will be conducted by Mannion Auctions LLC by
Matthew D. Mannion.
Any parties interested in further information about the collateral,
the exact location of the sales and link to the sales, the
requirements to be a "qualified bidder" and the terms of public
sale must contact Matthew D. Mannion at (908) 752-1852; Email at
mdammnion@jpandr.com.
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 21% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ACProducts Holdings
Inc is a borrower were trading in the secondary market around 78.8
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.40 billion Term loan facility is scheduled to mature on May
17, 2028. The amount is fully drawn and outstanding.
ACProducts, Inc., headquartered in The Colony, Texas, is a national
manufacturer and distributor of kitchen and bathroom cabinetry.
American Industrial Partners, through its affiliates, is the
primary owner of ACProducts, having acquired it in 2012.
ADVANCED URGENT: Seeks to Tap Tiemeier & Stich as Special Counsel
-----------------------------------------------------------------
Advanced Urgent Care, LLC and The Pegton Building LLC seek approval
from the U.S. Bankruptcy Court for the District of Colorado to hire
Tiemeier & Stich, P.C. as special counsel.
The Debtors require the firm's continued representation in
connection with certain pending and potential litigation, asset
sales, and any related matters.
Max S. Stich is the individual most likely to perform services on
behalf of the Debtors. Mr. Stich's professional rate is $400 per
hour. Other attorneys at the firm bill at $375 - $400 per hour.
Paralegals and law clerks will bill at $200 per hour.
As disclosed in the court filings, Tiemeier & Stich does not
represent or hold any interest adverse
to the Debtors or to the estate with respect to the matters on
which it is to be employed.
The firm can be reached through:
Max S. Stich, Esq.
Tiemeier & Stich P.C.
1000 E 16th Ave
Denver, CO 80218
Direct: (720) 473-7524
Phone: (303) 531-0022
Fax: (303) 531-0021
Email: mstich@tslawpc.com
About Advanced Urgent Care LLC
Advanced Urgent Care LLC is a locally owned and operated urgent
care services provider. It also offers on-site laboratory services,
x-ray services, and physical exams.
Advanced Urgent Care LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 24-14536) on August 7,
2024. In the petition filed by Anthony G. Euser, as managing
member, the Debtor reports total liabilities of $7,261,749.
The Debtor is represented by David J. Warner, Esq. at WADSWORTH
GARBER WARNER CONRARDY, P.C.
ADVENT TECHNOLOGIES: E&Y (Hellas) Raises Going Concern Doubt
------------------------------------------------------------
Advent Technologies Holdings, Inc. disclosed in a Form 10-K Report
filed with the U.S. Securities and Exchange Commission for the
fiscal year ended December 31, 2023, that its auditor expressed
substantial doubt about the Company's ability to continue as a
going concern.
Athens, Greece-based Ernst & Young (Hellas) Certified Auditors
Accountants, the Company's auditor since 2020, issued a "going
concern" qualification in its report dated August 13, 2024, citing
that the Company has suffered recurring operating losses, has a
negative working capital position and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
At December 31, 2023, the Company had $3.6 million in cash and cash
equivalents. During the years ended December 31, 2023 and 2022 the
Company incurred net losses of $71.4 million and $74.3 million,
respectively. At December 31, 2023, the Company had $8.8 million in
current assets and $11.9 in current liabilities, leaving the
Company a working capital deficit of $ (3.1) million.
A major financial challenge and significant risk facing the Company
is a lack of positive cash flow and liquidity. The Company's
ability to meet its liquidity needs will largely depend on its
ability to raise capital in the very short term and generate cash
in the future. If the Company is unable to obtain sufficient
funding, it could be required to delay its development efforts,
limit activities, and further reduce research and development
costs, which could adversely affect its business prospects and
delivery of contractual obligations. A cash shortfall at any point
in time over the next twelve months could result in the Company
failing to meet its overdue and current obligations which could
trigger action against the Company and/or its subsidiaries for
liquidation by employees, authorities, or creditors.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/5xzdzhf6
About Advent Technologies Holdings
Livermore, Calif.-based Advent Technologies Holdings, Inc. is an
advanced materials and technology development company operating in
the fuel cell and hydrogen technology space. It develops,
manufactures, and assembles complete fuel cell systems and the
critical components that determine the performance of hydrogen fuel
cells and other energy systems.
During the years ended December 31, 2023 and 2022, Advent
Technologies incurred net losses of $71.4 million and $74.3
million, respectively. As of December 31, 2023, the Company had
$34.7 million in total assets, $21.3 million in total liabilities,
and $13.4 million in total stockholders' equity.
AFFORDABLE LOGISTICS: Hires Kirby Aisner & Curley LLP as Attorney
-----------------------------------------------------------------
Affordable Logistics Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Kirby Aisner &
Curley LLP as attorneys.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its property and affairs;
(b) negotiate with the Debtor's creditors and work out a plan
of reorganization and take the necessary legal steps in order to
effectuate such a plan;
(c) prepare the necessary legal papers required for the
Debtor's protection from its creditors under Chapter 11 of the
Bankruptcy Code.
(d) appear before the bankruptcy court to protect the interest
of the Debtor and to represent it in all matters pending before the
court.
(e) attend meetings and negotiate with representatives of
creditors and other parties in interest.
(f) advise the Debtor in connection with any potential
refinancing of secured debt;
(g) represent the Debtor in connection with obtaining
post-petition financing, if necessary;
(h) take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
(i) perform all other legal services for the Debtor which may
be necessary for the preservation of its estate and to promote its
best interests, its creditors and estate.
The hourly rates of the firm's counsel and staff are as follows:
Partners $475 - $575
Associates $295 - $325
Law Clerks/Paralegals $150 - $200
In addition, the firm will seek reimbursement for expenses
incurred. The firm received a pre-petition payment in the amount of
$5,000 from the Debtor.
Dawn Kirby, Esq., an attorney at Kirby Aisner & Curley, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Dawn Kirby, Esq.
Kirby Aisner & Curley, LLP
700 White Plains Road, Suite 237
Scarsdale, NY 10583
Telephone: (914) 401-9500
Email: Dkirby@kacllp.com
About Affordable Logistics
Affordable Logistics Inc., doing business as Koski Trucking, is a
privately held trucking company.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22668) on July 30,
2024, with $725,332 in assets and $2,112,105 in liabilities. Keith
Koski, president, signed the petition.
Judge Sean H. Lane presides over the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP represents the
Debtor as legal counsel.
AGTJ13 LLC: Taps Newmark of Southern California as Broker
---------------------------------------------------------
AGTJ13, LLC, and its affiliates seek approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Newmark of Southern California, Inc. dba Newmark Knight Frank to
provide real estate brokerage services in connection with the
marketing and sale of the real property owned by the Debtors and
commonly referred to as 450 S. Western Avenue, Los Angeles, CA
90020.
The firm's services include:
a. identifying potential buyers of the property;
b. assisting the Debtors in expeditiously formulating and
implementing a strategy for soliciting interest from potential
buyers, including by developing and implementing procedures and a
timetable for marketing the property;
c. introducing the Debtors, acting through the CRO, to
potential buyers, and coordinating due diligence investigations of
the property by potential buyers;
d. assisting the Debtors with implementing, complying with,
and enforcing bidding procedures approved by the Court in
accordance with the Term Sheet;
e. publicizing/disseminating notice of the sale of the
property;
f. evaluating proposals from interested parties, formulating
negotiation strategies, and assisting in negotiations and closing
of a sale of the property; and
g. participating in hearings before the Bankruptcy Court with
respect to the matters upon which Broker has provided services or
advice, including, as relevant, providing testimony in connection
therewith.
The Debtors anticipate that William Bauman and Kyle Miller will be
the primary professionals providing services on this engagement.
The firm will receive a real estate commission of 3 percent of the
gross purchase price of the property.
William Bauman, vice chairman of Newmark of Southern California,
assured the court that his firm does not hold or represent any
interest materially adverse to the Debtors or the Debtors'
estates,
and is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
William Bauman
Newmark of Southern California, Inc.
dba Newmark Knight Frank
555 S. Flower, Suite 3550
Los Angeles, CA 90071
Phone: (213) 298-3593
Email: Bill.Bauman@nmrk.com
About AGTJ13, LLC
AGTJ13, LLC, is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11409) on Feb. 26,
2024. In the petition signed by Lafayette Jackson Sharp, IV,
manager, the Debtor disclosed up to $100 million in both assets and
liabilities.
Judge Sandra R Klein oversees the case.
Ron Bender, Esq., at LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.,
represents the Debtor as legal counsel.
AMKOR TECHNOLOGY: S&P Alters Outlook to Positive, Affirms 'BB' ICR
------------------------------------------------------------------
S&P Global Ratings revised its rating outlook on outsourced
semiconductor assembly and test (OSAT) provider Amkor Technology
Inc. to positive from stable and affirmed all of its ratings on the
company, including the 'BB' issuer credit rating.
S&P said, "The positive outlook reflects our expectation that while
Amkor will see weakened OSAT demand in 2024 leading to lower EBITDA
and free operating cash flow (FOCF) generation, we expect OSAT
demand to recover in 2025. If Amkor is able to maintain leverage
below the 2.0x area and recover FOCF generation within the next 12
months, we could consider raising our ratings."
The outlook revision reflects the possibility of an upgrade
resulting from S&P Global Ratings taking a more constructive view
of Amkor's business. Due to the ongoing digitization of products,
Amkor has seen good tailwinds tied to communications, computing,
storage, and automotive over the past few years. Even though there
has been COVID-related, and macroeconomic and sector-specific
headwinds, Amkor has still been able to execute its financial
performance well.
One of the main reasons is that Amkor has seen strong demand in its
OSAT communications services on transition to 5G smartphones and
Advanced System in Package (SiP) technology. That strong demand
allowed for Amkor to see its operating scale improve more than 50%
for organic revenue over the past five years to the $6.5 billion
area in 2023. Due to the strong growth and stable EBITDA margins
around 20%, EBITDA generation grew more than 45% over the past five
years to around $1.18 billion in 2023.
Amkor's capital intensity is high compared to other technology
hardware providers because they must invest in research and
development (R&D) and equipment, and have facility-related costs to
keep up with new technological innovation. While yearly capital
requirements can be more than $500 million, Amkor has been able to
more than double its FOCF generation to over $200 million during
the past five years on improved EBITDA generation. S&P also
believes the high capital spending requirements can also be seen as
a moat around the OSAT market, as it would be hard for new entrants
to invest that much annually to get its OSAT business started.
Amkor has continued to exhibit a conservative financial policy.
Even though its operating scale has continued to increase over the
past few years, Amkor has still taken a conservative approach to
its financial policy. It has not undertaken any large debt-funded
acquisitions over the past five years. While it does undergo
dividend payments, it is usually paid down with FOCF generation.
Amkor has also seen it balance sheet cash improve as its FOCF
generation has improved. While it does have large annual capital
spending requirements, the investment usually comes from Amkor's
EBITDA generation. Due to the strengthening business operations,
Amkor has seen its balance sheet cash and short-term investments
almost double over the past five years to almost $1.6 billion. Due
to that large amount of cash on the balance sheet, S&P projects
that Amkor will be able to keep leverage below the 0.5x area in
2024.
S&P said, "We project that Amkor should begin to see OSAT demand
recover in 2025 leading to improved FOCF generation. While there
has been significant improvement in Amkor's financial performance
over the past few years, we expect Amkor's 2024 performance to
continue to be hampered by weak OSAT demand. Amkor's 2023 revenue
was hampered by macroeconomic environment, excess inventory, and
geopolitical tensions, which led to an 8% decline in revenue year
over year. We expect Amkor's revenue to be flat in 2024 as
automotive and industrial and consumer demand weakness persist.
While EBITDA margins will be stable, we believe that FOCF
generation will be around $160 million in 2024.
"However, we believe this is the trough in terms of Amkor's
financial performance. We believe that demand for advanced
packaging solutions will rebound tied to communications and
computing demand such that Amkor's revenue should see
high-single-digit growth in 2025. We also project that Amkor's
EBITDA margins will improve and return to the low-20% area as
utilization recovers and product mix improves. That EBTIDA
improvement should help drive FOCF generation above the $200
million area in 2025.
"The positive outlook reflects our expectation that while Amkor
will see weakened OSAT demand in 2024 leading to low EBITDA and
FOCF generation, we expect OSAT demand to recover in 2025. If Amkor
is able to maintain leverage below the 2.0x area and recover FOCF
generation within the next 12 months, we could consider raising our
ratings.
"We could consider revising the outlook to stable if we see Amkor
sustain leverage above the 2.0x area or FOCF generation below $150
million due to weakened end customer demand or increased investment
costs. This could also occur if Amkor becomes more aggressive with
its financial policy with increased acquisitions or shareholder
returns.
"We could consider an upgrade if Amkor is able to sustain leverage
below the 2.0x area on its conservative financial policy and return
to growth such that FOCF generation returns to historical levels.
This could occur if Amkor sees revenue grow as expected in 2025 as
demand for its OSAT services recover."
APPLIED UV INC: Cullen and Dykman Revises Rule 2019 Statement
-------------------------------------------------------------
The law firm of Cullen and Dykman, LLP ("C&D") filed an amended
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure to disclose that in the Chapter 11 cases of
Applied UV Inc. and Sterilumen, Inc., the firm represents Stern
Lawrence Holdings LLC, Andrew Webb Lawrence, James Colantoni and
Brian Stern.
Stern Lawrence Holdings, Andrew Webb Lawrence, James Colantoni and
Brian Stern, individually and as the Member Representative under
the Agreement And Plan Of Merger By And Between Applied UV, Inc.,
Puro Acquisition Sub I, Inc., Puro Acquisition Sub II, LLC, Puro
Lighting, LLC, Brian Stern, Andrew Lawrence and The Member
Representative Dated As Of December 19, 2022 (the "Merger
Agreement") and Hazel Creek Real Estate L.L.C. (collectively, the
"Creditors").
Creditors Brian Stern, individually, Andrew Webb Lawrence and James
Colantoni each own the following equity securities of the Debtors:
* Andrew Webb Lawrence: 159,996 of Series C Cumulative
Perpetual Preferred shares of Debtor Applied UV, Inc.
* Brian Stern: 189,774 of Series C Cumulative Perpetual
Preferred shares of Debtor Applied UV, Inc.
* James Colantoni: 11,964 of Series C Cumulative Perpetual
Preferred shares of Debtor Applied UV, Inc.
C&D was engaged by each of the Creditors to represent their
respective individual interests in connection with the commencement
of the Debtors' Case.
The Creditors' address and the nature and amount of disclosable
economic interests held in relation to the Debtors are:
1. Stern Lawrence Holdings LLC
Attn: Brian Stern
2951 Quitman St.
Denver, CO 80212
* Stern Lawrence Holdings LLC leases office and warehouse space
to the Debtors located at 12340
West Cedar Drive, Lakewood, CO 80228. As of the commencement of
this Case, the Debtors owed
Stern Lawrence Holdings LLC a total of $54,692.92.
2. Andrew Webb Lawrence
195 S. Humboldt St.
Denver, CO 80209
* Mr. Lawrence is owed earn out funds related to the PURO/ LED
merger with Debtor Applied UV,
Inc. and unemployment and severance claims arising from his
termination without cause and
unreimbursed expenses. As of the commencement of this Case, the
Debtors owed Mr. Lawrence a
total of $8,042,613.
3. Brian Stern, individually
2951 Quitman St., Denver, CO 80212
* Mr. Stern is owed earn out funds related to the PURO/ LED
merger with Debtor Applied UV, Inc.
and unemployment and severance claims arising from his
termination without cause and
unreimbursed expenses. As of the commencement of this Case, the
Debtors owed Mr. Stern a total
of $8,396,750.
* Brian Stern as Member Representative under the Merger
Agreement.
* Mr. Stern represents members who are owed earn out funds
related to the PURO/ LED merger with
Debtor Applied UV, Inc. As of the commencement of this Case, the
Debtors owed the members
cumulatively a total of $18,375,000.
4. James Colantoni
1860 Tremont Rd, Columbus OH 43212
* Mr. Colantoni is owed earn out funds related to the PURO/ LED
merger with Debtor Applied UV,
Inc. and unemployment and severance claims arising from his
termination without cause and
unreimbursed expenses. As of the commencement of this Case, the
Debtors owed Mr. Colantoni a
total of $3,141,250.
5. Hazel Creek Real Estate L.L.C
179 Willow Glen Drive, Marietta, GA. 30068.
* Hazel Creek Real Estate L.L.C. leases warehouse space to the
Debtors located at 3625 Kennesaw
North Industrial Parkway, NW Kennesaw, Ga. As of the
commencement of this Case, the Debtors
owed Hazel Creek Real Estate L.L.C. a total of $12,500.
The law firm can be reached at:
CULLEN AND DYKMAN LLP
Michelle McMahon, Esq.
One Battery Park Plaza, 34th Fl.
New York, New York 10004
T: (212) 510-2296
E: mmcmahon@cullenllp.com
About Applied UV Inc.
Applied UV Inc. -- https://www.applieduvinc.com -- is focused on
the development and acquisition of technologies that address food
security and air and surface pathogen reduction in the healthcare,
hospitality, and commercial markets.
Applied UV Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22462) on May 24,
2024. In the petition signed by Max Munn, as chief executive
officer, 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:
Erica Feynman Aisner, Esq.
Kirby Aisner & Curley LLP
150 N. Macquesten Parkway
Mount Vernon, NY 10550
Email: eaisner@kacllp.com
ASURION LLC: S&P Rates Proposed $1.25BB Term Loan B-12 'B+'
-----------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to Asurion
LLC's proposed $1.25 billion term loan B-12 due 2030. S&P also
assigned a '3' recovery rating, indicating its expectation of
meaningful recovery (50%-70%; rounded estimate: 65%) in the event
of payment default. All existing ratings, including the 'B+' issuer
credit ratings on Asurion Group Inc., Asurion LLC, and Lonestar
Intermediate Super Holdings LLC, are unchanged by the new debt
issuance.
S&P said, "We view this transaction as leverage neutral because
Asurion intends to use proceeds from the new issuance to partially
refinance $1.25 billion of its existing $3 billion B-8 term loan
due December 2026. We expect the new financing to be priced on a
SOFR benchmark and a higher spread, with all other terms identical
to the company's existing first-lien term loans. Pro forma for the
transaction, our adjusted debt to EBITDA is about 6.1x for the last
12 months ended June 30, 2024, with EBITDA interest coverage in the
low-2x area. These metrics remain within our expectations for the
current rating."
For the first half of 2024, Asurion showed a slight decline in
mobile protection subscribers, though revenue grew modestly driven
by continued uptake in ancillary and bundled service offerings and
greater revenue recognition relating to a recent program change on
a key contract. S&P-adjusted EBITDA margins contracted marginally
year over year, reflecting a concession related to a contract
renewal, non-recurring charges, and the revenue recognition change.
S&P continues to expect modest subscriber declines, revenue gains,
and relatively steady adjusted EBITDA margins for 2024-2025 with
modest delivering during this period.
AVENTIV TECHNOLOGIES: $1.04BB Bank Debt Trades at 30% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aventiv
Technologies LLC is a borrower were trading in the secondary market
around 70.1 cents-on-the-dollar during the week ended Friday, Sept.
6, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.04 billion Term loan facility is scheduled to mature on July
31, 2025. The amount is fully drawn and outstanding.
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
AVENTIV TECHNOLOGIES: Prospect Capital Marks $85.6M Loan at 46% Off
-------------------------------------------------------------------
Prospect Capital Corporation has marked its $85,602,000 loan
extended to Aventiv Technologies, LLC to market at $46,08 or 54% of
the outstanding amount, according to a disclosure contained in
Prospect Capital's Amended Form N-CSR for the fiscal year ended
June 30, 2024 filed with the Securities and Exchange Commission on
August 28, 2024.
Prospect Capital is a participant in a Second Lien Term Loan to
Aventiv Technologies, LLC. The loan accrues interest at a rate of
14.65% (3M SOFR+ 9.05%, 1% Floor) per annum. The loan matures on
November 1, 2025.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel. : (212) 448-0702
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
AVIENT CORP: Moody's Rates Proposed $650MM Unsecured Notes 'Ba3'
----------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to Avient Corporation's
proposed $650 million senior unsecured notes due in 2031. The net
proceeds of the issuance and cash on hand will be used to refinance
the company's existing $650 million senior unsecured notes due May
2025. The transaction is leverage neutral and will push out the
upcoming maturity, reducing the refinancing risk. The Ba2 Corporate
Family Rating, Ba2-PD Probability of Default Rating, Ba1 rating on
the existing first lien term loan and Ba3 rating on the other
senior unsecured notes are unchanged. The Speculative Grade
Liquidity Rating (SGL) SGL-1 is maintained. The outlook is stable.
RATINGS RATIONALE
Avient Corporation's Ba2 rating incorporates the company's enhanced
scale, geographic reach, and reduced exposure to cyclical end
markets through strategic acquisitions and divestitures. About half
of its sales are now generated from less economically sensitive
markets such as packaging, healthcare and consumer, with the
remainder from cyclical end markets such as building and
construction, transportation and defense. Its business
transformation has expanded its presence in specialty product
offerings with sound growth prospects and good profitability
(adjusted EBITDA margin in the mid to high teens). Moody's expect
Avient's credit metrics will be consistent with the rating over
time. The rating is further supported by the company's large cash
balance, projected free cash flow generation and expectations of
improving earnings in 2024, though the pace of deleveraging is
slower than originally expected.
Avient's rating is constrained by the elevated gross debt leverage
(approximately 3.7x in the twelve months ended June 30, 2024 on a
Moody's adjusted basis), potential business acquisitions and
shareholder remuneration. The credit profile is further limited by
Avient's exposure to several end markets that are highly cyclical
including industrial, building and construction and transportation,
of which autos is the largest concentration. Future cash outflows
include the integration of acquired businesses and remedial
spending at Calvert City.
The stable outlook reflects Moody's expectations that the company
will continue to execute on deleveraging, and that adjusted
financial leverage (Debt/EBITDA) returns towards 3.5x within 24
months from the close of the Dyneema transaction (September 2022).
Moody's also expect Avient to continue generating solid free cash
flow and maintain good liquidity, including balance sheet cash and
revolving credit availability, to support operations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade the rating with expectations for retained
cash flow-to-debt (RCF/Debt) sustained above 20% and adjusted
financial leverage sustained below 3.0x. An upgrade would also
require a commitment to more conservative financial policies
The ratings could be downgraded with expectations for retained cash
flow-to-debt (RCF/Debt) sustained below 15%, adjusted financial
leverage sustained above 4.0x, or available liquidity below $500
million. Additionally, Moody's could downgrade the rating if there
is a significant debt-funded acquisition or failure to obtain the
targeted cost synergies.
Avient's SGL-1 rating reflects expectations that the company will
maintain very good liquidity over the next 12 months. Moody's
expect the company will be able to meet operational needs and
estimated capital expenditures of approximately $140 million with
internally generated funds. Avient had cash on hand of $489 million
at the end of June 2024, and $244.9 million of availability under
its $500 million asset-based lending facility (unrated). The ABL is
subject to borrowing base limitation and was undrawn as of June 30,
2024. The revolver expires on October 26, 2026. The revolver is the
nearest maturity after the 2025 notes are refinanced. Term loan
annual amortization payments are approximately $7.2 million. The
revolver is subject to springing fixed charge coverage ration when
availability falls below certain percentage. The company would be
in compliance with the fixed charge covenant if triggered, but
Moody's do not expect this covenant to be triggered.
Avient Corporation, headquartered in Avon Lake, Ohio, is a
formulator of specialized and sustainable material solutions.
Avient develops and manufactures performance enhancing additives
and advanced composites as well as liquid, fluoropolymer, and
silicone colorants. Avient reported revenue of approximately $3.2
billion for the last twelve months ended June 30, 2024.
The principal methodology used in this rating was Chemicals
published in October 2023.
BBQ 4 LIFE: Seeks to Tap Johnson May as Bankruptcy Counsel
----------------------------------------------------------
BBQ 4 Life, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Idaho to employ Johnson May as its counsel.
The firm's services include:
a. preparing and filing of a Petition, Schedules, Statement of
Financial Affairs, and other related pleadings;
b. attending all meetings of creditors, hearings, pretrial
conferences, and trials in the case or any litigation arising in
connection with the case, whether in state or federal court;
c. preparing, filing, and presentation to the Bankruptcy Court
of any pleadings requesting relief;
d. preparing, filing, and presentation to the court of a
disclosure statement (if necessary) and plan or arrangement under
Chapter 11 of the Bankruptcy Code;
e. reviewing claims made by creditors or interested parties,
preparing, and prosecution of any objections to claims as
appropriate;
f. preparing, filing, and presentation to the court of all
applications to employ and compensate professionals in the Chapter
11 proceeding; and
g. preparing and presentation of a final accounting and motion
for final decree closing the bankruptcy case.
The firm's hourly rates are as follows:
Attorneys $225 to $425
Paralegal $95 to $175
The firm shall receive a retainer in the amount of $16,300.
As disclosed in court filings, Johnson May does not represent
interests adverse to the Debtor and its estate.
The firm can be reached through:
Matthew T. Christensen, Esq.
JOHNSON MAY, PLLC
199 N. Capitol Blvd., Suite 200
Boise, ID 83702
Telephone: (208) 384-8588
Facsimile: (208) 629-2157
Email: mtc@johnsonmaylaw.com
About BBQ 4 Life, LLC
BBQ 4 Life, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Idaho Case No.
24-00585) on August 30, 2024, listing up to $50,000 in assets and
$500,001 to $1 million in liabilities.
Judge Noah G Hillen presides over the case.
Matthew T. Christensen, Esq. at Johnson May, PLLC represents the
Debtor as counsel.
BEASLEY BROADCAST: S&P Lowers ICR To 'CC' on Debt Restructuring
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
Beasley Broadcast Group Inc. to 'CC' from 'CCC+' and its
issue-level rating on its senior secured notes to 'CC' from
'CCC+'.
Beasley has announced a debt restructuring under which it proposes
to extend the maturity of its senior secured notes to 2028 from
2026, offer to buy up to $68 million of its existing senior secured
notes due 2026 at a material discount to par, and issue $30 million
of new super-priority senior secured notes due 2028.
The negative outlook reflects that, upon the completion of the
transaction, S&P expects to lower its issuer credit rating on the
company to 'SD' (selective default) and its issue-level rating on
its senior secured notes to 'D'.
S&P said, "We view the proposed restructuring as distressed and
tantamount to a default. In our view, the proposed debt
restructuring is distressed because Beasley's lenders will receive
less than they were originally promised. In addition, absent the
proposed transaction, the company's leverage is currently elevated
at about 10x and we have little visibility into its ability to
materially improve its leverage ahead of its 2026 debt maturity,
given the secular and cyclical challenges facing the broadcast
radio industry."
Under the proposed debt restructuring, the company plans to:
-- Exchange its 8.625% senior secured notes ($267 million
outstanding) due 2026 for a combination of new 9.2% senior secured
notes due August 2028, common stock, and a consent fee;
-- Repurchase up to $68 million of its existing 8.625% senior
secured notes at 62.5% of par; and
-- Issue new $30 million 11% super-priority senior secured notes
due 2028.
S&P said, "We expect Beasley will use the proceeds from the new
super-priority senior secured notes to help fund its debt buyback,
given that it only had approximately $27 million of cash on its
balance sheet as of June 30, 2024.
"We do not believe the higher interest rates on the new debt will
provide the company's lenders with adequate compensation.
"The transaction will require the full participation of all
existing noteholders. If Beasley completes the transaction as
described, we would treat it as a selective default and lower our
issuer credit rating to 'SD' and our issue-level rating on both
debt tranches to 'D'. Following the completion of the transaction,
we would also review the company's new capital structure, cash
flow, and liquidity position and reassess our ratings.
"The negative outlook reflects our expectation that, upon the
completion of the transaction, we will lower our issuer credit
rating on Beasley to 'SD' and our issue-level rating on its senior
secured notes to 'D'.
"We will lower our issuer credit rating on Beasley to 'SD' and our
issue-level ratings on the affected debt to 'D' if it completes the
transaction as proposed.
"We could raise our rating on Beasley if it does not consummate the
transaction, likely to the 'CCC' category. Under this scenario, our
rating would reflect the potential for other restructuring
initiatives and the company's ability to refinance its upcoming
debt maturities while generating positive free operating cash
flow."
BELK INC: S&P Withdraws 'CCC-' ICR Due to Insufficient Information
------------------------------------------------------------------
S&P Global Ratings withdrew its 'CCC-' issuer credit rating on
department store operator Belk Inc. due to insufficient
information. The outlook was negative at the time of withdrawal.
S&P also withdrew its 'CCC' issue-level rating on the company's
$300 million first-lien first-out (FLFO) term loan and 'C'
issue-level ratings on the company's $815 million first-lien
second-out (FLSO) and $110 million second-lien term loans.
S&P notes that Belk reportedly closed a transaction in July that
reduced its outstanding debt by more than $950 million, extended
the maturity on its existing asset-based credit facility, and
secured about $485 million in new capital. Given the lack of
information, S&P was unable to determine if the transaction
constituted a distressed exchange and a breach of the original
promise for a significant portion of the company's debt and,
therefore, tantamount to default.
BELLA RAGAZZA: Kathleen DiSanto Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Kathleen DiSanto, Esq., at
Bush Ross, P.A., as Subchapter V trustee for Bella Ragazza Salon,
LLC.
Ms. DiSanto will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. DiSanto declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kathleen L. DiSanto, Esq.
Bush Ross, P.A.
P.O. Box 3913
Tampa, FL 33601-3913
Phone: (813) 224-9255
Fax: (813) 223-9620
Email: disanto.trustee@bushross.com
About Bella Ragazza Salon
Bella Ragazza Salon, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Fla. Case No. 24-04911) on August 21, 2024, with up to
$50,000 in assets and $100,001 to $500,000 in liabilities.
Judge Roberta A. Colton oversees the case.
Buddy D. Ford, P.A. is the Debtor's legal counsel.
BENHAM ORTHODONTICS: Taps Joyce W. Lindauer as Bankruptcy Counsel
-----------------------------------------------------------------
Benham Orthodontics & Associates, P.A. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to hire Joyce
W. Lindauer Attorney, PLLC as bankruptcy counsel to handle the
Chapter 11 proceedings.
The firm's hourly rates are as follows:
Joyce W. Lindauer, Esq. $550 per hour
Paul B. Geilich, Esq. $450 per hour
Sydney Ollar, Esq. $325 per hour
Laurance Boyd, Esq. $275 per hour
Dian Gwinnup $225 per hour
The Debtor received from the Debtor the amount of $16,738,
inclusive of filing fee.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Joyce Lindauer, Esq., the owner of the law firm, disclosed in a
court filing that she is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Benham Orthodontics & Associates
Benham Orthodontics & Associates, P.A. provides orthodontic care to
children and adults. It is based in Colleyville, Texas, and
conducts business under the name Benham Family Orthodontics.
Benham sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas Case No. 24-42784) on August 7, 2024, with
up to $50,000 in assets and up to $10 million in liabilities. Adam
Benham, director, signed the petition.
Judge Edward L. Morris presides over the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC
represents the Debtor as bankruptcy counsel.
BIOLASE INC: Obtains Forbearance; Ready Chapter 11 Filing
---------------------------------------------------------
Biolase, Inc., disclosed in a Form 8-K filed with the Securities
and Exchange Commission that in connection with and following
receipt of a written notice from SWK Funding LLC as agent and a
lender, under that certain Credit Agreement, dated Nov. 9, 2018 by
and among the Company, the lender parties thereto, and the Agent,
that an Event of Default (as defined in the Credit Agreement) has
occurred, the Company and the Agent entered into a forbearance
agreement, dated Aug. 31, 2024. Under the terms of the Forbearance
Agreement, the Lenders agreed: (a) not to accelerate or cause the
acceleration of the maturity of the loans or other obligations or
to otherwise enforce payment of the obligations of the Company in
full under the Credit Agreement and the loan documents, and (b) not
to exercise any other default or Event of Default related rights
and remedies available to any or all of Lenders or Agent against
the Company under any loan document or applicable law with respect
to any obligation owed under the loan documents. Upon termination
or expiration of the period beginning at the time when all
conditions to the effectiveness of the Forbearance Agreement have
been satisfied through the earliest of the following: (a) the date
of the occurrence of (i) any Event of Default (other than the
Existing Default), (ii) the failure of the Company to comply with
any term, condition, or covenant set forth in the Forbearance
Agreement, (iii) the commencement or continuation of any
enforcement action against the Company or any of its property by
any creditor of the Company having a lien on the assets of the
Company, (iv) the Company shall suffer the appointment of a
receiver, trustee, custodian or similar fiduciary, or shall make an
assignment for the benefit of creditors, or any petition for an
order for relief shall be filed by or against the Company under
Title 11 of the United States Code, as amended, (v) the
commencement of any litigation or other proceeding by the Company
or any of its respective affiliates against Agent, any Lender or
any of its respective affiliates, or (vi) any halt or termination
of the process in preparing and filing a bankruptcy case under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware for the sale of the Company's
assets, and (b) 12:01 a.m. (Dallas, Texas time) on Oct. 7, 2024,
the Agent and/or Lenders shall be entitled to exercise any of its
respective rights and remedies under the Forbearance Agreement, the
other loan documents, or applicable law, including, without
limitation, the right to enforce any and all of the liens on, and
security interests in, the collateral described in the loan
documents, without further notice, demand, notice of intent to
accelerate, notice of acceleration, presentment, protest or other
formalities of any kind. The Company also agreed to pay the
reasonable fees and expenses of the Lenders and the Agent in
connection with entering into the Forbearance Agreement and the
other loan documents.
The Forbearance Agreement amends Section 7.13.1 of the Credit
Agreement to not permit the Consolidated Unencumbered Liquid Assets
(as defined in the Credit Agreement), as of any date of
determination prior to Dec. 31, 2023, to be less than $1,500,000
and as of any date of determination on or after Dec. 31, 2023, to
be less than $1,000,000 (reduced from $2,500,000 in the Credit
Agreement before giving effect to this amendment).
In addition, the Forbearance Agreement provides that during the
Forbearance Period, provided no Forbearance Default has occurred
and certain other conditions are met, Agent and Lenders agreed to
fund term loans, in an aggregate amount not to exceed $2,500,000
(the bridge loan) and in accordance with the terms of the
Forbearance Agreement, to pay operating expenses of the Company,
including, without limitation, payments with respect to out of
pocket legal or restructuring expenses of the Company, Agent or
Lenders.
Under the Forbearance Agreement, the Company also agreed to, among
other things, prepare for and file a bankruptcy case under Chapter
11 of the Bankruptcy Code in the United States Bankruptcy Court for
the District of Delaware for the sale of the Company's assets. In
connection with the sale process the Company agreed to comply with
certain process milestones which require, among other things, the
entry into a purchase and sale agreement with a so-called "stalking
horse bidder" by Sept. 30, 2024, filing a bankruptcy case by Oct.
1, 2024, and closing the sale by Nov. 15, 2024. A full list of the
milestones can be found in Schedule 1 of the Forbearance Agreement.
All of the milestones and the entire sale process are subject to
bankruptcy court approval and the milestones that occur after the
commencement of the Company's bankruptcy case are subject to change
by the bankruptcy court to accommodate its own schedule. The
existence of the milestones does not constitute consent or approval
of the Agent or any Lender to the consummation of any of the
transactions described or the deliverables contemplated by the
milestones.
The Forbearance Agreement further provides that the Company shall
request that Lenders provide a debtor-in-possession loan to the
Company in the Chapter 11 case, on terms acceptable to the Agent
and Lenders. The Agent is to condition the provision of the DIP
Loan to the Company on the $2,500,000 bridge loan described in the
preceding paragraph itself being considered a debtor-in-possession
loan and being "rolled-up" in the DIP Loan to be provided to the
Company in the Chapter 11 case pursuant to the final order that
will be entered in the Chapter 11 case by the bankruptcy court
approving the DIP Loan.
During the Forbearance Period, the Company has agreed, among other
things: (a) not to grant or pay any executive bonuses without the
consent of the Agent, (b) to provide the Agent with notice of any
employee resignation, (c) not to make any expenditure for the
business to consumer laser product line, (d) to comply with the
cash flow forecasted budget it created in connection with entering
into the Forbearance Agreement and to keep its aggregate
expenditures within an agreed upon budget variance of 10% in the
case of expenditures, (e) to provide weekly reporting of actual
results compared to the budget, (f) not to suffer the appointment
of a receiver, trustee, custodian or similar fiduciary, (g) to pay
all reasonable fees and expenses incurred by the Agent and Lenders
in connection with the Forbearance Agreement and the loan
documents, including the reasonable and documented fees and
expenses of the Agent's and Lenders' external counsel, and (h) not
to pay or make any distributions on account of subordinated debt of
the Company and its subsidiaries or agree to any amendments to any
subordinated debt documents without the Agent's consent.
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.
BLAIRMARKS LLC: Seeks to Hire Cushner & Associates as Counsel
-------------------------------------------------------------
Blairmarks, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire the Law Office of Cushner
& Associates, P.C. as attorneys.
The firm's services include:
(a) advising the Debtor concerning the conduct of the
administration of its bankruptcy case;
(b) preparing all necessary applications and motions as
required under the Bankruptcy Code, Federal Rules of Bankruptcy
Procedure, and Local Bankruptcy Rules;
(c) preparing a disclosure statement and plan of
reorganization; and
(d) performing all other legal services that are necessary to
the administration of the case.
The firm's hourly rates are as follows:
Todd S. Cushner, Esq., $500
Associate attorney $300
Paralegals $200
Cushner & Associates received a retainer in the amount of $5,000.
James Rufo, Esq., an associate attorney at Cushner & Associates,
disclosed in court filings that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Todd S. Cushner, Esq.
The Law Office of Cushner & Associates, P.C.
399 Knollwood Road Suite 205
White Plains, NY 10603
Telephone: (914) 600-5502
Facsimile: (914) 600-5544
Email: todd@Cushnerlegal.com
About Blairmarks LLC
Blairmarks, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. N.Y. Case No. 24-22693) on August 5,
2024, with $500,001 to $1 million in assets and $100,001 to
$500,000 in liabilities.
Judge Sean H. Lane presides over the case.
Todd S. Cushner, Esq., at Cushner & Associates, P.C. represents the
Debtor as legal counsel.
BLD REALTY: Seeks to Hire Ikenna O. Emeruem as Legal Counsel
------------------------------------------------------------
BLD Realty LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to hire the Law Office of Ikenna O.
Emeruem as its counsel.
The firm's services include:
a. advising the Debtor of its rights, powers and duties as a
Debtor and Debtor-in-possession in the continuing operation of its
business;
b. preparing all necessary motions, applications, answers,
orders, reports, and other legal papers;
c. appearing before the Bankruptcy Court and any appellate
courts;
d. advising in connection with any sale of assets;
e. taking action to protect and preserve the Debtor's estate;
f. preparing all necessary motions, applications, and other
legal papers in connection with the administration of the estate;
g. reviewing the nature and validity of any liens asserted
against the Debtor's property and advising on the enforceability of
such liens;
h. advising on executory contract and unexpired lease
assumptions, assignments and rejections;
i. advising with the formulation, negotiation and promulgation
of a plan of reorganization and related documents;
j. performing other legal services;
k. reviewing claims and negotiating with creditors;
l. assisting with the reporting requirements to the Office of
the United States Trustee;
m. representing in any adversary proceedings and other
proceedings before the Court;
n. assisting with cash collateral and financing issues and
documentation;
o. advising on tax matters related to the bankruptcy;
p. assisting with any investigations or examinations of the
Debtor's financial affairs; and
q. preparing reports and other documents required by the
Bankrutpcy Code, Bankruptcy Rules, or the Court.
The firm's compensation will be based on its usual and customary
hourly rates.
Emeruem Law is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Ikenna O. Emeruem, Esq.
Law Office Of Ikenna O. Emeruem
8585 N Stemmons Fwy Ste 375S
Dallas, TX 75247-3821
Phone: (214) 631-1616
Email: ikemeruem@ikemlaw.com
About BLD Realty LLC
BLD Realty LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B).
BLD Realty LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bank. N.D. Tex. Case No. 24-31610) on June 3,
2024. In the petition filed by Lubna Bilal, as owner, the Debtor
reports estimated assets and liabilities between $500,000 and $1
million.
The Debtor is represented by Ikenna Emeruem, Esq. at Law Office of
Ikenna O. Emeruem.
BLUE DUCK: Friedman & Feiger Revises Rule 2019 Statement
--------------------------------------------------------
The law firm of Friedman & Feiger, LLP ("F&F") filed an amended
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure to disclose that in the Chapter 11 case of
Blue Duck Energy, Ltd., the firm represents Stewart Hoge, Hoge &
Gameros, LLP ("H&G"), Indian Territory Holdings, LLC ("ITH"), Seth
Wadley ("Wadley"), Wadley Family Investments, LLC ("WFI") and
Purple Dog Investments, LLC ("Purple Dog") and Stewart B. Hoge, PC
(the "Hoge and Wadley Parties").
F&F fully advised each of the Hoge and Wadley Parties with respect
to F&F's concurrent representation of them. Each of the Hoge and
Wadley Parties consented to that representation and requested that
F&F represent them in the Bankruptcy Case.
The Hoge and Wadley Parties, in addition to the Debtor, are co
defendants in Cause No. DC-23-06044 (the "State Court Action") that
was pending in the 192nd Judicial District Court of Dallas County,
Texas where the plaintiffs are JetTexas Oil, LLC and Garrett
Johnson, and the third party defendants are Brandi E. Johnson and
Jacob "Jack" Ziegler.
The other co-defendants in the State Court Action are Blue Duck GP,
LLC (the Debtors general partner) and James Kondziela (the Manager
of Blue Duck GP). On the Petition Date, the Debtor filed its Notice
of Removal under Bankruptcy Rule 9027, Local Bankruptcy Rule 9027-1
and Local Rule 81.1 transferring the State Court Action to this
Court in the Bankruptcy Case and creating an adversary proceeding.
In addition, ITH owns a 50% partnership interest in the Debtor and
Hoge is a Manager of ITH.
The State Court Action involves issues regarding, inter alia, the
ownership interest of the other 50% of the Debtor. JetTexas and
Johnson (the 100% owner Manager of JetTexas) claim that JetTexas
owns the other 50% of the Debtor while the Hoge and Wadley Parties
claim that WFI owns the other 50% of the Debtor. Wadley is the 100%
owner and Manager of WFI.
The Entities' names and address are:
1. Stewart Hoge
6116 North Central Expressway, Suite 1400,
Dallas, Texas 75206
2. Hoge & Gameros, LLP
6116 North Central Expressway, Suite 1400,
Dallas, Texas 75206
3. Indian Territory Holdings, LLC
6116 North Central Expressway, Suite 1400,
Dallas, Texas 75206
4. Stewart B. Hoge, PC
6116 North Central Expressway, Suite 1400,
Dallas, Texas 75206
5. Seth Wadley
2930 Adams Road, No. 140, Norman,
Oklahoma 73069
6. Wadley Family Investments, LLC
2930 Adams Road, No. 140, Norman,
Oklahoma 73069
7. Purple Dog Investments, LLC
2930 Adams Road, No. 140, Norman,
Oklahoma 73069
The law firm can be reached at:
FRIEDMAN & FEIGER, L.L.P.
Lawrence J. Friedman, Esq.
Seymour Roberts, Jr., Esq.
Dominion Plaza West
17304 Preston Road, Suite 300
Dallas, Texas 75252
(972) 788-1400 (Telephone)
(972) 788-2667 (Telecopier)
Email: lfriedman@fflawoffice.com
sroberts@fflawoffice.com
About Blue Duck Energy
Blue Duck Energy, Ltd., sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-20224) on Aug.
14, 2024, with $10 million to $50 million in assets and
liabilities. James Kondziela, Manager of the Debtor's General
Partner, signed the petition.
BONDS ELLIS EPPICH SCHAFER JONES LLP, led by Joshua N. Eppich, is
the Debtor's legal counsel.
BLUE DUCK: Hires Bonds Ellis Eppich Schafer Jones as Counsel
------------------------------------------------------------
Blue Duck Energy, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Bonds Ellis
Eppich Schafer Jones LLP as counsel.
The firm's services include:
a. giving bankruptcy-related legal advice to the Debtor;
b. assisting the Debtor in preparing applications, notices,
motions, answers, orders, reports, schedules, statement of affairs,
and other legal papers;
c. assisting the Debtor in negotiating and formulating
reorganization plan(s) and related documents;
d. assisting the Debtor in preserving and protecting the value
of the Debtor's estate; and
e. performing all other legal services for the Debtor that may
be necessary or appropriate in administering the Chapter 11 Case.
The firm will be paid at these rates:
Attorneys $300 to $750 per hour
Paraprofessionals $125 to $250 per hour
The firm received a total of $50,000 in retainers and payments in
the 90 days prior to the Petition Date.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Joshua N. Eppich, Esq., a partner at Bonds Ellis Eppich Schafer
Jones LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Joshua N. Eppich, Esq.
Bonds Ellis Eppich Schafer Jones LLP
420 Throckmorton Street, Suite 1000
Fort Worth, TX 76102
Tel: (817) 405-6900
Fax: (817) 405-6902
Email: joshua@bondsellis.com
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
BLUE RIBBON LLC: $368MM Bank Debt Trades at 32% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Blue Ribbon LLC is
a borrower were trading in the secondary market around 67.8
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $368 million Term loan facility is scheduled to mature on May
8, 2028. About $322 million of the loan is withdrawn and
outstanding.
Blue Ribbon, LLC, parent company of Pabst Brewing Company, is one
of the largest privately held independent brewers in the US, with a
portfolio of iconic American beer brands.
BYLEGACY TEAM: Seeks to Hire Fox Rothchild as Special Counsel
-------------------------------------------------------------
Bylegacy Team, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ Fox Rothchild LLP
as special counsel.
The firm will render these services:
(a) provide legal advice to and representation of the Debtor
with respect to the tax appeal; and
(b) perform all legal work required by the Debtor relating to
the Tax appeal.
The firm shall be compensated on an contingency basis of 25 percent
of one year's tax savings or if the reduction is secured for only
one year the fee will be 20 percent of that tax years saving, plus
reimbursement of the actual and necessary expenses.
As disclosed in the court filings, Fox Rothchild does not hold or
represent any interest adverse to the Debtor or its Chapter 11
estates, creditors or any other party in interest with respect to
the union matters as required in 11 U.S.C. Sec. 327(e).
The firm can be reached through:
Mary T. Nicolau, Esq.
Fox Rothschild LLP
321 N. Clark Street, Suite 1600
Chicago, IL 60654
Tel: (312) 517-9208
Fax: (312) 517-9201
Email: mnicolau@foxrothschild.com
About Bylegacy Team, Inc.
Bylegacy Team, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
N.D. Ill. Case No. 24-09747) on July 2, 2024. At the time of
filing, the Debtor estimated $100,001 to $500,000 on both assets
and liabilities.
Judge Jacqueline P Cox presides over the case.
The Debtor hires O. Allan Fridman as counsel.
CITGO PETROLEUM: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a
Stable Outlook and the IDR of CITGO Holding, Inc. (Holdco) at
'CCC+'. Fitch also affirmed Opco's existing senior secured notes
and industrial revenue bonds at 'BB'/'RR1'.
The ratings are negatively affected by operational risks and
contagion effects from U.S. sanctions on CITGO's ultimate parent,
Petroleos de Venezuela S.A. (PDVSA). The ratings are supported by
the quality of refining assets, significant scale, moderate debt
and plentiful liquidity.
Opco and Holdco ratings are based on their standalone IDRs and
reflect Holdco's dependence on dividends from Opco, which may
potentially be constrained by the debt covenants at Opco level and
sanctions-related policies.
Key Rating Drivers
Change of Control Risks: CITGO's indirect parent is PDVSA, a
national oil company owned by the government of Venezuela. The
parent's financial weakness creates a few paths that could trigger
change of control clauses and a forced refinancing of CITGO's debt.
These include creditor lawsuits against Venezuela, PDVSA and its
affiliates seeking to obtain judgements for litigation awards in
U.S. courts and attach to shares of CITGO's ultimate U.S. parent
(PDV Holding), coupled with the Office of Foreign Assets Control's
(OFAC) decision to unblock current sanction restrictions. There are
also actions by PDVSA's secured exchange note holders to collect on
a pledge of 50.1% of CITGO Holding's capital stock.
Sale Initiated by Court: Multiple creditors of PDVSA and the
government of Venezuela managed to obtain attachment on the shares
of PDV Holding. The Delaware district court launched the sale
process of PDV Holding, CITGO's ultimate U.S. parent, in October
2023. The sale of PDV Holding shares cannot be closed without a
special license from OFAC.
Double Trigger: CITGO's notes contain a two-part change of control
test: less than majority ownership by PDVSA and a failure by rating
agencies to affirm ratings within 90 days, at least at the level
before the ownership change. Fitch believes CITGO's credit profile
would probably improve under different ownership and without a
substantial increase in debt, which should limit bondholder
incentives to put bonds if change of control were triggered.
Nonetheless, this risk remains a key overhang on the credit. All of
CITGO's notes contain the double trigger.
Expected Reduction in EBITDA: Fitch projects that CITGO's EBITDA
will halve in 2024 compared to 2023 due to the decline in the U.S.
refining crack spreads and turnaround downtime at CITGO refineries.
Crack spread volatility is typical for the oil refining sector.
U.S. refining margins are normalizing from elevated 2022-2023
levels as domestic fuel inventory levels increased, average weekly
gasoline and diesel demand is below last year's and supply is
healthy.
Diesel crack spread still remains above long-term level. U.S.
gasoline consumption has not fully rebounded after the pandemic and
it may decline further in 2025, according to the EIA forecast.
CITGO could redirect sales to other markets if necessary.
Access to Capital: The legacy effects of PDVSA's ownership,
including change of control risks as well as the impact of various
OFAC sanctions on entities doing business with Venezuela, are also
an overhang for CITGO in terms of capital market access. In 2019,
it had to replace revolver liquidity with a drawn debt given bank
concerns about OFAC sanctions against Venezuelan entities. It still
maintains a large cash cushion to support liquidity. The notes
issued in 2023 contain conditions that allow for the eventual
creation of an asset-based lending facility after the other legacy
bonds are repaid or refinanced.
Parent-Subsidiary Linkage: Fitch views Opco as the stronger entity
of the two as all of CITGO's assets and EBITDA are at Opco level,
except for some cash held by Holdco. Based on its PSL analysis,
Fitch views Opco and Holdco's ratings on a standalone basis given
the insulated legal ring-fencing through Opco's bond covenants
which limit the ability of the direct parent to dilute its
subsidiary's credit quality, additional separations created by OFAC
restrictions, and its insulated assessment of the access and
control factor.
Bond covenants include restrictions on dividends (R/P basket),
incurrence tests (maximum net debt/capitalization of 55% and a
minimum $1.25 billion in liquidity, pro forma post distribution),
restrictions on asset sales, and the incurrence of additional
indebtedness.
Derivation Summary
At 807 kb/d day of crude refining capacity, CITGO is smaller than
PBF Holding (BB/Stable) at approximately 1 mmb/d. However, it is
larger than HF Sinclair Corporation (BBB-/Stable) at 678 kb/d and
CVR Energy (BB-/Stable) at 207 kb/d.
CITGO is less diversified compared with refining peers that have
ancillary businesses including logistics master limited
partnerships, chemicals, renewables, retail, and specialty
products. However, CITGO's core refining asset profile is strong
and relatively flexible given the higher complexity of its
refineries than for most of its peers, which allows it to process a
large amount of discounted heavy and light shale crudes.
Legacy PDVSA ownership/governance and related capital markets
access issues remain key overhangs on the issuer despite its
relatively strong asset profile.
Key Assumptions
Fitch's key assumptions within its rating case for the issuer are
as follows:
- West Texas Intermediate prices of $75/barrel (bbl) in 2024,
$65/bbl in 2025, $60/bbl in 2026-2027 and $57/bbl in 2028 and at
midcycle;
- Refinery throughput around 800 kb/d in 2024-2028;
- Capex, turnaround and catalyst costs averaging approximately $800
million in 2024-2028;
- Average 1M SOFR rates at 4.5% in 2024, 3.8% in 2025, 3.2% in 2026
and 3.1% in 2027-2028.
Recovery Analysis
The recovery analysis assumes that CITGO Corporation would be
reorganized as a going-concern (GC) in bankruptcy rather than
liquidated. Fitch has assumed a 10% administrative claim.
Going-Concern Approach
The GC EBITDA estimate of $1.05 billion reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the enterprise valuation (EV). This value is based on
midcycle refining crack spreads instead of recent EBITDA
generation.
An EV multiple of 5.0x was applied to the GC EBITDA to calculate a
post-reorganization EV of $5.25 billion. This is close to the
median 5.3x exit multiple for energy in "Fitch's Energy, Power and
Commodities Bankruptcy Enterprise Value and Creditor Recoveries
(Fitch Case Studies — September 2023)" and the 5.5x multiple used
for refining peer Par Pacific Holdings.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realized in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors. For liquidation value, Fitch used an
80% advance rate for the company's inventories since crude and
refined products are standardized and easily resellable in a liquid
market to peer refiners, traders or wholesalers.
The maximum of these two approaches was the going concern approach
of $5.25 billion. A standard waterfall approach was then applied.
This resulted in a three-notch recovery (RR1) for CITGO Petroleum's
senior secured notes.
RATING SENSITIVITIES
CITGO Petroleum Corp.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Reduced overhang associated with legacy PDVSA ownership issues;
- Midcycle EBITDA leverage below 3.0x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Upgrade
- Deterioration in liquidity/market access;
- Midcycle EBITDA leverage above 4.0x.
CITGO Holding, Inc.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Maintaining de minimis debt or increased ability to upstream
dividends from Opco, such as alleviation of restrictions on R/P
basket;
- Reduced overhang associated with legacy PDVSA ownership issues.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Upgrade
- Deterioration in liquidity/market access;
- Sustained inability of Holdco to receive dividends due to R/P
basket or other restrictions.
Liquidity and Debt Structure
Healthy Opco Liquidity: Opco's liquidity includes unrestricted cash
of $3.3 billion and an undrawn $500 million receivables
securitization facility that expires in 2026. CITGO does not have
an ABL facility but can use available cash to cover short-term
funding needs, including working capital movements. CITGO has two
bonds maturing in 2025 totaling $1.175 billion and a $650 million
bond maturing in 2026, which can be covered by its cash balance.
Fitch projects that the company's liquidity will be supported by
positive FCF generation.
Sufficient Holdco Liquidity: Holdco has some cash held at its level
and no debt. Opco should be able to distribute funds to Holdco, if
needed, given that Opco has rebuilt its dividend basket. In
addition, it should have flexibility to make payments through its
tax allocation agreement.
Issuer Profile
CITGO, a U.S.-based refiner, owns and operates three large,
high-quality refineries with total rated crude processing capacity
of 807 kb/d. It has access to more than 4,000 independently owned
CITGO-branded retail outlets, and owns storage terminals and other
assets.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
CITGO has an Environmental, Social and Corporate Governance (ESG)
Relevance Score of '4' under Environmental Factors, which reflects
its material exposure to extreme weather events (hurricanes) that
periodically lead to extended shutdowns. Two out of three of
CITGO's refineries are located on the Gulf Coast, including the
largest, Lake Charles, at 463 thousand barrels per day (kb/d). This
has a negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
CITGO also has a Score of '4' under Governance Factors related to
the effects the legacy PDVSA ownership issues still have on the
issuer, despite the transition CITGO made to being run by a
U.S.-approved board. The risk centers around contagion through
change of control clauses associated with a PDVSA default and the
overhang legacy ownership creates in terms of capital markets
access, as well as frequent changes in board composition.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
CITGO Holding, Inc. LT IDR CCC+ Affirmed CCC+
CITGO Petroleum Corp. LT IDR B Affirmed B
senior secured LT BB Affirmed RR1 BB
CL CRESSLER: Seeks to Hire CGA Law Firm as Bankruptcy Counsel
-------------------------------------------------------------
CL Cressler, Inc. seeks approval from the U.S. Bankruptcy Court for
the Middle District of Pennsylvania to hire CGA Law Firm, PC to
handle its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Lawrence V. Young, Esq. $425
E. Haley Rohrbaugh, Esq. $300
Paralegals $100 to $150
The firm received a retainer in the amount of $25,000, plus $1,738
filing fee.
Lawrence Young, Esq., a shareholder at CGA Law Firm, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Lawrence V. Young, Esq.
CGA Law Firm
135 North George Street
York, PA 17401
Telephone: (717) 848-4900
Facsimile: (717) 843-9039
Email: lyoung@cgalaw.com
About CL Cressler, Inc.
CL Cressler, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No.
24-02143) on August 29, 2024, listing $1,559,353 in assets and
$12,231,972 in liabilities. The petition was signed by Daniel A.
Brown as owner.
Lawrence V. Young, Esq. at CGA LAW FIRM represents the Debtor as
counsel.
CLUBHOUSE MEDIA: Chief Financial Officer Resigns
------------------------------------------------
Clubhouse Media Group announced Sept. 5, 2024, that Scott Hoey,
chief financial officer of the Company has resigned from his role,
effective Sept. 3, 2024. The Company said Mr. Hoey has resigned
for personal reasons and there were no disagreements between Mr.
Hoey and the Company. His departure is not related to the
operations, policies or practices of the Company or any issues
regarding accounting policies or practices.
Amir Ben-Yohanan, the chief executive officer of the Company shall
serve as interim chief financial officer and assume the duties of
the principal financial officer of the Company until the Company
replaces Mr. Hoey.
About Clubhouse Media
Headquartered in Las Vegas, Nevada, Clubhouse Media Group, Inc. is
a social media firm. The Company has recently ceased its
operations in the agency and brand deal business to instead focus
its efforts and resources on growing its wholly owned, creator
monetization platform, HoneyDrip.com. Through its subsidiary, West
of Hudson Group, Inc., the Company currently generates revenues
primarily through WOH Brands, LLC, a 100% wholly owned subsidiary
of WOHG, which operates Honeydrip.com, a new digital platform with
a focus on the empowerment of creators. The site allows creators
to connect with fans and sell exclusive photo and video content.
The Company previously generated revenue through The Reiman Agency,
a 51% majority held joint venture which brokered brand promotional
deals between brands and talent, but has since discontinued these
operations.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 30, 2023, citing that the
Company has stockholder's deficit, net losses, and negative working
capital. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
CMTRD LLC: Trustee Seeks to Hire Lessne Law as Counsel
------------------------------------------------------
Maria M. Yip, as the Chapter 11 Trustee of CMTRD, LLC, seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to employ Lessne Law as her counsel.
The firm will represent the Trustee in this case to perform the
ordinary and necessary legal services required in the
administration of this estate.
Lessne Law will charge for its services in accordance with its
ordinary and customary rates in effect at the time the services are
rendered.
Michael Lessne, Esq., founder of Lessne Law, assured the court that
his firm is a "disinterested person" as defined in 11 U.S.C.
101(14).
The firm can be reached through:
Michael D. Lessne, Esq.
LESSNE LAW
100 SE 3rd Avenue, 10th Floor
Fort Lauderdale, FL 33394
Tel: (954) 372-5759
Email: michael@lessne.law
About CMTRD LLC
CMTRD LLC filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-16374) on June
26, 2024. In the petition signed by Yuletsy Beatriz Granadillo,
manager, the Debtor disclosed up to $50 million in assets and up to
$10 million in liabilities.
Judge Corali Lopez-Castro oversees the case.
Susan D. Lasky, Esq., serves as the Debtor's counsel.
COACH USA: Faces Massive Layoffs Class Suit After Chapter 11 Filing
-------------------------------------------------------------------
Carla Baranauckas of Law360 reports that bus company Coach USA,
which filed for Chapter 11 bankruptcy in June 2024, failed to give
drivers a timely notice of mass layoffs as required by state and
federal law, according to a proposed class action filed in New
Jersey federal court.
According to Law.com, Variant Equity Advisors and its top officers
were hit with an employment class action in federal court this week
over claims that Coach, its bus charter subsidiary, laid off
one-third of the company's workforce in violation of the Worker
Adjustment and Retraining Notification Act.
According to the Law.com report, Variant, along with seven
individual company principals, were named as defendants in the
class action, Sheppard v. Variant Equity Advisors, filed Tuesday in
U.S. District Court for the District of New Jersey. The plaintiffs,
Laverne Sheppard, Michelle Hall and Ebrima Darboe, are New Jersey
residents and former employees of Coach USA who allege they were
terminated without the 60 days' advance written notice required
under the federal WARN act, or the 90-day notice requirement under
the New Jersey law.
The plaintiffs, the Law.com report notes, worked as bus drivers for
Coach for many years. Hall was employed by the company since 1986,
Darboe since 2002, and Sheppard since 2015. The three were part of
a mass layoff which took place on Aug. 16, according to the
complaint. At least 33% of the bus services’ workforce, which
included least 50 full-time employees, were laid off without
severance pay required under the act, according to the two-count
complaint filed by Lloyd R. Ambinder, James E. Murphy and Jenny S.
Brejt of Virginia & Ambinder in Manhattan.
The complaint alleged that the plaintiffs were not paid the
severance required under the acts and that the defendants are
liable for backpay and benefits for each day of the violation up to
a maximum of 60 days in addition to attorney costs and fees. It
also sought the severance pay of one week per year required under
the acts as well as accrued pay for vacation and personal days as
well as medical expenses accrued during the 60-day period, among
other compensation.
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.
COBRA HOLDINGS: $560MM Bank Debt Trades at 15% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Cobra Holdings Inc
is a borrower were trading in the secondary market around 84.8
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $560 million Term loan facility is scheduled to mature on July
31, 2028. The amount is fully drawn and outstanding.
Cobra Holdings PLC is retail and wholesale insurance broking group.
CONCORDIA ANESTHESIOLOGY: Case Summary & 20 Unsecured Creditors
---------------------------------------------------------------
Debtor: Concordia Anesthesiology, Inc.
1210 Thompson Bridge Road
Suite A, #229
Gainesville, GA 30501
Chapter 11 Petition Date: September 10, 2024
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 24-21106
Debtor's Counsel: Angelyn M. Wright, Esq.
THE WRIGHT LAW ALLIANCE, P.C.
1244 Clairmont Road, Suite 222
P.O. Box 3576
Decatur, GA 30031
Tel: (404) 373-9933
Fax: (888) 900-0610
E-mail: twlopc@earthlink.net
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jarrod D. Huey, M.D. as CEO/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/BANY74A/Concordia_Anesthesiology_Inc__ganbke-24-21106__0001.0.pdf?mcid=tGE4TAMA
CONNECT US FINCO: S&P Rates Proposed $1.25BB Secured Notes 'B+'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating to Connect Finco S.a.r.l.'s and Connect U.S. Finco
LLC's proposed $1.25 billion secured notes. The '3' recovery rating
indicates S&P's expectation for meaningful (50%-70%; rounded
estimate: 65%) recovery in a simulated default scenario. The
coborrowers are financing subsidiaries of Inmarsat, which is a
subsidiary of Viasat Inc. The company will use proceeds to fund the
partial redemption of its $2.075 billion notes due 2026, which we
view favorably as it would reduce refinancing risk in 2026.
S&P said, "Our 'B+' issuer credit rating (ICR) on ultimate parent
Viasat is unaffected by this leverage-neutral transaction. The ICR
reflects a consolidated view of creditworthiness. We consider
Inmarsat to be a core subsidiary of Viasat and rate them the same
because we consider Inmarsat's business as integral to Viasat's
long-term strategy. We believe there are operational incentives to
provide support in both directions despite a lack of cross-default
provisions between the two entities.
"We forecast Viasat can generate meaningful free operating cash
flow (FOCF) in 2026 and beyond from a combination of rising
earnings combined with lower capital spending once Viasat-3 F-2 and
F-3 satellites are placed in service (late 2025). Still, we
recognize Viasat faces intensifying competition. We incorporate
this, combined with execution risk associated with placing F2 and
F3 in service into our negative rating outlook.
"Separately, we perform an individual recovery analysis for debt
issued at Viasat and Inmarsat, which has implications for
issue-level ratings and is where ratings may differ between the
different silos. We base our recovery analysis for the proposed
debt solely on our estimate of Inmarsat's enterprise value in a
simulated default. This debt is structurally and contractually
senior to debt issued at Viasat with respect to value from
Inmarsat's assets. Conversely, there is no downstream guarantee
from Viasat that would benefit lenders at the Inmarsat level with
respect to asset value from Viasat."
RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates heightened
competitive pressures from terrestrial network providers, satellite
operators, and satellite service providers, which leads to
increased churn and pricing pressure. This, in conjunction with the
high operating costs associated with its near-term satellite
launches, erodes profitability. This would cause the company's cash
flow to decline to the point it cannot cover its fixed charges
(i.e., interest expense, required amortization, and minimum
maintenance capital expenditures), eventually leading to a default
in 2027.
-- Other default assumptions include an 85% draw on the revolving
credit facility, the spread on the revolving credit facility rises
to 5% as covenant amendments are obtained, 5% administrative
expenses in bankruptcy, and all debt includes six months of
prepetition interest.
-- S&P has valued the company on a going-concern basis using a 6x
multiple of our projected emergence EBITDA to reflect the company's
satellite assets and customer relationships.
Simulated default assumptions (Inmarsat)
-- Default year: 2027
-- EBITDA at emergence: $500 million
-- EBITDA multiple: 6x
Simplified waterfall (Inmarsat)
-- Net enterprise value at default: $2.8 billion
-- Senior secured debt claims: about $4.25 billion
--Recovery expectation: 50%-70% (rounded estimate: 65
CREATIVE ARTISTS: S&P Rates Proposed $2.1BB Term Loan B 'B+'
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating to the proposed $2.1 billion term loan B due 2031
issued by CAA Holdings LLC's subsidiary Creative Artists Agency
LLC. The company intends to use the proceeds from this term loan to
refinance its existing $2.076 billion term loan due 2028, fund
general corporate expenses, and add cash to its balance sheet. As
part of this transaction, CAA will also upsize its existing
revolver to $350 million from $261 million and extend the
facility's maturity to 2029. S&P's 'B+' issue-level rating and '3'
recovery rating on the revolver are unchanged.
S&P said, "Our 'B+' issuer credit rating and stable outlook on CAA
Holdings are also unchanged. The recovery in the company's
production volumes following the Writers Guild of America (WGA) and
Screen Actors Guild (SAG) strikes in 2023 has been slower than
expected, although we still expect its S&P Global Ratings-adjusted
leverage for the fiscal year ending Sept. 30, 2024, will be about
5.5x before declining below 5.0x in fiscal year 2025 (in the
4.5x-5.5x range we view as appropriate for the rating) as it cycles
through the impact from the strikes and further improves its
production volumes over the next 12 months. Our rating on CAA also
reflects its strong market position as a leading global talent
agency, with leading talent representations across motion picture,
television, music, and sports."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates a default in 2028
stemming from a combination of factors, including a protracted
economic downturn that reduces media spending across CAA's client
base, leading to reduced commissions and revenue and the loss of
multiple talent agents and their clients who leave to join
competing firms.
-- S&P expects the company's lenders would pursue a reorganization
in the event of a default, given its position as the second-largest
talent agency and one of the world's largest sports agencies in
terms of contract value.
-- CAA's proposed capital structure includes a $350 million senior
secured revolving credit facility maturing in 2029 and a $2.1
billion senior secured term loan maturing in 2031. In addition,
S&P's recovery analysis excludes the revolver and term loan
borrowed by unrestricted subsidiaries (both not rated).
-- Other default assumptions include an 85% draw on the revolving
credit facility, the U.S. dollar benchmark rate is 2.5%, and all
debt amounts include six months of prepetition interest.
Simulated default assumptions
-- Simulated year of default: 2028
-- EBITDA at emergence: About $199 million
-- EBITDA multiple: 6.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): About
$1.23 billion
-- Senior secured debt claims: $2.4 billion
--Recovery expectations: 50%-70% (rounded estimate: 50%)
CREDIT.COM HOLDINGS: Prospect Capital Marks $56.9MM Loan at 29% Off
-------------------------------------------------------------------
Prospect Capital Corporation has marked its $56,931,000 loan
extended to Credit.com Holdings, LLC to market at $40,488 or 71% of
the outstanding amount, according to a disclosure contained in
Prospect Capital's Amended Form N-CSR for the fiscal year ended
June 30, 2024 filed with the Securities and Exchange Commission on
August 28, 2024.
Prospect Capital is a participant in a First Lien Term Loan B to
Credit.com Holdings, LLC. The loan accrues interest at a rate of
17.60% (3M SOFR + 12%, 1.50 Floor) per annum. The loan matures on
September 28, 2028.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Credit.com Holdings, LLC provides credit monitoring solutions.
CROWNROCK LP: Moody's Withdraws Ba3 CFR Following Debt Redemption
-----------------------------------------------------------------
Moody's Ratings withdrew all of CrownRock, L.P.'s ratings,
including its Ba3 Corporate Family Rating, Ba3-PD Probability of
Default Rating (both currently under review for upgrade), and the
B1 senior unsecured rating. The outlook was changed to rating
withdrawn from rating under review. The withdrawals follow the
redemption and defeasance of CrownRock's outstanding debt.
CrownRock's ratings review was initiated on December 11, 2023
following CrownRock's agreement to be acquired by Occidental
Petroleum Corporation (OXY, Baa3 stable).
RATINGS RATIONALE
CrownRock has redeemed its unsecured notes due 2025 and fully
satisfied and discharged the obligations under its unsecured notes
due 2029 following the closing of the company's acquisition by OXY.
All of CrownRock's ratings have been withdrawn since all of its
rated debt is no longer outstanding.
CrownRock was a privately owned independent exploration and
production (E&P) company with operations in Permian Basin of West
Texas. Following the closing of the acquisition by Occidental
Petroleum Corporation in August 2024, CrownRock became a subsidiary
of OXY, a US independent E&P company with operations in the Permian
Basin, the Rockies, the US Gulf of Mexico and the Middle East.
CSC HOLDINGS: $2.50BB Bank Debt Trades at 12% Discount
------------------------------------------------------
Participations in a syndicated loan under which CSC Holdings LLC is
a borrower were trading in the secondary market around 87.8
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $2.50 billion Term loan facility is scheduled to mature on
April 15, 2027. About $2.39 billion of the loan is withdrawn and
outstanding.
CSC Holdings, LLC, provides broadband communications and video
services in the United States. It is a wholly owned subsidiary of
Cablevision.
D&D ELECTRICAL: Todd & Levi Represents Multiple Creditors
---------------------------------------------------------
The law firm of Todd & Levi, LLP ("T&L") filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 case of D&D Electrical
Construction Company Inc., the firm represents multiple creditors:
1. ULE Group, Corp.
60 Hoffman Avenue,
Hauppauge, New York 11788
2. Expressive Lighting Inc.
266 47th Street
Brooklyn, NY 11220
3. Cooper Electric Supply, LLC
315 Cranbury Half Acre Rd
Cranbury, NJ 08512
ULE Group, Corp. has a claim against the Debtor in the amount of
approximately $235,000.00 arising from goods sold and delivered to
the Debtor for various construction projects.
Expressive Lighting Inc. has a claim against the Debtor in the
amount of approximately $1,740,000.00 arising from goods sold and
delivered to the Debtor for various construction projects.
Cooper Electric Supply, LLC has a claim against the Debtor in the
amount of approximately $371,000.00 arising from goods sold and
delivered to the Debtor for various construction projects.
T&L was retained by the creditors to pursue their claims in the
bankruptcy proceeding.
The firm may be reached at:
TODD & LEVI, LLP
Jill Levi, Esq.
444 Madison Avenue
Suite 1202
New York, New York 10022
(212) 308-7400
About D&D Electrical Construction
D&D Electrical Construction Company Inc. is a full service
electrical contracting firm.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-22694) on Aug. 6,
2024, with $10 million to $50 million in assets and liabilities.
Stephen Buckley, president, signed the petition.
Judge Sean H. Lane presides over the case.
Julie Curley, Esq., at KIRBY AISNER & CURLEY LLP, is the Debtor's
legal counsel.
DIAMOND SPORTS: Gets Court Okay for NHL, NBA Ch. 11 Lender Deals
----------------------------------------------------------------
A Texas bankruptcy judge Tuesday, September 3, 2024, approved a
revised Chapter 11 financing deal and new NBA and NHL broadcast
deals for Bally Sports Network's parent company, according to
Law360 Bankruptcy Authority.
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 OGDENSBURG: Taps Jones Day as Special Appellate Counsel
------------------------------------------------------------------
The Roman Catholic Diocese of Ogdensburg, New York seeks approval
from the U.S. Bankrutpcy Court for the Northern District of New
York to employ Jones Day for a non-paid engagement as special
appellate counsel.
The firm will represent the Debtor in the United States Supreme
Court, in connection with a petition for certiorari from the New
York Court of Appeals' May 21, 2024 decision in Case No. 45
(available at 2024 WL 2278222) concerning a challenge to a
regulation promulgated by the State of New York, N.Y. Comp. Codes
R. & Regs. Tit. 11, Sec. 52.16(o), mandating that employer health
insurance plans cover abortions.
The customary hourly rates for Jones Day are as follows:
Noel Francisco, Esq. $1,750
Victoria Dorfman, Esq. $1,425
Kelly Holt, Esq. $1,075
As disclosed in the court filings, Jones Day does not hold or
represent any interest adverse to the Debtor or the estate.
The firm can be reached through:
Noel J. Francisco, Esq.
Jones Day
51 Louisiana Avenue, N.W.
Washington, D.C. 20001-2113
Phone: (202) 879-5485
Email: njfrancisco@jonesday.com
About Roman Catholic Diocese of Ogdensburg
The Diocese of Ogdensburg is a Latin Church ecclesiastical
territory, or diocese, of the Catholic Church in the North Country
region of New York State in the United States. It is a suffragan
diocese in the ecclesiastical province of the Archdiocese of New
York. Its cathedral is St. Mary's in Ogdensburg.
The Diocese of Ogdensburg was founded on February 16, 1872. It
comprises the entirety of Clinton, Essex, Franklin, Jefferson,
Lewis and St. Lawrence counties and the northern portions of
Hamilton and Herkimer counties. The current bishop is Terry Ronald
LaValley.
On July 17, 2023, the Roman Catholic Diocese of Ogdensburg sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D.N.Y. Case No. 23-60507), with $10 million and $50 million in
both assets and liabilities. Mark Mashaw, diocesan fiscal officer,
signed the petition.
Judge Patrick G. Radel oversees the case.
Bond, Schoeneck & King, PLLC is the Diocese's bankruptcy counsel.
Stretto, Inc., is the claims agent and administrative advisor.
DJK ENTERPRISES: Seeks to Hire Wade Stables PC as Accountant
------------------------------------------------------------
DJK Enterprises LLC received approval from the U.S. Bankruptcy
Court for the Southern District of Illinois to hire Wade Stables,
PC as accountant.
The Debtor requires the services of an account for general
bookkeeping to help in producing Debtor's monthly operating reports
along with preparation and filing of necessary state and federal
tax returns for the Debtor and business while it is in this Chapter
11 bankruptcy.
Paul Richards, principal of Wade Stables, charges an hourly rate of
$195 for his time on Debtor's files.
Mr. Richards disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Paul Richards
Wade Stables, PC
PO Box 796
100 N 6th St.
Hannibal, MO 63401
Tel: (573) 221-5998
About DJK Enterprises LLC
DJK Enterprises LLC, doing business as Thelma Keller Convention
Center, Holiday Inn Effingham and TK Grille Restaurant, is part of
the traveler accommodation industry.
DJK Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ill. Case No. 24-60126) on August 9,
2024. In the petition filed by Chris Keller, as president and
member, the Debtor reports estimated assets and liabilities between
$10 million and $50 million each.
The Debtor is represented by Larry E Parres, Esq. at Lewis Rice
LLC.
DOYLE'S TAVERN: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Doyle's Tavern on 145 LLC
Doyles Tavern 145, LLC
2478 Route 145
East Durham, NY 12423
Business Description: The Debtor owns a commercial building
located at 2478 Route 145, East Durham, New
York 12423 valued at $400,000.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-35908
Debtor's Counsel: Richard S. Feinsilver, Esq.
RICHARD S. FEINSILVER, ESQ.
One Old Country Road
Suite 347
Carle Place, NY 11514
Tel: 516-873-6330
Email: feinlawny@yahoo.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Garrett P Doyle as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/RMU2LIQ/Doyles_Tavern_on_145_LLC__nysbke-24-35908__0001.0.pdf?mcid=tGE4TAMA
DTH 215 VENTURE: Taps MB Bear, Ackman-Ziff as Financial Advisors
----------------------------------------------------------------
DTH 215 Venture, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ MB Bear Capital, LLC and
Ackman-Ziff Real Estate Group, LLC as its financial advisors.
The firms will provide consulting and financing services with
respect to its property located at 215 S. Water Street, Henderson,
Clark County, Nevada 89015, commonly known as The Watermark.
In the even any of the firms' financing sources provide financing
to the Debtor, MB Bear and Ackman-Ziff shall be paid a consulting
fee in the amount equal to 4 percent of the facility acount from
such financing. The consulting fee shall be paid as follows: 1.5
percent payable to MB Bear and 2.5 percent payable to Ackman-Ziff.
MB Bear and Ackman-Ziff are disinterested persons as defined in 11
U.S.C. 101(14), according to court filings.
The firm can be reached through:
Maurice Simon
MB Bear Capital, LLC
1901 N. Akard Street
Dallas, TX 75201
Tel: (214) 240-8022
Email: msmon0070@gmail.com
- and -
Simon Ziff
Ackman-Ziff Real Estate Group, LLC
711 Third Avenue, Floor 11
New York, NY 10017
Tel: (202) 316-8250
Email: fturkmani@ackmanziff.com
About DTH 215 Venture, LLC
DTH 215 Venture is the owner of certain real property located at
215 S. Water Street, Henderson, Nevada 89015-7226.
DTH 215 Venture, LLC in Dexter, MO, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Nev. Case No. 24-12829) on
June 5, 2024, listing as much as $50 million to $100 million in
both assets and liabilities. Natalie Riley as authorized agent,
signed the petition.
Judge Natalie M Cox oversees the case.
HARRIS LAW PRACTICE LLC serve as the Debtor's legal counsel.
DTH 215: Seeks to Hire Greenberg Traurig as Special Counsel
-----------------------------------------------------------
DTH 215 Venture, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ Greenberg Traurig, LLP as
special counsel.
The Debtor requires the appointment of special counsel to represent
it in connection with prosecuting and defending claims asserted
against the Debtor with respect to its dispute with Gillett
Construction LLC and its subcontractors related to the development
and construction its mixed-used property commonly known as the
Watermark.
The firm will be paid at these rates:
Mark E. Ferrario $750 per hour
Eric Swanis $600 per hour
Kyle Ewing $380 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Eric Swanis, Esq., a shareholder at Greenberg Traurig, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Eric W. Swanis, Esq.
Greenberg Traurig, LLP
10845 Griffith Peak Drive
Las Vegas, NV 89135
Direct: (702) 938-6840
Tel: (702) 792-3773
Email: swanise@gtlaw.com
About DTH 215 Venture, LLC
DTH 215 Venture is the owner of certain real property located at
215 S. Water Street, Henderson, Nevada 89015-7226.
DTH 215 Venture, LLC in Dexter, MO, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Nev. Case No. 24-12829) on
June 5, 2024, listing as much as $50 million to $100 million in
both assets and liabilities. Natalie Riley as authorized agent,
signed the petition.
Judge Natalie M Cox oversees the case.
HARRIS LAW PRACTICE LLC serve as the Debtor's legal counsel.
EDGIO INC: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------
Lead Debtor: Edgio, Inc.
11811 North Tatum Boulevard, Suite 3031
Phoenix, AZ 85028
Business Description: Edgio, Inc., and its subsidiaries provide
technology services that support the
delivery of video and other content through
the Internet. Among a broad suite of
services, Edgio runs global computer
networks that support high-speed delivery of
websites, recorded video, and live-streaming
for a diverse and sophisticated base of
blue-chip business and media customers.
Through its software applications, Edgio
helps many of those same customers enhance
the security and performance of their
websites and e-commerce platforms.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
District of Delaware
Seven affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Edgio, Inc. (Lead Case) 24-11985
Edgecast, Inc. 24-11994
Edgio International, Inc. 24-11986
Limelight AcquisitionCo, Inc. 24-11992
Limelight MidCo, Inc. 24-11990
Limelight Networks VPS, Inc. 24-11988
Mojo Merger Sub, LLC 24-11989
Judge: Hon. Karen B Owens
Debtors'
Local
Counsel: Mark D. Collins, Esq.
Russell C. Silberglied, Esq.
Brendan J. Schlauch, Esq.
Huiqi Liu, Esq.
Emily R. Mathews, Esq.
Gabrielle A. Colson, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square
920 North King St.
Wilmington, DE 19801
Tel: 1 (302) 651-7700
Fax: 1 (302) 651-7701
Email: Collins@RLF.com
Silberglied@RLF.com
Schlauch@RLF.com
Liu@rlf.com
Mathews@rlf.com
Colson@rlf.com
Debtors'
General
Bankruptcy
Counsel: Dennis F. Dunne, Esq.
Tyson Lomazow, Esq.
Lauren C. Doyle, Esq.
Benjamin M. Schak, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
Phone: 1 (212) 530-5000
Email: DDunne@Milbank.com
TLomazow@Milbank.com
LDoyle@Milbank.com
BSchak@Milbank.com
Debtors'
Financial
Advisor: TD SECURITIES (USA) LLC (DBA TD COWEN)
Debtors'
Business
Advisor: RIVERON CONSULTING LLC
Debtors'
Claims &
Noticing
Agent: OMNI AGENT SOLUTIONS, INC.
Total Assets as of June 30, 2024: $379,013,042
Total Debts as of June 30, 2024: $368,613,842
The petitions were signed by Todd Hinders as president and chief
executive officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/FRC2DRA/Edgio_Inc__debke-24-11985__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Amazon Web Services Inc Vendor $8,667,360
410 Terry Avenue
North Seattle, WA 98124
Name: Arya Givehchin
Email: aggivehc@amazon.com
Phone: (206) 266-1000
2. Verizon Sourcing LLC Customer $5,885,589
7701 E Telecom Pkwy
Temple Terrace, FL 33637
Name: Michelle Parker
Email: michelle.parker2@verizonwireless.com
Phone: (425) 213-3813
3. Amazon Services LLC Customer $5,694,893
2121 7th Avenue
Seattle, WA 98121
Name: Gaurab Upadhaya
Email: Gaurabu@amazon.com
Phone: (206) 266-1000
4. EdgeUno, Inc. Vendor $3,035,924
1200 Ponce de Leon Blvd, Unit 900
Miami, FL 33134
Name: David Vargas
Email: david.vargas@edgeuno.com
Phone: (626) 231-0777 - Ext 1140
5. Equinix, Inc Vendor $2,546,920
4252 Solutions Center
Chicago, IL 60677
Name: Charles Naulty
Email: cnaulty@equinix.com
Phone: (714) 336-8832
6. Tencent Cloud, LLC Vendor $1,399,079
661 Bryant Street
Palo Alto, CA 94301
Name: Kiki Cair
Email: kikicai@global.tencent.com
Phone: (650) 798-3300
7. Encore Technologies Vendor $1,248,417
4620 Wesley Ave
Cincinnati, OH 45212
Name: Tracey Witte
Email: tracey.witte@encore.tech
Phone: (866) 990-3526
8. Sony Customer $1,235,250
11/f. no.18 Full Link Plz Tower A
Beijing, Beijing, CN
Name: Hiroyuki Matsushima
Email: hiroyuki.matsushima@sony.com
Phone: 8-133-475-7444
9. Comcast Media Center Vendor $1,077,000
13431 Collections Center Drive
Chicago, IL 60693
Name: Chris Skalet
Email: Chris_Skalet@com
Phone: (215) 286-1700
10. Deutsche Telekom Vendor $883,890
North America, Inc.
141 West Front Street, Suite # 330
Red Bank, NJ 07701
Name: Bob Scesa
Email: Bob.Scesa@telekom.com
Phone: (732) 936-4400
11. Washington State Government $864,787
Department of Revenue Taxing
2101 4th Ave, Suite 1400 Authority
Seattle, WA 98121
Phone: (360) 705-6705
12. Endurance Assurance Other $864,787
Corporation
2415 E. Camelback Road, Suite 950
Phoenix, AZ 85016
Name: Josefina Rojo
Email: Josefina.Rojo@alliant.com
Phone: (312) 595-6525
13. Goodwin Procter LLP Professional $785,101
100 Northern Avenue Services
Boston, MA 02210
Name: Birnbach, Deborah S
Email: DBirnbach@goodwinlaw.com
Phone: (617) 570-1339
14. Edgenext North Vendor $757,001
America Corporation
FKA ChinaCache North America, Inc
500 108th Ave NEW Suite 1100
Bellevue, WA 98004
Name: Jessica Wang
Email: jessica.wang@edgenext.com
Phone: (626) 203-9954
15. OpsRamp, Inc Vendor $680,400
2590 N First St Suite 200
San Jose, CA 95131
Name: Subhash Penumatcha
Email: subhash.penumatcha@opsramp.com
Phone: (510) 386-7107
16. Digital Realty Trust, LP Vendor $672,446
dba Telx
P.O. Box 419729
Boston, MA 02241
Name: Lawrence Chapman
Email: plawrence@digitalrealty.com
Phone: (857) 366-9900
17. Seabras 1 USA, LLC Vendor $608,226
600 Cummigs Center Suite 268Z
Beverly, MA 01915
Name: Sean McNeill
Email: sean.mcneill@seabornnetworks.com
Phone: (978) 471-3143
18. Disney Streaming Services Customer $580,376
925 4th Ave #1600,
SEATTLE, WA 98104, King
Name: Dave Austin
Email: Dave.Austin@disney.com
Phone: (860) 378-5124
19. Fandango Media, LLC. Customer $565,033
600 W. California Ave.
Sunnyvale CA 94086
Name: Valery Tulnikov
Email: valery.tulnikov@vudu.com
Phone: (310) 451-7690
20. NTT America, Inc. Vendor $554,863
757 Third Ave, Fl 14
New York, NY 10017
Name: Santosh Kumar
Email: santosh.swamy@global.ntt
Phone: (332) 900-3896 – Ext 200113371
21. Bell Canada Customer $525,736
P.O. Box 11033, Succursale Centre-Ville
Montreal, QC, Quebec H3C 4W8 Canada
Name: Wilson Lee
Email: Wilson.Lee@bell.ca
Phone: (800) 339-6353
22. Microsoft Corporation Vendor $520,139
1950 N stemmons Fwy
Dallas, TX 75207
Name: Victoria Sarmiento
Email: v-sarmientor@microsoft.com
Phone: +63 2 8860 8552
23. Equinix Japan - World Trade Center Vendor $514,005
Building 33F 2-4-1
Hamamatsu-cho Minato-ku
Tokyo, Japan JP 105-6133
Name: Charles Naulty
Email: cnaulty@equinix.com
Phone: (714) 336-8832
24. Arelion U.S. Inc Vendor $506,349
4966 Paysphere Circle
Chicago, IL 60674
Name: William Fernandez
Email: william.fernandez@arelion.com
Phone: (703) 546-4047
25. Computacenter Fusionstorm Inc Vendor $500,869
FKA FusionStorm
1 University Avenue
Westwood, MA 02090
Name: Rebecca E. Goolgasian
Email: Rebecca.Goolgasian@computacenter.com
Phone: (781) 384-6009
26. Kingsoft Cloud Inc. Vendor $488,073
1370 Valley Vista Drive Ste 266
Diamond Bar, CA 91765
Name: Adam Cheng
Email: adam.cheng@kingsoft.com
Phone: (305) 377-1200
27. Liberty Global Vendor $484,041
Technology Services B.V.
Boeing Avenue 53, 1119 PE
Schiphol-Rijk, NL 034
Name: Paul Wilkinson
Email: pwilkinson@libertyglobal.com
Phone: (704) 887-4173
28. Mattress Firm, Inc. Customer $435,607
3250 Brianpark Dr Suite 125, 4th Floor
Houston, TX 77042
Name: Kimberly Alexander
Email: kimberly.alexander@mfrm.com
Phone: (516) 861-7808
29. U.S. Bank Secured Unliquidated
P.O. Box 70870 Indenture
Saint Paul, MN 55170 Trustee
Name: Mary J Ambriz-Reyes (Deficiency Claim)
Email: mary.ambrizreyes@usbank.com
Phone: (602) 663-5742
30. Lynrock Lake LP Secured Unliquidated
2 International Drive Credit Facilities
Rye Brook, NY 10573 (Deficiency Claim)
Name: Cynthia Paul
Email: cp@lynrocklake.com
Phone: (914) 449-4667
EEI GLOBAL: Hires Orbitbid.Com Inc. as Auctioneer
-------------------------------------------------
EEI Global, Inc., seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Michigan to employ Orbitbid.Com, Inc. of
Byron Center Michigan as auctioneer.
The firm will auction and sell the Debtor's assets and equipment at
its facilities in both Rochester Hills, Michigan and Perrysburg,
Ohio.
The firm will be paid a commission of 5 percent of the total gross
sale proceeds. In addition, a buyer's premium of 13 percent shall
be charged and retained by the firm.
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:
Jon Kuiper
Orbitbid.Com, Inc. of Byron Center Michigan
601 Gordon Industrial Ct SW
Byron Center, MI 49315
Tel: (866) 672-4806
About EEI Global, Inc.
EEI Global Inc. provides marketing services. The Company offers
graphic and event production, brand strategy, content marketing,
site hosting, and digital signage, as well as provides consulting
services. EEI Global serves clients in the state of Michigan.
EEI Global Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-46093) on June 20,
2024. In the petition signed by Derek M. Gentile, as president and
CEO, the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Honorable Bankruptcy Judge Maria L. Oxholm oversees the case.
The Debtor is represented by Lynn M. Brimer, Esq. at Strobl PLLC.
EMILY L. LONGWITH: Hires Lane Law Firm PLLC as Counsel
------------------------------------------------------
Emily L. Longwith, DDS, MSD, PLLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Lane
Law Firm PLLC as counsel.
The firm will provide these services:
a. assist, advise and represent the Debtor relative to the
administration of the chapter 11 case;
b. assist, advise and represent the Debtor in analyzing the
Debtor's assets and liabilities, investigating the extent and
validity of lien and claims, and participating in and reviewing any
proposed asset sales or dispositions;
c. attend meetings and negotiate with the representatives of
the secured creditors;
d. assist the Debtor in the preparation, analysis, and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
e. take all necessary action to protect and preserve the
interests of the Debtor;
f. appear, as appropriate, before this Court, the Appellate
Courts, and other Courts in which matters may be heard and to
protect the interests of the Debtor before said Courts and the
United States Trustee; and
g. perform all other necessary legal services in these cases.
The firm will be paid at these rates:
Robert C. Lane $595 per hour
Joshua Gordon $550 per hour
Associate Attorneys $500 per hour
Paraprofessionals $250 per hour
The firm received a retainer in the amount of $30,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert C. Lane, Esq., a partner at The Lane 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:
Robert C. Lane, Esq.
Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notifications@lanelaw.com
About Emily L. Longwith, DDS, MSD, PLLC
Emily L. Longwith, DDS, MSD, PLLC, filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-33979) on August 29, 2024.
The Debtor hires Lane Law Firm PLLC as counsel.
EVEREST LENDING: Hires Patel Tax & Accounting as Accountant
-----------------------------------------------------------
Everest Lending Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Patel Tax
& Accounting Solutions as accountant.
The firm will prepare the Debtor's various tax returns and filings
The firm will be paid at $300 per month.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Akshar Patel, a partner at Patel Tax & Accounting Solutions,
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:
Akshar Patel
Patel Tax & Accounting Solutions
30 S Doughty Ave
Somerville, NJ 08876
Tel: (908) 800-2239
About Everest Lending Group, LLC
Everest Lending Group, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Pa. Case No. 24-21018) on April 26, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by THOMPSON LAW GROUP, P.C.
EVEREST LENDING: Seeks to Extend Plan Exclusivity
-------------------------------------------------
Everest Lending Group, LLC, asked the U.S. Bankruptcy Court for the
Western District of Pennsylvania to extend its exclusivity period
to file a plan of reorganization.
The Debtor is a business located solely in the Commonwealth of
Pennsylvania. The Debtor initiated this Chapter 11 case to
restructure secured mortgage debts and unsecured debts related to
business operations.
The Debtor explains that it has ongoing negotiations with parties
related to mortgage claims, which will impact the construction of a
feasible 11 plan of reorganization. The parties continue to make
progress in these negotiations.
The Debtor has complied with all of their post-filing Chapter 11
obligations.
The Debtor respectfully requests that this Court extend the
exclusivity period pursuant to Section 1121(d) of the Bankruptcy
Code, under which Debtor has the exclusive right to file a plan of
reorganization.
Everest Lending Group, LLC, is represented by;
Brian C. Thompson, Esq.
Thompson Law Group, PC
125 Warrendale Bayne Road, Suite 200
Warrendale, PA 15086
Tel: (724) 799-8404
Fax: (724) 799-8409
Email: bthompson@thompsonattorney.com
About Everest Lending Group
Everest Lending Group, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Pa. Case No. 24-21018) on April 26, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by THOMPSON LAW GROUP, P.C.
EVOME MEDICAL: Financial Strain Raises Going Concern Doubt
----------------------------------------------------------
Evome Medical Technologies Inc. disclosed in its Condensed
Consolidated Interim Financial Statements for the three and six
months ended June 30, 2024 and 2023, filed with the U.S. Securities
and Exchange Commission that there is substantial doubt about its
ability to continue as a going concern.
According to Evome Medical, the Company has incurred recurring
losses from operations, has negative cash flows from operating
activities, and has an accumulated deficit as of June 30, 2024.
For the three and six months ended June 30, 2024, the Company
reported net losses of C$2,283,953 and C$6,570,014, respectively,
compared to net losses of C$1,115,843 and C$2,778,587 for the three
and six months ended June 30, 2023, respectively. As of June 30,
2024, the Company had an accumulated deficit of C$71,434,215.
The Company believes that its cash and other available resources
may not be sufficient to meet its operating needs and the payment
of obligations related to various business acquisitions as they
come due within 12 months after August 13, 2024, the date the
unaudited interim condensed consolidated financial statements are
issued.
A full-text copy of the Company's Report is available at:
https://tinyurl.com/8zw5f2hy
About Evome Medical Technologies
Evome Medical Technologies Inc is an integrated medical device
company. The Company offers medical electro-therapy and custom
wearable devices. Evome Medical Technologies serves customers
worldwide.
As of June 30, 2024, the Company had C$38,262,109 in total assets,
C$40,694,673 in total liabilities, and C$2,432,564 in total
stockholders' deficit.
EXACTECH: $235MM Bank Debt Trades at 58% Discount
-------------------------------------------------
Participations in a syndicated loan under which Exactech Inc is a
borrower were trading in the secondary market around 42.3
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $235 million Term loan facility is scheduled to mature on
February 14, 2025. About $218.1 million of the loan is withdrawn
and outstanding.
Exactech, Inc. develops, manufactures, markets, and sells
orthopedic implant devices and related surgical instrumentation.
EYEPOINT PHARMACEUTICALS: Appoints Fred Hassan as Director
----------------------------------------------------------
EyePoint Pharmaceuticals, Inc. announced Sept. 4 the appointment of
Fred Hassan, a distinguished industry leader to its Board of
Directors.
"I am honored to welcome Fred Hassan to EyePoint's Board," said
Goran Ando, M.D., Chair of the Board of Directors of EyePoint
Pharmaceuticals. "He joins at an important time for the Company as
we approach first patient dosing for the pivotal Phase 3 LUGANO
trial of DURAVYU in wet age-related macular degeneration (AMD) and
as we prepare for future commercialization. Fred is a visionary in
the industry with extensive global biopharmaceutical experience,
and his analytical and strategic insights will be invaluable as we
continue to make progress in bringing a potential revolutionary
treatment to patients."
"It is an honor to join the EyePoint Board of Directors at such an
exciting time for the Company," said Mr. Hassan. "I am impressed
by EyePoint's progress developing safe and effective treatments for
important unmet needs in retinal disease, and I look forward to
working closely with the talented management team and the Board to
help bring important innovations to patients who are currently
underserved by today's treatment options."
Fred Hassan has had an exceptionally distinguished career in the
biopharmaceutical industry as the former CEO of three global
pharmaceutical companies. He currently serves as director of
Warburg Pincus LLC, a global private equity firm. Previously, Mr.
Hassan served as Chairman of the Board and chief executive officer
of Schering-Plough Corporation from 2003 to 2009. Prior to joining
Schering-Plough, he was Chairman and chief executive officer of
Pharmacia Corporation, a company that was formed as a result of the
merger of Monsanto and Pharmacia and Upjohn, Inc. Mr. Hassan
joined Pharmacia & Upjohn as chief executive officer in 1997. Mr.
Hassan previously held senior leadership positions with Wyeth,
which has since been acquired by Pfizer, including executive vice
president with responsibility for its pharmaceutical and medical
products businesses. He also served as a member of the Wyeth's
board from 1995 to 1997. Earlier in his career, Mr. Hassan spent a
significant tenure at Sandoz Pharmaceuticals (now Novartis) and
headed its U.S. pharmaceuticals businesses. Mr. Hassan's past
directorships include Time Warner (2001-2018), Amgen (2015-2021)
and as Chairman at Bausch & Lomb (2010-2013).
Mr. Hassan has been the recipient of numerous prominent awards,
including being named CEO of the Year by The Financial Times and
Scrip. He has chaired several prominent pharmaceutical industry
organizations including The Pharmaceutical Research and
Manufacturers of America (PhRMA) and The International Federation
of Pharmaceutical Manufacturers Associations (IFPMA). He received
an MBA from Harvard Business School and a B.S. in chemical
engineering from the Imperial College of Science and Technology at
the University of London.
Mr. Hassan's compensation as a director will be consistent with the
compensation provided to all of the Company's non-employee
directors. Under the Company's current non-employee director
compensation policy, Mr. Hassan will receive an annual cash
retainer of $45,000 for his Board service, which amount will be
pro-rated for 2024. Mr. Hassan will receive an additional annual
cash retainer of $5,000 for his service as a member of the
Governance and Nominating Committee.
Two Directors Quit From Board
Additionally, the Company announced that Anthony P. Adamis, M.D.
and David Guyer, M.D. have resigned from their positions as
directors on the Company's Board due to their transition to
full-time roles at Merck & Co.
"On behalf of the entire Board, I would like to express my sincere
gratitude to Tony and David for their outstanding service and
valuable contributions to EyePoint," said Dr. Ando. "Their
strategic and scientific insights helped shape our product
development pipeline and clinical strategies. EyePoint has
certainly benefited from their substantial industry insight and
experience."
About EyePoint Pharmaceuticals
EyePoint Pharmaceuticals, Inc., formerly pSivida Corp. --
http://www.eyepointpharma.com/-- headquartered in Watertown, MA,
is a clinical-stage biopharmaceutical company committed to
developing and commercializing innovative therapeutics to help
improve the lives of patients with serious retinal diseases. The
Company's pipeline leverages its proprietary bioerodible Durasert E
technology for sustained intraocular drug delivery. The Company's
lead product candidate, DURAVYU (previously known as EYP-1901), is
an investigational sustained delivery treatment for VEGF-mediated
retinal diseases combining vorolanib, a selective and
patent-protected tyrosine kinase inhibitor with bioerodible
Durasert E. DURAVYU is presently in Phase 2 clinical trials as a
sustained delivery treatment for wet age-related macular
degeneration (wet AMD), the leading cause of vision loss among
people 50 years of age and older in the United States, and diabetic
macular edema (DME). EyePoint expects to randomize patients for
inclusion in pivotal Phase 3 clinical trials in wet AMD in 2024.
EyePoint reported a net loss of $70.79 million in 2023, a net loss
of $102.25 million in 2022, a net loss of $58.42 million in 2021, a
net loss of $45.39 million in 2020, a net loss of $56.79 million in
2019, and a net loss of $53.17 million in 2018.
FARADAY FUTURE: Regains Compliance with All Nasdaq Listing Criteria
-------------------------------------------------------------------
Faraday Future Intelligent Electric Inc. announced Sept. 5 that it
received written notice from the Nasdaq Stock Market LLC stating
that the Company regained compliance with the bid price requirement
in Nasdaq Listing Rule 5550(a)(2) and the periodic filing
requirement in Listing Rule 5250(c)(1). The Company is now in
compliance with all Nasdaq continued listing criteria.
As part of the compliance confirmation and in application of
Listing Rule 5815(d)(4)(B), the Company will be subject to a
mandatory panel monitor for a period of one year from the date of
the letter from Nasdaq dated Sept. 4, 2024. If, during that time,
the Company falls out of compliance, Nasdaq will issue a
non-compliance letter, and the Company will be required to request
a new hearing on the matter.
About Faraday Future
Los Angeles, CA-based Faraday Future (NASDAQ: FFIE) --
http://www.ff.com-- designs and engineers next-generation
intelligent, connected, electric vehicles. FF manufactures vehicles
at its production facility in Hanford, California, with additional
future production capacity needs addressed through a contract
manufacturing partner in South Korea. FF is also exploring other
potential contract manufacturing options in addition to the
contract manufacturer in South Korea. The Company has additional
engineering, sales, and operational capabilities in China and is
exploring opportunities for potential manufacturing
capabilities in China through a joint venture or other
arrangement.
New York, NY-based Mazars USA LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
May 28, 2024, citing that the Company has incurred operating losses
since inception, has continued cash outflows from operating
activities, and has an accumulated deficit. These conditions raise
substantial doubt about its ability to continue as a going concern.
FARADAY FUTURE: Secures $30 Million in Financing Commitments
------------------------------------------------------------
Faraday Future Intelligent Electric Inc. announced Sept. 5 that it
has secured $30 million in financing commitments from investors in
the Middle East, the United States, and Asia. The participation
from a Middle East investor, Master Investment, an investment firm
of Sheikh Abdulla Al Qassimi from Ras Al Khaimah, the UAE
represents a significant milestone, underscoring the Company's
successful expansion and development efforts in the region. This
financing not only validates Faraday Future's progress in enhancing
its international presence but also strategically positions the
Company for growth and new business opportunities.
The new financing commitment includes a previously funded $7.50
million and $22.50 million of new investment in the form of
convertible notes and warrants to acquire additional shares of the
Company's common stock. The conversion price for the Convertible
Notes and exercise price for the Warrants, are $5.24 and $6.29 per
share, respectively, subject to adjustment as set forth therein.
The shares of common stock underlying the Convertible Notes and
Warrants issued in the Financing are currently unregistered,
subject to trading restrictions, and not immediately tradable. The
Financing is subject to customary closing conditions.
In April 2024, the Company announced the establishment of a Middle
Eastern sales entity in Dubai, an important milestone for the
Company. With FF's entry into the Middle East, it now operates a
"third pole" geographic strategy expanding its reach beyond the
U.S. and China.
FF's Global Automotive Industry Bridge Strategy and second brand
approach will help the Company to leverage AI and software
technologies for its users across multiple market segments,
potentially accelerating FF's mass-market entry while maintaining
its ultra-luxury offering. FF remains focused on executing its
global strategy and bringing its unique vision of intelligent
electric mobility to a broader audience. FF expects to integrate
the strengths of the U.S. automotive industry and markets with
those of Chinese original equipment manufacturers (OEMs) and parts
suppliers focusing on the $20,000 to $80,000 price segment.
"I am delighted to participate in this round of financing on behalf
of Ras Al Khaimah and the UAE. As FF's strategic partner, I am
also excited to bring FF's upcoming business expansion to Ras Al
Khaimah and Middle East. I believe this will bring unprecedented
growth opportunities for FF. This will also provide significant
momentum for FF's strategic development, particularly in offering
strong support for a rapid global development," said Sheikh Abdulla
Al Qassimi.
"I am extremely encouraged for the possibilities that this new
funding will bring to FF, including supporting our ongoing FF 91
2.0 production and enhanced product and software updates," said
Matthias Aydt, Global CEO of FF. "FF is a unique and
differentiated electric vehicle company with significant growth
prospects, especially with the addition of our Global Automotive
Industry Bridge Strategy and second brand vehicle approach that are
currently in the works. I also want to thank FF Global Partners who
made meaningful contributions to this financing as a Company
consultant."
"I'm truly thankful for our investor support. Moving forward, FF
will continue to focus on the delivery and execution of the FF 91
2.0 production, the Global Automotive Industry Bridge Strategy, and
establishing a footprint in the UAE and Middle East. We believe
these are amazing and unique opportunities for FF to pursue, which
have the potential to create meaningful value," said Jerry Wang,
Head of Corporate Development, FFIE (Consultant).
The Convertible Notes, along with the Warrants, were offered and
sold in a transaction exempt from the registration requirements of
the Securities Act of 1933, as amended, pursuant to the exemption
for transactions by an issuer not involving any public offering
under Section 4(a)(2) of the Securities Act and Rule 506 of
Regulation D of the Securities Act and in reliance on similar
exemptions under applicable state laws. Accordingly, the
Convertible Notes, Warrants and underlying shares of common stock
issuable upon conversion of the Convertible Notes and exercise of
the Warrants may not be offered or sold in the United States except
pursuant to an effective registration statement or an applicable
exemption from the registration requirements of the Securities Act
and such applicable state securities laws.
The Company has agreed to file a registration statement with the
Securities and Exchange Commission registering the resale of the
shares of common stock issuable upon conversion of the Convertible
Notes and exercise of the Warrants issued in connection with the
Financing.
About Faraday Future
Los Angeles, CA-based Faraday Future (NASDAQ: FFIE) --
http://www.ff.com-- designs and engineers next-generation
intelligent, connected, electric vehicles. FF manufactures vehicles
at its production facility in Hanford, California, with additional
future production capacity needs addressed through a contract
manufacturing partner in South Korea. FF is also exploring other
potential contract manufacturing options in addition to the
contract manufacturer in South Korea. The Company has additional
engineering, sales, and operational capabilities in China and is
exploring opportunities for potential manufacturing capabilities in
China through a joint venture or other arrangement.
New York, NY-based Mazars USA LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
May 28, 2024, citing that the Company has incurred operating losses
since inception, has continued cash outflows from operating
activities, and has an accumulated deficit. These conditions raise
substantial doubt about its ability to continue as a going
concern.
FARRELL'S ON ROUND: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Farrell's on Round Top, LLC
500 South Ohioville Road
New Paltz, NY 12561
Business Description: The Debtor owns a mixed use commercial
property (105 acres, hotel, bar/restauarnt
(dormant) located at Mountain Avenue,
Purling NY 12470 having a current value
$3 million.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-35906
Debtor's Counsel: Richard S. Feinsilver, Esq.
RICHARD S. FEINSILVER, ESQ.
One Old Country Road, Suite 347
Carle Place, NY 11514
Tel: 516-873-6330
Email: feinlawny@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Garrett P. Doyle as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/O2EQPEI/Farrells_on_Round_Top_LLC__nysbke-24-35906__0001.0.pdf?mcid=tGE4TAMA
FAYESON INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Fayeson Inc.
d/b/a Richey Inc.
7715 Dahlia Street
Commerce City, CO 80022
Business Description: Fayeson Inc. is a truck and trailer repair
and maintenance services provider.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
District of Colorado
Case No.: 24-15305
Judge: Hon. Kimberley H Tyson
Debtor's Counsel: Patrick R. Akers, Esq.
FENNEMORE CRAIG
2394 E Camelback Road Suite 600
Phoenix, AZ 85016
Tel: (303) 291-2300
Email: pakers@fennemorelaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dion M. Swenson 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/6GS7LRA/Fayeson_Inc__cobke-24-15305__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/Z5GWRNY/Fayeson_Inc__cobke-24-15305__0001.0.pdf?mcid=tGE4TAMA
FEEDEX COMPANIES: Seeks to Tap Daniel L. Drake PA as Accountant
---------------------------------------------------------------
Feedex Companies, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Kansas to hire Daniel L. Drake PA to handle
bookkeeping and tax matters during these proceedings.
The firm will charge $175 per hour for its services.
The accountant is a disinterested party as defined in 11 U.S.C
Section 101(14), representing no interest adverse to the debtors or
the Debtor's estate on the matters upon which it is to be engaged,
according to court filings.
The firm can be reached through:
Daniel Drake, CPA
Daniel L Drake PA
401 W 1st Ave
Hutchinson, KS 67501
Phone: (620) 662-4203
About Feedex Companies
Feedex Companies, LLC is a livestock feed producer in Hutchinson,
Kansas, offering a variety of specially formulated feed products
including cattle feed, calf feed, and chicken feed. It also offers
mill construction, nutrition consultation, and horizontal steam
conditioner services to meet the specific needs of its customers'
operation.
Feedex Companies filed Chapter 11 petition (Bankr. D. Kansas Case
No. 24-21039) on August 14, 2024, with $1 million to $10 million in
both assets and liabilities.
George J. Thomas, Esq., at Phillips & Thomas, LLC is the Debtor's
legal counsel.
FIESTA PURCHASER: Moody's Affirms B3 CFR & Ups 1st Lien Debt to B2
------------------------------------------------------------------
Moody's Ratings affirmed Fiesta Purchaser, Inc.'s (dba "Shearer's")
B3 Corporate Family Rating and B3-PD Probability of Default Rating.
Moody's concurrently upgraded the company's senior secured first
lien debt (revolver, term loan, and notes) to B2 from B3, and
assigned a Caa2 rating to the proposed senior unsecured notes. The
rating outlook is stable.
The company launched an offering of $400 million senior unsecured
notes due 2032. Proceeds will be used to fund a shareholder
distribution and to pay related fees and expenses. The increase in
debt from the transaction will increase debt/EBITDA by roughly one
turn to a mid-6x range (on a Moody's adjusted basis) for the last
12 month (LTM) period ended June 29, 2024. The transaction is
credit negative and aggressive given shareholders are taking a
sizeable dividend shortly after the February 2024 LBO transaction
by Clayton Dubilier & Rice, LLC (CD&R). Further, the company is
pursuing a distribution at a time when it is investing heavily in
the business for future growth opportunities.
Moody's nevertheless affirmed the B3 Corporate Family Rating and
maintained the stable outlook because Moody's expect earnings
growth to reduce debt/EBITDA leverage to approximately 6x (on a
Moody's adjusted basis) over the next 12-18 months. Moody's
forecast a significant increase in Moody's adjusted EBITDA of about
30% for fiscal 2024 ended September, compared to the previous year,
driven by sales growth and easing input cost inflation. Sales
growth is attributed to higher pricing and increased volumes in the
private label and foodservice segments, although this is somewhat
balanced by softer demand in the co-manufacturing segment. The
company's mix of private label and co-manufacturing businesses
offers diversification benefits as customers change purchasing
behavior in different economic environments. Moody's project
mid-single-digit EBITDA growth in fiscal 2025, driven by volume
growth and cost savings, stemming from the company's strategic
investments in network optimization, increased manufacturing
efficiency, and procurement initiatives. Additionally, a
significant investment aimed at bolstering multi-pack production
capabilities is expected to start contributing to earnings growth
in early fiscal 2026.
The upgrade of the ratings on the senior secured first lien debt
instruments to B2 from B3, one notch above the B3 CFR, reflects
that this debt is now supported by the effective priority relative
to new unsecured debt in the company's capital structure. First
lien debt-to-EBITDA leverage has declined since the leveraged
buyout and the new unsecured debt provides loss absorption cushion
to the secured debt that increases recovery prospects in the event
of default. The first lien debt is secured by a first priority lien
on substantially all tangible and intangible assets of the borrower
and guarantors. The Caa2 rating on the company's senior unsecured
notes reflect their effective subordination relative to the
aforementioned first-lien debt.
RATINGS RATIONALE
Shearer's B3 CFR reflects a relatively aggressive financial policy,
highlighted by high leverage and weak free cash flow following the
February 2024 LBO by CD&R and the subsequent $400 million
debt-financed distribution announced in September 2024. Pro forma
for the dividend transaction, debt/EBITDA is expected to be in the
mid-6x range (on a Moody's adjusted basis) for the LTM period ended
June 29, 2024. Moody's anticipate a decline in leverage to
approximately 6x within the next 12-18 months driven by earnings
growth. Free cash flow is projected to be in the range of $15-$20
million over the next 12 months, with capital spending projected to
be elevated due to investments in network optimization,
manufacturing efficiency, and capacity expansion. These investments
are expected to enhance the company's free cash flow by fiscal
2026. The B3 CFR also reflects that the company operates in the
competitive private label and co-manufacturing snacks industry.
Customer concentration also remains a risk because shifts in volume
or pricing pressure can weaken earnings. However, the company has
solid relationships with its largest customers and benefits from
its leading position as a producer of private label snacks, with a
broad manufacturing footprint that allows it to service customers
nationally. Shearer's credit profile is further supported by
current private label demand tailwinds because consumers are
seeking value after facing high inflation in recent years and a
diversified business mix (56% private label, 37% co-manufacturing,
and 7% foodservice). The company periodically pursues acquisitions
but Moody's do not anticipate material transactions over the next
year while the company focuses on good execution of capacity
expansion and other development projects.
Shearer's good liquidity is supported by Moody's expectation of
positive free cash flow of $15-$20 million over the next 12 months
that is projected to improve to more than $50 million in fiscal
2026. Shearer's good liquidity position also reflects $33 million
of cash on hand with an undrawn $300 million revolving credit
facility as of June 29, 2024. Moody's expect these liquidity
sources to sufficiently cover the $12 million in required annual
term loan amortization. The revolving credit facility contains a
9.00x maximum first lien net debt-to-EBITDA leverage covenant that
springs when utilization exceeds 40% of the commitment. Moody's do
not expect the covenant to be triggered over the next 12 months. If
the covenant is triggered, Moody's expect that the company will
have sufficient cushion within the covenant. There are no term loan
financial maintenance covenants.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that earnings will
continue to improve, reducing debt/EBITDA leverage to approximately
6x (on a Moody's adjusted basis) over the next 12-18 months. The
stable outlook also reflects Moody's expectation of positive but
weak free cash flow over the next 12 months in the range of $15-20
million, that is projected to improve to more than $50 million in
fiscal 2026. The higher free cash flow forecast in fiscal 2026
reflects Moody's expectation for earnings growth, lower interest
rates, and reduced capital spending.
A rating upgrade could occur if Shearer's is able to sustain
positive organic revenue growth, increase or maintain the EBITDA
margin and improve free cash flow to a comfortably positive level.
Shearer's would also need to sustain debt/EBITDA below 6.0x and
EBITDA less capital spending-to-interest above 1.25x to be
upgraded.
A rating downgrade could occur if earnings decline due to factors
such as volume pressure, market share losses or higher costs,
liquidity deteriorates, free cash flow is negative or remains low,
or the company completes debt-funded acquisitions or shareholder
distributions.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
COMPANY PROFILE
Fiesta Purchaser, Inc. (dba "Shearer's") is headquartered in
Massillon, Ohio, and manufactures snack food products such as
traditional potato chips, tortilla chips, kettle potato chips,
extruded cheese snacks, cookies, and crackers for other companies
(branded and private label). Revenue was $2.1 billion for the 12
month period ended June 29, 2024. The business was acquired by
private equity firm Clayton Dubilier & Rice, LLC (CD&R) in February
2024.
FOREMOST SPLICING: Seeks to Hire My CPA Guy as Accountant
---------------------------------------------------------
Foremost Splicing and Cutover, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Missouri to employ
Eric Biring, CPA and My CPA Guy as its accountant.
The firm's services include:
a. providing the Debtor with advice with respect to tax and
accounting issues;
b. preparing necessary financial statements, budgets,
projections, tax returns and other accounting papers;
c. assisting the Debtor in effectuating financial analysis and
documentation for the accounting side of a plan of reorganization;
d. assisting the Debtor in overseeing its financial record
keeping and accounting in its continued operation of its business
and management of its property; and
e. providing other necessary accounting services.
The rate of Mr. Biring is $180 per hour.
As disclosed in the court filings, the accountant does not
represent any interest adverse to the Debtor, its creditors or the
estate in the matters upon which it is to be engaged.
The firm can be reached through:
Eric Biring, CPA
MY CPA GUY
3499 State Highway EE
Highlandville, MO 65669
Phone: (417) 443-3263
About Foremost Splicing and Cutover, LLC
Foremost Splicing and Cutover, LLC provides companies of all sizes
the support they need through its fiber cutover and splicing
services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-10247) on May 7, 2024.
In the petition signed by Dawnna Johnson, president/sole member,
the Debtor disclosed $1,663,478 in assets and $2,431,607 in
liabilities.
Judg Brian C. Walsh oversees the case.
David M. Dare, Esq., at Herren, Dare & Streett, represents the
Debtor as legal counsel.
FRANCISCAN FRIARS: Hires Berliner Cohen as Special Trust Counsel
----------------------------------------------------------------
Franciscan Friars of California, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Berliner Cohen LLP as special trust counsel.
The firm will render legal services in connection with trusts and
other bequests to the Debtor.
The firm will charge $720 per hour for the services of Brian
Shetler, the counsel responsible for this engagement.
Berliner Cohen LLP is a disinterested person and neither represent
nor hold any interest adverse to the Debtor, its estate, or the
creditors, as disclosed in the court filings.
The firm can be reached through:
Brian L. Shetler, Esq.
Berliner Cohen LLP
10 Almaden Blvd., 11th floor
San Jose, CA 95113
Telephone: (408) 286-5800
Facsimile: (408) 998-5388
Email: brian.l.shetler@berliner.com
About Franciscan Friars of California
Franciscan Friars of California, Inc. is a tax-exempt religious
organization in Oakland, Calif. The Debtor was formed to provide
religious, charitable, and educational acts, ministry, and service
to the poor.
Franciscan Friars of California, Inc. filed its voluntary petition
for Chapter 11 protection (Bankr. N.D. Cal. Case No. 23-41723) on
December 31, 2023, listing $1 million to $10 million in assets and
$10 million to $50 million in liabilities. David Gaa, OFM,
president of the Debtor, signed the petition.
Judge William J. Lafferty oversees the case.
The Debtor tapped Binder Malter Harris & Rome-Banks LLP as
bankruptcy counsel; Hanson Bridgett LLP, Weintraub Tobin Chediak
Coleman Grodin Law Corporation, and Bledsoe, Diestel, Treppa &
Crane LLP as special counsel; and GlassRatner Advisory & Capital
Group LLC, doing business as B. Riley Advisory Services, as
financial advisor. Donlin, Recano & Company, Inc. is the Debtor's
administrative advisor.
The U.S. Trustee appointed an official committee of unsecured
creditors. The committee selected Lowenstein Sandler LLP and Keller
Benvenutti Kim LLP as counsel and Berkeley Research Group, LLC as
its financial advisor.
FULCRUM BIOENERGY: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------------
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Fulcrum BioEnergy, Inc.(Lead Case) 24-12008
P.O. Box 220
Pleasanton CA 94566
Fulcrum Sierra BioFuels, LLC 24-12006
Fulcrum Sierra Finance Company, LLC 24-12007
Fulcrum Sierra Holdings, LLC 24-12009
Business Description: Fulcrum operates as a clean energy company
described as a pioneer in sustainable
aviation fuel (SAF) production.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Thomas M Horan
Debtors' Counsel: Robert Dehney, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 North Market Street
Wilmington, DE 19899-1347
Tel: (302) 658-9200
Email: rdehney@morrisnichols.com
Debtors'
Financial
Advisor &
Investment
Banker: DEVELOPMENT SPECIALISTS, INC.
Debtors'
Claims &
Noticing
Agent: KURTZMAN CARSON CONSULTANTS, LLC
d/b/a VERITA GLOBAL
Fulcrum BioEnergy's
Estimated Assets: $0 to $50,000
Fulcrum BioEnergy's
Estimated Liabilities: $100 million to $500 million
Fulcrum Sierra BioFuels'
Estimated Assets: $1 million to $10 million
Fulcrum Sierra BioFuels'
Estimated Liabilities: $100 million to $500 million
The petitions were signed by Mark J. Smith as chief restructuring
officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FJTZMSY/Fulcrum_Sierra_BioFuels_LLC__debke-24-12006__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/FR5DAAY/Fulcrum_BioEnergy_Inc__debke-24-12008__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/F66VEKI/Fulcrum_Sierra_Holdings_LLC__debke-24-12009__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/FXOJ4RY/Fulcrum_Sierra_Finance_Company__debke-24-12007__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Teachers Insurance and Annuity Loan $39,894,423
Association of America (PCL
Administration LLC as Agent)
730 Third Avenue
New York, NY 55402
2. Specialty Welding & Trade $10,524,332
Turnarounds, LLC
Jimmy Quick
40492 Cannon Road
Gonzales, LA 70737
Phone: 225-664-1200
EMAIL: JQUICK@SWATSERVICE.COM
3. Rustic Canyon Ventures III LP Loan $5,000,000
1025 Westwood Blvd
2nd Floor
Los Angeles, CA 90024
4. Schmueser & Associates, LLC Trade $3,219,752
Jay Thompson
811 22 Road
Grand Juntion, CO 81505
Phone: 970-263-6061
5. Aquatec International, LLC Trade $2,724,385
AR Muthiah
1 Four Coins Drive
Canonsburg, PA 15317
Phone: 724-746-5300
Email: MUTHIAHA@AQUATECH.COM
6. Arvos GMBH - Trade $2,564,832
Schmidtche Schack
Klaus Maurer
Parsevalsrabe 9A
Dusseldorf, D-40468
Germany
Phone: (49) (211) 4726-167
Email: KLAUS.MAURER@ARVOS-GROUP.COM
7. Hogan Lovells Professional $2,270,235
555 13th St. NW Services
Washington, DC 20004
Phone: (202) 637-5600
8. Spartan Companies 300 LLC Trade $2,244,949
Dillon Hall
116 West 100 South
Richmond, UT 84333
Phone: (855) 277-2782
EMAIL: DHALL@SPARTANCOS.COM
9. Linde Inc. Trade $2,160,214
Adrian Deneys
10 Riverview Dr.
Danbury, CT 06810
Phone: 25-487-4962
EMAIL: ADRIAN.DENEYS@LINDE.COM
10. Siemens Energy, Inc. Trade $1,784,448
Ed Shea
229 First Street
Painted Post, NY 14870
Phone: 716-375-3129
EMAIL: EDWARD.SHEA@SIEMENS-ENERGY.COM
11. C2C Technical Services LLC Trade $1,744,956
31B S Logan Street
Texas City, TX 77590-8346
Phone: (832) 905-1002
12. Dresser-Rand Group Inc. Trade $1,311,017
Jeff Crouch
1200 W Sam Houston Pkwy N
Houston, TX 77043
Phone: 716-375-3129
EMAIL: JEFFREY.CROUCH@SIEMENS.COM
13. Ankura Intermediate Professional $999,600
Holdings, LP Services
485 Lexington Ave.
10th Floor
New York, NY 10017-2619
Phone: (212) 818-1555
14. Aegion Energy Services, Inc. Trade $990,199
(Brinderson, LLC)
Andrea Creech
18841 S. Broadwalk St.
Suite 200
Rancho Dominguez, CA 90220
Phone: 661-243-8826
EMAIL: ANDREA.CREECH@BRINDERSON.COM
15. The Colt Group Intermediate Trade $974,333
Holdings, LP
Jennifer Watson
626 N. 16th St.
La Porte, TX 77571
Phone: (281) 471-9099
EMAIL: JENNIFER.WATSON@COLTGRP.COM
16. Deloitte & Touche LLP Professional $956,785
Barry Shoemake Services
30 Rockefeller Plaza
New York, NY 10112
Phone: (408) 499-8013
EMAIL: BSHOEMAKE@DELOITTE.COM
17. JT Thorpe Industrial Inc. Trade $949,175
Kami Hardman
1132 South 500 West
Salt Lake City, UT 84101
Phone: (385) 271-3572
EMAIL: 1TTIAR@JTTHORPE.COM
18. Black & Veatch Corporation Professional $883,674
Sonia Afifi Services
11401 Lamar Avenue
Overland Park, KS 66211
Phone: 734-622-8594
EMAIL: AFIFISN@BV.COM
19. Johnson Matthey Davy Professional $862,741
Technologies Ltd Services
Nigel Gamble
10 Eastbourne Terrace
London, W2 6LG
United Kingdom
Phone: (44) (207) 9573-535
EMAIL: NIGEL.GAMBLE@MATTHEY.COM
20. Marathon Petroleum Company Trade $858,925
539 South Main St
Findlay, OH 45840
Phone: (419) 422-2121
21. Air Products Trade $829,138
Robert Pollack
1940 Air Products Blvd.
Allentown, PA 18106-5500
Phone: 415-291-8320
EMAIL: RLPOLLAK@GLASSBERG-POLLAK.COM
22. United Rentals Trade $740,347
(North America), Inc.
Stephanie Lasne
100 Stamford Pl.
Suite 700
Stamford, CT 06902-9200
Phone: 704-916-4828
EMAIL: SLASNE@UR.COM
23. Airgas USA, LLC Trade $692,275
Carmela Eclarinal-Lopez
259 North Radnor-Chester Rd.
Suite 100
Radnor, PA 19087-5283
Phone: 213-561-0019
EMAIL: CARMELA.ECLARINAL-
LOPEZ@AIRGAS.COM
24. Savage Services Corporation Trade $680,400
Amy Smedley
901 W. Legacy Center Way
Midvale, UT 84047
Phone: 800-827-4439
EMAIL: AMYSMEDLEY@SAVAGESERVICES.COM
25. Apex Grading & Paving, Inc. Trade $654,493
Ryan Berindean
PO Box 19045
Reno, NV 89511
Phone: (775) 852-9701
EMAIL: RYAN@APEXGP.NET
26. Southern Industrial Trade $604,121
Constructors, Inc.
Nicole Castle
6101 Triangle Drive
Raleigh, NC 27617
Phone: 919-782-4600
EMAIL: NICOLE.CASTLE@SOUTHERNINDUSTRIAL.COM
27. Becht Engineering Co., Inc. Trade $479,976
Haley Bechtle
22 Church Street
Liberty Corner, NJ 7938
Phone: (908) 394-1235
EMAIL: HBECHTLE@BECHT.COM
28. DLA Piper LLP Professional $411,473
Christopher Lynne Services
2000 University Ave
Palo Alto, CA 94303
Phone: (813) 498-6378
EMAIL: CHRISTOPHER.LYNNE@US.DLAPIPER.COM
29. Washington Mills Electro Trade $366,136
Minerals Corp.
Kathy Dundas
1801 Buffalo Avenue
Niagara Falls, NY, Ny 14302
Kathy Dundas
Phone: (716) 278-6745
EMAIL: KDUNDAS@WASHINGTONMILLS.COM
30. Waste Management Trade $363,292
Herbert Hochmayer
Lockwood Regional Landfill
PO Box 541065
Los Angeles, CA 90054-1065
Phone: (844) 492-0474
EMAIL: HHOCHMAY@WM.COM
GC PROPERTIES: Case Summary & Three Unsecured Creditors
-------------------------------------------------------
Debtor: GC Properties of Arcadia, LLC
2403 E State Road 80
Labelle, FL 33935
Chapter 11 Petition Date: September 10, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-01361
Debtor's Counsel: Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: jluna@lathamluna.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Steven Game as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/HM2V5II/GC_Properties_of_Arcadia_LLC__flmbke-24-01361__0001.0.pdf?mcid=tGE4TAMA
GENTING NEW YORK: S&P Assigns 'BB+' Rating on Sr. Unsecured Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to the
senior unsecured notes that Genting New York LLC (GENNY) proposes
to issue. The company plans to use the proceeds to refinance its
outstanding senior unsecured notes and repay existing secured
credit facilities. The ratings on the unsecured notes are subject
to our review of the final terms and conditions.
Together with the note refinancing exercise, GENNY (BB+/Stable/--)
will repay its existing Term Loan A and raise US$150 million in a
new revolving credit facility (RCF) and US$775 million delayed draw
term loan (collectively known as senior secured credit facilities).
Both facilities are likely to be undrawn at close.
Drawdowns under the delayed draw term loan will be conditional on
the success of GENNY's bid for a downstate gaming license in New
York. The state of New York started the bidding process for up to
three full casino licenses in January 2023, with the license fee
costing at least US$500 million. GENNY has unveiled a US$5 billion
plan to support its bid.
The rating on GENNY reflects the highly strategic group status of
the New York-based gaming company. This is given we believe it will
receive extraordinary support from its parent, Genting Bhd., under
almost all foreseeable circumstances.
The stable outlook on GENNY mirrors that on the parent, which in
turn reflects our expectation that the company's market position
across its operations will translate into a stable operating
performance, such that its ratio of funds from operations to debt
remains above 30% over the next two years.
Issue Rating--Recovery Analysis
Key analytical factors
-- S&P rates the senior unsecured notes 'BB+' with a '3' recovery
rating. The '3' recovery rating indicates its expectation for an
average recovery (50%-70%; rounded estimate: 65%) for unsecured
lenders in case of a payment default.
Simulated default assumptions
-- S&P's recovery estimate for the senior unsecured notes is based
on residual claims after the senior-ranked RCF and delayed draw
term loan.
-- Simulated year of default: 2029, in line with the five-year
default horizon for 'BB+' rated credits.
-- S&P's simulated default scenario contemplates a default in
2029, primarily due to a reduction or cessation of support from the
Genting group. This in turn could be driven by a lack of a
meaningful turnaround in business operations on
weaker-than-expected co-branding effects to generate sufficient
customer traffic; and increased competitive pressure from other
casinos in the region (New York, Pennsylvania, New Jersey, and
Connecticut).
-- S&P values GENNY on a going-concern basis and apply a 6.5x
EBITDA multiple to our estimate for its emergence EBITDA. The
applied multiple is in line with the leisure sector.
-- Jurisdiction: U.S.
Simplified waterfall
-- EBITDA at emergence: About US$65 million
-- EBITDA multiple: 6.5x
-- Gross enterprise value: About US$550 million
-- Net enterprise value after administrative expenses (5%): US$522
million
-- Estimated value available for senior secured claims: US$522
million
-- Estimated senior secured debt claims: US$132 million
-- Estimated value available for senior unsecured claims: About
US$390 million
-- Estimated senior unsecured debt claims: About US$543 million
-- Recovery range: 50%-70% (rounded estimate: 65%)
-- Recovery rating: 3
GRANITE CITY: Hires Essex Richards PA as Bankruptcy Counsel
-----------------------------------------------------------
Granite City Mechanical, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of North Carolina to hire
Essex Richards, P.A. as bankruptcy counsel.
The firm will provide these services:
a. provide legal advice concerning the responsibilities as a
Chapter 11 debtor-in-possession and the continued management of the
its business;
b. negotiate, prepare and pursue confirmation of a Chapter 11
plan and approval of disclosure statement, and all related
reorganization agreements and or documents;
c. prepare all necessary motions, applications, reports,
orders, objections and the like associated with prosecuting the
Chapter 11 case;
d. prepare and appear in Bankruptcy Court to protect the
Debtor's best interest;
e. preform and the appear in Bankruptcy Court to protect the
Debtor's best interest; and
f. prosecute and defend the Debtor in all adversary
proceedings related to the base case.
The firm will be paid at these rates:
John C. Woodman $400 per hour
Paralegal $135 per hour
Staff $65 per hour
The firm will be paid a retainer in the amount of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John C. Woodman, Esq., a partner at Essex Richards, P.A., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
John C. Woodman, Esq.
ESSEX RICHARDS PA
1701 South Boulevard
Charlotte, NC 28203
Tel: (704) 377-4300
Fax: (704) 372-1357
Email: jwoodman@essexrichards.com
About Granite City Mechanical, Inc.
Granite City Mechanical is a mechanical contractor in Mount Airy,
North Carolina.
Granite City Mechanical, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C.
Case No. 24-30751) on August 30, 2024, listing $500,000 to $1
million in assets and $1 million to $10 million in liabilities. The
petition was signed by Sherri Fore as officer.
Judge Laura T Beyer presides over the case.
John C. Woodman, Esq. at ESSEX RICHARDS PA represents the Debtor as
counsel.
GULF FINANCE: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings has withdrawn its 'B-' long-term issuer credit
rating on Gulf Finance LLC after the company refinanced its term
loan B and asset-based lending facilities. Following the repayment,
the company no longer has any rated debt outstanding. The outlook
was stable at the time of the withdrawal.
HALL OF FAME: Posts $15.5 Million Net Loss in Fiscal Q2
-------------------------------------------------------
Hall of Fame Resort & Entertainment Co. filed with the U.S.
Securities and Exchange Commission its Quarterly Report on Form
10-Q reporting a net loss of $15.5 million on $4.7 million of total
revenue for the three months ended June 30, 2024, compared to a net
loss of $13.3 million on $6.1 million of total revenue for the
three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $30.1 million on $8.9 million of total revenue, compared to
a net loss of $32.7 million on $9.2 million of total revenue for
the same period in 2023.
The Company has sustained recurring losses through June 30, 2024
and the Company's accumulated deficit was $247.3 million as of such
date. Since inception, the Company's operations have been funded
principally through the issuance of debt and equity. As of June 30,
2024, the Company had approximately $1.5 million of unrestricted
cash and $5 million of restricted cash. During the six months ended
June 30, 2024, the Company used cash for operating activities of
$5.3 million. The Company has approximately $99.9 million of debt
coming due through August 14, 2025.
As of June 30, 2024, the Company had $436.9 million in total
assets, $338.8 million in total liabilities, and $98.2 million in
total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/5n8mv77r
About Hall of Fame Resort
Hall of Fame Resort & Entertainment Co. is a resort and
entertainment company leveraging the power and popularity of
professional football and its legendary players in partnership with
the National Football Museum, Inc., doing business as the Pro
Football Hall of Fame. Headquartered in Canton, Ohio, the Company
owns the DoubleTree by Hilton located in downtown Canton and the
Hall of Fame Village, which is a multi-use sports, entertainment,
and media destination centered around the PFHOF's campus.
As of March 31, 2024, the Company has $439.6 million in total
assets and $326 million in total liabilities.
Going Concern
The Company cautioned in its Form 10-Q Report the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. According to the Company, it has
sustained recurring losses through March 31, 2024, and its
accumulated deficit was $231.5 million as of that date. For the
three months ended March 31, 2024, the Company reported a net loss
of $14.6 million, compared to a net loss of $19.4 million for the
same period in 2023.
Since inception, the Company's operations have been funded
principally through the issuance of debt and equity. As of March
31, the Company had approximately $2.7 million of unrestricted cash
and $4.2 million of restricted cash. During the three months ended
March 31, it used cash for operating activities of $2.5 million.
The Company has approximately $90.6 million of debt coming due
through May 14, 2025.
On April 7, 2024, the Company entered into a formal omnibus
extension of certain debt instruments, effective March 31, 2024,
with CH Capital Lending, LLC, a Delaware limited liability company;
IRG, LLC, a Nevada limited liability company; JKP Financial, LLC, a
Delaware limited liability company; and Midwest Lender Fund, LLC, a
Delaware limited liability company. IRG and its affiliated lenders
agreed to extend the maturity of $51.6 million of principal of its
debt until March 31, 2025. On May 10, 2024, the Company amended its
waterpark ground lease to provide for a cure period resulting from
the Company not making a payment due in May 2024.
The Company expects it will need to raise additional financing to
accomplish its development plan and fund its working capital. The
Company is seeking to obtain additional funding through debt,
construction lending, and equity financing. There are no assurances
the Company will be able to raise capital on terms acceptable to
the Company or at all, or that cash flows generated from its
operations will be sufficient to meet its current operating costs.
If the Company is unable to obtain sufficient amounts of additional
capital, it may be required to reduce the scope of its planned
development, which could harm its financial condition and operating
results, or it may not be able to continue to fund its ongoing
operations.
HERITAGE HOTELS: Hires Hilco Real Estate as Real Estate Agent
-------------------------------------------------------------
Heritage Hotels Rockport LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Hilco
Real Estate, LLC as real estate agent.
The firm will market and sell the Debtor's real property located at
200 S. Fulton Beach Road Rockport, TX 78382.
The firm will be paid a commission of 5 percent of the gross
sales.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Eric W. Kaup
Hilco Real Estate, LLC
5 Revere Drive, Suite 206
Northbrook, IL 60062
Tel: (847) 504-2463
Email: ekaup@hilcoglobal.com
About Heritage Hotels Rockport LLC
Heritage Hotels Rockport LLC in Marble Falls, TX, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Tex. Case No.
24-20201) on July 24, 2024, listing as much as $10 million to $50
million in both assets and liabilities. James R. Reese as manager,
signed the petition.
LAW OFFICE OF VINCENT SLUSHER serve as the Debtor's legal counsel.
HOG FATHER'S: Hearing on Sale of Liquor License Set for Sept. 25
----------------------------------------------------------------
Hog Father's Old Fashioned BBQ, LLC will ask the U.S. Bankruptcy
Court for the Western District of Pennsylvania at a hearing on
Sept. 25 to approve the sale of its liquor license.
The company is selling the liquor license to the highest bidder
"free and clear" of liens, claims and encumbrances.
The company had earlier received a cash offer from a certain Sagar
Ukani to acquire the liquor license for $75,000, without any
financing contingency.
Hog Father's said the offer is "fair" based on other similar sales
of liquor licenses in Washington County, Pa., but the company will
still entertain other interested buyers.
The bankruptcy court will entertain competing offers on the liquor
license at the Sept. 25 hearing.
After payment of the sale costs, broker's fee and other
sale-related expenses, the net proceeds will be distributed in
accordance with the company's Chapter 11 plan of liquidation, which
was confirmed by the court on April 18.
Specialty Lenders, Ltd., the court-approved broker, assists the
company with the sale.
About Hog Father's Old Fashioned BBQ
Hog Father's Old Fashioned BBQ, LLC is a chain of barbeque
restaurants in Western Pennsylvania.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 23-21872) on Sept. 1,
2023, with $500,000 in total assets and $1 million in total
liabilities. Frank Puskarich, managing member, signed the
petition.
Judge John C. Melaragno oversees the case.
The Debtor tapped Christopher M. Frye, Esq., at Steidl & Steinberg,
P.C., as legal counsel, and Wilke CPA's & Advisors, LLP as
accountant.
The court confirmed the Debtor's Chapter 11 plan of liquidation on
April 18, 2024.
HOLZHAUER MOTORS: Seeks to Hire Dickinson Bradshaw as Counsel
-------------------------------------------------------------
Holzhauer Motors, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Iowa to hire the law firm of
Dickinson, Bradshaw, Fowler & Hagen P.C. as its general
reorganization counsel.
The firm will render these services:
(a) advise and assist the Debtor with respect to compliance
with the requirements of the United States Trustee;
(b) advise the Debtor regarding matters of Bankruptcy Law,
including the rights and remedies of the Debtor with regard to its
assets and with respect to the claims of creditors;
(c) represent the Debtor in any proceedings or hearings in
the Bankruptcy Court and in any action in any other court where the
Debtor's rights under the Bankruptcy Code may be litigated or
affected;
(d) conduct examinations of witnesses, claimants, or adverse
parties and to prepare and assist in the preparation of reports,
accounts, and pleadings related to this Chapter 11 case;
(e) advise the Debtor concerning the requirements of the
Bankruptcy Code and applicable rules as the same affect the Debtor
in this proceeding;
(f) assist the Debtor in the negotiation, formulation,
confirmation, and implementation of a Chapter 11 Plan;
(g) make any court appearances on behalf of the Debtor; and
(h) take such other action and perform such other services as
the Debtor may require of the firm in connection with the Chapter
11 case.
The firm will be paid at these rates:
Jeffrey D. Goetz $500
Bradley R. Kruse $385
Brennan Eddy $200
Paralegals $90 to $125
Associates $130 to $260
The firm received $60,000 in pre-petition funds prior to the filing
of this chapter 11 case.
Dickinson Bradshaw believes that it does not have any interest
adverse to the Debtor or its estate as that term is used in
Bankruptcy Code Section 327(a), and is a disinterested person as
that term is defined in Bankruptcy Code Section 101(14).
The firm can be reached through:
Jeffrey D. Goetz, Esq.
Dickinson Bradshaw Fowler & Hagen P.C.
801 Grand Avenue, Suite 3700
Des Moines, IA 50309-8004
Telephone: (515) 246-5817
Facsimile: (515) 246-5808
Email: jgoetz@dickinsonbradshaw.com
About Holzhauer Motors, Ltd
Holzhauer Motors is a dealer of new and pre-owned automobiles.
Holzhauer Motors, Ltd filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Iowa Case No.
24-00813) on August 23, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Dan
Winchell as CEO.
Jeffrey Douglas Goetz, Esq. at Dickinson, Bradshaw, Fowler & Hagen,
P.C. represents the Debtor as counsel.
HOLZHAUER MOTORS: Seeks to Hire Moglia Advisors, Appoints CRO
-------------------------------------------------------------
Holzhauer Motors, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Iowa to hire Moglia Advisors to
provide restructuring services and designate Alex Moglia as its
chief restructuring officer.
The firm's services include:
a. reviewing the financial and operational facts and
circumstances and taking necessary actions;
b. developing a cash flow forecast, implementing a
restructuring sale plan and preparing all appropriate reports;
c. acting as investment banker by conducting an accelerated
sales process of the assets;
d. making staffing decisions;
e. maintaining active and frequent communications with the
Debtors, creditors and employees;
f. working with the Debtor's outside accountants, legal
counsel and others;
g. performing other customary services.
The firm will be paid at these rates:
Alex Moglia $550 per hour
Jill Niese $450 per hour
Other Staff $200 - $450 per hour
Moglia Advisors received a prepetition retainer of $60,000.
As disclosed in court filings, Moglia Advisors is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Alex Moglia
Moglia Advisors
1325 Remington Road, Suite H
Schaumburg, IL 60173
Telephone: (847) 884-8282
Facsimile: (847) 884-1188
Email: amoglia@mogliaadvisors.com
About Holzhauer Motors, Ltd
Holzhauer Motors is a dealer of new and pre-owned automobiles.
Holzhauer Motors, Ltd filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Iowa Case No.
24-00813) on August 23, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Dan
Winchell as CEO.
Jeffrey Douglas Goetz, Esq. at Dickinson, Bradshaw, Fowler & Hagen,
P.C. represents the Debtor as counsel.
ICM HOLDINGS: Melissa Haselden Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 7 appointed Melissa Haselden, Esq., at
Haselden Farrow, PLLC as Subchapter V trustee for ICM Holdings,
LLC.
Ms. Haselden will be paid an hourly fee of $550 for her services as
Subchapter V trustee and will be reimbursed for work-related
incurred.
Ms. Haselden declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Melissa A. Haselden, Esq.
Haselden Farrow, PLLC
700 Milam, Suite 1300
Pennzoil Place
Houston, TX 77002
Telephone: (832) 819-1149
Facsimile: (866) 405-6038
Email: mhaselden@haseldenfarrow.com
About ICM Holdings
ICM Holdings, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Texas Case No. 24-33828) on August 21, 2024, with $50,001 to
$100,000 in assets and $100,001 to $500,000 in liabilities.
Judge Jeffrey P. Norman oversees the case.
Lane Law Firm, PLLC is the Debtor's bankruptcy counsel.
IMPRIVATA INC: Moody's Affirms B2 CFR & Cuts First Lien Debt to B2
------------------------------------------------------------------
Moody's Ratings affirmed Imprivata, Inc.'s ratings, including the
B2 Corporate Family Rating and B2-PD Probability of Default Rating.
Concurrently, Moody's downgraded the senior secured first lien bank
credit facility (comprising the $1.3 billion term loan and $100
million revolving credit facility) ratings to B2 from B1. The
outlook is maintained at stable. Imprivata is an identity and
access management software platform focused on providing security
and access solutions to the healthcare and other industries.
The rating actions follow Imprivata's proposed issuance of an
incremental first lien term loan to pay off in full the $300
million senior secured second lien term loan (unrated). The
downgrade of Imprivata's senior secured first lien credit
facilities rating to B2 from B1 reflects the removal of the
first-loss support provided by the second lien term loan following
the proposed refinancing.
RATINGS RATIONALE
The affirmation of the B2 CFR reflects Imprivata's high debt to
EBITDA (Moody's adjusted) of around 8x and unhedged exposure to
high interest rates which has materially constrained free cash flow
generation. The high financial leverage limits Imprivata's
financial flexibility amidst a slow macroeconomic environment and a
challenged healthcare industry. The healthcare end market, which
comprises the majority of Imprivata's customers, is experiencing
soft operating margins amid elevated labor costs of physicians and
nurses and contentious payer relations, which will weigh on the
company's revenue growth over the next 12 to 18 months.
Imprivata benefits from its leading position in identity and access
management software and related services within the healthcare
industry. The company maintains high client gross retention rates
(in the high 90%s), while also increasing revenue through new
business wins, selling more services to existing customers, and
expanding its product portfolio in the healthcare industry and
beyond. Moody's expect Imprivata's debt to EBITDA (Moody's
adjusted) to decrease to below 7.5x over the next 12 to 18 months,
driven by high single digit percent organic revenue growth, as the
company benefits from strong demand in the healthcare facility
security and digital access management market.
Moody's view Imprivata's liquidity as good, reflecting cash of
approximately $75 million, full availability on the company's $100
million revolving credit facility, and Moody's expectation of free
cash flow to debt in a low single digit percentage range over the
next 12 to 18 months. The financial covenant, applicable only to
the revolver, consists of a springing maximum net leverage ratio
(as defined in the facility agreement) of 7x at or above 35%
utilization. While Moody's do not expect the company to draw on the
revolver to trigger the testing under the covenant in the near
term, if tested, Moody's expect the company to be in compliance.
The stable outlook reflects Moody's expectation that Imprivata will
achieve high single digit percentage annual organic revenue growth
and decrease debt to EBITDA (Moody's adjusted) to below 7.5x over
the next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Imprivata's ratings could be upgraded if the company significantly
increases its scale, while maintaining conservative financial
policies and a good liquidity profile, such that debt to EBITDA
(Moody's adjusted) is sustained below 5.5x and free cash flow to
debt is sustained above 8%.
Imprivata's ratings could be downgraded if market share is
materially weakened as a result of increased competition, leading
to revenue declines or debt to EBITDA (Moody's adjusted) sustained
over 7.5x. A deterioration of liquidity could also lead to a
downgrade.
The principal methodology used in these ratings was Software
published in June 2022.
Imprivata is majority owned by private equity firm Thoma Bravo. The
company generated revenues of approximately $460 million for the
LTM period ended June 30, 2024.
INMET MINING: Hobson Suit vs. Black Mountain Stays in E.D. Tenn.
----------------------------------------------------------------
In the case captioned as CHARLES HUNTER HOBSON,
Plaintiff/Counter-Defendant, v. BLACK MOUNTAIN MARKETING AND SALES
LP, Defendant/Counter-Plaintiff, and BLACK MOUNTAIN MARKETING AND
SALES GP LLC, Defendant, Case No. No. 3:23-CV-374-TAV-DCP (E.D.
Tenn.), Magistrate Judge Debra C. Poplin of the United States
District Court for the Eastern District of Tennessee denied
Plaintiff's Motion to Transfer Venue Under 28 U.S.C. Sec. 1404.
Plaintiff's claim arises out of a breach of contract dispute
between him and Defendants. Prior to April 2023, Plaintiff was the
President and CEO of INMET, a Delaware limited liability company
that operated underground coal mines in Kentucky and Virginia, and
Defendants provided marketing and sold coal processed at INMET's
mines.
On September 18, 2019, Plaintiff, along with two other individuals,
entered into a Guaranty with Defendant LP, in which Defendant LP
agreed to prepay for coal and advance additional funds to INMET.
Subsequently, on April 5, 2023, INMET filed for Chapter 11
Bankruptcy in the United States Bankruptcy Court for the Eastern
District of Kentucky.
On July 11, 2023, Defendant LP purchased certain assets from INMET,
including all of its then-operating mining assets located in
Kentucky and Virginia. Defendant LP and Bluegrass Energy LLC also
agreed to acquire all avoidance actions, claims and causes of
action of INMET and the bankruptcy estate against, among others,
Plaintiff.
On July 13, 2023, the Bankruptcy Court approved the sale of a
disputed number of INMET's assets to Bluegrass, which Plaintiff
asserts is a subsidiary of Defendants. The sale closed on July 28,
2023, which, Plaintiff contends, "triggered Defendants' obligation
under the parties' Letter Agreement to employ Plaintiff for a
period of at least two years at a salary of $500,000.00 annually".
"After consummating its purchase of INMET's assets, Bluegrass
assigned the claims INMET held against [Plaintiff] to BMMS
effective as of October 12, 2023".
Plaintiff filed a Complaint against Defendants on September 6,
2023, in the Chancery Court for Knox County, Tennessee, for breach
of contract. Defendant LP removed the case to Tennessee federal
court on October 17, 2023. Plaintiff filed an Amended Complaint on
November 13, 2023, and then, Defendants filed their Joint Answer
and Counterclaims on December 18, 2023.
Defendants assert six counterclaims for breach of fiduciary duty,
actual fraudulent transfer, constructive fraudulent transfer,
unjust enrichment, conversion, and breach of guaranty. Defendants
allege that Plaintiff "used his position as INMET's principal, sole
manager, and Chief Executive Officer to steal money from INMET for
his own personal use and the use of his family and friends". They
further allege that Plaintiff actively concealed his theft from
Defendants, "which had advanced INMET tens of millions of dollars
to fund INMET's operations". Defendants assert that they discovered
Plaintiff "stole or misused additional INMET funds totaling, at
minimum, hundreds of thousands of dollars for his own personal
benefit or for the benefit of his friends and family" after
acquiring certain INMET assets, books, and records on July 28,
2023. Plaintiff denies all of these allegations.
Plaintiff now moves to transfer venue for Defendants'
counterclaims. Specifically, Plaintiff seeks to maintain his breach
of contract claim in this Court and to transfer Defendants' breach
of guaranty claim to the Southern District of New York and the
remaining counterclaims to the Bankruptcy Court. He argues that
these transfers are consistent with choice of forum clauses in the
relevant agreements and is otherwise supported by the doctrine of
forum non conveniens.
Defendants oppose Plaintiff's motion and argue that the forum
selection clause in the Guaranty is permissive, not mandatory, and
therefore transfer is not appropriate. Further, Defendants assert
that the forum selection clause in the Asset Purchase Agreement is
not enforceable for the purpose of this litigation because
Plaintiff is not a party to that agreement. Finally, Defendants
argue that severing and transferring these claims is not
appropriate because "28 U.S.C. Sec. 1404 'only authorizes the
transfer of an entire action, not individual claims,'" and because
of the close relationship between Plaintiff's claims and
Defendants' counterclaims.
Plaintiff replied, arguing that the forum selection clause in the
Guaranty is mandatory and that the forum selection clause in the
Asset Purchase Agreement applies to Defendants' counterclaims
because the Defendants acquired the claims against Plaintiff from
that agreement. Finally, Plaintiff asserts that severing and
transferring the case is appropriate because a connection to
Tennessee is not sufficient to overcome the applicable forum
selection clauses.
The Court has considered the parties' arguments and finds that
Plaintiff's request is not well taken because the Court cannot
transfer individual claims and Plaintiff has not shown that
severing the claims is appropriate.
Rule 21 of the Federal Rules of Civil Procedure provides that
"[t]he court may . . . sever any claim against a party." Courts
consider a number of factors when determining whether to sever
claims, including:
(1) whether the claims arise out of the same transaction or
occurrence;
(2) whether the claims present some common questions of law or
fact;
(3) whether settlement of the claims or judicial economy would
be facilitated;
(4) whether prejudice would be avoided if severance were
granted; and
(5) whether different witnesses and documentary proof are
required for separate claims.
Turning to the applicable factors when considering whether to sever
claims, the Court finds that Plaintiff has not met his burden to
show that the claims and counterclaims should be severed. He has
not established any prejudice in litigating all the claims
together, the Court states. Therefore, all five factors to be
considered under Rule 21 do not weigh in favor of severing
Plaintiff's claim and Defendants' counterclaims, and therefore,
Plaintiff's motion to transfer must be denied, the Court holds.
A copy of the Court's decision dated August 22, 2024, is available
at https://urlcurt.com/u?l=DiyVf7
About Inmet Mining
Inmet Mining, LLC is a company in Knoxville, Tenn., which operates
in the coal mining industry.
Inmet Mining sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Ky. Case No. 23-70113) on April 5, 2023, with $50
million to $100 million in assets and $100 million to $500 million
in liabilities. Jeffrey Strobel, chief restructuring officer,
signed the petition.
Judge Gregory R. Schaaf oversees the case.
Jeffrey Phillips, Esq., at Steptoe & Johnson, PLLC serves as the
Debtor's legal counsel. Stretto, Inc. is the Debtor's claims,
noticing and solicitation agent and administrative advisor.
Paul Randolph, Acting U.S. Trustee for Region 8, appointed an
official committee to represent unsecured creditors in the Debtor's
Chapter 11 case. The committee tapped Dentons Bingham Greenebaum,
LLP and Whiteford, Taylor & Preston, LLP as legal counsels; and BDO
Consulting Group, LLC as financial advisor.
INTEGRATED NANO-TECHNOLOGIES: Case Dismissal Order Reversed
-----------------------------------------------------------
Judge Frank P. Geraci, Jr. of the United States District Court for
the Western District of New York vacated and remanded the orders of
the United States Bankruptcy Court for the Western District of New
York:
1. granting the motion filed by the U.S. Trustee seeking
dismissal of the bankruptcy case of Integrated Nano-Technologies,
Inc.; and
2. disapproving the request of the Official Committee of
Equity Securities Holders to retain McCarter & English, LLP, as its
counsel.
The Equity Committee appeals both the dismissal of the case and the
rejection of its bid to hire counsel.
Donald H. Noble, the chief financial officer of INT, filed a
voluntary Chapter 11 petition on INT's behalf in December 2022. INT
moved to employ Barclay Damon LLP as its counsel, and obtain
post-petition financing from Enplas America, Inc., INT's largest
creditor and largest single shareholder. The bankruptcy court
granted the motion for post-petition financing on an interim basis
on January 6, 2023.
On April 13, 2023, the U.S. Trustee appointed the Equity Committee.
On April 24, 2023, INT notified the bankruptcy court that the only
bidder for its assets was Enplas. INT moved for an order
authorizing the sale of its assets to Enplas. The U.S. Trustee
objected to the motion, noting that the bid process required
minimum bids of $10 million, despite the fact a minimum bid "was
not authorized by [the] Court pursuant to the Bidding Procedures
Order" and INT did not "request the Court to authorize such a
minimum bid." The U.S. Trustee objected to the motion because,
among other things, the minimum bid "undoubtedly chilled the
competitive bidding process and predetermined the outcome of the
sale to Enplas." The Equity Committee objected to the motion on
similar grounds. It also proffered evidence that Enplas had exerted
substantial control over INT prior to the bankruptcy, and had used
the bankruptcy proceedings as a means to obtain "INT's assets free
and clear and reorganize the company for its own benefit and to the
detriment of other creditors and shareholders."
On May 18, `2023, the bankruptcy court held a hearing. It resolved
two matters. First, it addressed the U.S. Trustee's objection to
INT's motion to retain Barclay Damon as counsel. Over the course of
the bankruptcy proceedings, information had come to light that two
Barclay Damon partners had interests in INT, and another attorney
who was "of counsel" at Barclay Damon was also formerly an officer
at INT. The bankruptcy court concluded that, because Barclay Damon
had "inadequately disclosed" its potential interests in INT, it was
disqualified from representing INT. The bankruptcy court directed
INT to retain new counsel by May 23, 2023. He warned INT that he
intended to "sua sponte dismiss th[is] case" if it failed to do so.
Second, the bankruptcy court sustained the objections to the sale
and the bidding process. He declared the "entire process" a
"nullity."
On June 1, 2023, the U.S. Trustee moved, pursuant to 11 U.S.C. Sec.
1112(b)(1), to convert or dismiss the bankruptcy proceeding because
INT had failed to obtain counsel. The U.S. Trustee advocated for
conversion: because "there may be assets that can be liquidated and
claims to be investigated, the United States Trustee recommend[ed]
that the case be converted to a case under chapter 7." The Equity
Committee responded that an appointment of a trustee under Chapter
11 was the proper course of action under Section 1112(b)(1). It
believed that INT's operations could still be restructured to
provide a "viable path" forward. In the alternative, the Equity
Committee requested dismissal of the action, provided that the
bankruptcy court retain jurisdiction to adjudicate potential issues
with the post-petition financing order, the recovery of funds held
by Barclay Damon, and the application to retain McCarter & English.
On June 8, 2023, the bankruptcy court granted the motion of the
U.S. Trustee. He found cause for conversion or dismissal under
Section 1112(b)(1) given INT's failure to obtain new counsel. He
found no countervailing unusual circumstances under Section
1112(b)(2). The bankruptcy court concluded that dismissal, not
conversion, was in the best interests of creditors and the estate.
Enplas was the largest unsecured creditor, such that conversion of
the case to Chapter 7 would put the U.S. Trustee in the position of
"recovering assets . . . for the benefit of Enplas." "The absence
of other unsecured creditors with meaningful claims" led the
bankruptcy court to conclude that conversion to Chapter 7 would not
be in the best interest of creditors or the estate. The bankruptcy
court declined to consider the Official Committee's suggestion that
a Chapter 11 trustee be appointed. In its view, the Equity
Committee was required to request that relief via separate motion.
Because the Equity Committee raised it merely in response to the
U.S. Trustee's motion, the request was "procedurally improper" and
would "simply not be considered by the Court."
The bankruptcy court also declined to consider the Official
Committee's request to retain jurisdiction over certain matters in
the event of dismissal. It reasoned that, because the case was to
be dismissed, the Equity Committee would be deemed to be
"automatically dissolved." As a result, it would have no capacity
to pursue those additional matters after dismissal of the Chapter
11 case, including its request to retain McCarter & English. In
other words, the Official Committee's request to retain McCarter &
English was moot. In the alternative, the bankruptcy court
concluded that McCarter & English's proposed hourly rates were
unreasonable. The Equity Committee appealed the dismissal of the
Chapter 11 case and the denial of its application to retain
McCarter & English.
The Equity Committee challenges the bankruptcy court's decisions to
(1) dismiss the case and (2) disapprove its application to employ
McCarter & English.
The Equity Committee argues that the bankruptcy court erred when it
declined to consider appointment of a
Chapter 11 trustee on the ground the Equity Committee had failed to
file a separate motion.
The District Court points out in this case, the bankruptcy court
expressly declined to consider whether appointment of a Chapter 11
trustee would be in the best interests of creditors and the estate.
Contrary to the bankruptcy court's conclusion, Section 1112(b)(1)
required it to conduct that analysis before it could dismiss or
convert the case. The bankruptcy court was not permitted to limit
its analysis to only those alternatives suggested by the movant
(the U.S. Trustee), or to require the Equity Committee to file a
separate motion before considering appointment of a Chapter 11
trustee.
The District Court notes the bankruptcy court justified this
omission on the ground that Rule 2007.1(a) requires that "a motion
for an order to appoint a trustee . . . under Sec. 1004(a) . . . be
made in accordance with Rule 9014." As the Equity Committee
correctly notes, however, the plain terms of Rule 2007.1 "do[] not
require a separate motion for the appointment of a trustee where
such appointment arises . . . under Sec. 1112(b)(1)." That is, Rule
2007.1 addresses affirmative requests for appointment under Sec.
1104(a), not the independent analysis a bankruptcy court is
required to undertake in assessing whether to dismiss, convert, or
appoint under Section 1112(b)(1). In short, the bankruptcy court
erred when it dismissed the matter without determining whether
appointment of a Chapter 11 trustee was in the "best interests of
creditors and the estate," the District Court finds. The bankruptcy
court's order dismissing the Chapter 11 case is vacated and
remanded for further proceedings.
The District Court likewise agrees that the bankruptcy court
erroneously denied the Equity Committee's application to employ
McCarter & English. The bankruptcy court offered two reasons for
the denial:
1. The bankruptcy court found the application moot insofar as
the dismissal of the bankruptcy case resulted in the automatic
dissolution of the Official Committee. As the Court previously
held, "automatic dissolution" does not occur immediately upon
dismissal. Therefore, this rationale is not grounds for finding the
application moot, the District Court states.
2. The bankruptcy court suggested McCarter & English's
proposed hourly rates were excessive as compared to "rates
customarily charged by experienced counsel practicing before this
Court." The bankruptcy court's oral decision and written order
omit any indication of what it believed a fair customary rate to
be. This inhibits the Court's review of the decision. Because it
is unclear whether and to what degree the bankruptcy court's
substantive error influenced its perception of the case -- and,
thereby, its view of the reasonableness of McCarter & English's
proposed hourly rates -- remand is warranted to allow the
bankruptcy court to assess the application in light of the further
proceedings that will be undertaken, the District Court concludes.
A copy of the Court's decision dated August 19, 2024, is available
at https://urlcurt.com/u?l=C5eXqG
About Integrated Nano-Technologies
Integrated Nano-Technologies, Inc. is a company in Henrietta, N.Y.,
which offers scientific research and development services.
Integrated Nano-Technologies filed its voluntary petition for
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 22-20611) on Dec.
22, 2022, with $100,000 to $500,000 in assets and $10 million to
$50 million in liabilities. Donald H. Noble, chief financial
officer, signed the petition.
Judge Warren oversees the case.
Jeffrey A. Dove, Esq., at Barclay Damon, LLP and Compass Advisory
Partners, LLC serve as the Debtor's legal counsel and investment
banker, respectively.
INTEGRITY BEHAVIORAL: Hires Landwehr Law Firm LLC as Counsel
------------------------------------------------------------
Integrity Behavioral Management and its affiliates seek approval
from the U.S. Bankruptcy Court for the Eastern District of
Louisiana to employ Landwehr Law Firm, LLC as counsel.
The firm's services include:
a. giving Debtors legal advice with respect to their powers
and duties as debtors-in-possession in the continued management of
their property and operation of their business.
b. assisting Debtors in the disposition, through this
proceeding, of assets which they no longer need in the management
of their property;
c. preparing on behalf of your applicants, as
debtors-in-possession, pleading necessary in connection with the
Chapter 11 cases, including motions, applications, answers, orders,
reports, and papers necessary or otherwise beneficial to the
administration of the Debtor's estates;
d. taking necessary action on behalf of the Debtors to obtain
approval of a joint plan of reorganization;
e. advising the Debtors and take all necessary action to
protect and preserve the Debtors' estates, including prosecuting
actions on the Debtor's behalf and defending any action commenced
against the Debtors, and representing the Debtors' interest in
negotiations concerning litigation in which the Debtors are
involved;
f. making appearances in court necessary to protect the
interest of the Debtors in the jointly administered Chapter 11
cases;
g. analyzing proofs of claim filed against the Debtors and
object to such claims as necessary; and
h. performing all other legal services for the Debtors, as
debtors-in-possession, which may be necessary and proper in the
jointly administered Chapter 11 cases.
The firm will be paid at the rate of $390 per hour.
The firm received the prepetition retainer in the amount of
$20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Darryl T. Landwehr, Esq., a partner at Landwehr Law Firm, 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:
Darryl T. Landwehr
Landwehr Law Firm, LLC
650 Poydras Street, Suite 2519
New Orleans, LA 70112
Tel: (504) 561-8086
Email: dtlandwehr@att.net
About Integrity Behavioral Management
Integrity Behavioral is a provider of mental health care services
and treatment for children, adults, and families. The Company
provides residential drug abuse recovery services for those 21 of
age and older.
Integrity Behavioral Management, LLC in New Orleans, LA, sought
relief under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. E.D. La. Case No.
24-11608) on August 15, 2024, listing $0 to $50,000 in assets and
$1 million to $10 million in liabilities. Terry Lain, M. D. as
manager, signed the petition.
Judge Meredith S Grabill oversees the case.
LANDWEHR LAW FIRM, LLC serve as the Debtor's legal counsel.
J-1-CATTLE FARM: Hires AR Law Partners PLLC as Attorney
-------------------------------------------------------
J-1-Cattle Farm, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Arkansas to employ AR Law Partners,
PLLC, as attorney.
The firm will provide these services:
a. give Debtor legal advice with respect to its powers and
duties as Debtor-in-Possession of its organization and management
of the property;
b. prepare on behalf of Debtor, as Debtor in Possession, a
Petition, Schedules, Statement of Financial Affairs, any necessary
deficient schedules and other documents, applications, answers,
orders, reports, complaints, motions, etc. file such required
documents, and to appear before this Court and any other court in
reference thereto; and
c. perform all other legal services for Debtor in Possession
that may be necessary to effectuate a reorganization of Debtor's
financial affairs.
The firm will be paid at these rates:
Vanessa Cash Adams $300 per hour
Associate Attorney $200 per hour
Support Staff 85 per hour
The firm will be paid a retainer in the amount of $4,300.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Vanessa Cash Adams, Esq., a partner at AR Law Partners, 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:
Vanessa Cash Adams, Esq.
AR Law Partners, PLLC
Plaza West Building
415 N. McKinley Street, Suite 830
Little Rock, AR 72205
Tel: (501) 710-6500
Fax: (501) 710-6336
About J-1-Cattle Farm, LLC
J-1-Cattle Farm, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Ark. Case No. 4:24-bk-12789) on August 28, 2024. The
Debtor hires AR Law Partners, PLLC as counsel.
JAMES LAGER: Wins Bid to Close Subchapter V Bankruptcy Case
-----------------------------------------------------------
Judge Michelle V. Larson of the United States Bankruptcy Court for
the Northern District of Texas granted the request of James Bradley
Lager and JBL Hose Service, LLC d/b/a Texas Hose Pro, for the
administrative closure of their bankruptcy cases.
On January 17, 2022, Mr. Lager filed his voluntary petition for
relief under Chapter 11 of the Bankruptcy Code. Katharine Battaia
Clark was appointed to be the Subchapter V trustee of Mr. Lager's
bankruptcy estate.
On March 10, 2022, JBL filed its voluntary petition for bankruptcy
relief under Chapter 11. Behrooz P. Vida was appointed the
Subchapter V trustee of the JBL bankruptcy estate.
On March 14, 2022, the Court issued an Order Authorizing Joint
Administration of both cases.
A little over a year and a half later, Mr. Lager filed his Amended
Subchapter V Plan of Reorganization. On January 18, 2024, the
Court entered the Confirmation Order and the next day, the Court
issued its standard Chapter 11 Post-Confirmation Order.
Before the Court is the Motion for Final Decree Pursuant to Section
350 of the Bankruptcy Code and Rule 3022 of the Federal Rules of
Bankruptcy Procedure filed by the Reorganized Debtors on April 16,
2024.
By the Motion, the Reorganized Debtors seek entry of a Final Decree
in the bankruptcy case, ordering that:
(1) the cases be closed; and
(2) the Court to maintain jurisdiction to enforce the Order
Confirming Amended Subchapter V Plan of Reorganization.
On April 25, 2024, Mr. Vida filed a Chapter 11 Subchapter V
Trustee's Report of No Distribution in Bankruptcy Case No.
22-30439-MVL11, stating that:
(1) no payments were due to Mr. Vida under the Plan;
(2) according to JBL, the Plan was substantially consummated;
and
(3) certifying that his administration of the JBL bankruptcy
estate had been completed.
The next day, at the request of Mr. Vida, the Court entered an
Order Discharging Trustee, relieving Mr. Vida of his duties in the
JBL Case.
The Reorganized Debtors argue the Plan has been substantially
consummated and the case should be considered fully administered.
The Reorganized Debtors assert (1) that they have commenced making
payments under the Plan, (2) that all assets of the bankruptcy
estates have been revested in the Reorganized Debtors and (3) that
all motions, contested matters, and adversary proceedings have been
resolved.
The Subchapter V Trustee opposes entry of a Final Decree in this
case because the Plan was confirmed on a non-consensual basis and
argues the Bankruptcy Code requires different treatment of
non-consensual cases than either traditional Chapter 11 cases or
those Subchapter V cases which are confirmed consensually pursuant
to section 1191(a). The Trustee believes that such a case cannot be
closed until the plan term has run because the Trustee is not
permitted to be discharged until after she files a final report.
Further, the Trustee points out that the United States Trustee has
requested that Mr. Lager file post-confirmation reports detailing
the progress of the Plan payments, which would be impossible unless
the case remains open.
The Subchapter V Trustee's main argument against closing these
cases is based primarily on the fact that the Bankruptcy Code
contemplates different roles for Subchapter V trustees in cases
confirmed pursuant to subsection (b) of 1191, rather than
subsection (a). Ms. Clark argues that in a situation like the
instant case, where the plan has been confirmed non-consensually,
the Trustee is not permitted to be discharged until the plan term
runs, due in part to the fact that she believes she is unable to
file her final report until all payments have been made.
Specifically, the Trustee argues that section 1183(c)(1) of the
Bankruptcy Code only allows a Subchapter V trustee to be terminated
upon substantial consummation in cases where the debtor's plan was
confirmed consensually pursuant to 1191(a). Challenging that
assertion, the Reorganized Debtors point out that although
1183(c)(1) certainly provides that a Subchapter V Trustee's
services terminate upon substantial consummation of a consensual
plan pursuant to section 1191(a), the Bankruptcy Code contains no
affirmative requirement that the Subchapter V trustee remain in
place in cases confirmed pursuant to section 1191(b). As such, the
Reorganized Debtors argue that the Trustee is making a negative
inference that is not supported by any statutory requirement in the
Bankruptcy Code.
The Court must consider whether entry of a final decree is proper
in these cases, given that the Reorganized Debtors will not be
discharged for another three years, similar to an individual
Chapter 11 case. In answering this question, the Court must also
consider whether the Trustee may be discharged prior to entry of
her final report. Alternatively, in the event the Court finds that
entry of a final decree is improper at this time, the Court will
consider whether these cases should be administratively closed and
allow for a reopening of the cases for entry of discharge or for
modification.
There are six factors courts consider in determining whether a case
has been fully administered and thus whether entry of a final
decree is warranted. The factors provide a poignant place from
which to begin the analysis of whether and when a final decree is
proper:
(1) Whether the order confirming the plan has become final,
(2) whether deposits required by the plan have been distributed,
(3) whether the property proposed by the plan to be transferred
has been transferred,
(4) whether the debtor or the successor of the debtor under the
plan has assumed the business or the management of the property
dealt with by the plan,
(5) whether payments under the plan have commenced, and
(6) whether all motions, contested matters, and adversary
proceedings have been finally resolved.
Factor (1) is fulfilled because this Court signed the Confirmation
Order on January 18, 2024. Factor (2) is inapplicable because no
deposits were required by the plan. Factor (6) is satisfied because
there are no pending adversary proceedings or contested matters.
Factors (3)-(5) relate directly to whether the Plan has been
substantially consummated, which is a significant factor in
deciding whether to enter a final decree.
The first required element of substantial consummation is whether
there has been a "transfer of all or substantially all of the
property proposed by the plan to be transferred." The Plan became
effective on February 2, 2024. Therefore, the first element of
substantial consummation is fulfilled, the Court finds.
The second required element for substantial consummation is whether
there has been an "assumption by the debtor or by the successor to
the debtor under the plan or the business or of the management of
all or substantially all of the property dealt with by the plan."
In the Motion, the Reorganized Debtors state that they "have
assumed the business and management of the property dealt with by
the Plan." The Trustee has not contested this point. Therefore, the
Court concludes that the second element of substantial consummation
is fulfilled.
The final element required for substantial consummation is whether
there has been a "commencement of distributions under the plan."
The Reorganized Debtors assert that they have been making payments
under the Plan. The Trustee argues that there is no transparency
into whether and what extent the Reorganized Debtors are making
their required plan payments, but that is not what section
1101(2)(C) requires. The question is whether they have commenced
payments. The Plan went effective on February 7, 2024. Under the
Plan, the Reorganized Debtors were required to begin making their
first distributions to creditors on "the [first] day of the [first]
full month following the Effective Date of the Plan."
Additionally, Mr. Vida and Ms. Clark have each been paid in full,
and no other creditors have complained of a default. Payments have
undoubtedly commenced. Therefore, the Court concludes that the
third element of substantial consummation is fulfilled.
All in all, five of the six factors are present, the only exception
being inapplicable to the instant case. The only party opposed to
the entry of a final decree in this case is the Trustee, and her
objection is not based on a traditional analysis of whether entry
of a final decree is warranted. Therefore, the Court concludes that
under the traditional analysis, this case can be considered fully
administered.
Next, the Court must consider whether, based upon the fact that a
final decree is warranted under the traditional analysis, the
Subchapter V trustee may be discharged prior to the completion of
her statutory duties in the case. The Trustee's main argument
against the relief requested is that she still has duties to
fulfill under the Bankruptcy Code, primarily being her duty to file
a final report in compliance with section 1183(b)(1), which
incorporates section 704(a)(9).
The Court concludes that the Trustee's statutory duty to file a
final report in this case is not sufficient cause to keep these
cases open, and it is thus appropriate to order the termination of
the services of the Subchapter V Trustee.
In the instant case, the Reorganized Debtors sought, in part, to
close the case prior to completion of the payments contemplated by
the Plan in order to forestall the accrual of administrative
expenses. Although quarterly fees are not required for Subchapter V
debtor, the UST has requested post-confirmation reports be filed in
this case, despite there being no explicit statutory requirement
for such post-confirmation reporting in a Subchapter V case. This
would lead to some administrative costs for the Reorganized
Debtors, both in terms of drafting such reports and because the
Trustee would need to review them. Accordingly, closure was
contemplated at confirmation, the Court states.
Furthermore, the Post-Confirmation Order required the Debtor to
"file an application for final decree" after substantial
consummation as defined under 11 U.S.C. Sec. 1101(2). The instant
Motion was filed in compliance with such Order. Thus, the
Reorganized Debtors have fulfilled both the predicate statutory
requirements under the Bankruptcy Code and this Court's specific
requirements under the Confirmation and Post-Confirmation Orders
for issuance of a final decree, the Court finds. Nevertheless, the
Court concludes that entry of a final decree in the instant case
would be inappropriate, based upon the Reorganized Debtors' own
stated intention to reopen the case in three years' time to allow
for entry of discharge, especially in light of a logical
alternative. The Court finds that the best approach is for the case
to be "administratively closed" subject to reopening when the case
is ripe for entry of discharge.
Judge Larson says, "Based on its review of the pleadings, oral
argument, and applicable law, the Court concludes that the Debtor
has established sufficient criteria for the Court to find that the
case has been fully administered pursuant to section 350 of the
Bankruptcy Code and Bankruptcy Rule 3022 and administratively
closed. The Court will require the Subchapter V Trustee to file her
final report pursuant to 11 U.S.C. Secs. 1183(b)(1) and 704(a)(9)
within fourteen days of the entry of this Order; however, the Court
will also require the Reorganized Debtors to provide payment in
full for any outstanding fees the Trustee has accrued since
confirmation prior to the entry of an order discharging the
Trustee."
A copy of the Court's decision dated August 23, 2024, is available
at https://urlcurt.com/u?l=5pLqqr
James Bradley Lager filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Tex. Case No. 22-30072) on January 17, 2022, listing
under $1 million in both assets and liabilities. The Debtor is
represented by Melissa Hayward, Esq.
JE LUCAS: Case Summary & Two Unsecured Creditors
------------------------------------------------
Debtor: JE Lucas Properties, LLC
956 East Black Street
Rock Hill, SC 29730
Chapter 11 Petition Date: September 8, 2024
Court: United States Bankruptcy Court
District of South Carolina
Case No.: 24-03288
Judge: Hon. Helen E Burris
Debtor's Counsel: Robert H. Cooper, Esq.
THE COOPER LAW FIRM
1610 Gowdeysville Road
Gaffney, SC 29340
Tel: 864-271-9911
Fax: 864-232-5236
E-mail: rhcooper@thecooperlawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Johnny Eugene Lucas, owner/managing
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/LLFLQLY/JE_Lucas_Properties_LLC__scbke-24-03288__0001.0.pdf?mcid=tGE4TAMA
JJJ CONTRACTING: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: JJJ Contracting LLC
f/d/b/a JJ Contracting TN LLC
f/d/b/a JJ Contracting LLC
6844 Burkitt Road
Antioch, TN 37013
Business Description: JJJ Contracting is a contruction company
that offers planning and design,
construction management, building
construction, renovation and repair,
landscape and outdoor living, and demolition
services.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 24-03462
Judge: Hon. Charles M Walker
Debtor's Counsel: R. Alex Payne, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Ste 316
Brentwood, TN 37027
Tel: (629) 777-6529
Fax: (615) 777-3765
Email: alex@dhnashville.com
Total Assets: $451,690
Total Liabilities: $3,248,479
The petition was signed by eff Juengling as owner.
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/IBUD4RI/JJJ_Contracting_LLC__tnmbke-24-03462__0001.0.pdf?mcid=tGE4TAMA
JOHNSON ENTERPRISES: Charles Mouranie Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Charles Mouranie of
CMM & Associates as Subchapter V trustee for Johnson Enterprises
Johnson Wash Systems, LLC.
Mr. Mouranie will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Mouranie declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Charles M. Mouranie CTP
CMM & Associates
43313 Woodward Ave., Ste. 1189
Phone: 248.767.9492
Email: cmouranie@cmmengllc.com
About Johnson Enterprises
Johnson Enterprises-Johnson Wash Systems, LLC sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich.
Case No. 24-31570) on August 22, 2024, with $50,001 to $100,000 in
assets and $100,001 to $500,000 in liabilities.
Judge Joel D. Applebaum presides over the case.
Mark H. Shapiro, Esq., represents the Debtor as legal counsel.
JP NAIL: Seeks to Hire Richard G. Hall as Attorney
--------------------------------------------------
JP Nail Salon, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to employ Richard G. Hall as
attorney.
The firm will provide these services:
a. advise and consult with the debtor concerning questions
arising in the conduct of the administration of the estate and
concerning the debtor's rights and remedies with regard to the
estate's assets and the claims of secured, preferred and unsecured
creditors and other parties in interest;
b. appear for, prosecute, defend and represent the debtor's
interest in suits arising in or related to this case;
c. investigate and prosecute preference and other actions
arising under the debtor's avoiding powers;
d. assist in the preparation of such pleadings, Motions,
Notices and Orders as are required for the orderly administration
of this estate; and to consult with and advise the debtor in
connection with the operation of the business of the Debtor; and
e. prepare and file a Plan and a Disclosure Statement, and to
obtain the confirmation and completion of a Plan of reorganization,
and to prepare a Final Report and a Final Accounting.
The firm will be paid at these rates:
Richard G. Hall $575 per hour
Para-Professionals $200 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Richard G. Hall, Esq., disclosed in a court filing that the firm is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Richard G. Hall
601 King Street, Suite 301
Alexandria, VA 22314
Tel: (703) 256-7159
About JP Nail Salon, LLC
JP Nail Salon, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Va. Case No. 24-11598) on August 28, 2024. The Debtor hires
Richard G. Hall, Esq., as counsel.
KAPS CONSTRUCTION: Hires Villa & White LLP as Bankruptcy Counsel
----------------------------------------------------------------
KAPS Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire Villa & White LLP
as its counsel.
The firm will render these services:
(a) assist and advise the Debtor relative to its operations
and to the overall administration of this Chapter 11 case;
(b) represent the Debtor at hearings to be held before this
court and communicate with its creditors regarding the matters
heard and the issues raised, as well as the decisions and
considerations of this court;
(c) prepare, review, and analyze pleadings, orders, operating
reports, schedules, statements of affairs, and other documents
filed and to be filed;
(d) assist the Debtor in preparing such applications, motions,
memoranda, adversary proceedings, proposed orders and other
pleadings as may be required in support of positions taken by the
it, as well as preparing witnesses and reviewing documents relevant
thereto;
(e) coordinate the receipt and dissemination of in formation
prepared by and received from the Debtor and the its accountants,
and other retained professionals, as well as such information as
may be received from accountants or other professionals engaged by
any official committee;
(f) confer with the professionals as may be selected and
employed by any official committee;
(g) assist and counsel the Debtor in its negotiations with
creditors, or Court-appointed representatives or interested third
parties concerning the terms, conditions, and import of a plan of
reorganization and disclosure statement to be proposed and filed by
it;
(h) assist the Debtor with such services as may contribute or
are related to the confirmation of a plan of reorganization in this
Chapter 11 case;
(i) assist and advise the Debtor in its discussions and
negotiations with others regarding the terms, conditions, and
security for credit, if any, during this Chapter 11 case;
(j) conduct such examination of witnesses as may be necessary
in order to analyze and determine, among other things, the Debtor's
assets and financial condition, whether the Debtor has made any
avoidable transfers of its property, and whether causes of action
exist on behalf of its estate; and
(k) assist the Debtor generally in performing such other
services as may be desirable or required pursuant to section 1107
of the Bankruptcy Code.
Morris White III, Esq., an attorney at Villa & White, will be paid
at his hourly rate of $400 plus expenses.
Mr. White 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:
Morris E. "Trey" White III, Esq.
Villa & White LLP
100 NE Loop 410 #615
San Antonio, TX 78213
Telephone: (210) 225-4500
Email: treywhite@villawhite.com
About KAPS Construction
KAPS Construction, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Texas Case No.
24-51399) on July 27, 2024, with up to $50,000 in assets and up to
$500,000 in liabilities.
Judge Craig A. Gargotta presides over the case.
Morris E. "Trey" White, III, Esq., at Villa & White, LLP represents
the Debtor as legal counsel.
KENBENCO INC: Hires Richard Lampert Real Estate as Appraiser
------------------------------------------------------------
Kenbenco, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Lampert Real Estate
Market Research and Appraisal as appraiser.
The firm will prepare an appraisal over the Debtor's commercial
real property located at 437 Route 212, Saugerties, New York
12477.
The firm will be paid at a flat fee in the sum of $3,000 for the
preparation of the appraisal.
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:
Richard J. Lampert
Lampert Real Estate Market Research and Appraisal
231B Heritage Hills Drive
Somers, NY 10589
Tel: (914) 747-3412
Email: Richard.Lampert@verizon.net
About Kenbenco, Inc.
Kenbenco, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-35470) on May 10, 2024, listing $500,001 to $1 million in assets
and $1,000,001 to $10 million in liabilities.
Judge Cecelia G. Morris oversees the case.
Michelle L Trier Esq. at Genova, Malin & Trier, LLP represents the
Debtor as counsel.
KING WHOLESALE: Seeks to Hire Thompson Burton PLLC as Attorney
--------------------------------------------------------------
King Wholesale Parts Marketing Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to employ the
law firm of Thompson Burton PLLC as its attorneys.
The firm's services include:
a. preparing pleadings and applications and conducting
examinations incidental to any related proceedings or to the
administration of this case;
b. developing the relationship of the status of the Debtor to
the claims of creditors in this case;
c. advising the Debtor of its rights, duties, and obligations
as Debtor operating under Chapter 11, Subchapter V of the
Bankruptcy Code;
d. taking any and all other necessary action incident to the
proper preservation and administration of this Chapter 11,
Subchapter V case; and
e. advising and assisting the Debtor in the formation and
preservation of a plan pursuant to Chapter 11, Subchapter V of the
Bankruptcy Code and any and all matters related thereto.
The firm will be paid at these rates:
Bankruptcy partner $450 per hour
Associates $250 to $350 per hour
Paralegals $200 to $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stuart M. Maples, Esq., a partner at Thompson Burton 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:
Stuart M. Maples, Esq.
Thompson Burton PLLC
200 Clinton Avenue West, Suite 1000
Huntsville, Alabama 35801
Tel: (256) 489-9779
Fax: (256) 489-9720
Email: smaples@thompsonburton.com
About King Wholesale Parts Marketing Inc.
King Wholesale Parts Marketing Inc. filed a petition for relief
under Subchapter V of Chapter 11, Title 11 of the United States
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-81631) on August 23,
2024, listing up to $50,000 in assets and $500,001 to $1 million in
liabilities.
Judge Clifton R Jessup Jr presides over the case.
Stuart M Maples, Esq. at Thompson Burton PLLC represents the Debtor
as counsel.
KOSMOS ENERGY: S&P Rates New $500MM Senior Unsecured Notes 'B'
--------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '4'
recovery rating to Dallas-based oil and gas exploration and
production company Kosmos Energy Ltd.'s proposed $500 million
senior unsecured notes due 2031. The '4' recovery rating indicates
S&P's expectation for average (30%-50%; rounded estimate: 40%)
recovery of principal to creditors in the event of a payment
default.
S&P said, "We expect Kosmos to use the proceeds from this offering
to fund the announced tender offer for up to $400 million of its
7.125% senior unsecured notes due 2026 and up to $100 million of
its 7.75% senior unsecured notes due 2027 and its 7.5% senior
unsecured notes due 2028, and fees and expenses in connection with
the redemptions.
"The recovery rating reflects an updated year-end 2023 PV10 value
of proved reserves under our recovery price assumptions, the
increase in Kosmos' outstanding debt following the issuance of $500
million senior unsecured notes due 2031 and partial redemptions of
its senior unsecured notes due 2026, 2027, and 2028."
The 'B' issuer credit rating and stable outlook on the company are
unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- The existing and proposed unsecured notes and revolving credit
facility are guaranteed on a senior unsecured basis by Kosmos' U.S.
operating subsidiary, which holds the Gulf of Mexico assets, and
its working interests in the Jubilee and Tweneboa, Enyenra, and
Ntomme fields offshore Ghana. In addition, Kosmos' senior unsecured
notes are guaranteed on a subordinated basis by certain operating
subsidiaries that hold Kosmos' producing assets in Ghana and
Equatorial Guinea. S&P assumes the unsecured noteholders and
lenders of the unsecured corporate revolving credit facility will
benefit from residual recovery values from the Gulf of Mexico
assets and, separately, the West Africa assets (after the
reserve-based lending facility is repaid) via subsidiary
guarantees.
-- S&P values the Gulf of Mexico reserves on a PV10 basis at $306
million after 7% administrative expenses.
-- The PV10 values incorporate S&P's recovery price deck
assumptions of $50 per barrel for West Texas Intermediate crude and
$2.50 per million Btu for Henry Hub natural gas.
-- After the effect of the $1.2 billion reserve-based lending
commitment and 7% administrative fees, the residual PV10 value for
the Ghana and Equatorial Guinea assets is about $642 million.
-- S&P assumes the $164 million unsecured corporate revolver would
be 85% drawn at the time of a hypothetical default.
Simulated default assumptions
-- S&P's simulated default scenario assumes a payment default in
2027 stemming from sustained weakness in oil prices, which reduces
the company's cash flow below break-even while it uses up its cash
and liquidity.
-- Accordingly, S&P expects restructuring expenses would be
relatively high in a hypothetical Chapter 11 bankruptcy filing,
considering the various subsidiaries and the multiple jurisdictions
of Kosmos' operations.
-- Specifically, S&P estimates administrative claims total 7% of
its gross enterprise value at emergence, which is higher than its
typical 5% assumption.
-- Kosmos Energy Ltd. is a U.S.-based issuer.
-- Jurisdiction/jurisdiction ranking assessment: U.S./Group A
Simplified waterfall
-- Total enterprise value: $2.2 billion
-- Ghana and Equatorial Guinea recovery value net of RBL: $642
million
-- Gulf of Mexico recovery value: $306 million
-- Total value available to senior unsecured notes and $165
million revolving credit facility: $948 million
-- Total unsecured debt claims: $2.1 billion
--Recovery expectations: 30%-50% (rounded estimate: 40%)
All debt amounts include six months of prepetition interest.
LA HACIENDA: California Rural Advises Trails End United for Change
------------------------------------------------------------------
The law firm of California Rural Legal Assistance, Inc. ("CRLA")
filed a verified statement pursuant to Rule 2019 of the Federal
Rules of Bankruptcy Procedure to disclose that in the Chapter 11
case of La Hacienda Mobile Estates, LLC, the firm represents Trails
End United for Change ("TEUC").
TEUC is an unincorporated association representing 20 of the
approximately 25 remaining resident-occupied spaces in the 60 space
mobilehome park located at 104 E Sierra Ave, Fresno, California
(the "Park"). TEUC was formed in 2021, approximately three years
before the filing of the Chapter 11 Case at a time when the Park
was named "Trails End Mobilehome Park."
Due to TEUC's role over those three years of advocating against the
Debtor's purchase of the Park in 2022, successfully blocking an
impermissible rent increase, and pursuing legal action against the
Debtor's attempt to close the Park, some of TEUC's members are very
concerned about publicly revealing their identity until absolutely
necessary, fearing retaliation by the Debtor or its agents or
representatives, a fear vindicated by the fact that the Debtor was
pursuing between 10 to 20 additional evictions until TEUC obtained
an injunction preventing it from doing so.
Moreover, they fear that the Debtor may take actions against them,
including harassment, threats, or targeting for evictions should
the injunction against Debtor prohibiting such evictions be
overturned.
CRLA, a nonprofit statewide law firm in California, assisted in the
formation of the TEUC for purposes of protecting the rights of the
Park tenants, many of whom CRLA has also represented, or currently
represents, as individuals. All of CRLA's clients residing at the
Park are low or extremely low income, including, but not limited
to, elderly and disabled individuals living on a fixed-income,
single-parent households, and low-wage families.
Attorneys for Trails End United for Change:
Mariah C. Thompson, Esq.
Patricia A. Van Dyke, Esq.
California Rural Legal Assistance, Inc.
3747 E Shields Ave
Fresno, CA 93726
Telephone: (559) 441-8721
Facsimile: (559) 441-0724
About La Hacienda Mobile Estates
La Hacienda Mobile Estates, LLC, is primarily engaged in renting
and leasing real estate properties.
La Hacienda sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bank. D. Del. Case No. 24-10984) on May 9, 2024,
with $1 million to $5 million in both assets and liabilities. The
petition was signed by Matt Davies as managing member.
The Hon. Karen B. Owens presides over the case.
The Debtor tapped Ashby & Geddes, P.A., as bankruptcy counsel.
LENTZE MARINA: Case Summary & Five Unsecured Creditors
------------------------------------------------------
Debtor: Lentze Marina, Inc.
75 1st Street
Hazlet, NJ 07734
Business Description: The Debtor is a full service marina in
Hazlet, New Jersey.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-18894
Debtor's Counsel: Allen I. Gorski, Esq.
GORSKI & KNOWLTON PC
311 Whitehorse Ave., Suite A
Hamilton, NJ 08610
Tel: 609-964-4000
Fax: 609-528-0721
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Jeffrey Lentze as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/7T4HRRA/Lentze_Marina_Inc__njbke-24-18894__0001.0.pdf?mcid=tGE4TAMA
LEROUX CREEK: Seeks to Hire Allen Vellone Wolf Helfrich as Counsel
------------------------------------------------------------------
Leroux Creek Food Corporation, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to hire Allen Vellone
Wolf Helfrich & Factor P.C. as its counsel.
The firm will handle all matters concerning the administration of
the Estate, including preparation of the bankruptcy statements and
schedules, a plan of reorganization and disclosure statement, and
any contested matters or adversary proceedings.
The firm will be paid at these hourly rates:
Jeffrey Weinman $625
Katharine Sender $375
Bailey Pompea $395
Other attorneys $325 to $725
Paralegals $120 to $235
Allen Vellone does not hold or represent any interest adverse to
and is not a creditor of the Debtor or the Bankruptcy Estate and is
deemed a "disinterested person" as defined in section 101(14),
according to court filings.
The firm can be reached through:
Jeffrey A. Weinman, Esq.
Katharine S. Sender, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Phone: (303) 534-4499
Email: JWeinman@allen-vellone.com
KSender@allen-vellone.com
BPompea@allen-vellone.com
About Leroux Creek Food Corporation
Leroux Creek Food Corporation, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankrutpcy Code (Bankr. D. Colo.
Case No. 24-15015) on August 27, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Edward Tuft as president.
Jeffrey A. Weinman, Esq. at ALLEN VELLONE WOLF HELFRICH & FACTOR,
P.C. represents the Debtor as counsel.
LIFEPOINT HEALTH: S&P Rates New $1.845BB Term Loan B 'B'
--------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to LifePoint
Health Inc.'s proposed $1.845 billion term loan B. The recovery
rating is '3' indicating its expectation of meaningful (50%-70%;
rounded estimate 55%) recovery in the event of a default. LifePoint
will use the proceeds to refinance its existing term loan B
maturing in 2028. This transaction is leverage neutral.
S&P said, "Our stable outlook reflects our expectation for steady
revenue growth of 8.5%-9% in 2024, and 5.5%-6% in 2025. We also
expect margins for 2024 of about 12.5%, an increase from 10.4% in
2023. We expect margins to increase further in 2025 to about 13.5%,
resulting in S&P Global Ratings-adjusted leverage of about 7.1x in
2024 and 6.3% in 2025. We expect cash flow to continue improving
with adjusted discretionary cash flow to debt of 0%-1% in 2024, and
2.5%-3.0% in 2025."
LIGCEDB LLC: Seeks to Hire Pena & Soma as Litigation Counsel
------------------------------------------------------------
LIGCEDB LLC seeks approval from the U.S. Bankruptcy Court for the
Central District of California to hire Pena & Soma, APC as special
litigation counsel.
The firm will defend the Debtor and prosecute its counterclaims in
the adversary proceeding title Orozco v. LIGCEDB, LLC et al. adv.
no. 1:23-ap-01006 MB.
The firm will be paid at these rates:
Leonard Pena, Esq. $500 per hour
Julie A. Soma, Esq. $450 per hour
Paralegal $145 per hour
Leonard Pena, Esq., at Pena & Soma, disclosed in court filings that
the firm and its attorneys do not represent any interest in the
Debtor's bankruptcy estate.
Pena & Soma can be reached through:
Leonard Pena, Esq.
Pena & Soma, APC
402 South Marengo Ave., Suite B
Pasadena, CA 91101
Telephone: (626) 396-4000
Facsimile: (626) 270-4864
Email: lpena@penalaw.com
About LIGCEDB LLC
LIGCEDB LLC, doing business as Loveleeds, is the fee simple owner
of a real property located at 4351 Victoria Park Place, Los
Angeles, CA valued at $1.2 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-10567) on May 9,
2022. The Debtor estimated total assets at $1.2 million and
$408,871 in debt.
The Debtor tapped Thomas B. Ure, Esq., at Ure Law Firm as counsel.
The petition was signed by Rosalinda Barba, managing member.
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 14% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 86
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 16, 2029. About $1.62 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company’s smaller Mass Markets segment primarily
provides broadband services to its residential and small business
customer base.
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 16% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 83.9
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 15, 2030. About $1.62 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company’s smaller Mass Markets segment primarily
provides broadband services to its residential and small business
customer base.
LUMEN TECHNOLOGIES: Fitch Affirms 'CCC+' IDR on Exchange Offer
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Lumen Technologies, Inc., Level 3 Financing, Inc., Qwest
Corporation and related subsidiaries at 'CCC+', following recent
contract wins and announced exchange offers for certain senior
unsecured notes.
Fitch has also downgraded Lumen's senior unsecured notes to 'CCC-'
from 'CCC', and assigned an expected 'CCC(EXP)' rating to the new
second-lien secured issuances under Level 3 Financing, as well as
an expected 'B+(EXP)' rating to the superpriority second-out senior
notes under Lumen. A full list of rating actions is provided at the
end of this release.
The newly announced debt exchange would extend maturities on up to
$850 million of debt to 2032. The larger transaction support
agreement (TSA) completed in early 2024, one of the largest private
debt restructurings in U.S. history, involved over $15 billion in
outstanding debt. Fitch considered the TSA debt exchange a
distressed debt exchange (DDE) but Fitch views this latest, smaller
transaction as more opportunistic, not a DDE.
Fitch expects recent deal wins to improve free cash flow (FCF).
However, the core business remains unstable, with significant
revenue and profit declines potentially continuing through 2025.
The company also faces substantial execution risks, as captured by
its rating.
Key Rating Drivers
Debt Exchange to Boost Near-Term Liquidity: Fitch expects the
announced follow-on debt exchange transactions to extend up to $850
million in maturities to 2032, from 2026-2029. Fitch believes the
latest refinancing is an opportunistic move to enhance near-term
liquidity, but will not solve the long-term issue of an
unsustainable capital structure and operating pressure. The
exchange will extend certain maturities, while increasing interest
expense only modestly, despite higher coupons on the new notes, due
to some of the exchanges likely being completed below par.
Fundamentals Remain Pressured: Fitch expects Lumen to face organic
EBITDA pressure at least through 2025, with the company guiding
lower EBITDA in 2024 and 2025. It has announced several cost saving
plans in the past two years, including $300 million in annual cost
cuts announced in 2H23 and a recently announced $1 billion plan
that will run through to 2027. These savings should improve the
company's operating profile, but may be insufficient if revenue
pressure continues. Organic revenue declined by 7%-8% yoy in 1H24
and 6% in 2023, while EBITDA declined more than 15% and nearly
10%.
PCF Deals Help Liquidity: Recent private connectivity fabric (PCF)
contract wins of $5 billion significantly bolster near-term
liquidity and signal the asset value inherent in parts of the
company's network. The contracts include the provision of dark
fiber and other services to Microsoft Corporation and other
hyperscale, social media and technology companies. The contracts
are long-term, some for up to 20 years.
Fitch expects most cash to be realized in the next few years, but
with a corresponding rise in capex tied to the deals. Thus, there
is unlikely to be an immediate revenue or EBITDA boost, although
FCF will rise from the upfront cash payments. Fitch projects FCF of
nearly $1.1 billion in 2024, within the company's guidance of $1.0
billion-$1.2 billion. FCF could also be modestly positive in 2025,
although the company will likely revert to negative FCF in 2026
absent a major improvement in its core business or meaningful
follow-on PCF-type deals.
Rising Leverage Expectations: Fitch estimates EBITDA leverage could
approach or exceed 5.0x in the next few years if the company
continues to experience fundamental pressure or fails to reduce
debt. This level of leverage, combined with organic business
declines, could pressure the company's rating but Fitch will look
for evidence of improvements in its business or a clearer focus on
debt reduction.
Temporarily Eased Refinancing Pressure: The TSA agreement and
maturity extension have temporarily eased refinancing risk, while
the new exchange will further help the company's profile, with less
than $1 billion maturing through YE 2027 pro forma for the latest
exchange offer. Prior to the TSA transaction, Lumen had $9.5
billion of debt maturing in 2027 alone. However, it still has a
large maturity wall of more than $7.0 billion in 2029 and more than
$6.0 billion in 2030. Its available refinancing options will
diminish should its operating profile fail to strengthen in the
next few years.
Divestitures Shrinking Business: Lumen continues to enact
multi-year restructuring efforts. These include major divestitures,
with further sales likely; for instance, it views its mass markets
(residential) operations as non-core. Divestitures to date have not
significantly improved leverage, but have reduced the company's
size. Fitch estimates the company's revenue and EBITDA at around
$13 billion and $3.8 billion, respectively, in 2024, versus $20.7
billion and $8.6 billion in 2020.
Telecoms Sector Faces Challenges: Lumen faces similar industry-wide
challenges as other wireline operators, as customers migrate to
newer products and services from legacy offerings. The company
seeks to more aggressively address these challenges through
increased investment in its enterprise business. Execution risk
exists in regard to this strategy, but Fitch believes the
investments should steady and eventually support revenue growth
over time.
Parent-Subsidiary Relationship: Fitch equalizes the ratings of
Lumen and Level 3 Parent, LLC - the guarantor of Level 3
Financing's debt -as well as Qwest Corporation and guarantor Qwest
subsidiaries. This is based on a stronger subsidiary/weaker parent
approach amid open legal ringfencing and open access and control.
Derivation Summary
Lumen has a solid competitive position based on the scale and size
of its wireline operations in the enterprise/business services
market. It has a moderately smaller revenue position in the
enterprise end market than AT&T Inc. (BBB+/Stable) and is similar
in size to Verizon Communications Inc. (A-/Stable). All three
companies have extensive footprints in the U.S. and abroad. AT&T
and Verizon maintain lower financial leverage, generate higher
EBITDA and FCF, and have wireless offerings providing more service
diversification compared with Lumen. FCF improved at Lumen on
dividend reductions and cost synergies, but Fitch projects
normalized FCF to stay negative in the near term.
Lumen has a larger enterprise business that differentiates it from
other wireline operators, such as Windstream Services, LLC (B/Watch
Evolving) and Frontier Communications Parent, Inc. (B+/Negative).
It also has a lower exposure to the residential market. The
residential market held up well during the Covid-19 pandemic, but
continues to face sector-wide challenges. Incumbent wireline
operators face competition for residential broadband customers from
cable operators. Lumen and other wireline operators are investing
more aggressively in fiber in response to these threats.
Key Assumptions
- Organic revenue declines in the low- to mid-single digits in the
medium term, then to gradually improve.
- EBITDA margin to improve in the next few years, helped by cost
saving initiatives, but to remain near 30% in the medium term.
- Capex up modestly in 2024 and more so again in 2025 to facilitate
the new PCF deals; capex to remain in the $3.2 billion-$4.0 billion
range per year through 2027.
- Positive FCF in 2024-2025, helped by a one-time tax refund and
cash receipts from PCF deals, then FCF reverting to a loss in
2026.
- Fitch does not assume any incremental M&A or divestitures,
although further divestitures could occur as the company seeks to
reduce its debt and stabilize its operating profile.
Recovery Analysis
Fitch undertakes a tailored analysis of recovery upon default for
each issuance for entities rated 'B+' and below, where default is
closer and recovery prospects are more meaningful to investors. The
resulting debt instrument rating includes a Recovery Rating (RR;
graded from 'RR1' to 'RR6') and is notched from the IDR
accordingly. This analysis encompasses three steps: (i) estimating
the distressed enterprise value (EV); (ii) estimating creditor
claims; and (iii) distribution of value.
Fitch assumes Lumen would emerge from a default scenario under the
going concern approach versus liquidation. Fitch has run three
separate recoveries for the three primary borrower entities: Level
3 Financing, Qwest Corporation and Lumen.
In estimating a distressed enterprise value for the three issuers
in Lumen's capital structure, Fitch assumes that continued
sector-wide challenges are cause pricing pressure in the company's
enterprise business and that there is a slower than anticipated
uptake in growth products. This causes revenue and earnings to
decline, prompting a restructuring.
Key assumptions used in each recovery analysis are as follows:
Level 3 Financing, Inc.:
- Going Concern (GC) EBITDA - Fitch assumes a going concern EBITDA
of approximately $1.3 billion, which is nearly 15% below its
estimated 2024 EBITDA. This assumes continued revenue pressure and
that the EBITDA margin trends lower toward the high-20% range
versus the current consolidated margin in the low-30% range.
Reduced EBITDA of this magnitude in a bankruptcy scenario could
imply intense competition or pricing pressure.
- EV Multiple - Fitch assumes a 5.5x enterprise value multiple.
This is in line with its recovery assumption for peer, Frontier,
and is further validated by current and historical sector trading
multiples, industry M&As, and precedent bankruptcy recoveries in
the sector.
Qwest Corporation:
- GC EBITDA - Fitch assumes a going concern EBITDA of approximately
$1.8 billion, which is more than 20% below its estimated 2024
EBITDA. This assumes continued revenue pressure and that the EBITDA
margin trends lower toward the high-30% range versus the current
estimated mid-40%, including corporate costs. Reduced EBITDA of
this magnitude in a bankruptcy scenario could imply intense
competition or pricing pressure.
- EV Multiple - Fitch assumes a 5.0x enterprise value multiple,
which is below that of Level 3 Financing and Frontier, both due to
more fiber exposure, and reflects sector-wide pressure hurting the
local part of its business. This multiple is further validated by
current and historical sector trading multiples, industry M&A and
precedent bankruptcy recoveries in the sector.
Lumen Technologies Inc.:
Fitch assumes Lumen's superpriority debt under the 2024 TSA
agreement would take priority in a bankruptcy scenario, given the
guarantee that is in place. Once the superpriority debt is repaid,
Fitch assumed Qwest Corporation's senior unsecured notes would take
next priority, with residual value flowing back to Lumen.
Fitch calculated all of Lumen's superpriority debt, Qwest
Corporation's senior unsecured notes, remaining first-lien term
loans not repaid as part of the TSA transaction and Qwest Capital
Funding, Inc.'s unsecured notes, which Fitch believes are
structurally senior to Lumen's unsecured notes, would fully recover
at a RR1/100% recovery. Residual value would then be allocated to
Lumen's unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Operating fundamentals improve, including sustained revenue and
EBITDA growth or positive FCF.
- Capital structure changes that are positive for the overall
credit profile.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A weakening of Lumen's operating results, including deteriorating
margins and consistent mid-single digit or greater revenue
erosion.
- Increased liquidity pressure or difficulties refinancing parts of
the capital structure.
Liquidity and Debt Structure
Adequate Liquidity: Lumen had cash and cash equivalents of $1.5
billion at June 2024, benefiting from recent asset sales and tax
refunds. It also had access to more than $950 million of capacity
on its superpriority senior secured revolvers. Fitch projects the
company could generate positive FCF in 2024-2025, benefiting from
upfront cash receipts from its PCF contract wins. However, FCF
could revert to negative from 2026 without a significant
improvement in its core business or further debt and cost
reductions.
Debt Profile: The company has more than $19 billion of debt pro
forma the pending exchange offers, which is before finance leases,
unamortized discounts, debt issuance costs and other adjustments.
Its debt includes term loans as well as secured and unsecured notes
across predominantly three borrower entities. The TSA transaction
extended its large 2027 maturity wall, but about two thirds of
outstanding debt will still be due in the 2029-2030 period.
Lumen's new superpriority debt benefits from secured guarantees by
Qwest Communications International Inc. (CCC+), Qwest Services
Corporation (CCC+), CenturyTel Holdings, Inc., Wildcat Holdco LLC
and certain other subsidiaries. In addition, Qwest Corporation and
Qwest Capital Funding provide unsecured guarantees on this debt. A
portion of Lumen's revolving facility also benefits from guarantees
from Level 3 subsidiaries, although the guarantees will diminish
once Qwest Corporation moves certain assets into other
subsidiaries. There is also a $1.2 billion intercompany loan that
was put in place with the TSA transaction, as cash proceeds from
new money first-lien notes were transferred to Lumen. This loan
ranks pari passu with the second-out superpriority revolver,
superpriority term loans and 4.125% superpriority notes.
Lumen's superpriority secured debt limits total net leverage to no
more than 5.75x and require interest coverage to be no less than
2.0x.
Issuer Profile
Lumen is one of the largest U.S. wireline providers, with a focus
on the enterprise market, including multinational corporations,
large enterprises, small and medium-sized businesses, governments
and other carriers on a wholesale basis. It also serves residential
customers, although this is a smaller portion of its business mix.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Level 3 Parent,
LLC LT IDR CCC+ Affirmed CCC+
Level 3
Financing, Inc. LT IDR CCC+ Affirmed CCC+
Senior Secured
2nd Lien LT CCC(EXP)Expected Rating RR5
senior
unsecured LT CCC- Affirmed RR6 CCC-
senior
unsecured LT CCC- Affirmed RR6 CCC-
senior
secured LT B+ Affirmed RR1 B+
Senior Secured
2nd Lien LT CCC Affirmed RR5 CCC
Qwest
Communications
International Inc. LT IDR CCC+ Affirmed CCC+
Qwest Capital
Funding, Inc.
senior
unsecured LT B+ Affirmed RR1 B+
Lumen
Technologies,
Inc. LT IDR CCC+ Affirmed CCC+
super senior LT B+(EXP)Expected Rating RR1
senior
unsecured LT CCC- Downgrade RR6 CCC
senior
unsecured LT CCC- Downgrade RR6 CCC
senior
secured LT B+ Affirmed RR1 B+
super senior LT B+ Affirmed RR1 B+
Qwest Services
Corporation LT IDR CCC+ Affirmed CCC+
Qwest Corporation LT IDR CCC+ Affirmed CCC+
senior
unsecured LT B+ Affirmed RR1 B+
MEADOWBROOK SERVICES: Patricia Fugee Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Patricia Fugee of
FisherBroyles, LLP as Subchapter V trustee for Meadowbrook
Services, LLC.
Ms. Fugee will be paid an hourly fee of $365 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fugee declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Patricia B. Fugee
FisherBroyles, LLP
27100 Oakmead Drive #306
Perrysburg, OH 43551
Phone: (419) 874-6859
Email: Patricia.Fugee@FisherBroyles.com
About Meadowbrook Services
Meadowbrook Services, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-51266) on August
21, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Alan M. Koschik presides over the case.
Michael A. Steel, Esq., at Steel & Company Law Firm represents the
Debtor as bankruptcy counsel.
MEDICAL SOLUTIONS: Prospect Capital Marks $54.4MM Loan at 17% Off
-----------------------------------------------------------------
Prospect Capital Corporation has marked its $54,463,000 loan
extended to Medical Solutions to market at $44,976 or 83% of the
outstanding amount, according to a disclosure contained in Prospect
Capital's Amended Form N-CSR for the fiscal year ended June 30,
2024 filed with the Securities and Exchange Commission on August
28, 2024.
Prospect Capital is a participant in a Second Lien Term Loan to
Medical Solutions Holdings, Inc. The loan accrues interest at a
rate of 12.44% (1M SOFR+ 7%, 0.50% Floor) per annum. The loan
matures on November 1, 2029.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Medical Solutions provides contingent clinical labor solutions to
hospitals across the US. It was acquired by Centerbridge Partners,
L.P. and Caisse de depot et placement du Quebec from TPG Growth in
2021.
METHANEX CORP: S&P Affirms 'BB' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on
Vancouver-based Methanex Corp. S&P will look to assign issue-level
and recovery ratings to the new debt when the company launches the
issuance.
The stable outlook reflects our expectation that the company's pro
forma weighted-average funds from operations (FFO) to debt will
remain appropriate for the rating (between 20%-30%).
On Sept. 8, 2024, Methanex Corp. announced it had entered into an
agreement to acquire OCI N.V.'s global methanol business. The
transaction includes OCI's Beaumont methanol (roughly 910,000
metric tons per year) and ammonia (340,000 tons per year) assets, a
50% interest in its Natgasoline joint venture (JV), and its
European methanol assets (currently idled).
S&P said, "Pro forma for the acquisition and the ramp up of its G3
production, we forecast Methanex will generate significant
discretionary cash flow, which will likely support its debt
repayment over the coming years.We expect the company will fund the
transaction with about $1.15 billion of incremental debt and about
$450 million of equity while assuming about $450 million of debt
and leases at the Natgasoline JV (proportionately consolidated
based on its acquired 50% ownership). Overall, this will likely
lead to a modest deterioration in Methanex's credit metrics
relative to our prior forecast, including a decline in its pro
forma FFO to debt to the low-20% area in 2025. However, assuming
the transaction closes near the beginning of 2025 and methanol
prices average about $350 per metric ton, we estimate the company
will generate sufficient discretionary cash flow to repay more than
$500 million of debt annually over the next two years.
"Specifically, we expect Methanex's reduced capital expenditure
(capex) on its G3 project, the ramp up of its production at G3, and
the additional cash flow it will receive from the acquired assets
will enable it to generate stronger discretionary cash flow. We
also believe management is committed to maintaining metrics that
support the current rating, which is evidenced by the company's
decision to use $450 million of equity financing, its track record
of maintaining prudent debt leverage, and our anticipation
management will prioritize using its free cash flow for debt
repayment over the next two years. Although we expect Methanex will
continue to pay its dividend, we do not incorporate significant
share buybacks in our base-case forecast and believe management
remains committed to redeeming its US$300 million of 2024 notes
prior to their maturity with cash.
"Our assessment of the company's business risk reflects its
stronger market share position and increased scale following the
transaction, though it remains constrained by its lack of product
diversity. Methanex is the world's largest methanol producer with
about 12% market share (pre-acquisition). The acquisition of OCI's
methanol business, which includes a 50% interest in the Natgasoline
JV, will add about 2.1 million metric tons per year of equity
methanol capacity and increase the company's total capacity to
about 12.5 million metric tons. We view Methanex's geographic
diversity, supported by its production facilities in New Zealand,
the U.S., Trinidad, Egypt, Canada, and Chile, which are in the
bottom half of the cost curve, as a key business strength . We
expect the company's G3 project, with a capacity of 1.8 million
metric tons and located adjacent to its Geismar 1 and Geismar 2
facilities, will further enhance its low-cost structure.
"The OCI transaction, which includes producing assets in the U.S.,
will further enhance Methanex's feedstock advantage because we
expect natural gas prices in North America will remain competitive
relative to other regions, as well as to coal prices (a key input
in Chinese methanol production). The acquisition of North American
assets will also diversify the company's production away from
jurisdictions where access to the natural gas supply is, or is
expected to be, a constraint on methanol production (such as in
Trinidad, New Zealand, and Egypt). We believe these factors support
the company's ability to maintain EBITDA margins in the top
quartile of our global commodity chemicals sector peer group.
However, our business risk assessment also incorporates Methanex's
limited product diversity, given that it derives essentially all of
its earnings from a single commodity (methanol).
"While the transaction includes OCI's Beaumont ammonia facility
(340,000 tons per year of capacity), the earnings contribution from
this asset will remain modest relative to the company's methanol
business. We expect Methanex's EBITDA on both a quarterly and
annual basis will likely remain highly volatile because methanol
prices depend on the industry supply and demand dynamics. In
addition, the company has had to limit its production in certain
areas (such as Chile, Trinidad, New Zealand, and Egypt) at times
because of natural gas supply constraints. Despite Methanex's
increased scale and exposure to lower-cost assets following the
acquisition, we believe the inherent volatility in methanol prices,
as well as its product concentration and some natural gas supply
constraints, position it at the weaker end of our satisfactory
business risk category compared with more-diversified companies,
such as LyondellBasell Industries N.V. and Westlake Corp.
"The stable outlook reflects our expectation that Methanex Corp.'s
credit metrics will remain appropriate for the current rating level
following the completion of its OCI Methanol business acquisition,
including S&P Global Ratings-adjusted weighted-average FFO to debt
remaining comfortably in the 20%-30% range and S&P Global
Ratings-adjusted debt to EBITDA of about 3.0x. We believe that the
incremental EBITDA the company will receive from the OCI Methanol
business assets, as well as its $450 million of equity financing,
will help balance the additional debt it raised to finance the
acquisition, enabling it to maintain credit metrics fairly in line
with its historical levels.
"We could take a negative rating action on Methanex over the next
year if methanol prices decline significantly relative to our
current expectations, such that its FFO to debt falls below 20%,
amid prolonged industrial weakness and depressed operating rates
for methanol-to-olefin (MTO) facilities while it continues to
undertake material share buybacks. We could also take a negative
rating action on the company if it pursues additional debt-funded
acquisitions or shareholder rewards.
"We could raise our rating on Methanex over the next year if
methanol prices trend higher than we currently expect. We believe
this could stem from a greater-than-anticipated increase in olefin
pricing, which would likely improve the affordability and operating
rates of MTO facilities, or a quicker-than-expected recovery in GDP
and industrial production that boosts demand. Specifically, we
would expect the company to sustain S&P Global Ratings-adjusted FFO
to debt in the 30%-45% range. Under this scenario, we would also
expect Methanex to chip away at its balance sheet debt."
MGT CAPITAL: CEO Robert Ladd Quits From All Positions
-----------------------------------------------------
MGT Capital Investments, Inc. disclosed in a Form 8-K filed with
the Securities and Exchange Commission that on Aug. 29, 2024,
Robert B. Ladd resigned from his position as chief executive
officer, president, and acting chief financial officer of the
Company and as a member of the Company's Board of Directors,
effective Aug. 29, 2024. Mr. Ladd's decision to resign was not the
result of any disagreement with the Company on any matter relating
to the Company's operations, policies, or practices.
On Sept. 2, 2024, the Company's Board of Directors appointed Paul
R. Taylor, 65, to serve as interim principal executive officer and
interim principal financial officer. Before joining the Company,
Mr. Taylor has served as chief executive officer of Dinostar/RPM
One Inc. since he co-founded the entity in 2003. Mr. Taylor also
served as a consultant to the Board of Directors of XNET
Investments from 2006 to 2019.
In connection with his new role, Mr. Taylor will receive $10,000
per month, with $5,000 per month payable in cash and the remaining
$5,000 per month being deferred.
About MGT
MGT Capital Investments, Inc. -- www.mgtci.com -- conducts
cryptocurrency activities at a company-owned and managed Bitcoin
mining facility in LaFayette, Georgia. Located adjacent to a
utility substation, the several-acre property has access to about
20 megawatts (MW) of electrical power, half of which is presently
utilized by the Company. Business activities are comprised of
self-mining operations and leasing space to third parties.
Las Vegas, Nevada-based RBSM LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
16, 2024, citing that the Company has suffered recurring losses
from operations and will require additional capital to continue as
a going concern. This raises substantial doubt about the Company's
ability to continue as a going concern.
MIRACARE NEURO: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Miracare Neuro Behavioral Health, P.C.
11800 S. 75th Ave., Suite 300
Palos Heights IL 60463
Business Description: MiraCare is a comprehensive behavioral
health services delivery system offering
outpatient services at various levels of
care. It offers a comprehensive, multi-
interventional mental health treatment for
children, adolescents, adults and their
families.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-13266
Judge: Hon. Donald R Cassling
Debtor's Counsel: David R. Herzog, Esq.
DAVID R HERZOG
53 W. Jackson Blvd. Suite 1442
Chicago, IL 60604
Tel: 312-977-1600
Email: drh@dherzoglaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Christopher Higgins 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/BD2RCJY/Miracare_Neuro_Behavioral_Health__ilnbke-24-13266__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/A6CJZ5I/Miracare_Neuro_Behavioral_Health__ilnbke-24-13266__0001.0.pdf?mcid=tGE4TAMA
MM 1045: Avenue One's 19% Equity for Sept. 18 Auction
-----------------------------------------------------
Pursuant to Section 9.610 of the Texas Business and Commerce Code,
Auction Advisors, on behalf of 2M Holdings LP, will offer for sale
at public auction on Sept. 18, 2024, at 11:00 a.m. Dallas Time, to
be conducted via online videoconference, the 19% Minority LLC
membership interests ("equity") in MM 1045 Hidden Ridge LLC owned
by Avenue One Group Inc.
MM 1045 owns the real estate & improvements at MaCarthur Ridge
Center, Irving, Dallas County, Texas. The auction will consist of
exclusively the minority interest in MM 1045, and related rights.
For more information about the equity, the real estate, the auction
and its terms & conditions, becoming a "qualified bidder", and
attending the auction, visit: https://www. auctionadvisors.com or
contact Joshua Olshin at Jolshin@auctionadvisors.com or Jay LaJone,
Esq., at Steptoe & Johnson, Jay.LaJone@steptoe-johnson.com.
Interested bidder must satisfy the requirements to be a "qualified
bidder" by 11:00 a.m. Dallas Time, on Sept. 16, 2024.
MOGA TRANSPORT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Moga Transport, Inc.
1 Casa Grande Road
Petaluma, CA 94954
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-10478
Judge: Hon. William J Lafferty
Debtor's Counsel: Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: 408-641-9966
E-mail: Farsadlaw1@gmail.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Prabhjeet Gil, VP HR and legal.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ZJ2NUPY/Moga_Transport_Inc__canbke-24-10478__0001.0.pdf?mcid=tGE4TAMA
MOUNTAIN SPORTS: Gets Court OK to Sell Assets to Mountain Warehouse
-------------------------------------------------------------------
Mountain Sports, LLC and its affiliates got the green light from
the U.S. Bankruptcy Court for the District of Delaware to sell
their assets to Mountain Warehouse Limited.
The buyer was designated as the winning bidder for the assets
following the cancellation of the Aug. 22 auction.
The companies said they did not receive qualified bids other than
the stalking horse bid from Mountain Warehouse by the Aug. 20
deadline.
Under the companies' sale agreement, the purchase price for the
assets consists of $5 million for all intellectual property; plus
75% of the cost basis of all inventory in seven stores owned by the
companies (preliminarily estimated to be 75% of $4 million, or $3
million); plus 75% of the cost basis of remaining inventory in any
store for which the buyer designates the leases as designated
contracts; plus $5,000 for the vehicle ((2015 Toyota Rav4) owned by
SDI Stores, LLC; plus $5,000 for the vehicle (2011 Ford F150) owned
by Mountain Sports; plus only to the extent the companies obtain
additional inventory sale approval, 75% of the cost basis of the
additional inventory at closing other than sleeping bags; and 40%
of the cost basis of the sleeping bag portion of the additional
inventory.
The purchase price for the assets must be paid at closing in cash
(U.S. dollars), according to the sale agreement.
About Mountain Sports
Mountain Sports, LLC is a sporting goods, hobby and musical
instrument retailer in Meriden, Conn.
Mountain Sports and its affiliates filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11385) on June 18, 2024. At the
time of the filing, Mountain Sports reported $10 million to $50
million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
Maria Aprile Sawczuk, Esq., at Goldstein & McClintock, LLLP is the
Debtors' legal counsel.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. The committee tapped Lowenstein Sandler, LLP as general
bankruptcy counsel and Morris James, LLP as Delaware counsel.
MOUNTAINS OF SABER: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: Mountains of Saber, LLC
797-815 Stanley Avenue
Brooklyn, NY 11207
Business Description: The Debtor is the fee simple owner of nine
rentable commercial spaces varying in size
located at 797-815 Stanley Avenue Brooklyn,
NY valued at $3 million (based on Debtor's
estimate).
Chapter 11 Petition Date: September 5, 2024
Court: United States Bankruptcy Court
Easter District of New York
Case No.: 24-43693
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: H Bruce Bronson, Esq.
BRONSON LAW OFFICES PC
480 Mamaroneck Ave
Harrison Harrison, NY 10528
Tel: (914) 269-2530
Fax: (888) 908-6906
E-mail: hbbronson@bronsonlaw.net
Total Assets: $3,000,000
Total Liabilities: $525,677
The petition was signed by Ali Alsaede as chief restructuring
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/OK62NKY/Mountains_of_Saber_LLC__nyebke-24-43693__0001.0.pdf?mcid=tGE4TAMA
NANCY HABER: Secured Party Sets Oct. 29 Auction
-----------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, by virtue of certain events of default
under a certain ownership interests pledge and security agreement
date as of Oct. 20, 2022, but effective as of July 1, 2022,
executed and delivered by Nancy J. Haber ("pledgor"), and in
accordance with it rights as holder of the security, Maguire Perry
LLC ("secured party"), by virtue of a certain UCC-1 filing
statement made in favor of the secured party, in accordance with
Article 9 of the Uniform Commercial Code of the State of New York,
Secured Party will offer for sale, at public auction, (i) all of
pledgor's right, title, and interests in and to the following:
1819 Weeks Ave Realty Corp ("pledged entity"), and (ii) certain
related rights and property relating thereto.
Secured Party's understanding is that the principal assets of the
pledged entity is that certain fee interest in the premise located
at 47 Perry Street, New York, New York 10014 ("property").
Mannion Auctions LLC, under the direction of Matthew D. Mannion,
will conduct a public sale consisting of the collateral via online
bidding on Oct. 29. 2024, at 3:30 p.m., in satisfaction of an
indebtedness in the approximate amount of $7,009,029.05, including
principal, interest on principal, and reasonable fees and costs,
plus default interest through Oct. 29, 2024, subject to open
charges and all additional costs, fees and disbursements permitted
by law. The secured party reserves the right to credit bid.
Online bidding will be made via Zoom Meeting: Meeting Link:
https://bit.ly/HaberUCC. Meeting ID: 898 3372 7242. Passcode:
703028
One Tap Mobile: +16469313860,,89833727242#,,,,*703028# US
+16465588656,,82050638953#,,,,*619547# US (New York)
Dial by you location: +1 646 931 3860 US.
Interested parties who intend to bid on the collateral must contact
David Schechtman, at Meridian Investment Sales, with offices at One
Battery Park Plaza, 25th Floor, New York, New York, 10004, (212)
468 5907, dschechtman@meridiancapital.com, to receive the terms and
conditions of sale and bidding instructions by Oct. 4, 2023 by 4:00
p.m.
Attorney for the Secured Party:
Jerold C. Feuerstein, Esq.
Kriss & Feuerstein LLP
360 Lexington Avenue, Suite 1200
New York, New York 10017
Tel: (212) 661-2900
NANTAHALA FOREST: Davis Hartman Advises John Deere & First Citizens
-------------------------------------------------------------------
The law firm of Davis Hartman Wright LLP ("DHW") filed a verified
statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure to disclose that in the Chapter 11 case of Nantahala
Forest Products LLC, the firm represents:
1. John Deere Financial and/or Deere & Co.
Attn: Terry Schalk
6400 NW 86th Street
Johnston, IA 50131-6600
2. First Citizens Bank, successor to CIT Group
c/o Weltman Weinberg & Reis
312 Elm Street, Suite 1200
Cincinnati, OH 45202
DHW has reviewed both client's secured collateral positions and the
proposed treatment from the Debtor and believes that no conflict
exists between JDF and FCB.
DHW has advised, consistent with N.C. R. Prof. Cond. 1.7, both JDF
and FCB with respect to its concurrent representation in the
Bankruptcy Case, and both JDF and FCB have tendered their informed
consent to the such joint and concurrent representation.
DHW's representation of both JDF and FCB is not prohibited by
applicable North Carolina law, does not involve the assertion of a
claim by either JDF or FCB against one another, and DHW reasonably
believes that it can, and will be able to, provide competent and
diligent representation to both JDF and FCB.
DHW does not hold any claims against, or interest in, the Debtor.
The firm may be reached at:
DAVIS HARTMAN WRIGHT LLP
John C. Bircher III, Esq.
209 Pollock Street
New Bern, NC 28560
Telephone/Fascimile 252-262-7055
Email: jcb@dhwlegal.com
About Nantahala Forest Products
Nantahala Forest Products LLC specializes in log procurement for
both domestic and international export markets.
Nantahala Forest Products LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-02329) on June
15, 2024. In the petition filed by Cody Nations, as member, the
Debtor reports total assets of $448,334 and total liabilities of
$1,464,783.
The Honorable Bankruptcy Judge Joseph N. Callaway oversees the
case.
The Debtor is represented by:
Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
455 Swiftside Drive, Suite 106
Cary, NC 27518-7198
Tel: (919) 758-8879
Fax: (919) 803-0683
E-mail: dbradford@bradford-law.com
NATIONWIDE EXPRESS: Hires FGP Law LLC as Special Counsel
--------------------------------------------------------
Nationwide Express, Inc., seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ FGP Law, LLC
as special counsel.
The Debtor needs the firm's legal assistance to pursue tort claims
against Ryder System Inc.
The firm will be paid at the rate of $375 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Frank Podesta, Esq., a partner at FGP Law, 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:
Frank Podesta, Esq.
FGP Law, LLC
555 Sun Valley Dr N-3
Roswell, GA 30076
Tel: (678) 677-5143
About Nationwide Express, Inc.,
Nationwide Express Inc. operates in the general freight trucking
industry. The company is based in Ringgold, Ga.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-40995) on July 2,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Charlie Stinson, chief executive officer, signed the
petition.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC
represents the Debtor as legal counsel.
NEXT HILL: Case Summary & Three Unsecured Creditors
---------------------------------------------------
Debtor: Next Hill Enterprises, LLC
245 East Liberty St Ste 530
Reno, NV 89501
Business Description: Next Hill owns an unimproved land "with
building of no value" in Diamond Springs, CA
95619 at 425 Pleasant Valley Rd. El Dorado
County valued at $1.15 million. The Debtor
also owns an unimproved land in Diamond
Springs, CA 95619 (adjacent to 425 Pleasant
Valley Rd. El Dorado County) having a
current value of $170,000.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 24-24023
Judge: Hon. Ronald H Sargis
Debtor's Counsel: Richard Jare, Esq.
RICHARD JARE
6440 Carolinda Drive
Granite Bay, CA 95746
Tel: (916) 995-1347
Fax: (916) 676-0511
E-mail: chapter13bankruptcy@yahoo.com
Total Assets: $1,320,000
Total Liabilities: $819,358
The petition was signed by Payam Sanatkar as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/TCB53JI/Next_Hill_Enterprises_LLC__caebke-24-24023__0001.0.pdf?mcid=tGE4TAMA
NGUYEN RAINBOW: Hires Kevin R. Michaels P.C. as Special Counsel
---------------------------------------------------------------
Nguyen Rainbow Inc. and Giao Thuy Nguyen seek approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Kevin R. Michaels, P.C. as their special counsel to assist with
contract review and all other non-bankruptcy matters.
The firm's current customary hourly rates generally range from $275
to $400 per hour for attorney.
Kevin R. Michaels, P.C. does not hold nor represent any interest
adverse to the Debtor or the estate, and is a disinterested person
within the meaning of 11 U.S.C. 101(14).
The firm can be reached through:
Kevin R Michaels, Esq.
Law Offices of Kevin R Michaels, PC
16000 Barkers Point Ln #208
Houston, TX 77079
Phone: (281) 496-9889
About Nguyen Rainbow
Nguyen Rainbow Inc. operates a restaurant equipment and supply
retail store in the Westchase district of Houston, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-31591) on April 8,
2024, with up to $10 million in both assets and liabilities. Giao
T. Nguyen, president, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP represents the Debtor as
legal counsel.
NORTHPOINT DEVELOPMENT: Case Summary & Four Unsecured Creditors
---------------------------------------------------------------
Debtor: Northpoint Development Holdings, LLC
20 Northpoint Drive
Streator, IL 61364
Business Description: Northpoint Development is a Single Asset
Real Estate debtor (as defined in 11 U.S.C.
Section 101(51B)). The Debtor is the fee
simple owner of real property located at
1800 North Bloomington Street, Streator,
Illinois 61364 valued at $6.8 million.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-13265
Judge: Hon. Deborah L Thorne
Debtor's Counsel: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
53 West Jackson Boulevard
Suite 1442
Chicago, IL 60604
Tel: (312) 427-1558
Fax: (312) 427-1289
Email: greg@gregstern.com
Total Assets: $6,800,000
Total Liabilities: $5,176,241
The petition was signed by Keith Weinstein, manager of Greystone
Develpment Holdings, LLC.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PRSDZYI/Northpoint_Development_Holdings__ilnbke-24-13265__0001.0.pdf?mcid=tGE4TAMA
NORTHWEST CHRISTIAN: Moody's Affirms Ba2 Rating on 2020A/B Bonds
-----------------------------------------------------------------
Moody's Ratings has affirmed Northwest Christian School, AZ's Ba2
revenue bond ratings on the Economic Development Revenue Bonds
(Northwest Christian School), Series 2020A and Series 2020B
(Taxable). The bonds were issued through Phoenix Industrial
Development Authority, Arizona. NCS had approximately $7.2 million
of total debt outstanding as of June 30, 2023. The outlook is
stable.
RATINGS RATIONALE
The affirmation of Northwest Christian School's Ba2 revenue bond
ratings is driven by its solid brand and strategic positioning as a
large independent school providing a Christian-based K-12 education
at its campus in Phoenix, Arizona and through its growing online
offerings. Surplus operations will continue in fiscal 2024 and
beyond, as enrollment and net tuition revenue continue to steadily
increase. The school's stable student demand is supported by
policies from the State of Arizona (Aa1 stable) that help families
subsidize the cost of private school education. The potential for
changes to these school choice policies, however, presents
substantial risk to NCS's future student demand and pricing power.
Other offsetting considerations include the school's very low total
cash and investments of $7.4 million and small operating scale of
$16.6 million, which are much below many rated independent school
peers. The school also remains highly dependent on tuition and
fees, which made up 87% of fiscal 2023 operating revenue.
Fundraising, while low on an absolute basis, continues to steadily
grow and has supported ongoing capital projects that will
contribute to modest enrollment growth. NCS's leverage profile
remains elevated relative to total wealth, but the school's
generally good operating performance will continue to provide for
adequate debt service coverage.
RATING OUTLOOK
The stable outlook reflects Moody's expectations of stable student
demand and net tuition revenue growth that support double-digit
EBIDA margins and debt service coverage above 2x. The outlook also
incorporates expectations that total cash and investments and
liquidity will remain at least stable, with no additional debt
issuance.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Material increase in spendable cash and investments beyond the
fiscal 2023 amount of $7.4 million that provides close to 1.0x
coverage of operating expenses
-- Sustained strengthening of operating performance, reflected in
EBIDA margins consistently above 15% that contributes to financial
reserve growth
-- Successful expansion of online school programs and enrollment
plans that results in substantial increases in net tuition revenue
and overall operating scale
-- Consistent growth of philanthropic support above fiscal 2023's
three-year average gift revenue of $1.2 million
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Material changes in the State of Arizona's school choice
policies that affect NCS's enrollment and pricing power
-- Deterioration of student demand that results in declining
enrollment and net tuition revenue
-- Weakening of operating performance, with EBIDA margins below
10% and annual debt service coverage below 2x
-- Additional debt issuance absent accompanying growth in total
cash and investments and operating scale
LEGAL SECURITY
NCS's bonds are an unconditional obligation of the school, secured
by a lien on the school's receipts and revenues, a mortgage on the
school's land and facilities, and a debt service reserve fund.
PROFILE
Founded in 1980, Northwest Christian School (NCS) is a private
Christian school in Phoenix, Arizona. The school offers a
religious-based curriculum with both in-person and online programs
that span early education (pre-kindergarten) through twelfth grade.
In fiscal 2023 the school generated operating revenue of $16.6
million and reported total enrollment of 1,697 students in fall
2023.
METHODOLOGY
The principal methodology used in these ratings was Nonprofit
Organizations (Other Than Healthcare and Higher Education)
published in August 2024.
NU RIDE: Posts $1.5 Million Net Income in Fiscal Q2
---------------------------------------------------
NU Ride, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net income
of $1.5 million for the three months ended June 30, 2024, compared
to a net loss of $154.5 million on for the three months ended June
30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $7 million, compared to a net loss of $326.2 million for
the same period in 2023.
The Company had cash and cash equivalents of approximately $20.9
million, excluding restricted cash of approximately $41.3 million,
an accumulated deficit of $1.2 billion at June 30, 2024.
As of June 30, 2024, the Company had $63.7 million in total assets,
$21.1 million in total liabilities, $34.1 million in mezzanine
equity, and $8.5 million in total stockholders' equity.
The Company's liquidity and ability to continue as a going concern
is dependent upon, among other things: (i) the resolution of
significant contingent and other claims, liabilities and (ii) the
outcome of the Company's efforts to realize value, if any, from its
retained causes of action, including the Foxconn Litigation, and
other remaining assets. The Company intends to explore potential
business opportunities, including strategic alternatives or
business combinations, including those designed to maximize the
value of the Company's NOLs.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mw2p3j7p
About NU Ride, Inc.
Nu Ride Inc. f/k/a Lordstown Motors Corp. is an electric vehicle
OEM developing innovative light duty commercial fleet vehicles,
with the Endurance all electric pickup truck as its first vehicle.
It has engineering, research, and development facilities in
Farmington Hills, Mich., and Irvine, Calif. The Company emerged
from bankruptcy on March 14, 2024, under the name "Nu Ride Inc."
As of March 31, 2024, the Company has $79.1 million in total
assets, $38 million in total liabilities, and $7.7 million in total
stockholders' equity.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. According to the Company, it had
cash and cash equivalents of approximately $19.7 million, excluding
restricted cash of approximately $57.7 million, an accumulated
deficit of $1.2 billion at March 31, 2024, and a net loss of $8.5
million for the three months ended March 31, 2024.
As a result of the Company's accumulated deficit, lack of any
immediate sources of revenue, and the risks and uncertainties
related to the Company's ability to successfully resolve litigation
and other claims that may be filed against us, the effects of
disruption from the Chapter 11 Cases, including the loss of our
personnel, and the costs of the Chapter 11 Cases, substantial doubt
exists regarding the Company's ability to continue as a going
concern for a period of at least 12 months from the filing of the
report.
NUO THERAPEUTICS: Reports Net Loss of $540,091 in Fiscal Q2
-----------------------------------------------------------
Nuo Therapeutics, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $540,091 on $364,773 of total revenue for the three months ended
June 30, 2024, compared to a net loss of $871,886 on $118,169 of
total revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $1,248,872 on $599,350 of total revenue, compared to a net
loss of $1,727,641 on $179,269 of total revenue for the same period
in 2023.
As of June 30, 2024, the Company had $1,420,472 in total assets,
$821,959 in total liabilities, and $598,513 in total stockholders'
equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2p9cnam
About NUO Therapeutics
Headquartered in Houston, Texas, Nuo Therapeutics, Inc. is a
regenerative therapies company focused on developing and marketing
products for chronic wound care primarily within the U.S. The
Company commercializes innovative cell-based technologies that
harness the regenerative capacity of the human body to trigger
natural healing. The use of autologous (i.e., from self, the
patient's own) biological therapies for tissue repair and
regeneration is part of a clinical strategy designed to improve
long-term recovery in inherently complex chronic conditions with
significant unmet medical needs.
Houston, Texas-based Marcum LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
19, 2024, citing that the Company has incurred significant losses
and needs to raise additional funds to meet its obligations and
sustain its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
For the years ended December 31, 2023 and 2022, the Company had a
net loss of approximately $3.2 million in each year.
NUZEE INC: Randell Weaver Ends Tenure as Co-CEO and CFO
-------------------------------------------------------
Nuzee, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that the employment of its Co-Chief Executive
Officer and Chief Financial Officer, Randell Weaver, concluded on
Aug. 31, 2024, in accordance with the terms of the Second Amended
and Restated Employment Agreement between NuZee, Inc. and Mr.
Weaver, dated June 7, 2024, as previously disclosed in the
Company's Form 8-K filed on June 7, 2024.
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."
OCEAN POWER: Receives Further Contract for PowerBuoy Deployment
---------------------------------------------------------------
Ocean Power Technologies, Inc., announced Sept. 3 that it has
received a further contract by the Naval Postgraduate School (NPS)
in Monterey, California. This contract, which supports revenue
generation in the near-term, adds to the deployment of OPT's
PowerBuoy as part of an ongoing initiative to enhance maritime
domain awareness and connectivity in Monterey Bay and demonstrate
the use of PowerBuoys for multi-domain drone and communication
integration.
Building on the success of the previously announced NPS contract,
which included installing AT&T 5G technology on a PowerBuoy, this
new order focuses on integrating advanced subsea sensors into a
PowerBuoy equipped with OPT's latest Merrows suite for AI capable
seamless integration of Maritime Domain Awareness (MDA) across
platforms and utilizing communication technologies from AT&T for
NPS. The PowerBuoy will provide continuous, autonomous monitoring
and data collection capabilities in one of the world's most
strategically significant maritime environments.
This deployment will contribute to NPS's series of Field
Experimentation exercises, designed to test and refine technologies
that improve situational awareness and operational efficiency for
naval operations. The PowerBuoy will play a critical role in these
exercises, offering a robust, resilient platform that supports
persistent surveillance and secure communications in maritime
settings. Permits pending, the integrated system will be deployed
in the late Fall.
"Receiving this contract from NPS underscores the growing
recognition of our PowerBuoy technology as a vital tool for
enhancing maritime security and operational capability above and
below the surface," said Philipp Stratmann, CEO of Ocean Power
Technologies. "This collaboration with NPS not only builds on our
previous successes but also pushes the boundaries of what
autonomous maritime technology can achieve. We are proud to
continue supporting the Joint Force's efforts to advance MDA and
secure communication networks. The results from this deployment
will also further demonstrate the ability to deploy PowerBuoy's as
5G communication nodes across the coastline of the United States."
The contract represents a significant milestone in OPT's expanding
partnership with the U.S. warfighter community and reinforces the
Company's commitment to delivering innovative solutions that meet
the evolving demands of maritime security, safety, and
environmental monitoring.
About Ocean Power Technologies
Ocean Power Technologies, Inc. --
https://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.
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.
ON POINT DIRECTIONAL: Taps Keech Law Firm as Bankruptcy Counsel
---------------------------------------------------------------
On Point Directional Drilling and Trenching LLC seeks approval from
the U.S. Bankruptcy Court for the Eastern District of Arkansas to
hire Keech Law Firm, PA to handle its Chapter 11 case.
The firm will be paid at these rates:
Kevin P. Keech $400 per hour
Paralegals $150 per hour
Legal Assistants $1250 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $12,000.
Kevin Keech, Esq., at Keech Law Firm, disclosed in a court filing
that he and his firm neither hold nor represent an interest adverse
to the Debtor and its bankruptcy estate.
The firm can be reached through:
Kevin P. Keech, Esq.
Keech Law Firm, PA
2011 S. Broadway St.
Little Rock, AR 72206
Tel: (501) 221-3200
Fax: (501) 221-3201
Email: kkeech@keechlawfirm.com
About On Point Directional Drilling and Trenching LLC
On Point Directional Drilling and Trenching LLC specializes in
providing drilling and trenching services.
On Point Directional Drilling and Trenching LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No.
24-12506) on July 31, 2024. In the petition filed by Matthew
Mommsen, as managing member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Phyllis M. Jones oversees the case.
The Debtor is represented by Kevin P. Keech, Esq. at KEECH LAW
FIRM, PA.
ONE TABLE: Committee Hire Morris James LLP as Delaware Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of One Table
Restaurant Brands, LLC and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to employ Morris
James LLP as Delaware counsel.
The firm's services include:
a. providing legal advice and assistance to the Committee in
its consultations with the Debtors relative to the Debtors'
administration of the Chapter 11 Cases;
b. reviewing and analyzing all applications, motions, orders,
statements of operations and schedules filed with the Court by the
Debtors or third parties, advising the Committee as to their
propriety, and, after consultation with the Committee, taking
appropriate action;
c. preparing necessary applications, motions, answers, orders,
reports, and other legal papers on behalf of the Committee;
d. representing the Committee at hearings held before the
Court and communicating with the Committee regarding the issues
raised, as well as the decisions of the Court; and
e. performing other legal services for the Committee which may
be reasonably required in this proceeding.
The firm will be paid at these rates:
Eric J. Monzo, Partner $825 per hour
Brya M. Keilson, Partner $790 per hour
Siena B. Cerra, Associate $390 per hour
Stephanie Lisko, Paralegal $365 per hour
Douglas J. Depta, Paralegal $365 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Eric J. Monzo, Esq., a partner at Morris James LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Eric J. Monzo, Esq.
Morris James, LLP
500 Delaware Avenue, Suite 1500
Wilmington, DE 19801
Tel: (302) 888-5848
Fax: (302) 571-1750
Email: emonzo@morrisjames.com
About One Table Restaurant Brands
One Table Restaurant Brands, LLC is a next generation restaurant
platform of best-in-class emerging concepts. The company is based
in Los Angeles, Calif.
One Table Restaurant Brands and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 24-11553) on July 17, 2024.
At the time of the filing, One Table Restaurant Brands reported
total assets of up to $50,000 and total liabilities of up to $50
million.
The Debtors are represented by Thomas Joseph Francella, Jr., Esq.,
at Raines Feldman Littrell, LLP. CR3 Partners, LLC as financial
advisor. Hilco Corporate Finance, LLC as investment banker. Raines
Feldman Littrell LLP as Delaware bankruptcy counsel.
ONE TABLE: Committee Hires Dundon Advisers as Financial Advisor
---------------------------------------------------------------
The official committee of unsecured creditors of One Table
Restaurant Brands, LLC and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to employ Dundon
Advisers LLC as financial advisor.
The firm will provide these services:
a. assist in the analysis, review, and monitoring of the
restructuring process, including, but not limited to, an assessment
of the unsecured claims pool and potential recoveries for unsecured
creditors;
b. assist in the sales process for the assets of the Debtors;
c. develop a complete understanding of the Debtors' businesses
and their valuations;
d. determine whether there are viable alternative paths for
the disposition of then Debtors' assets from those currently or in
the future proposed by any Debtor;
e. assist the Committee in identifying, valuing, and pursuing
estate causes of action, including, but not limited to, relating to
prepetition transactions, control person liability, and lender
liability;
f. advise the Committee in negotiations with the Debtors and
certain of the Debtors' lenders;
g. assist the Committee in reviewing the Debtors' financial
reports;
h. review and provide analysis of the present and any
subsequently proposed debtor-in-possession financing or use of cash
collateral;
i. assist the Committee in evaluating and analyzing avoidance
actions, including fraudulent conveyances and preferential
transfers;
j. assist the Committee in investigating whether any
unencumbered assets at One Table Restaurant Brands, LLC., or any of
its affiliated Debtors exist;
k. attend meetings and assist in discussions with the
Committee, the Debtors, the secured lenders, the U.S. Trustee and
other parties in interest and professionals;
l. present at meetings of the Committee, as well as meetings
with other key stakeholders and parties;
m. perform such other advisory services for the Committee as
may be necessary or proper in these proceedings, subject to the
aforementioned scope.
The firm will be paid at these rates:
Principal $960 per hour
Managing Director and
Senior Adviser $850 per hour
Senior Director $755 per hour
Director $700 per hour
Associate Director $590 per hour
Senior Associate $485 per hour
Associate $370 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Peter Hurwitz, a partner at Dundon Advisers 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:
Peter Hurwitz, Esq.
Dundon Advisers LLC
Ten Bank Street, Suite 1100
White Plains, NY 10606
Tel: (917) 838-1930
Email: ph@dundon.com
About One Table Restaurant Brands
One Table Restaurant Brands, LLC is a next generation restaurant
platform of best-in-class emerging concepts. The company is based
in Los Angeles, Calif.
One Table Restaurant Brands and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 24-11553) on July 17, 2024.
At the time of the filing, One Table Restaurant Brands reported
total assets of up to $50,000 and total liabilities of up to $50
million.
The Debtors are represented by Thomas Joseph Francella, Jr., Esq.,
at Raines Feldman Littrell, LLP. CR3 Partners, LLC as financial
advisor. Hilco Corporate Finance, LLC as investment banker. Raines
Feldman Littrell LLP as Delaware bankruptcy counsel.
ONE TABLE: Committee Hires Lowenstein Sandler LLP as Counsel
------------------------------------------------------------
The official committee of unsecured creditors of One Table
Restaurant Brands, LLC and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Lowenstein Sandler LLP as counsel.
The firm's services include:
a. advising the Committee with respect to its rights, duties,
and powers in the Chapter 11 Cases;
b. assisting and advising the Committee in its consultation
with the Debtors relative to the administration of the Chapter 11
Cases;
c. assisting the Committee in analyzing the claims of the
Debtors' creditors and the Debtors' capital structure and in
negotiating with holders of claims and equity interests;
d. assisting the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors and of the operation of the Debtors' businesses;
e. assisting the Committee in analyzing (i) the Debtors'
pre-petition financing,(ii) proposed use of cash collateral, and
(iii) the adequacy of the Debtors' financing and proposed budget;
f. assisting the Committee in its investigation of the liens
and claims of the holders of the Debtors' pre-petition debt and the
prosecution of any claims or causes of action revealed by such
investigation;
g. assisting the Committee in its analysis of, and
negotiations with, the Debtors or any third party concerning
matters related to, among other things, the assumption or rejection
of certain leases of nonresidential real property and executory
contracts, asset dispositions, sale of assets, financing of other
transactions and the terms of one or more plans of liquidation or
reorganization for the Debtors and accompanying disclosure
statements and related plan documents;
h. assisting and advising the Committee as to its
communications to unsecured creditors regarding significant matters
in the Chapter 11 Cases;
i. representing the Committee at hearings and other
proceedings;
j. reviewing and analyzing applications, orders, statements of
operations, and schedules filed with the Court and advising the
Committee as to their propriety;
k. assisting the Committee in preparing pleadings and
applications as may be necessary in furtherance of the Committee's
interests and objectives in the Chapter 11 Cases, including without
limitation, the preparation of retention papers and fee
applications for the Committee's professionals, including
Lowenstein Sandler;
l. assisting the Committee and providing advice concerning the
proposed sale of substantially all of the Debtors' assets,
including issues concerning any potential competing bidders and the
auction process;
m. preparing, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda, complaints,
adversary complaints, objections, or comments in connection with
any of the foregoing; and
n. performing such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
The firm will be paid at these rates:
Partners of the Firm $720 to $1,975 per hour
Of Counsel $810 to $1,525 per hour
Senior Counsel and Counsel $630 to $1,495 per hour
Associates $520 to $1,015 per hour
Paralegals, Practice Support
and Assistants $195 to $460 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David Posner, Esq., a partner at Lowenstein Sandler LLP, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David M. Posner, Esq.
Gianfranco Finizio, Esq.
Chelsea R. Frankel, Esq.
Lowenstein Sandler LLP
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 262-6700
Fax: (212) 262-7402
Email: DPosner@lowenstein.com
GFinizio@lowenstein.com
CFrankel@lowenstein.com
About One Table Restaurant Brands
One Table Restaurant Brands, LLC is a next generation restaurant
platform of best-in-class emerging concepts. The company is based
in Los Angeles, Calif.
One Table Restaurant Brands and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 24-11553) on July 17, 2024.
At the time of the filing, One Table Restaurant Brands reported
total assets of up to $50,000 and total liabilities of up to $50
million.
The Debtors are represented by Thomas Joseph Francella, Jr., Esq.,
at Raines Feldman Littrell, LLP. CR3 Partners, LLC as financial
advisor. Hilco Corporate Finance, LLC as investment banker. Raines
Feldman Littrell LLP as Delaware bankruptcy counsel.
ORCHARD ENTERPRISES: Seeks to Hire Ewald Auctions as Auctioneer
---------------------------------------------------------------
Orchard Enterprises Global, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Robert H. Ewald of Ewald Auctions, Inc. as auctioneer.
The auctioneer will evaluate and make arrangements for sale the
real property located at 435 Friday
Road, Cocoa, Florida, Brevard County.
The firm will receive a a flat fee commission rate of 10 percent of
the bid price.
Additionally, the auctioneer will receive a pro rata share of
out-of-pocket expenses. The advertising expenses will be prorated
among all estates with assets in the auction.
The auctioneer will collect a buyer's premium of 10 percent which
will be paid directly to the auctioneer from the winning bidder.
Ewald Auctions does not hold nor represent any interest adverse to
the Debtor or its estate, according to court filings.
The firm can be reached through:
Robert H. Ewald
Ewald Auctions, Inc.
12472 Lake Underhill Rd, Suite 312
Orlando, FL 32828
Phone: (407) 275-6853
About Orchard Enterprises Global
Orchard Enterprises Global, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01198) on
Mar. 12, 2024. In the petition signed by Jared Pitt, director, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Tiffany P. Geyer oversees the case.
L. Todd Budgen, Esq., at Budgen Law serves as the Debtor's counsel.
PAPER IMPEX: Seeks to Extend Plan Exclusivity to Feb. 10, 2025
--------------------------------------------------------------
Paper Impex USA Inc. asked the U.S. Bankruptcy Court for the
Eastern District of New York to extend its exclusivity period to
file a chapter 11 plan of reorganization and disclosure statement
to February 10, 2025.
This is the Debtor's first request for an extension of the Debtor's
time period to file a plan of reorganization and disclosure
statement. The Debtor simply needs time to reach an agreement with
the Creditors with respect to adequate protection payments and
resolution of their claims, filed in this case, and thereafter to
file a plan of reorganization and disclosure statement, offering
treatment to the main and other remaining creditors of the estate.
The Debtor asserts that the requested extensions will not harm any
economic stakeholder. Rather, the time will be used to resolve a
claim filed in this case. Moreover, should any events occur or
there be a significant change in circumstances, a party in interest
may move to reduce the time period to file a plan and disclosure
statement.
The Debtor further asserts that it has responded to the exigent
demands of its chapter 11 case and has worked diligently to advance
the reorganization process. The Debtor should be afforded a full,
fair, and reasonable opportunity to negotiate, propose, file and
solicit acceptances of its chapter 11 plan.
Paper Impex USA Inc. is represented by:
Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue., Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Email: alla@kachanlaw.com
About Paper Impex USA
Paper Impex USA Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-41618) on April 16, 2024, listing $2,724 in assets and
$2,715,113 in liabilities. The petition was signed by Zafar
Israilov as president.
Judge Nancy Hershey Lord presides over the case.
Alla Kachan, Esq. at the LAW OFFICES OF ALLA KACHAN, P.C.,
represents the Debtor as counsel.
PARTNERS REAL: Seeks to Hire Spencer Properties as Listing Agency
-----------------------------------------------------------------
Partners Real Estate Development seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ
Spencer Properties as listing agency.
The agency will list and sell the property as being described as 2
commercial lots and 1 residential parcel located at 2200 High Road,
in Uhland, Texas in Hays County.
Spencer Properties will receive a real estate broker's commission
in an amount equal to 6 percent.
Spencer Properties is a "disinterested person" as that term is
defined in the Bankruptcy Code, according to court filings.
The firm can be reached through:
William Loeb
Spencer Properties
113 Rochdale Dr.
Anna, TX 75409
Direct: (512) 560-1758
Mobile: (512) 560-1758
Office: (512) 577-7220
About Partners Real Estate Development LLC
Partners Real Estate Development LLC is part of the residential
building construction industry.
Partners Real Estate Development LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10797) on
July 8, 2024. In the petition filed by John F. Patton, as manager,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Debtor is represented by Clay M. Taylor, Esq. at DENTONS US
LLC.
PDK LLC: Seeks to Hire McLemore Auction Company as Auctioneer
-------------------------------------------------------------
PDK, LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Tennessee to employ McLemore Auction Company as
auctioneer.
PDK taps McLemore for the purpose of inventorying, advertising and
selling by auction certain tangible personal property owned by the
Debtor and located at the former restaurant locations.
The auctioneer would be compensated from collection and retention
of a 10 percent buyer's premium from all purchasers at the auction
plus 25 percent of the first $40,000 in gross auction proceeds and
15 percent thereafter. The auctioneer would also be entitled to
reimbursement for credit card processing expenses of 3 percent of
invoice totals paid by credit or debit cards. The auctioneer will
also be reimbursed for $350 in advertising expenses.
The auctioneer is disinterested within the meaning of 11 U.S.C.
Sec. 101(14) and holds no interest adverse to the estate, according
to court filings.
The firm can be reached through:
Will McLemore
McLemore Auction Company, LLC
470 Woodycrest Ave.
Nashville, TN 37210
Phone: (615) 517-7675
Email: info@mclemoreauction.com
About PDK, LLC
PDK, LLC is a locally-owned casual eatery serving a fresh take on
Southern favorites with its signature chicken and waffles, shrimp
and grits, and PDK burger dishes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tenn. Case No. 24-02652) on July 17,
2024, with $93,040 in assets and $2,283,108 in liabilities. Peter
Demos, managing partner, signed the petition.
Judge Randal S. Mashburn presides over the case.
Henry E. ("Ned") Hildebrand, IV, Esq. at DUNHAM HILDEBRAND PAYNE
WALDRON, PLLC represents the Debtor as legal counsel.
PENCEL INC: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Pencel Inc.
1010 Quincy St NE
Washington, DC 20017-1738
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00309
Judge: Hon. Elizabeth L Gunn
Debtor's Counsel: Anu KMT, Esq.
KEMET HUNT LAW GROUP
7845 Belle Point Dr
Greenbelt, MD 20770
Tel: (301) 982-0888
Email: akemet@kemethhuntlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Dr. Cheryl Y. Lee-Butler as governor.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/6N4TBRQ/Pencel_Inc__dcbke-24-00309__0001.0.pdf?mcid=tGE4TAMA
PG&E CORP: S&P Rates Proposed Junior Subordinated Notes 'B'
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to PG&E
Corp.'s proposed junior subordinated notes (JSN) due 2055. The
company intends to use the net proceeds from these notes for
general corporate purposes, including to prepay a portion of loans
outstanding under PG&E's term loan facility.
S&P said, "We classify these notes as hybrid securities with
intermediate equity content (50%). This reflects the offering's
permanence, subordination, and deferability features. However, we
would reclassify the JSN as having minimal equity content in 2040
as the remaining period until maturity will be less than 15 years.
"We rate these securities three notches below our 'BB' issuer
credit rating on PG&E to reflect their subordination and
management's ability to defer interest payments. The three-notch
difference reflects our notching methodology, which deducts two
notches for subordination because our long-term issuer credit
rating on PG&E is speculative grade (below 'BBB-'), and an
additional notch for deferability.
"The long-term nature of the JSN, along with the company's limited
ability and lack of incentives to redeem the issuance for a
long-dated period, meets our standards for permanence. The
instruments are subordinated to all of PG&E's existing and future
senior debt obligations, thereby satisfying the condition for
subordination. In addition, the interest payments are deferrable,
which fulfills the deferability element."
PITNEY BOWES: S&P Alters Outlook to Stable, Affirms 'B+' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from developing
and affirmed its 'B+' issuer credit rating and its issue-level
ratings on Pitney Bowes Inc.
The stable outlook reflects S&P's view that management will focus
on deleveraging over the next 12-24 months with freed up cash and
FOCF generated from its transformation plan. At the same time, an
upgrade would depend on the plan being successfully executed, a
supportive long-term financial policy and business strategy, and at
least stable revenues.
The GEC exit will considerably decrease the company's revenue scale
and diversification but improve profitability. With GEC revenues of
about $1.3 billion in 2023 (about 40% of total revenues), the
divestment and shutdown of the business significantly decreases the
scale and diversification of Pitney Bowes' business operations.
However, it also removes the division's persistent annual segment
EBITDA losses, expected to be about $70 million in 2024. This
results in a pro forma S&P Global Ratings' adjusted EBITDA margin
of about 16.5% and leverage of 3.2x for the 12 months to June 30,
2024, compared to fully consolidated metrics of about 8% and 4.2x
respectively. S&P's adjusted leverage excludes EBITDA and gross
debt assumed to be allocated to captive financing activities (about
$1.1 billion as of June 30, 2024).
At the same time, revenue growth prospects for the remaining
businesses are somewhat limited due to secularly declining mail
volumes, which could affect long-term sales of postage meters in
SendTech and mail sortation volumes in Presort. The company hopes
to maintain flat revenues by offsetting the secular challenges with
its growing and largely subscription-based shipping revenues within
SendTech (about 16% of the segment's second-quarter revenues) and
market share gains in Presort.
S&P said, "The stable outlook reflects our view that the GEC exit
could lead to pro forma adjusted EBITDA margins improving to the
mid-teens percent area in 2024 (excluding exit costs) from the
absence of the segment's losses. Margins could increase further to
above 20% in 2025 from costs savings and lower restructuring costs,
which would support adjusted FOCF of over 20% of debt. Since we
expect management to focus on deleveraging over the next 12-24
months, we believe leverage could decrease to well below 3x next
year." However, an upgrade would depend on the transformation plan
being largely executed successfully, greater certainty around a
supportive long-term financial policy and business strategy, and
visibility toward at least stable long-term revenues.
S&P could raise its rating if Pitney Bowes:
-- Maintains at least stable revenues post the GEC exit. This
could be due to share gains and higher revenue per mail piece in
Presort or greater digital shipping revenues within SendTech
offsetting weaker sortation volumes and postage meter sales;
-- Executes its transformation plan with minimal business
disruptions, improving long-term EBITDA margin and FOCF such that
it reduces S&P Global Ratings-adjusted leverage below 4x on a
sustained basis and increases FOCF to debt above 10%; and
-- Maintains a stable long-term financial policy and business
strategy that supports such credit metrics, even with Hestia
Capital's involvement in its governance.
S&P could lower the rating if:
-- The company's transformation plan leads to business disruptions
or operational mishaps leading to significantly worse-than-expected
operating performance, including weaker revenues or EBITDA
margins;
-- A decline in the industry or macroeconomic outlook accelerates
revenue declines in SendTech or causes weakness in Presort; or
-- S&P expects leverage to increase to above 5x or reported FOCF
remain near break-even or worse on a sustained basis. This could be
due to a change to a more aggressive financial policy that
prioritizes shareholder returns over deleveraging.
PLA FOUR 24: Seeks to Hire Meglio Group as Accountant
-----------------------------------------------------
PLA Four 24 LLC seeks approval from the U.S. Bankruptcy Court for
the District of New Jersey to hire The Meglio Group, P.C. as its
accountant.
Meglio will provide bookkeeping, cash management, accounting and
related services to the Debtor.
The arrangement for compensation is a monthly flat fee in the
amount of $2,500.
The Meglio Group, P.C. is a disinterested person under 11 U.S.C.
Sec. 101(14), according to court filings.
The firm can be reached through:
Steven O. Meglio, CPA
The Meglio Group, P.C.
28 Bloomfield Avenue, Suite 100
Pine Brook, NJ 07058
Telephone: (973) 226-4300
Facsimile: (973) 396-3718
About PLA Four 24 LLC
PLA Four 24 LLC is a Single Asset Real Estate debtor (as defined in
11 U.S.C. Section 101(51B)).
PLA Four 24 LLC filed its voluntary petition for relief under
Chapter 11 of the Bankrutpcy Code (Bankr. D.N.J. Case No. 24-16225)
on June 20, 2024, listing up to $50,000 in assets and $1 million to
$10 million in liabilities. The petition was signed by Thomas J.
Caleca, on behalf of its sole member/manager.
Judge Vincent F Papalia presides over the case.
Douglas J. McGill, Esq. at WEBBER MCGILL LLC represents the Debtor
as counsel.
PLA FOUR 24: Seeks to Tap Webber McGill as Bankruptcy Counsel
-------------------------------------------------------------
PLA Four 24 LLC seeks approval from the U.S. Bankruptcy Court for
the District of New Jersey to hire Webber McGill LLC as 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 $25,000
from ProudLiving Communities LLC, an entity controlled by the
Debtor's principal, Thomas Caleca, which provides management
services to the Debtor. Webber McGill has also received a retainer
in the amount of $15,000 from ProudLiving Development LLC, another
entity owned by Mr. Caleca.
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 PLA Four 24 LLC
PLA Four 24 LLC is a Single Asset Real Estate debtor (as defined in
11 U.S.C. Section 101(51B)).
PLA Four 24 LLC filed its voluntary petition for relief under
Chapter 11 of the Bankrutpcy Code (Bankr. D.N.J. Case No. 24-16225)
on June 20, 2024, listing up to $50,000 in assets and $1 million to
$10 million in liabilities. The petition was signed by Thomas J.
Caleca, on behalf of its sole member/manager.
Judge Vincent F Papalia presides over the case.
Douglas J. McGill, Esq. at WEBBER MCGILL LLC represents the Debtor
as counsel.
PLC JETBOX: Hires Gonzalez & Tybor P.A. as Bankruptcy Counsel
-------------------------------------------------------------
PLC Jetbox Worldwide, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire the law firm of
Gonzalez & Tybor, P.A. as general bankruptcy counsel.
The firm will render these services:
(a) give advice to Debtor with respect to its powers and
duties as a debtor in possession and the continued management of
their financial affairs and business operations;
(b) advise Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
(c) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary in the
administration of the case;
(d) protect the interests of Debtor in all matters pending
before the Court in this Chapter 11 case; and
(e) represent Debtor in negotiation with its creditors in the
preparation of a plan and disclosure statement.
Gonzalez & Tybor does not hold or represent any interest adverse to
the Debtor or its estate, according to court filings.
The firm can be reached through:
Gabriel Gonzalez, Esq.
Gonzalez & Tybor, P.A.
9000 Sheridan Street
Hollywood, FL 33024
Tel: (954) 378-8184
Fax: (305) 873-8679
Email: gabriel@gtlawyers.com
About PLC Jetbox Worldwide
PLC Jetbox Worldwide, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-17390) on July
23, 2024, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Robert A. Mark presides over the case.
Gabriel Gonzalez, Esq. represents the Debtor as legal counsel.
POWER SOLUTIONS: Reports $21.5 Million Net Income in Fiscal Q2
--------------------------------------------------------------
Power Solutions International, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net income of $21.5 million for the three months ended June 30,
2024, compared to a net income of $6.4 million for the three months
ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
income of $28.7 million, compared to a net income of $10.1 million
for the same period in 2023.
The Company's sources of funds are cash flows from operations,
borrowings made pursuant to its credit facilities and shareholder's
loan agreements, and cash and cash equivalents on hand. Principal
uses of funds consist of payments of principal interest on our debt
facilities and shareholder's loan agreements, capital expenditures,
and working capital needs.
As of June 30, 2024, the Company's total outstanding debt
obligations under the Credit Agreement, the $25 Million Loan
Agreement, the $50 Million Loan Agreement, the $30 Million Loan
Agreement and for finance leases and other debt were $135.1 million
in the aggregate, and its cash and cash equivalents were $28.8
million.
Uncertainties exist about the Company's ability to refinance,
extend, or repay its outstanding indebtedness under its existing
debt arrangements, maintain sufficient liquidity to fund its
business activities, and maintain compliance with the covenants and
other requirements under the Credit Agreement or shareholder's loan
agreements in the future. Without additional financing, the Company
anticipates that it will not have sufficient cash and cash
equivalents to repay the outstanding indebtedness under the
Company's existing debt arrangements as they become due. Management
currently plans to seek an extension and/or replacement of its
existing debt arrangements or seek additional liquidity from its
current or other lenders before the maturity dates in 2024 and
2025. There can be no assurance that the Company will be able to
successfully complete a refinancing on acceptable terms or repay
this outstanding indebtedness when required or if at all.
Despite the recent recovery of the global economy, there continues
to be challenges based on the current macroeconomic and
geopolitical environment. Average crude oil prices reached the
highest average price in five years in 2022 but have steadily
declined while remaining near atop the 5-year averages at the end
of the second quarter 2024. Rig counts in the U.S. oil markets
remain below historical levels as of the second quarter of 2024.
Despite increasing rig counts and crude oil prices, the Company
believes that capital spending within the areas of the oil and gas
market that it participates in remains below historical levels.
While the Company saw an increase of sales to customers with
traditional exposure to the oil and gas markets during 2023, as
compared to the prior year, sales remain below historic levels. A
significant portion of the Company's sales and profitability has
historically been derived from the sale of products that are used
within the oil and gas industry. The Company continues to
experience inflationary cost pressures for certain raw materials
and other goods which the Company continues to try to mitigate
through price increases and other cost reduction measures.
Additionally, the Company continues to experience ongoing tariff
costs for products and is trying to mitigate these impacts through
price increases and other measures, such as seeking certain tariff
exclusions, where possible. The potential for continued economic
uncertainty and unfavorable oil and gas market dynamics may have a
material adverse impact on the levels of future customer orders and
the Company's future business operations, financial condition and
liquidity.
Lastly, national inflationary pressures have continued to cause
interest rates to remain elevated. Although the Company's interest
expense has decreased because of reduced debt balances, it may be
subject to future increases from these inflationary pressures.
Accordingly, the above challenges may continue to have a material
adverse impact on the Company's future results of operations,
financial position, and liquidity.
Due to uncertainties surrounding the Company's future ability to
refinance, extend, or repay its outstanding indebtedness under its
existing debt arrangements, maintain sufficient liquidity to fund
its business activities, and maintain compliance with the covenants
and other requirements under the Credit Agreement or shareholder's
loan agreements in the future, substantial doubt exists as to its
ability to continue as a going concern. If the Company does not
have sufficient liquidity to fund its business activities, it may
be forced to limit its business activities or be unable to continue
as a going concern, which would have a material adverse effect on
its results of operations and financial condition.
As of June 30, 2024, the Company had $307.6 million in total
assets, $282.8 million in total liabilities, and $24.8 million in
total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3nn9rudp
About Power Solutions
Wood Dale, Ill.-based Power Solutions International, Inc.,
incorporated under the laws of the state of Delaware in 2011,
designs, engineers, manufactures, markets and sells a broad range
of advanced, emission-certified engines and power systems that are
powered by a wide variety of clean, alternative fuels, including
natural gas, propane, and biofuels, as well as gasoline and diesel
options, within the power systems, industrial and transportation
end markets. The Company manages the business as a single
reportable segment.
Chicago, Ill.-based BDO USA P.C., the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
14, 2024, citing that there are significant uncertainties that
exist about the Company's ability to refinance, extend, or repay
its outstanding indebtedness, maintain sufficient liquidity to fund
its business activities and maintain compliance with the covenants
and other requirements under the Company's debt arrangements. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
PREMIER GLASS: Must Defend Against Christopher Glass' Claim
-----------------------------------------------------------
The Honorable Deborah L. Thorne of the United States Bankruptcy
Court for the Northern District of Illinois denied Premier Glass
Services, LLC's motion to dismiss the complaint filed by
Christopher Glass & Aluminum, Inc. for failure to state a claim.
Premier Glass is a Delaware limited liability company. Its
principal, Romeo De La Cruz, previously worked for Christopher
Glass. The complaint initiated by Christopher Glass alleges that
during Romeo's employment he entered into a Confidentiality,
Non-Competition, and Non-Solicitation Agreement with Christopher
Glass and that the Agreement required Romeo to not compete with
Plaintiff within a 100-mile radius for two years if he terminated
employment with Plaintiff. After Romeo left Plaintiff's employment,
he formed Premier Glass and is alleged to have breached the
Agreement in numerous ways, including soliciting of Plaintiff's
employees and customers to Premier Glass, where Romeo serves as
CEO.
Christopher Glass alleges Romeo's violations of the Agreement were
malicious and are not dischargeable under section 523(a)(6) of the
Bankruptcy Code. Plaintiff and Defendant litigated certain of the
allegations contained in the Complaint before an Arbitration
Tribunal prior to the filing of Premier Glass' voluntary bankruptcy
petition. The Arbitration Tribunal made findings which are now
before the Circuit Court of Cook County for confirmation. The court
understands that the Defendant objects to confirmation of the
arbitration award and that judgment has yet to be entered.
Plaintiff alleges that in the event the state court judgment
affirms the Arbitration Award and its claim that Defendant's
conduct was malicious under section 523(a)(6), as tortious
interference with business, then under section 1192(2) Plaintiff's
claim will be nondischargeable.
Plaintiff filed this adversary proceeding seeking a determination
that its claim against Defendant for tortious interference with
business expectation is nondischargeable under 11 U.S.C. Secs.
523(a)(2), (a)(6), and 11 U.S.C. Sec. 1192(2). Defendant filed a
motion to dismiss the complaint for failure to state a claim on
which relief can be granted under Rule 12(b)(6) of the Federal
Rules of Civil Procedure, made applicable to this proceeding by
Rule 7012 of the Federal Rules of Bankruptcy Procedure. Defendant
argues that debts of the kind listed in section 523(a) are
dischargeable in a case filed by an entity debtor under subchapter
V of chapter 11 of the Code (Subchapter V).
Plaintiff believes that confirmation of a consensual plan is not
likely in this case and has filed the adversary case to determine
whether the debts of the kind listed in section 523(a) apply to a
Subchapter V entity debtor.
The Court denies the motion to dismiss, holding that the complaint
states a claim upon which relief can be granted because claims of
the kind listed in section 523(a) are not dischargeable under
section 1192(2) for entity and individual debtors.
Judge Thorne says, "The language of section 1192(2) is clear, and
the complaint states a cause of action for a claim under section
523(a)(6). The motion to dismiss under FRCP 12(b)(6) is denied. If
the Defendant Debtor is unable to confirm a consensual plan, any
claim found to be nondischargeable under section 523(a)(6) will be
nondischargeable in its plan. The complaint alleges sufficient
allegations to support a nondischargeable claim under section
523(a)(6)."
A copy of the Court's decision is available at
https://urlcurt.com/u?l=jDslDw
About Premier Glass Services
Premier Glass Services, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-05367) on
February 16, 2024, with $500,001 to $1 million in assets and
$1,000,001 to $10 million in liabilities.
Judge Deborah L. Thorne presides over the case.
Karen M. Grivner and Kevin H. Morse at Clark Hill PLC represents
the Debtor as legal counsel.
PRESSURE BIOSCIENCES: Incurs $8.07M Net Loss in First Quarter
-------------------------------------------------------------
Pressure Biosciences, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $8.07 million on $349,257 of total revenue for the three months
ended March 31, 2024, compared to a net loss of $6.86 million on
$740,600 of total revenue for the three months ended March 31,
2023.
As of March 31, 2024, the Company had $6.99 million in total
assets, $45.12 million in total liabilities, and a total
stockholders' deficit of $38.13 million.
"We have experienced losses from operations and negative cash flows
from operations. As of March 31, 2024, we do not have adequate
working capital resources to satisfy our current liabilities and as
a result, there is substantial doubt regarding our ability to
continue as a going concern. We have been successful in raising
debt and equity capital in the past...In addition we raised debt
and equity capital after March 31, 2024...We have financing efforts
in place to continue to raise cash through debt and equity
offerings. Although we have successfully completed financings and
reduced expenses in the past, we cannot assure you that our plans
to address these matters in the future will be successful. These
financial statements do not include any adjustments that might
result from this uncertainty."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/830656/000149315224035352/form10-q.htm
About Pressure Biosciences
South Easton, Mass.-based, Pressure Biosciences Inc. --
http://www.pressurebiosciences.com/-- develops and sells
innovative, broadly enabling, high pressure-based platform
technologies and related consumables for the worldwide life
sciences, agriculture, food and beverage, and other key industries.
Its products/services are based on three patented, high-pressure
platforms: (i) Ultra Shear Technology, (ii) BaroFold Technology,
and (iii) Pressure Cycling Technology.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
June 7, 2024, citing that the Company has suffered recurring losses
from operations and has a working capital deficit that raises
substantial doubt about its ability to continue as a going concern.
PRETIUM PKG: $1.25BB Bank Debt Trades at 17% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Pretium PKG
Holdings Inc is a borrower were trading in the secondary market
around 83.4 cents-on-the-dollar during the week ended Friday, Sept.
6, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.25 billion Term loan facility is scheduled to mature on
October 2, 2028. The amount is fully drawn and outstanding.
Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic
containers for variety of end markets, including food and beverage,
chemicals, healthcare, wellness and personal care. Pretium PKG
Holdings, Inc. is a portfolio company of Clearlake since January
2020.
PRIME DEVELOPMENT: Seeks to Extend Plan Exclusivity to Feb. 5, 2025
-------------------------------------------------------------------
Prime Development Inc. asked the U.S. Bankruptcy Court for the
Eastern District of New York to extend its exclusivity period to
file a chapter 11 plan of reorganization and disclosure statement
to February 5, 2025.
This is the Debtor's first request for an extension of the Debtor's
time to file a plan of reorganization and disclosure statement. The
Debtor simply needs time to reach an agreement with the Creditors
with respect to adequate protection payments and resolution of
their claims filed in this case, and thereafter to file a plan of
reorganization and disclosure statement, offering treatment to the
main and other remaining Creditors of the estate.
The Debtor asserts that the requested extensions of the exclusivity
period to file a plan and disclosure statement will not harm any
economic stakeholder. Rather, the time will be used to resolve a
claim filed in this case. Moreover, should any events occur or
there be a significant change in circumstances, a party in interest
may move to reduce the time period to file a plan and disclosure
statement.
The Debtor further asserts that it has responded to the exigent
demands of its chapter 11 case and has worked diligently to advance
the reorganization process. The Debtor should be afforded a full,
fair and reasonable opportunity to negotiate, propose, file and
solicit acceptances of its chapter 11 plan.
The Debtor claims that the extension will enable the Debtor to
harmonize the diverse and competing interests that exist and seek
to resolve ant conflicts in a reasoned and balanced manner for the
benefit of all parties in interest.
Prime Development Inc. is represented by:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Facsimile: (347) 342-3156
Email: alla@kachanlaw.com
About Prime Development
Prime Development Inc. filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 24-41566) on April 11, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by LAW OFFICES OF ALLA KACHAN, P.C.
QUALITY INN MOTEL: 100-Unit Hotel, Site Up for Sept. 19 Auction
---------------------------------------------------------------
Fisher Auction Company will hold an online auction on Sept. 19,
2024, at 11:00 am ET for the sale of a 100-Unit Quality Inn Motel
with restaurant and 4.28+/- acre proposed site for a 122-Unit Hotel
in Pensacola, Florida. Broker participation is at 3%. Further
information regarding the sale contact: Francis D. Santo, at
745-220-4116.
RADIATE HOLDCO: $3.42BB Bank Debt Trades at 16% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Radiate Holdco LLC
is a borrower were trading in the secondary market around 83.8
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $3.42 billion Term loan facility is scheduled to mature on
September 25, 2026. About $3.33 billion of the loan is withdrawn
and outstanding.
Radiate Holdco LLC, also known as Astound Broadband, and backed by
Stonepeak, is a broadband communications services provider and
cable operator doing business via regional providers RCN, Grande
Communications, Wave Broadband and enTouch Systems.
REDSTONE HOLDCO: $450MM Bank Debt Trades at 22% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Redstone Holdco 2
LP is a borrower were trading in the secondary market around 77.6
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $450 million Term loan facility is scheduled to mature on April
27, 2029. The amount is fully drawn and outstanding.
Redstone Holdco 2 LP and Redstone Buyer LLC were formed as part of
the buyout of the RSA Security business from Dell Inc.
REED'S INC: Financial Strain Raises Going Concern Doubt
-------------------------------------------------------
Reed's, Inc. disclosed in a Form 10-Q Report filed with the U.S.
Securities and Exchange Commission for the quarterly period ended
June 30, 2024, that there is substantial doubt about its ability to
continue as a going concern.
According to the Company, for the six months ended June 30, 2024,
the Company recorded a net loss of $4,885,000 and utilized
$3,307,000 of cash in operations and at June 30, 2024, had a
working capital deficiency of $19,378,000 and a stockholders'
deficit of $23,849,000. As of June 30, 2024, the Company borrowed
$9,124 on its line of credit and owed $18,821 on its Notes. These
factors raise substantial doubt about the Company's ability to
continue as a going concern within 12 months of August 13, 2024,
the date that the financial statements are issued.
"As of June 30, 2024, we had a cash balance of $326,000, no
availability under our line of credit and $3,876,000 of additional
borrowing capacity from the credit facility assuming there is
availability under the terms."
"On July 26, 2024, Norman E. Snyder Jr, CEO of the Company,
provided a personal guaranty for a $500,000 over advance on our
existing line of credit with ACS. On August 1, 2024, the Company
funded $1,400,000 pursuant to an option exercise by Whitebox under
the Option Notes."
"Historically, we have financed our operations through public and
private sales of common stock, issuance of preferred and common
stock, convertible debt instruments, term loans and credit lines
from financial institutions, and cash generated from operations. To
alleviate these conditions, management is currently evaluating
various funding alternatives and may seek to raise additional funds
through the issuance of equity, mezzanine or debt securities,
through arrangements with strategic partners or through obtaining
credit from financial institutions. The Company is continuing to
discuss restructuring of debt with existing lenders and is
exploring new financing opportunities to address the line of credit
which comes due in March 2025 and the portion of the debt under the
Notes which comes due on December 15, 2024. As we seek additional
sources of financing, there can be no assurance that such financing
would be available to us on favorable terms or at all. Our ability
to obtain additional financing in the debt and equity capital
markets is subject to several factors, including market and
economic conditions, our performance and investor sentiment with
respect to us and our industry."
"We have also taken decisive action to improve our margins,
including fully outsourcing our manufacturing process, streamlining
our product portfolio, negotiating improved vendor contracts and
restructuring our selling prices."
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2b5zrf4z
About Reed's, Inc.
Reed's Inc. is a U.S.-based company that manufactures soft drinks
and candies. The company was founded by Christopher J. Reed in
1989. It was originally based in Los Angeles, California, but moved
its headquarters to Norwalk, Connecticut, in September 2018.
As of June 30, 2024, the Company had $18,745,000 in total assets,
$42,594,000 in total liabilities, and $23,849,000 in total
stockholders' deficit.
REFRIGERATION TECHNOLOGIES: Zarwin Atty Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Leona Mogavero,
Esq., at Zarwin Baum as Subchapter V trustee for Refrigeration
Technologies, LLC.
Ms. Mogavero will be paid an hourly fee of $425 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mogavero declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leona Mogavero, Esq.
Zarwin Baum
One Commerce Square
2005 Market Street, 16th Floor
Philadelphia, PA 19103
Phone: (267) 765-9630
Email: lmogavero@zarwin.com
About Refrigeration Technologies
Refrigeration Technologies, LLC filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Pa. Case No. 24-12902) on August 19, 2024,
with $100,001 to $500,000 in assets and $500,001 to $1 million in
liabilities.
Judge Ashely M. Chan presides over the case.
James Christopher Vandermark, Esq., at White And Williams, LLP
represents the Debtor as legal counsel.
RELIABLE ROADSIDE: Hires Coyle Law Group as Counsel
---------------------------------------------------
Reliable Roadside Services, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to employ Coyle Law
Group as counsel.
The firm will provide these services:
a. legal advice in the continued possession and management of
his property;
b. preparation of all schedules and statements required by the
Bankruptcy Code Bankruptcy Rules or Local Bankruptcy Rules;
c. representation of the Debtor in connection with any
proceedings for relief from stay which may be instituted in this
Court;
d. representation of the Debtor at any meetings of creditors
convened pursuant to Section 341 of the Bankruptcy Code;
e. preparation on behalf of the Debtor of all necessary
applications, motions, answers, orders, reports and other legal
papers and advice and assistance to and representation of the
Debtor in preparing, filing and prosecuting a disclosure statement
and plan under Chapter 11;
f. representation of the Debtor in collateral litigation
before the Bankruptcy Court and other courts; and
g. provision of such other legal services for the Debtor which
may be necessary herein, and to generally represent, advise and
assist the Debtor in carrying out his duties under the Bankruptcy
Code.
The firm will be paid at these rates:
Counsel $450 per hour
Paralegal and Support staff $125 per hour
The firm will be paid a retainer in the amount of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael P. Coyle, Esq., a partner at The Coyle Law Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael P. Coyle, Esq.
The Coyle Law Group
7061 Deepage Drive, Ste 101B
Columbia, MD 21045
Tel: (443) 545-1215
About Reliable Roadside Services
Reliable Roadside Services Inc. is a towing service provider in
Maryland.
Reliable Roadside Services Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No.
24-15728) on July 9, 2024. In the petition filed by Jasvir Singh,
as president, the Debtor reports total assets of $358,038 and total
liabilities of $1,188,351.
The Honorable Bankruptcy Judge David E. Rice oversees the case.
The Debtor is represented by:
Michael P. Coyle, Esq.
THE COYLE LAW GROUP
7061 Deepage Drive
Columbia, MD 21045
Tel: (443) 545-1215
Email: mcoyle@thecoylelawgroup.com
RESEARCH NOW: 96% Markdown for Prospect Capital $50MM Loan
----------------------------------------------------------
Prospect Capital Corporation has marked its $50,000,000 loan
extended to Research Now Group, LLC and Dynata, LLC to market at
$1,948,000 or 4% of the outstanding amount, as of June 30, 2024,
according to a disclosure contained in Prospect Capital's Amended
Form N-CSR for the fiscal year ended June 30, 2024 filed with the
Securities and Exchange Commission on August 28, 2024.
Prospect Capital is a participant in a Second Lien Term Loan to
Research Now Group, LLC and Dynata, LLC. The loan accrues interest
at a rate of 15.09% (3M SOFR+ 9.50%, 1% Floor) per annum. The loan
matures on December 20, 2025.
Prospect Capital said, the Loan is on non-accrual status as of June
30, 2024.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Headquartered in Plano, Texas, Research Now Group, LLC (formerly
Research Now Group, Inc.) and its subsidiary Dynata, LLC (formerly
Survey Sampling International, LLC), provide data collection
services through online, mobile and offline surveys used by market
research firms, consulting firms and corporate customers.
RESEARCH NOW: Prospect Capital Marks $8.5MM Loan at 21% Off
-----------------------------------------------------------
Prospect Capital Corporation has marked its $11,835,000 loan
extended to Research Now Group, LLC and Dynata, LLC to market at
$9,320,000 or 79% of the outstanding amount, according to a
disclosure contained in Prospect Capital's Amended Form N-CSR for
the fiscal year ended June 30, 2024 filed with the Securities and
Exchange Commission on August 28, 2024.
Prospect Capital is a participant in a First Lien Term Loan to
Research Now Group, LLC and Dynata, LLC. The loan accrues interest
at a rate of 13.09% (3M SOFR+ 7.50%, 1% Floor) per annum. The loan
matures on December 20, 2024.
Prospect Capital said, the Loan is on non-accrual status as of June
30, 2024.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Headquartered in Plano, Texas, Research Now Group, LLC (formerly
Research Now Group, Inc.) and its subsidiary Dynata, LLC (formerly
Survey Sampling International, LLC), provide data collection
services through online, mobile and offline surveys used by market
research firms, consulting firms and corporate customers.
RESOLUTE HOLDINGS: Taps Ray Caddell and Co as Real Estate Agent
---------------------------------------------------------------
Resolute Holdings LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Virginia to employ Ray Caddell and Co.
LLC as its real estate agent and broker.
The firm will assist the Debtor in the sale of substantially all of
its assets.
The firm shall earn a marketing fee of 1 percent of final sales
price providing it exceed $2,351,515.
As disclosed in the court filings, Caddell and Co is a
"disinterested person," as defined in Sec. 101(14) of the
Bankruptcy Code and required by Secs. 327(e) and 328(c) of the
Bankruptcy Code.
The firm can be reached through:
Raymond Caddell
Ray Caddell and Co. LLC
1131 East Rio Road
Charlottesville, VA 22901
Phone: (434) 234-3813
Email: ray@raycaddellrealestate.com
About Resolute Holdings LLC
Resolute Holdings, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 24-60458) on April
26, 2024, with $1 million to $10 million in both assets and
liabilities. David Nielsen, president, signed the petition.
Paula S. Beran, Esq., at Tavenner & Beran, PLC represents the
Debtor as legal counsel.
RETSEL CORPORATION: Case Summary & 11 Unsecured Creditors
---------------------------------------------------------
Debtor: Retsel Corporation
1721 N Lacrosse St
Rapid City, SD 57701-0705
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: September 7, 2024
Court: United States Bankruptcy Court
District of South Dakota
Case No.: 24-50081
Judge: Hon. Laura L Kulm Ask
Debtor's Counsel: Robert L. Meadors, Esq.
BRENDE & MEADORS LLP
PO Box 1024
Sioux Falls SD 57101-1024
Tel: (605) 333-0070
Email: rlm@bsmllp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Chad Uhre as president.
A copy of the Debtor's list of 11 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/P5ZJQ6Q/Retsel_Corporation__sdbke-24-50081__0006.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/PAEUQEI/Retsel_Corporation__sdbke-24-50081__0001.0.pdf?mcid=tGE4TAMA
RIDGELINE CAPITAL: Hires Alisson James as Real Estate Broker
------------------------------------------------------------
Ridgeline Capital Investments, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of California to employ
Allison James Estates and Homes as real estate broker.
The firm will market and sell the Debtor's real property located at
45200 Oak Manor, Temecula, CA92590.
The firm will be paid to a commission 5 percent of the purchase
price.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Michelle Beeson
Allison James Estates and Homes
1902 Wright Place, Suite 200
Carlsbad, CA 92008
Tel: (866) 463-5780
About Ridgeline Capital Investments, LLC
Ridgeline Capital Investments LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
Ridgeline Capital Investments LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-11545) on
June 5, 2024. In the petition signed by Shaun Michael Reynolds, as
managing member, the Debtor estimated assets and liabilities
between $1 million and $10 million each.
Bankruptcy Judge Jennifer E Niemann oversees the case.
The Debtor is represented by Michael Jay Berger, Esq.
RINCHEM CO: $300MM Bank Debt Trades at 17% Discount
---------------------------------------------------
Participations in a syndicated loan under which Rinchem Co LLC is a
borrower were trading in the secondary market around 82.6
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on March
2, 2029. The amount is fully drawn and outstanding.
Rinchem Company, LLC operates as a chemical management solutions.
The Company provides supply chains for prepackaged chemicals and
gases, warehousing, transportation, and freigth forwarding. Rinchem
serves semiconductor and electronics, chemical manufacturing,
pharma, biotech, aerospace, and defense industry worldwide.
ROSA MEXICANO: Prospect Capital Marks $22.3MM Loan at 23% Off
-------------------------------------------------------------
Prospect Capital Corporation has marked its $22,358,000 loan
extended to Rosa Mexicano to market at $17,26,000 or 77% of the
outstanding amount, according to a disclosure contained in Prospect
Capital's Amended Form N-CSR for the fiscal year ended June 30,
2024 filed with the Securities and Exchange Commission on August
28, 2024.
Prospect Capital is a participant in a First Lien Term Loan to Rosa
Mexicano. The loan accrues interest at a rate of 13.09% (3M SOFR+
7.50%, 1.25% Floor) per annum. The loan matures on June 13, 2026.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Rosa Mexicano offers a fresh take on authentic Mexican cuisine,
serving both beloved classic dishes in a stylish and sophisticated
atmosphere.
ROSA MEXICANO: Prospect Capital Marks $5.2MM Loan at 18% Off
------------------------------------------------------------
Prospect Capital Corporation has marked its $5,224,000 loan
extended to Rosa Mexicano to market at $4,281,000 or 82% of the
outstanding amount, as of June 30, 2024, according to a disclosure
contained in Prospect Capital's Amended Form N-CSR for the fiscal
year ended June 30, 2024 filed with the Securities and Exchange
Commission on August 28, 2024.
Prospect Capital is a participant in a First Lien Revolving Line of
Credit - $5,182 Commitment to Rosa Mexicano. The loan accrues
interest at a rate of 16% per annum. The loan matures on June 13,
2026.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Rosa Mexicano offers a fresh take on authentic Mexican cuisine,
serving both beloved classic dishes in a stylish and sophisticated
atmosphere.
RYAN LLC: S&P Alters Outlook to Negative, Affirms 'B+' ICR
----------------------------------------------------------
S&P Global Ratings revised the rating outlook to negative from
stable and affirmed all its ratings on Dallas-based tax services
provider Ryan LLC, including its 'B+' issuer credit rating.
The negative outlook reflects the risk that S&P Global
Ratings-adjusted leverage could remain elevated above 5.5x if
performance does not improve in line with our expectations or if
the company demonstrates a more aggressive financial policy.
Ryan LLC plans to issue a $450 million fungible incremental term
loan, fully draw its $97 million delayed draw term loan, and
increase its revolving credit facility to $350 million (undrawn at
close).
The company will use proceeds of the transaction to fund its
previously announced C$700 million acquisition of Altus Group
Ltd.'s property tax business and to fully repay borrowings under
its revolving credit facility.
The leveraging transaction will temporarily push credit metrics
outside our expected range for the rating, though we anticipate
rapid deleveraging over the next 12 months.
S&P said, "S&P Global Ratings-adjusted leverage will increase to
about 6x at the end of 2024 pro forma for the acquisition, above
our 5.5x downside threshold. However, we think EBITDA expansion
from organic business growth, transaction- and integration-related
expenses rolling off, and some synergies will enable deleveraging
toward 5x in 2025. We also expect the company's other credit
measures, including its free operating cash flow to debt and EBITDA
interest coverage, will recover to levels commensurate with our
expectations for the current rating over the year following the
close of the transaction. Ryan pursues debt-funded acquisitions as
a core component of its growth strategy, which we expect will
continue, although we anticipate more modest future merger and
acquisition (M&A) activity compared with this acquisition. Still,
while Ryan's financial policy to sustain management calculated
leverage between 3.75-4.5x remains intact, we think it could take
about a year to reduce leverage back within management's target
range. Additional leveraging transactions would indicate a
deviation from management's financial policy, while weaker
performance relative to our forecast would also drive sustained
higher leverage, either of which could result in a lower rating."
The business combination increases Ryan's scale and should somewhat
improve its competitive position. The acquisition of Altus'
property tax business expands Ryan's international penetration to
nearly 20% of revenues, from about 10% on a stand-alone basis. Its
international operations will be concentrated within the U.K. and
Canada, establishing Ryan as the leading provider of property tax
services in the U.K. S&P said, "The target's Canadian and U.K.
earnings have exhibited some volatility with revenue and earnings
declines driven by property tax cycles, though we expect
accelerating growth over the next few years following tax cycle
resets. Ryan's property tax practice has been an area of strength
in recent quarters, and we think industry tailwinds will enable
persistent growth. Meanwhile, Ryan will capitalize on cross-selling
opportunities among its newly added clients over the coming
quarters, which should allow favorable organic growth across the
business' 12 practice lines."
Ryan's largest acquisition to date will test the company's
integration strategy and capabilities. Altus' property tax business
currently operates as a stand-alone entity within Altus,
which--combined with Ryan's established playbook of successfully
integrating acquisitions and transition services provided by
Altus--should enable a relatively smooth integration process.
Still, this is the company's largest acquisition to date, leading
to greater execution risk compared to Ryan's smaller historical
deals. Based on elevated starting leverage, there is limited
cushion in the current rating for unanticipated integration
challenges or other adversities that would alter S&P's expected
deleveraging trend.
S&P said, "Our forecast reflects healthy organic growth along with
ongoing acquisition activity that enable consistent double-digit
percent revenue growth and modest margin expansion. We expect
sustained organic growth rates of around 6%-8% enabled by
cross-selling initiatives and healthy demand as evolving
regulations elude under-resourced internal corporate teams, leading
to greater outsourcing of tax functions. Additionally, we expect
acquisitions to be an ongoing source of growth for Ryan over the
next several years, which we incorporate in our forecast as a
series of debt-funded transactions. Meanwhile, the favorable margin
profile of Altus' property tax business along with some synergy
opportunities and scale benefits, should drive expanding EBITDA
margin for Ryan over the next 12-24 months.
"The negative outlook reflects the very limited cushion for
underperformance relative to our base case forecast and our view
that acquisition integration risks are currently somewhat
elevated."
S&P could lower the rating on Ryan if:
-- S&P expects leverage to remain above 5.5x or free operating
cash flow (FOCF) to debt to remain below 5% due to weaker
performance compared to its forecast, perhaps driven by integration
challenges or operating shortfalls;
-- The company demonstrates a more aggressive financial policy
relative to our expectation, such as through additional debt-funded
dividends or large acquisitions; or
-- Increasing competition or changing industry dynamics lead to
stalling organic growth and deteriorating profitability, leading
S&P to view Ryan's business prospects less favorably.
S&P could revise the outlook stable if:
-- Leverage declines below 5.5x, FOCF to debt expands above 5%,
and we expect credit measures to be sustained at these levels based
on management's financial policy;
-- S&P believes integration risks related to its acquisition of
Altus' property tax business have mostly abated; and
-- Favorable industry dynamics persist and S&P continues to expect
a healthy organic growth and margin profile.
SANDVINE: $400MM Bank Debt Trades at 79% Discount
-------------------------------------------------
Participations in a syndicated loan under which Sandvine Corp is a
borrower were trading in the secondary market around 20.6
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $400 million Term loan facility is scheduled to mature on
November 3, 2025. About $395 million of the loan is withdrawn and
outstanding.
Sandvine Corporation, headquartered in Waterloo, Ontario, Canada,
and owned by funds affiliated with Francisco Partners, provides
network and application intelligence solutions to mobile, fixed,
cable, satellite and Wi-Fi service providers, and governments
globally.
SENIOR CARE: Court Sends Wills Trust Claims Dispute to Trial
------------------------------------------------------------
Judge Jane J. Boyle of the United States District Court for the
Northern District of Texas overruled the objection filed by Eric
Wills, as trustee of the Wills Revocable Living Trust, to the
report and recommendation of the United States Bankruptcy Court for
the Northern District of Texas to the District Court with respect
to the insider preference claims in the bankruptcy case of Senior
Care Centers, LLC. The Court adopted the Bankruptcy Court's report
and recommendation. The Wills Trust's motion for summary judgment
as to the insider preference claims is denied.
The adversary proceeding is an ancillary proceeding to Senior Care
Centers' Chapter 11 bankruptcy case.
In October 2017, SCC's parent company, Granite Investment Group,
LLC, borrowed money through several bridge loans. Granite backed
each of these bridge loans with the same collateral. Granite was
the listed borrower of the loans, but the funds were actually "sent
directly by the [lenders] to an SCC account, then SCC used the
funds to pay operating expenses.". Three months later, in December
2017, Granite borrowed money from the Wills Trust through a
short-term bridge loan that, like the other bridge loans, was also
intended for SCC. Of the bridge loans Granite obtained for SCC in
October and December 2017, the Bridge Loan represented the largest
loan amount. For the Bridge Loan, the Wills Trust was able to
secure "different collateral" than the collateral offered to the
October lenders. The express purpose of the October bridge loans
and the Bridge Loan "was to . . . provide immediately needed
working capital to SCC." Such working capital was "needed . . . to
pay for [SCC's] ongoing operations pending an anticipated sale of
certain of its pharmacy assets, which sale was being pursued by SCC
to address its liquidity needs." SCC and Granite executed
promissory notes recording the fact that Granite's bridge loan debt
was SCC's responsibility. After selling some of its assets in the
Pharmacy Sale, SCC paid the Wills Trust back directly for the
Bridge Loan in February 2018. However, approximately two months
later in April 2018, Granite circulated a promissory note between
it and SCC that amended the maturity date of the Bridge Loan.
Approximately nine months after SCC repaid the Bridge Loan, it
filed for bankruptcy.
Plaintiff Alan D. Halperin is the trustee in the Bankruptcy Case.
He represents the interests of SCC's unsecured creditors. Halperin
initiated this Action against the Wills Trust to "avoid and
recover" SCC's re-payment of the Bridge Loan to the Wills Trust.
The Wills Trust moved for summary judgment as to each of Halperin's
claims. The Insider Preference Claims encompass Halperin's
contention that the Bridge Loan between the Wills Trust and
Granite, and in effect SCC, was a result of the Wills Trust's
advantageous, insider relationship with SCC. Before the Bankruptcy
Court, the Wills Trust argued there is no evidence it was an SCC
insider at the time of the Bridge Loan, and therefore, it was
entitled to summary judgment on the Insider Preference Claims.
In its Report and Recommendation, the Bankruptcy Court recommends
denying summary judgment on the Insider Preference Claims because
"the Wills Trust has not met its burden of showing there do not
exist genuine issues of material fact." The Wills Trust objects
only "to the recommendation that the District Court deny summary
judgment in favor of Wills Trust on the [Insider Preference
Claims]." The Wills Trust challenges the Bankruptcy Court's
analysis of a necessary element of the Insider Preference Claims --
whether the Wills Trust was a non-statutory insider. First, the
Wills Trust argues that the Bankruptcy Court blended a two-factor
legal test into one interrelated question. Second, the Wills Trust
contends that the Bankruptcy Court improperly concluded the test's
second factor raises material fact issues. The Wills Trust argues
it is not a non-statutory insider to SCC because there is no
evidence that either factor is satisfied as applied to the Bridge
Loan.
The District Court conducts a de novo review of the R&R's proposed
findings and conclusions that pertain to the Objection. The Fifth
Circuit has adopted "two factors" for determining whether a
creditor is a non-statutory insider, which derive from the Ninth
Circuit and out-of-circuit district courts. These two factors ask
(1) whether the creditor has a close relationship with the debtor
and (2) whether their transaction was made at arm's length.
The Wills Trust argues it is not a non-statutory insider to SCC
because there is no evidence that either factor is satisfied as
applied to the Bridge Loan. The Wills Trust argues the Bankruptcy
Court erroneously applied the two-factor analysis as a disjunctive
rather than a conjunctive test.
Another question pertinent to whether the Bridge Loan was made at
arm's-length is whether the Wills Trust knew about the SCC's
creditworthiness or insolvency. The record evidence suggests the
Wills Trust would have known about SCC's insolvency, the District
Court finds. According to the District Court, the timing and the
purpose of the Bridge Loan, as well as the Bridge Loan's temporal
proximity to SCC's Chapter 11 filing, permit a reasonable inference
that the Wills Trust knew SCC was insolvent or soon to be insolvent
when it agreed to fund the Bridge Loan.
Another consideration -- whether there exists formal,
contemporaneous documentation for the Bridge Loan -- also raises
material fact questions. The District Court notes the record is
unclear when any of the promissory notes related to the Bridge Loan
were signed, or if there was documentation executed at the time its
funds were transmitted. The lack of formal documentation around the
Bridge Loan and subsequent irregular documentation raises more
uncertainty about the Bridge Loan's arm's-length nature, and
further supports the ultimate recommendation that there exist
genuine issues of material fact as to the insider inquiry, the
District Court states. While there are other facets of the Bridge
Loan transaction the Court could consider, the District Court finds
the foregoing evidence sufficient to support the existence of a
genuine issue of material fact as to the arm's-length factor.
The District Court says the Objection to the R&R with respect to
the closeness factor also fails. It finds the undisputed facts to
raise genuine issues about how close the Wills Trust was to SCC.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=wyoJBI
About Abri Health Care Services
Founded in 2009, Abri Health Care Services, LLC --
https://abrihealthcare.com/ -- offers skilled nursing services,
short-term rehabilitation, long-term care, and assisted living in
over 22 locations across Texas.
Abri Health Care Services and subsidiary Senior Care Centers LLC,
sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No.
21-30700) on April 16, 2021. In the petition signed by CEO Kevin
O'Halloran, Abri Health Care Services disclosed total assets of up
to $50 million and total liabilities of up to $10 million. The
cases are handled by Judge Stacey G. Jernigan.
The Debtors tapped Polsinelli, PC as legal counsel and
CliftonLarsonAllen, LLP as accountant and tax consultant.
* * *
The Bankruptcy Court on October 26, 2021, entered an order
confirming the Debtors' Second Amended Subchapter V Plan of
Reorganization.
SERES THERAPEUTICS: Swings to $32.9MM Net Loss in Fiscal Q2
-----------------------------------------------------------
Seres Therapeutics, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $32.9 million with no revenue for the three months
ended June 30, 2024, compared to a net income of $46.6 million on
$126.5 million of total revenue for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $73 million with no revenue, compared to a net loss of
$24.6 million on $126 million of total revenue for the same period
in 2023.
As of June 30, 2024, the Company had $321.7 million in total
assets, $408.8 million in total liabilities, and $87.1 million in
total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/4rfnyda6
About Seres Therapeutics
Seres Therapeutics, Inc. (Nasdaq: MCRB) --
www.serestherapeutics.com -- is a commercial-stage company
developing novel microbiome therapeutics for serious diseases.
Seres' lead program, VOWST, obtained U.S. FDA approval in April
2023 as the first orally administered microbiome therapeutic to
prevent recurrence of C. difficile infection (CDI) in adults
following antibacterial treatment for recurrent CDI and is being
commercialized in collaboration with Nestle Health Science. Seres
is evaluating SER-155 in a Phase 1b study in patients receiving
allogeneic hematopoietic stem cell transplantation.
Boston, Massachusetts-based PricewaterhouseCoopers LLP, the
Company's auditor since 2014, issued a "going concern"
qualification in its report dated March 5, 2024, citing that the
Company has incurred losses and negative cash flows from operations
since its inception and needs to raise additional capital to fund
future operations, which raises substantial doubt about its ability
to continue as a going concern.
Seres Therapeutics incurred a net loss of $113.7 million for the
year ended December 31, 2023, and $250.2 million for the year ended
December 31, 2022.
SHOMYA TEFILAH: Case Summary & One Unsecured Creditor
-----------------------------------------------------
Debtor: Shomya Tefilah, LLC
17 Koritz Way
Spring Valley, NY 10977
Business Description: The Debtor is the owner of real property
located at 17 Koritz Way, Spring Valley, NY
10977 having an estimated value of $1.2
million.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-22765
Judge: Hon. Sean H Lane
Debtor's Counsel: H. Bruce Bronson, Esq.
BRONSON LAW OFFICES PC
480 Mamaroneck Ave
HarrisonHarrison, NY 10528
Tel: (914) 269-2530
Fax: (888) 908-6906
E-mail: hbbronson@bronsonlaw.net
Total Assets: $1,200,000
Total Liabilities: $1,550,000
The petition was signed by Jacob Rothschild as managing member.
The Debtor listed Courchevel 1850 LLC located at 104 SE 8th Ave.
Fort Lauderdale, FL, 33301 as its sole unsecured creditor holding a
claim of $350,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5G2A6OI/SHOMYA_TEFILAH_LLC__nysbke-24-22765__0001.0.pdf?mcid=tGE4TAMA
SILVER CREEK: Seeks to Tap Joyce W. Lindauer as Bankruptcy Counsel
------------------------------------------------------------------
Silver Creek Investments LLC seeks approval from the U.S.
Bankrutpcy Court for the Northern District of Texas to hire Joyce
W. Lindauer Attorney, PLLC as bankruptcy counsel to handle the
Chapter 11 proceedings.
The firm's hourly rates are as follows:
Joyce W. Lindauer, Esq. $550 per hour
Paul B. Geilich, Esq. $450 per hour
Sydney Ollar, Esq. $325 per hour
Laurance Boyd, Esq. $275 per hour
Dian Gwinnup $225 per hour
The Debtor received a retainer in the amount of $5,000.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Joyce Lindauer, Esq., the owner of the law firm, disclosed in a
court filing that she is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Silver Creek Investments
Silver Creek Investments LLC, doing business as Glendale Shopping
Center and Glendale Shopping Mall, is primarily engaged in renting
and leasing real estate properties.
Silver Creek Investments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-32328) on August
5, 2024. In the petition filed by Alfred Herron, as owner, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge Michelle V. Larson handles the
case.
The Debtor is represented by Joyce Lindauer, Esq. at JOYCE W.
LINDAUER ATTORNEY, PLLC.
SMOKIN' DUTCHMAN: Case Summary & 18 Unsecured Creditors
-------------------------------------------------------
Debtor: Smokin' Dutchman Holdings, LLC
4212 Stadium Dr.
Kalamazoo MI 49008
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Western District of Michigan
Case No.: 24-02343
Debtor's Counsel: Perry Pastula, Esq.
DUNN, SCHOUTEN & SNOAP, P.C.
2745 Dehoop Ave SW
Wyoming MI 49509
Tel: 616-538-6380
E-mail: ppastula@dunnsslaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Krage Fox as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 18 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/6IFRHLQ/Smokin_Dutchman_Holdings_LLC__miwbke-24-02343__0001.0.pdf?mcid=tGE4TAMA
SNOHOMISH COUNTY SD: Moody's Lowers Issuer & GOULT Ratings to Ba1
-----------------------------------------------------------------
Moody's Ratings has downgraded Snohomish County School District 25
(Marysville), WA's issuer and general obligation unlimited tax
(GOULT) ratings to Ba1 from Baa2. This action concludes a review
for possible downgrade initiated on June 18, 2024. The district
had about $19.1 million in GOULT debt outstanding at fiscal 2024
year-end (August 31, 2024).
The downgrade is driven by the district's continued, significant
financial difficulties and the challenge of restoring structural
balance to its operations despite the recent appointment of a
special administrator. The district was recently placed under
enhanced financial oversight by the state but remains at risk of
dissolution if it is unable to reestablish general fund solvency
and rebuild reserves.
RATINGS RATIONALE
The Ba1 issuer rating reflects the district's very stressed
financial position and uncertain prospects for near-term recovery.
The district has minimal reserves, including an expected fiscal
2024 general fund balance of about $1.3 million or just 0.7% of
budgeted revenue. The district is budgeting for another deficit in
fiscal 2025, in part because of the significantly increased cost it
will pay for property and liability insurance following its removal
from the Washington State Risk Management Pool. Generally,
financial difficulties have stemmed from the district's trend of
declining enrollment, the loss of local revenue in calendar year
2023 resulting from voters rejecting its operating levy in 2022,
and weak governance. Governance is a key driver of the rating
action.
In response to these challenges, the state superintendent has
placed the district under enhanced financial oversight, an
escalation of state's involvement in the district's operations. As
a result, a special administrator will be appointed to oversee the
district's finances and to enforce the parameters of the binding
conditions process. Notably, the state superintendent also froze
all hiring district-wide and salary increases not currently
outlined in collective bargaining agreements. Moody's view this
appointment as credit positive though not necessarily sufficient to
overcome the district's fundamental fiscal, enrollment and
governance challenges.
The rating also reflects the district's solid resident incomes
(115.3% median household income) and property wealth (about
$192,000 full value per capita) and low long-term liabilities
(95.5%) and fixed costs (5.6%) ratios.
The district's Ba1 GOULT rating is equivalent to its issuer rating,
based on the district's general obligation full faith and credit
pledge as well as an unlimited property tax that is dedicated to
debt service.
RATING OUTLOOK
Moody's do not assign outlooks to local governments with this
amount of debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Exiting of the binding conditions process and maintenance of
reserves above its 5% fund balance policy
-- Stable enrollment with balanced operations
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Further deterioration in fund balance beyond current
projections
-- Inability to enact a long-term, sustainable financial plan
-- Declining enrollment beyond current projections
LEGAL SECURITY
The district's GOULT bonds are payable from the district's full
faith, credit, and unlimited property tax pledge. Bondholder
security is enhanced by the county-provided lockbox for GOULT debt
service.
PROFILE
Marysville School District 25, WA is located in Snohomish County
(Aa1 stable) approximately 35 miles north of Seattle (Aaa stable).
The district provides education for grades pre-K through 12 with a
fiscal 2024 total enrollment of about 10,000 students.
METHODOLOGY
The principal methodology used in these ratings was US K-12 Public
School Districts published in July 2024.
SONRAVA HEALTH: $552.5MM Bank Debt Trades at 31% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Sonrava Health
Co-Borrower LLC is a borrower were trading in the secondary market
around 68.8 cents-on-the-dollar during the week ended Friday, Sept.
6, 2024, according to Bloomberg's Evaluated Pricing service data.
The $552.5 million Term loan facility is scheduled to mature on
August 18, 2028. The amount is fully drawn and outstanding.
The Company's country of domicile is the United States.
SQRL SERVICE: Hires Joyce W. Lindauer Attorney LLC as Counsel
-------------------------------------------------------------
SQRL Service Stations, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Joyce W.
Lindauer Attorney, LLC as counsel.
Joyce W. Lindauer Attorney will serve as Debtor's legal counsel in
its Chapter 11 case.
The firm will be paid at these rates:
Joyce W. Lindauer $550 per hour
Paul B. Geilich $450 per hour
Sydney Ollar, Associate Attorney $325 per hour
Laurance Boyd, Associate Attorney $275 per hour
Dian Gwinnup, Paralegal $225 per hour
The firm was paid a retainer in the amount of $28,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Joyce W. Lindauer, Esq., a partner at Joyce W. Lindauer Attorney,
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:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About SQRL Service
SQRL Service Station LLC sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. N. D. Texas, Case No. 24-32457) on August
16, 2024. In the petitions signed by Jamal Hizam as managing
member, the Debtor disclosed estimated assets of $10 million to $50
million and total liabilities of $1 billion to $10 billion.
The Debtor tapped Joyce W. Lindauer Attorney, PLLC as counsel.
SSE DEVELOPMENT: Hires W and Partners as Real Estate Broker
-----------------------------------------------------------
SSE Development AZ, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to employ W and Partners, LLC as
real estate broker.
The firm will market and sell the following real properties of the
Debtor:
a. Maricopa County Assessor Parcel No. 173-06-003 with common
address of 7014 East Palo Verde Lane, Paradise Valley, Arizona
85253;
b. Maricopa County Assessor Parcel No. 158-11-010 with a common
address of 1426 West Royal Palm Road, Phoenix, AZ 85021;
c. Maricopa County Assessor Parcel No. 170-01-014 with a common
address of 3933 East Rancho Drive, Paradise Valley, AZ 85253; and
d. Maricopa County Assessor Parcel No. 171-13-016 with a common
address of 4350 East Vermont Ave., Phoenix, AZ 85018.
The firm will be paid at a combined commission equal to 5.5 percent
of the total sale price of the Properties.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cariste Harlan, a partner at W and 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:
Cariste Harlan, Esq.
W and Partners, LLC
20100 N 51st Ave Ste E510
Clendale, AZ 85308
Tel: (408) 781-4929
About SSE Development AZ, LLC
SSE Development AZ LLC is a limited liability company.
SSE Development AZ LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-04919) on June 19,
2024. In the petition signed by Tim Maruyama, as member/owner, the
Debtor reports estimated assets between $10 million and $50 million
and estimated liabilities between $1 million and $10 million.
The Debtor is represented by:
Patrick Keery, Esq.
KEERY MCCUE, PLLC
6803 E. Main Street Suite 1116
Scottsdale AZ 75251
Tel: (480) 478-0709
E-mail: pfk@keerymccue.com
STAR WELLINGTON: Hires Kelley Kaplan & Eller as Legal Counsel
-------------------------------------------------------------
Star Wellington, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to hire Kelley Kaplan & Eller,
PLLC as counsel.
The firm will provide these services:
(a) give advice to the Debtor with respect to its powers and
duties as a Debtor in possession and the continued management of
its business operations;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The firm will be paid at these rates:
Attorneys $525 per hour
Paralegals $155 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $35,000.
Dana Kaplan, Esq., a partner at Kelley Kaplan & Eller, 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:
Dana Kaplan, Esq.
KELLEY KAPLAN & ELLER, PLLC
1665 Palm Beach Lakes Blvd
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: (561) 491-1200
Email: dana@kelleylawoffice.com
About Star Wellington, LLC
Star Wellington is a restaurant that offers a fusion of Italian
flavors and Franco flair.
Star Wellington, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case. No.
24-18574) on August 23, 2024, listing $314,093 in assets and
$2,443,171 in liabilities. The petition was signed by Adam Hopkins
as manager and owner.
Dana Kaplan, Esq. at KELLEY KAPLAN & ELLER, PLLC represents the
Debtor as counsel.
STAR WELLINGTON: Soneet Kapila Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 21 appointed Soneet Kapila of Kapila
Mukamal as Subchapter V trustee for Star Wellington, LLC.
Mr. Kapila 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. Kapila declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Soneet R. Kapila
Kapila Mukamal
1000 South Federal Highway, Suite 200
Fort Lauderdale, FL 33316
Tel: (954) 761-1011
Email: skapila@kapilamukamal.com
About Star Wellington
Star Wellington, LLC is a restaurant that offers a fusion of
Italian flavors and Franco flair. It conducts business under the
names Franco Italian Bistro and Victor's Pizza Cafe in Wellington,
Fla.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-18574) on August 23,
2024, with $314,093 in assets and $2,443,171 in liabilities. Adam
Hopkins, manager and owner, signed the petition.
Dana Kaplan, Esq., at Kelley Kaplan & Eller, PLLC represents the
Debtor as legal counsel.
STEWARD HEALTH: Seeks $42M Help from Mass. to Keep Hospitals Open
-----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that bankrupt
hospital operator Steward Health Care has asked a Texas bankruptcy
judge to let the Commonwealth of Massachusetts pay $42 million to
fund the operation of six hospitals in the Bay State that the
debtor hopes to sell by the end of the month, Law360 Bankruptcy
Authority 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 has been appointed as patient care ombudsman in
the Debtors' Chapter 11 cases.
STRATEGIC ACQUISITIONS: Posts $22,508 Net Loss in Fiscal Q2
-----------------------------------------------------------
Strategic Acquisitions, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $22,508 on $13,747 of total revenues for the three
months ended June 30, 2024, compared to a net loss of $29,719 on
$13,747 of total revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $65,958 million on $27,494 of revenues, compared to a net
loss of $87,721 on $31,444 million of revenues for the same period
in 2023. As of June 30, 2024, the Company had cash of $9,900 and a
shareholders' deficit of $23,271.
As of June 30, 2024, the Company had $7,665,937 in total assets,
$7,689,208 in total liabilities, and $23,271 in total stockholders'
deficit.
Management plans to seek debt and/or equity financing to operate
until such times as the Company has established sufficient ongoing
revenues to cover its costs. However, there is no assurance that
management will be successful in accomplishing its plan.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mryuttmu
About Strategic Acquisitions
Short Hills, N.J.-based Strategic Acquisitions, Inc. develops
proprietary software technology platform. The Company provides an
integrated service for origination, documentation, and servicing of
collateralized loans. The Company conducts its operations through
Exworth Union Inc.
Going Concern
The Company cautioned in its Form 10-Q Report the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. According to the Company, as of
March 31, 2024, it had cash of $35,657 and a shareholders' deficit
of $763. For the three months ended March 31, 2024 and 2023, the
Company had losses from operations of $43,450 and $58,002,
respectively. These factors, among others, raise substantial doubt
about the ability of the Company to continue as a going concern for
a reasonable period of time.
Management plans to seek debt or equity financing to operate until
such times as the Company has established sufficient ongoing
revenues to cover its costs. However, there is no assurance that
management will be successful in accomplishing its plan.
TERRAFORM LABS: Hires PGP Capital Advisors as Investment Banker
---------------------------------------------------------------
Terraform Labs Pte. Ltd. and Terraform Labs Limited seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
employ PGP Capital Advisors, LLC as investment banker.
The firm's services include:
a. assisting the Debtors in the development and distribution
of selected information, documents and other materials, including,
if appropriate, advising the Debtors in the preparation of sale
offering memoranda concerning the Debtors' holdings in the Venture
Investments (it being expressly understood that the Debtors will
remain solely responsible for such materials and all of the
information contained);
b. assisting the Debtors in evaluating indications of interest
and proposals regarding any sale transaction(s) from third parties,
including equity investors, general partners and other limited
partners in the Venture Investments, current and/or potential
lenders, and/or strategic partners;
c. assisting the Debtors with the negotiation of any sale
transaction(s), including participating in negotiations with equity
investors, general partners and other limited partners in the
Venture Investments and other parties involved in any sale
transaction(s);
d. providing expert advice and testimony regarding financial
matters related to any sale transaction(s), if necessary;
e. attending meetings of the Debtors' board of directors,
creditor groups, official constituencies and other interested
parties, as the Debtors and PGP mutually agree; and
f. providing such other financial advisory and investment
banking services as may be reasonably requested by the Debtors.
The firm will be paid at these rates:
a. Initial Fee: Upon the execution of the Engagement Letter,
the Debtors shall pay PGP a nonrefundable cash fee of $35,000,
which shall be earned upon PGP's receipt thereof in consideration
of PGP accepting this engagement ("Initial Fee"). Such payment
shall be made upon approval of this Application by the Bankruptcy
Court.
b. Monthly Fee: On August 30, 2024, and on every monthly
anniversary of the Effective Date of the Engagement Letter during
the term of this engagement, the Debtors shall pay PGP in advance a
nonrefundable cash fee of $35,000 ("Monthly Fee"). Each Monthly Fee
shall be earned upon PGP's receipt thereof in consideration of PGP
accepting this engagement and performing services as described
herein. Beginning with the second Monthly Fee, 100 percent of the
Monthly Fees paid or previously paid on a timely basis to PGP shall
be credited against any Sale Transaction Fee to which PGP becomes
entitled hereunder (it being understood and agreed that no Monthly
Fee shall be credited more than once), except that, in no event,
shall such Sale Transaction Fee be reduced below zero. For the
avoidance of doubt, the first Monthly Fee shall not be credited
against any Sale Transaction Fee.
c. Sale Transaction Fee(s): Upon the closing of each sale
transaction, PGP shall earn and the Debtors shall thereupon pay to
PGP immediately at closing a cash fee ("Sale Transaction Fee")
equal to the sum of (i) 5.0 percent of Aggregate Gross
Consideration ("AGC") up to $15 million, plus (ii) 2.5 percent of
the amount by which the AGC exceeds $15 million, if any.
As disclosed in the court filing, PGP is a "disinterested person"
within the meaning of section 101(14) of the Bankruptcy Code and
does not hold or represent an interest materially adverse to the
Debtors' estates.
The firm can be reached through:
Stewart Kim
PGP Capital Advisor, LLC
865 South Figueroa Street, Suite 1330
Los Angeles, CA 90017
Phone: (310) 268-0885
Email: office@pgpcapital.com
About Terraform Labs
Terraform Labs Limited's parent is Terraform Labs Pte. Ltd., a
software development company. Its Parent's primary business purpose
is to develop and support (i) software used to create and run the
current Terra blockchain network, which was started in May 2022,
and (ii) an entire suite of tools, protocols, and applications that
operate on the Terra Blockchain, making transactions on the network
easier, faster, and more user friendly.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11481) on July 1, 2024,
with $100 million to $500 million in assets and $0 to $50,000 in
liabilities. Chris Amani, Head of Company Operations of Terraform
Labs Pte. Ltd., Director of Terraform Labs Limited, signed the
petition.
The Debtor tapped RICHARDS, LAYTON & FINGER, P.A. as local counsel;
WEIL, GOTSHAL & MANGES LLP as attorney; DENTONS US LLP as special
litigation counsel; WONGPARTNERSHIP LLP as special foreign counsel;
and ALVAREZ & MARSAL NORTH AMERICA, LLC as financial advisor.
THOR INDUSTRIES: Moody's Affirms 'Ba2' CFR, Outlook Stable
----------------------------------------------------------
Moody's Ratings affirmed THOR Industries, Inc.'s Ba2 corporate
family rating and Ba2-PD probability of default rating.
Concurrently, Moody's affirmed the Ba2 rating on the senior secured
term loans and the B1 rating on the senior unsecured notes. The
company's speculative grade liquidity rating ("SGL") is unchanged
at SGL-1. The outlook is stable.
"The rating affirmation reflects THOR's ability to maintain robust
credit metrics and a conservative balance sheet, despite a
prolonged, difficult operating environment. The affirmation also
recognizes the company's flexible operating model, considerable
scale and leading market position in recreational vehicles (RVs).
Moody's expect THOR to maintain strong liquidity and healthy free
cash flow," said Eoin Roche, Moody's Ratings Senior Vice
President.
RATINGS RATIONALE
The Ba2 CFR balances THOR's significant scale and leading market
positions against the cyclical and competitive nature of the RV
industry that is highly vulnerable to economic downturns. Moody's
favorably consider THOR's strong competitive standing in North
America and Europe, its portfolio of well-known brands, and the
company's broad recreational vehicle (RV) offering that touches
multiple price points and segments.
Moody's expect THOR to continue to face a challenging operating
environment in the face of relatively high interest rates, elevated
dealer inventories and a reluctance on the part of dealers to order
RVs until demand from end customers strengthens. Notwithstanding
these headwinds – which Moody's expect to endure over the balance
of 2024 and into the first half of 2025 - Moody's expect THOR to
maintain robust credit metrics and healthy levels of free cash
flow. Debt-to-EBITDA as of April 2024 was 1.7x, a low level of
financial leverage that provides significant financial
flexibility.
The stable outlook reflects THOR's well-positioned credit metrics,
which will allow the company to absorb on-going demand headwinds
and associated earnings pressures.
The SGL-1 speculative grade liquidity rating denotes Moody's
expectations of strong liquidity over the next 12 months. Cash on
hand at the end of April 2024 was $372 million. Moody's anticipate
robust cash generation during fiscal 2024 (ended July) with free
cash flow-to-debt at least in the high-teens. Moody's expect lower,
albeit still healthy cash generation in fiscal 2025, with free cash
flow-to-debt at least in the high single-digits. External liquidity
is provided by a $1 billion ABL facility that expires in November
2028. The ABL was undrawn at the end of April 2024, and Moody's do
not expect the company to be reliant on the facility. The ABL
contains a springing minimum fixed charge coverage ratio of 1.0x
that comes into effect if availability is less than the greater of
$60 million or 10% of the maximum available credit.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if THOR continues to maintain a
conservative financial policy, strong liquidity, and robust credit
metrics. Expectations of a more favorable and stable operating
environment along with sustained RV demand at the retail level
could also result in upward rating pressure. Given THOR's
vulnerability to highly cyclical end-markets, Moody's expect the
company to maintain credit metrics that are stronger than levels
typically associated with companies at the same rating level.
Ratings could be downgraded if THOR's free cash flow or liquidity
weaken materially. Ratings could also be pressured if Moody's
expect a further weakening of retail demand that will lead to a
sustained deterioration of earnings.
THOR Industries, Inc., headquartered in Elkhart, Indiana, is a
leading designer and manufacturer of recreational vehicles
including travel trailers, fifth wheels, specialty trailers,
motorhomes, caravans, and campervans. The company primarily
operates in North America and Europe and sells its products under
brands such as Keystone, Airstream, Heartland, Jayco, THOR
Motorcoach, Hymer, and Niesmann Bischoff. Revenue for the twelve
months ended April 2024 were around $10.2 billion.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
THREE SISTERS: Seeks Approval to Hire SevfiN LLC as Accountant
--------------------------------------------------------------
Three Sisters Transport, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Tennessee to employ
SevfiN LLC as accountant.
The firm will assist the Debtor in preparing all applicable federal
and state tax returns.
The firm will be paid at the rate of $175 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Daniel Maura, a partner at SevfiN 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:
Daniel Maura
SevfiN LLC
7700 Kings Ride
Boynton Beach, FL 33436
Tel: (954) 778-6688
About Three Sisters Transport, LLC
Three Sisters Transport, LLC has been operating in the truck
business since 2010 hauling freight throughout the US and Canada.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-01133) on April 2,
2024. In the petition signed by Mihail "Mike" Vasilev, as
authorized representative of the Debtor, the Debtor disclosed up to
$10 million in both assets and liabilities.
Judge Charles M. Walker oversees the case.
Marc Buchman, Esq., at MANIER & HEROD PC, represents the Debtor as
legal counsel.
TJ BEAR: Seeks to Hire Brown Law Firm as Bankruptcy Counsel
-----------------------------------------------------------
TJ Bear Transportation LLC seeks approval from the U.S. Bankruptcy
Court or the Western District of Oklahoma to hire Brown Law Firm,
P.C. as its counsel.
The firm will render these services:
a. negotiate allowed claims and treatment of creditors;
b. render legal advice and preparation of legal documents and
pleadings concerning claims of creditors, post-petition financing,
executing contracts, sale of assets, insurance, etc;
c. represent the Debtor in hearings and other contested
matters;
d. formulate a plan of reorganization; and
e. provide all other matters needed for reorganization.
Brown Law Firm will be paid at these rates:
Ron D. Brown, Esq. $350 per hour
Associate $300 per hour
Paralegal $75 per hour
The firm received from the Debtor an advance retainer of $6,207.50,
plus $1,817.95 filing fee.
Ron Brown, Esq., at Brown Law Firm, disclosed in a court filing
that all members of his firm are "disinterested" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ron D. Brown, Esq.
Brown Law Firm, P.C.
715 S. Elgin Ave
Tulsa, OK 74120
Tel: (918) 585-9500
Fax: (866) 552-4874
Email: ron@ronbrownlaw.com
About TJ Bear Transportation LLC
TJ Bear Transportation LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Okla. Case No.
24-12417) on August 27, 2024, listing $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities.
Judge Sarah A Hall presides over the case.
Ron Brown, Esq. at Brown Law Firm PC represents the Debtor as
counsel.
TLC KID'S CENTER: Eric Terry Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Eric Terry as Subchapter V
trustee for TLC Kid's Center, Inc.
Mr. Terry will charge $450 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Terry declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Terry
3511 Broadway
San Antonio, TX 78209
Phone: (210)468-8274
Email: eric@ericterrylaw.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. Texas 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.
TLC KID'S: Seeks to Hire Hacker Law Firm as Bankruptcy Counsel
--------------------------------------------------------------
TLC Kid's Center, Inc seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to hire Hacker Law Firm, PLLC as
its legal counsel.
The firm's services include:
a. advising and consulting with the Debtor as to its powers
and duties in the continued operation of its business and
management of its properties during bankruptcy;
b. taking actions to preserve and protect the Debtor's
assets;
c. preparing legal documents; and
d. assisting the Debtor with its plan of reorganization and
disclosure statements.
The firm's hourly rates are as follows:
Paul S. Hacker, Esq. $400
Heidi McLeod $450
Tammy Haugabrook $125
As disclosed in court filings, Hacker Law Firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Paul Steven Hacker, Esq.
Hacker Law Firm, PLLC
3355 Cherry Ridge Ste. 214
San Antonio, TX 78230
Tel: (210) 595-2045
Email: steve@hackerlawfirm.com
About TLC Kid's Center, Inc
TLC Kid's is a family-owned pediatric therapy clinic that offers
occupational therapy, physical therapy, speech therapy, Applied
Behavioral Services (ABA), and feeding therapy.
TLC Kid's Center, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-51614) on August 23, 2024, listing $237,655 in assets and
$1,672,501 in liabilities. The petition was signed by Lloyd Dunn as
authorized signatory and secretary.
Judge Craig A Gargotta presides over the case.
Paul Steven Hacker, Esq. at HACKER LAW FIRM, PLLC represents the
Debtor as counsel.
TOTALLY COOL: Stephen Metz Named Subchapter V Trustee
-----------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Stephen Metz of
Offit Kurman, P.A. as Subchapter V trustee for Totally Cool, Inc.
Mr. Metz will be paid an hourly fee of $545 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Metz declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen Metz
Offit Kurman, P.A.
7501 Wisconsin Avenue, Suite 1000W
Bethesda, Maryland 20814
Phone: (240) 507-1723
Email: smetz@offitkurman.com
About Totally Cool
Totally Cool, Inc. is a manufacturer of premium ice cream cakes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-17128) on August 23,
2024, with $2,007,082 in assets and $1,415,224 in liabilities.
Michael J. Uhlfelder, president and CEO, signed the petition.
Irving E. Walker, Esq. at Cole Schotz P.C. represents the Debtor as
legal counsel.
TRACON PHARMACEUTICALS: Raises Going Concern Doubt
--------------------------------------------------
Tracon Pharmaceuticals, Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarterly
period ended June 30, 2024, that there is substantial doubt about
its ability to continue as a going concern.
According to Tracon Pharmaceuticals, as of June 30, 2024, the
Company has devoted substantially all its efforts to product
development, raising capital, and building infrastructure and has
not realized revenues from its planned principal operations. The
Company has incurred operating losses since inception.
For the three and six months ended June 30, 2024, the Company
reported net losses of $2.8 million and $6 million, respectively,
compared to net losses of $6.3 million and $14.8 million for the
same periods in 2023, respectively. As of June 30, 2024, the
Company had an accumulated deficit of $246.5 million.
The Company anticipates that it will continue to incur net losses
into the foreseeable future as it completes the planned
Dissolution. At June 30, 2024, the Company had cash and cash
equivalents of $6.3 million, of which $0.1 million is classified as
restricted cash as it is pledged as collateral for the Company's
obligations under its corporate headquarters facility lease. The
accompanying unaudited condensed consolidated financial statements
have been prepared assuming the Company will continue as a going
concern, which contemplates the realization of assets and
settlement of liabilities in the normal course of business.
However, based on the Company's current working capital,
anticipated operating expenses and net losses, and the
uncertainties surrounding its ability to raise additional capital
as needed, as discussed below, management believes that there is
substantial doubt about its ability to continue as a going concern
for a period of 12 months following August 13, 2024, the date that
the unaudited condensed consolidated financial statements are
issued.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/fpayyz8v
About Tracon Pharmaceuticals, Inc.
TRACON Pharmaceuticals, Inc. (NASDAQ: TCON), a biopharmaceutical
company, focuses on the development and commercialization of
therapeutics for cancer in the United States. The company was
formerly known as Lexington Pharmaceuticals, Inc. and changed its
name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON
Pharmaceuticals, Inc. was incorporated in 2004 and is headquartered
in San Diego, California.
As of June 30, 2024, the Company had $7.4 million in total assets,
$10.5 million in total liabilities, and $3.1 million in total
stockholders' deficit.
TREE HAUS: Brad Odell of Mullin Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for The Tree Haus
Tavern, LLC.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About The Tree Haus Tavern
The Tree Haus Tavern, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51589) on
August 21, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Craig A. Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as legal counsel.
TREE HAUS: Seeks to Hire Langley & Banack as Bankruptcy Counsel
---------------------------------------------------------------
The Tree Haus Tavern, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire Langley & Banack,
Inc. as its counsel.
The firm will advise the Debtor with respect to its duties and
powers in this case and handle all matters which come before the
court in this case.
William Davis, Jr., Esq., an attorney at Langley & Banack, will be
paid at his hourly rate of $400.
The firm estimated that a retainer in the amount of $26,738 will be
needed for this case.
Mr. Davis disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
William R. Davis Jr., Esq.
Langley & Banack, Inc.
745 E. Mulberry, Suite 700
San Antonio, TX 78212
Telephone: (210) 736-6600
Facsimile: (210) 735-6889
Email: wrdavis@langleybanack.com
About The Tree Haus Tavern, LLC
The Tree Haus Tavern, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-51589) on August 21, 2024, listing up to $50,000 in assets and
$100,001 to $500,000 in liabilities. The petition was signed by
Vance Mendes as member.
William R. Davis, Jr., Esq. at Langley & Banack, Inc. represents
the Debtor as counsel.
TUBULAR SYNERGY: Committee Hire Haynes and Boone LLP as Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Tubular Synergy
Group, LP and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Haynes and Boone, LLP as counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, powers and
duties in the Chapter 11 Cases;
b. assist and advise the Committee in consultations and
negotiations with the Debtors and other parties-in-interest
relative to the administration of the Chapter 11 Cases;
c. assist the Committee in analyzing the claims of the
Debtors' creditors and the Debtors' capital structure and in
negotiating with stakeholders;
d. assist the Committee in its investigation of the acts,
conduct, assets, liabilities and financial condition of the Debtors
and of the operation of the Debtors' businesses by the Debtors'
board and management;
e. assist the Committee in connection with the Debtors'
monetization of their assets and the negotiations with the Debtors
and third parties concerning matters related thereto including,
without limitation, the terms of the sales of assets, sale
agreements and other transaction documents;
f. assist the Committee in its analysis of, and negotiations
with, the Debtors or any third party concerning matters related to,
among other things, the Debtors' proposed assumption or rejection
of certain leases of non-residential real property and executory
contracts, financing transactions, other transactions including
section 363 asset sales, and the terms of one or more chapter 11
plans, accompanying disclosure statements, and related plan
documents;
g. assist and advise the Committee as to its communications to
the general creditor body regarding significant matters in these
Chapter 11 Cases;
h. represent the Committee at all hearings and other
proceedings before the Bankruptcy Court;
i. review and analyze applications, orders, statements of
operations and schedules filed with the Court and advise the
Committee as to their propriety, and to the extent deemed
appropriate by the Committee, support, join or object thereto;
j. advise and assist the Committee with respect to any
legislative, regulatory or governmental activities;
k. assist the Committee in preparing pleadings and
applications as may be necessary in furtherance of the Committee's
interests and objectives;
l. assist the Committee in its review and analysis of all of
the Debtors' various agreements;
m. prepare, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda, complaints,
adversary complaints, objections, or statements in connection with
any matter related to the Debtors or the Chapter 11 Cases;
n. investigate and analyze any claims against the Debtors'
non-Debtor affiliates, officers, and/or directors; and
o. perform such other legal services as may be required or are
otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules or other applicable law.
The firm will be paid at these rates:
Steve Pezanosky, Partner $1,575 per hour
Ian Peck, Partner $1,350 per hour
Aimee Furness, Partner $1,125 per hour
David Staab, Counsel $1,000 per hour
Heather Barger, Counsel $875 per hour
Jordan Chavez, Associate $900 per hour
Imaan Patel, Associate $675 per hour
Kim Morzak, Paralegal $575 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following information is provided in response to the request
for additional information set forth in Paragraph D.1. of the UST
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: Yes, Haynes Boone is providing a 15% discount on its
hourly rates.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post petition, explain the
difference and the reasons for the difference.
Response : Haynes Boone did not represent the Committee prior to
the commencement of these chapter 11 cases.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: Haynes Boone is in the process of developing a
prospective budget and staffing plan for the Committee's review and
approval. Haynes Boone expects that the Committee, the Debtors, and
the U.S. Trustee, will maintain active oversight of Haynes Boone's
billing practices.
Ian T. Peck, Esq., a partner at Haynes and Boone, LLP, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ian T. Peck, Esq.
Haynes and Boone, LLP
2801 N. Harwood St., Suite 2300
Dallas, TX 75201
Tel: (214) 651-5000
Fax: (214) 651-5940
Email: ian.peck@haynesboone.com
About Tubular Synergy
Tubular Synergy Group, LP comprise a privately held sales,
marketing, and supply chain services distributor of oilfield
casing, tubing, and line pipe utilized in the oil and gas
industry.
Tubular Synergy and its affiliate, OCTG Connections, Inc., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Texas, Lead Case No. 24-80056) on July 9, 2024.
In the petition signed by W. Byron Dunn, CEO & founding partner,
Tubular Synergy disclosed $50 million to $100 million in assets and
liabilities.
Foley & Lardner LLP represents the Debtors as Counsel. Stretto,
Inc. acts as claims and noticing agent to the Debtors.
TUBULAR SYNERGY: Committee Hires Glassratner as Financial Advisor
-----------------------------------------------------------------
The official committee of unsecured creditors of Tubular Synergy
Group, LP and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Glassratner Advisory & Capital Group, LLC dba B. Riley Advisory
Services as financial advisor.
The firm will provide these services:
a. assist in the analysis, review, and monitoring of the
restructuring and/or liquidation process, including, but not
limited to, an assessment of the unsecured claims pool and
potential recoveries for unsecured creditors;
b. develop an understanding of the Debtors' businesses and
their valuations;
c. determine whether there are viable alternative paths for
the disposition of the Debtors' assets from any currently or in the
future proposed by the Debtors;
d. monitor and, to the extent appropriate, assist the Debtors
in efforts to develop and solicit transactions that would support
unsecured creditor recovery;
e. assist the Committee in identifying, valuing, and pursuing
estate causes of action, including, but not limited to, relating to
prepetition transactions, control person liability, and lender
liability;
f. analyze, classify and address claims against the Debtors
and to participate effectively in any of the Committee's efforts in
these Chapter 11 Cases to estimate (in any formal or informal
sense) contingent, unliquidated and disputed claims;
g. advise the Committee in negotiations with the Debtors, and
certain of the Debtors' lenders and third parties;
h. assist the Committee in reviewing the Debtors' financial
reports, including, but not limited to, statements of financial
affairs, schedules of assets and liabilities, cash budgets and
monthly operating reports;
i. assist the Committee in reviewing the Debtors' cost/benefit
analysis with respect to the assumption or rejection of various
executory contracts and leases;
j. review and provide analysis of the present and any
subsequent proposed debtor-in-possession financing or use of cash
collateral;
k. assist the Committee in evaluating and analyzing avoidance
actions, including fraudulent conveyances and preferential
transfers;
l. review and provide analysis of any proposed section 363
sale process or any disclosure statement and chapter 11 plan
proposed by the Debtors and, if appropriate, assist the Committee
in developing an alternative chapter 11 plan;
m. attend meetings and assist in discussions with the
Committee, the Debtors, the secured lenders, the U.S. Trustee and
other parties in interest and professionals;
n. present at meetings of the Committee, as well as meetings
with other key stakeholders and parties in interest;
o. provide testimony on behalf of the Committee as and when
deemed appropriate; and
p. perform such other advisory services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules or other applicable law.
The firm will be paid at these rates:
Senior Managing Director $595 to $850 per hour
Directors & Managing Directors $395 to $595 per hour
Other $275 to $395 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mark Shapiro, a Senior Managing Director at Glassratner Advisory &
Capital Group, LLC dba B. Riley Advisory Services, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mark Shapiro, CPA
Glassratner Advisory & Capital Group, LLC
dba B. Riley Advisory Services
3500 Maple Avenue, Suite 420,
Dallas, TX 75219
Tel: (972) 794-1056
Mobile: (303) 482-7218
Email: mshapiro@glassratner.com
About Tubular Synergy
Tubular Synergy Group, LP comprise a privately held sales,
marketing, and supply chain services distributor of oilfield
casing, tubing, and line pipe utilized in the oil and gas
industry.
Tubular Synergy and its affiliate, OCTG Connections, Inc., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Texas, Lead Case No. 24-80056) on July 9, 2024.
In the petition signed by W. Byron Dunn, CEO & founding partner,
Tubular Synergy disclosed $50 million to $100 million in assets and
liabilities.
Foley & Lardner LLP represents the Debtors as Counsel. Stretto,
Inc. acts as claims and noticing agent to the Debtors.
TURNKEY SOLUTIONS: Hires Fealy Law Firm PC as Legal Counsel
-----------------------------------------------------------
Turnkey Solutions Group, Inc. f/k/a Caban Industrial Group, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Texas to employ The Fealy Law Firm, PC as attorney.
The firm will provide these services:
a. analyzing the financial situation, and rendering advice and
assistance to the Debtor;
b. advising the Debtor with respect to its duties as Debtor;
c. preparing and filing of all appropriate petitions,
schedules of assets and liabilities, statements of affairs,
answers, motions and other legal papers;
d. representing the Debtor at the first meeting of creditors
and such other services as may be required during the course of the
bankruptcy proceedings;
e. representing the Debtor in all proceedings before the Court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected;
f. preparing and filing of Chapter 11 Plan of Reorganization;
and
g. assisting the Debtor in any matters relating to or arising
out of the captioned 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 Debtor paid the firm the amount of $21,738 on June 28, 2024,
prior to the filing of the case.
Vicky M. Fealy, Esq., a partner at The Fealy Law Firm, PC,
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:
Vicky M. Fealy, Esq.
The Fealy Law Firm, PC
1235 North Loop W Ste 1120,
Houston, TX 77008
Tel: (713) 526-5220
Fax: (713) 526-5227
Email: vfealy@fealylawfirm.com
About Turnkey Solutions Group, Inc.
f/k/a Caban Industrial Group, LLC
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
TURNONGREEN INC: Posts $798,000 Net Loss in Fiscal Q2
-----------------------------------------------------
TurnOnGreen, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $798,000 on $1.24 million of revenue for the three months ended
June 30, 2024, compared to a net loss of $1.84 million on $724,000
of revenue for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $1.53 million on $2.46 million of revenue, compared to a
net loss of $2.85 million on $1.6 million of revenue for the same
period in 2023.
As of June 30, 2024, the Company had $3.94 million in total assets,
$10.91 million in total liabilities, $25 million in redeemable
convertible preferred stock, and $31.97 million in total
stockholders' deficit.
The Company has incurred recurring operating and net losses that
have not provided sufficient cash flows. Management believes that
the Company will continue to incur operating and net losses each
quarter until at least the time it begins significant deliveries of
its products. The Company's inability to continue as a going
concern could have a negative impact on the Company, including its
ability to obtain needed financing. In view of these matters, there
is substantial doubt about the Company's ability to continue as a
going concern.
The Company intends to finance its future development activities
and its working capital needs largely through the sale of equity
securities with some additional funding from other sources,
including term notes until such time as funds provided by
operations are sufficient to fund working capital requirements.
Although management believes that such capital sources will be
available, there can be no assurances that financing will be
available to the Company when needed in order to allow the Company
to continue its operations, or if available, on terms acceptable to
the Company.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/ycx9u8cd
About TurnOnGreen, Inc.
TurnOnGreen, Inc. (formerly known as Imperalis Holding Corp.), a
Nevada corporation, through its wholly owned subsidiaries Digital
Power Corporation and TOG Technologies Inc., is engaged in the
design, development, manufacture and sale of highly engineered,
feature-rich, high-grade power conversion and power system
solutions for mission-critical applications and processes.
New York, N.Y.-based Marcum LLP, the Company's auditor since 2021,
issued a "going concern" qualification in its report dated April
11, 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.
TurnOnGreen had a net loss of $4.83 million for the year ended
December 31, 2023, compared to a net loss of $4.22 million in 2022.
TWILLEY AND SON: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Twilley and Son Wood Company, LLC
165 Pete Duke Road
Gallion, AL 36742
Business Description: Twilley and Son Wood Company operates a
logging business.
Chapter 11 Petition Date: September 9, 2024
Court: United States Bankruptcy Court
Northern District of Alabama
Case No.: 24-71241
Judge: Hon. Jennifer H Henderson
Debtor's Counsel: Marshall A. Entelisano, Esq.
MARSHALL A. ENTELISANO, P.C.
701 22nd Avenue, Suite 2
Tuscaloosa, AL 35401
Tel: 205-752-1202
Fax: 205-752-1203
Email: marshall@marshall-lawfirm.com
Total Assets: $1,410,084
Total Liabilities: $1,219,599
The petition was signed by Jimmy Michael Twilley as owner.
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/VXFY7JA/Twilley_and_Son_Wood_Company_LLC__alnbke-24-71241__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VKUXLYI/Twilley_and_Son_Wood_Company_LLC__alnbke-24-71241__0001.0.pdf?mcid=tGE4TAMA
UNDEAD PRODUCTIONS: Taps Steidl and Steinberg as Legal Counsel
--------------------------------------------------------------
Undead Productions, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to hire Western
District of Pennsylvania to hire Steidl and Steinberg, P.C. to
handle its Chapter 11 case.
The firm will be paid at $350 per hour.
The firm will be paid a retainer in the amount of $15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Christopher M. Frye, a partner at Steidl and Steinberg, P.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Christopher M. Frye, Esq.
Steidl & Steinberg
2830 Gulf Tower
707 Grant Street
Pittsburgh, PA 15219
Tel: (412) 391-8000
Email: chris.frye@steidl-steinberg.com
About Undead Productions, Inc.
Undead Productions, Inc. is a creator of ScareHouse, Bold Escape
Rooms and Steel City Axes in Pittsburgh.
Undead Productions, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
24-22057) on August 22, 2024, listing $1 million to $10 million in
assets and $100,000 to $500,000 in liabilities. The petition was
signed by Scott A. Simmons as president.
Christopher M. Frye, Esq. at STEIDL & STEINBERG, P.C. represents
the Debtor as counsel.
UNITED SPORTING: Prospect Capital Marks $190.5MM Loan at 95% Off
----------------------------------------------------------------
Prospect Capital Corporation has marked its $190,556,000 loan
extended to United Sporting Companies, Inc to market at $10,289,000
or 5% of the outstanding amount, as of June 30, 2024, according to
a disclosure contained in Prospect Capital's Amended Form N-CSR for
the fiscal year ended June 30, 2024 filed with the Securities and
Exchange Commission on August 28, 2024.
Prospect Capital is a participant in a Second Lien Term Loan to
United Sporting Companies, Inc. The loan accrues interest at a rate
of 16.10% (3M SOFR+ 10.50%% Floor,)per annum. The loan is scheduled
to mature on November 16, 2019.
Prospect Capital said, the Loan is on non-accrual status as of June
30,2024.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
United Sporting Companies, Inc. provided hunting and shooting
sports products.
USES CORP: 95% Markdown for Prospect Capital Markdown $71.8MM Loan
------------------------------------------------------------------
Prospect Capital Corporation has marked its $71,875,000 loan
extended to USES Corp to market at $3,770,000 or 5% of the
outstanding amount, according to a disclosure contained in Prospect
Capital's Amended Form N-CSR for the fiscal year ended June 30,
2024 filed with the Securities and Exchange Commission on August
28, 2024.
Prospect Capital is a participant in a First Lien Term Loan A to
USES Corp. The loan accrues interest at a rate of 9% Payment in
Kind per annum. The loan is scheduled to mature on July 29, 2024.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
USES provide environmental cleaning services.
VIEMED INC: $30MM Bank Debt Trades at 15% Discount
--------------------------------------------------
Participations in a syndicated loan under which Viemed Inc is a
borrower were trading in the secondary market around 85
cents-on-the-dollar during the week ended Friday, Sept. 6, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $30 million Delay-Draw Term loan facility is scheduled to
mature on November 29, 2027. About $4.8 million of the loan is
withdrawn and outstanding.
VieMed makes home healthcare simple, effective, and stress-free
with innovative treatment plans and dedicated specialists on call
24/7.
WCCM GROUP: Gets OK to Hire Katherine Anderson Law as Attorney
--------------------------------------------------------------
WCCM Group, LLC received approval from the U.S. Bankruptcy Court
for the District of Arizona to hire Katherine Anderson Law PLLC as
its counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
reorganization;
b. representing the Debtor in connection with negotiations
involving secured and unsecured creditors;
c. representing the Debtor at hearings set by the Court in the
bankruptcy case; and
d. preparing necessary applications, motions, answers, orders,
reports or other legal papers necessary to assist in the Debtor's
reorganization.
The firm will be paid at these rates:
Katherine E. Anderson, Esq, $400 per hour
Paralegals $150 to $200 per hour
On August 15, 2024 and on August 26, 2024, Warren Maxey made
several payments to the counsel totaling $5,005 (retainer).
Katherine Anderson Law PLLC is disinterested, has no connection
with the creditors, or any other interested party, or their
respective attorneys, and represents no interest adverse to the
Debtor or the estate in the matters upon which it is to be engaged,
according to court filings.
The firm can be reached through:
Katherine E. Anderson, Esq.
KATHERINE ANDERSON LAW PLLC
7508 N. 59th Avenue
Glendale, AZ 85301
Phone: (602) 459-4112
Email: katey@katherineandersonlaw.com
About WCCM Group
WCCM Group, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05598) on July 11,
2024. Judge Brenda K. Martin presides over the case.
WEISS MULTI-STRATEGY: Examiner Hires Hughes Hubbard as Attorney
---------------------------------------------------------------
Christopher K. Kiplok, the Examiner in the Chapter 11 case of Weiss
Multi-Strategy Advisers LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Hughes Hubbard & Reed LLP as attorney.
The firm will provide these services:
a. represent and assist the Examiner in the discharge of his
duties and responsibilities under the Examiner Order, other orders
of this Court, and applicable law;
b. assist the Examiner in the preparation of reports and
represent him in the preparation of motions, applications, notices,
orders, and other documents necessary in the discharge of the
Examiner's duties;
c. represent the Examiner at hearings and other proceedings
before this Court (and, to the extent necessary, any other court);
d. analyze and advise the Examiner regarding any legal issues
that arise in connection with the discharge of his duties;
e. assist the Examiner with interviews, examinations, and the
review of documents and other materials in connection with the
Examiner's investigation;
f. perform all other necessary legal services on behalf of the
Examiner in connection with the Chapter 11 Cases; and
g. assist the Examiner in undertaking any additional tasks or
duties that the Court might direct or that the Examiner might
determine are necessary and appropriate in connection with the
discharge of his duties.
The firm will be paid at these rates:
Partners $1,250 to $1,895 per hour
Associates $715 to $1,175 per hour
Counsel and Specialist attorneys $1,175 to $1,825 per hour
Legal assistants $395 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Consistent with the U.S. Trustee Guidelines, I provide the
following information in further support of the Application:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
agreement?
Response: Yes. The Examiner is charging $1,200 per hour, which
constitutes an approximately 29% discount from his standard hourly
rate. All other Hughes Hubbard attorneys and legal assistants, in
connection with representing the Examiner, will be billed at a 10%
discount from their standard hourly rates.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: None of Hughes Hubbard's professionals included in
this engagement has varied their rate based on the geographic
location of these 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.
Response: Not applicable.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: Hughes Hubbard's budget will be set forth in the
Examiner's work plan submitted to the Court.
Christopher K. Kiplok, a partner at Hughes Hubbard & Reed LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Christopher K. Kiplok
Hughes Hubbard & Reed LLP
One Battery Park Plaza
New York, NY 10004
Tel: (212) 837-600
About Weiss Multi-Strategy Advisers
Weiss Multi-Strategy Advisers LLC filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 24-10743) on Apr. 29, 2024. In the petition signed by
George Weiss, manager, the Debtor disclosed $10 million to $50
million in assets and $100 million to $500 million in liabilities.
Judge Martin Glenn oversees the case.
The Debtor tapped Tracy L. Klestadt, Esq., at Klestadt Winters
Jureller Southard & Stevens, LLP as counsel and Omni Agent
Solutions, Inc. as claims and noticing agent.
WELLFUL INC: Prospect Capital Marks $13.3MM Loan at 20% Off
-----------------------------------------------------------
Prospect Capital Corporation has marked its $13,338,000 loan
extended to Wellful Inc to market at $10,721,000 or 80% of the
outstanding amount, as of June 30, 2024, according to a disclosure
contained in Prospect Capital's Amended Form N-CSR for the fiscal
year ended June 30, 2024 filed with the Securities and Exchange
Commission on August 28, 2024.
Prospect Capital is a participant in a First Lien Term Loan to
Wellful Inc. The loan accrues interest at a rate of 11.71% (1M
SOFR+ 6.25%, 0.75% Floor) per annum. The loan matures on April 21,
2027.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Wellful Inc. (based in Fort Washington, Pennsylvania) is a provider
of weight management products and services, such as nutritionally
balanced weight loss programs, which are sold on-line and over the
phone and multi-day kits and single items available at select
online retailers.
WELLFUL INC: Prospect Capital Marks $14.3MM Loan at 20% Off
-----------------------------------------------------------
Prospect Capital Corporation has marked its $14,344,000 loan
extended to Wellful Inc to market at $11,530,000 or 80% of the
outstanding amount, as of June 30, 2024, according to a disclosure
contained in Prospect Capital's Amended Form N-CSR for the fiscal
year ended June 30, 2024 filed with the Securities and Exchange
Commission on August 28, 2024.
Prospect Capital is a participant in an Incremental First Lien Term
Loan to Wellful Inc. The loan accrues interest at a rate of 11.71%
(1M SOFR+ 6.25%, 0.75% Floor) per annum. The loan matures on April
21, 2027.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Wellful Inc. (based in Fort Washington, Pennsylvania) is a provider
of weight management products and services, such as nutritionally
balanced weight loss programs, which are sold on-line and over the
phone and multi-day kits and single items available at select
online retailers.
WELLPATH HOLDINGS: Prospect Capital Marks $37MM Loan at 35% Off
---------------------------------------------------------------
Prospect Capital Corporation has marked its $37,000,000 loan
extended to Wellpath Holdings, Inc to market at $24,027,000 or 65%
of the outstanding amount, as of June 30, 2024, according to a
disclosure contained in Prospect Capital's Amended Form N-CSR for
the fiscal year ended June 30, 2024 filed with the Securities and
Exchange Commission on August 28, 2024.
Prospect Capital is a participant in a Second Lien Term Loan to
Wellpath Holdings, Inc. The loan accrues interest at a rate of
14.61% (3M SOFR+ 9%) per annum. The loan matures on October 1,
2026.
Prospect Capital is a financial services company that primarily
lends to and invests in middle market privately-held companies.
Prospect is a closed-end investment company incorporated in
Maryland. Prospect has elected to be regulated as a business
development company under the Investment Company Act of 1940. As a
BDC, Prospect has elected to be treated as a regulated investment
company, under Subchapter M of the Internal Revenue Code of 1986.
Prospect was organized on April 13, 2004, and was funded in an
initial public offering completed on July 27, 2004.
Prospect Capital is led by John F. Barry III, Chairman of the
Board, Chief Executive Officer and Director; and Kristin L. Van
Dask, Chief Financial Officer. The Fund can be reached through:
John F. Barry III
Prospect Capital Corporation
10 East 40th Street,
New York, New York, 10016
Tel.: (212) 448-0702
Wellpath Holdings, headquartered in Nashville, Tennessee, provides
medical, dental, and behavioral health services to patients in
local detention facilities, federal and state prisons and
behavioral healthcare facilities. Wellpath is privately owned by
H.I.G. Capital.
WORKSPORT LTD: Posts Net Loss of $4.01 Million in Fiscal Q2
-----------------------------------------------------------
Worksport Ltd. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting that during
the three and six months ended June 30, 2024, the Company had a net
loss of $4,013,399 (2023 – $3,797,455) and $7,728,056 (2023 –
$7,320,725), respectively.
As of June 30, 2024, the Company has working capital of $8,489,246
(December 31, 2023 – $1,956,894) and had an accumulated deficit
of $56,041,233 (December 31, 2023 – $48,313,177). The Company has
not generated profit from operations since inception and to date
has relied on debt and equity financings for continued operations.
The Company's ability to continue as a going concern is dependent
upon the ability to generate cash flows from operations and obtain
equity and/or debt financing. The Company intends to continue
funding operations through equity and debt financing arrangements,
which may be insufficient to fund its capital expenditures, working
capital and other cash requirements in the long term. There can be
no assurance that the steps management is taking will be
successful.
To date, the Company's principal sources of liquidity consist of
net proceeds from public and private securities offerings and cash
exercises of outstanding warrants. Management is focused on
transitioning towards revenue as its principal source of liquidity
by growing existing product offerings as well as the Company's
customer base. The Company cannot give assurance that it can
increase its cash balances or limit its cash consumption and thus
maintain sufficient cash balances for planned operations or future
business developments. Future business development and demands may
lead to cash utilization at levels greater than recently
experienced. The Company may need to raise additional capital in
the future. However, the Company cannot provide assurances it will
be able to raise additional capital on acceptable terms, or at
all.
The Company has evaluated whether there are conditions and events,
considered in the aggregate, that raise substantial doubt about the
Company's ability to continue as a going concern within one year
after the date the financial statements are issued. Still, certain
factors indicate the existence of a material uncertainty that cast
substantial doubt about the Company's ability to continue as a
going concern.
As of June 30, 2024, the Company had $27,185,498 in total assets,
$8,039,405 in total liabilities, and $19,146,093 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3p6dnfrb
About Worksport Ltd.
West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries,
designs, develops, manufactures, and owns intellectual property on
a portfolio of tonneau cover, solar integration, portable power
station, and NP (Non-Parasitic), Hydrogen-based green energy
products and solutions for the automotive aftermarket accessories,
power storage, residential heating, and electric vehicle-charging
industries.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. As of March 31, 2024, the Company
had $3,536,980 in cash and cash equivalents. The Company has
generated only limited revenues and has relied primarily upon
capital generated from public and private offerings of its
securities. Since the Company's acquisition of Worksport in fiscal
year 2014, it has never generated a profit.
XENETIC BIOSCIENCES: Posts $1.3MM Net Loss in Fiscal Q2
-------------------------------------------------------
Xenetic Biosciences, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $1.3 million on $726,404 of total revenue for the three
months ended June 30, 2024, compared to a net loss of $1.1 million
on $651,005 of total revenue for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $2.5 million on $1.2 million of total revenue, compared to
a net loss of $1.9 million on $1.3 million of total revenue for the
same period in 2023.
The Company had an accumulated deficit of approximately $195.7
million at June 30, 2024, as compared to an accumulated deficit of
approximately $193.2 million at December 31, 2023. Working capital
was approximately $6.4 million at June 30, 2024, and approximately
$8.8 million at December 31, 2023. During the six months ended June
30, 2024, the Company's working capital decreased by approximately
$2.3 million primarily due to its net loss for the six months ended
June 30, 2024.
"Our principal source of liquidity consists of cash," the Company
explained. "At June 30, 2024, we had approximately $7.3 million in
cash and approximately $1.6 million in current liabilities. At
December 31, 2023, we had approximately $9.0 million in cash and
approximately $0.8 million in current liabilities. We have
historically relied upon sales of our equity securities to fund our
operations."
"We evaluate whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about our ability to
continue as a going concern within one year after the date that the
financial statements are issued. We have incurred substantial
losses since our inception, and we expect to continue to incur
operating losses in the near-term. The Company believes that its
existing resources will be adequate to fund the Company's
operations for a period of at least 12 months from the date of the
issuance of these financial statements. However, we anticipate we
will need additional capital in the long-term to pursue our
business initiatives. While the Company believes it has access to
capital resources through possible public or private equity
offerings, debt financings, corporate collaborations, related party
funding, or other means to continue as a going concern, the terms,
timing and extent of any future financing will depend upon several
factors, including the achievement of progress in our clinical
development programs, our ability to identify and enter into
licensing or other strategic arrangements, our continued listing on
Nasdaq, and factors related to financial, economic, geo-political,
industry and market conditions, many of which are beyond our
control. The capital markets for the biotech industry can be highly
volatile, which make the terms, timing and extent of any future
financing uncertain."
As of June 30, 2024, the Company had $9.03 million in total assets,
$1.6 million in total liabilities, and $7.4 million in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2szw5yk3
About Xenetic Biosciences
Xenetic Biosciences, Inc., incorporated in the state of Nevada and
based in Framingham, Massachusetts, is a biopharmaceutical company
focused on advancing innovative immune-oncology technologies
addressing hard-to-treat cancers.
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. According to the Company, it has
incurred substantial losses since its inception and expects to
continue to incur operating losses in the near term.
[*] Timothy Fesenmyer Joins Paul Hastings' M&A Practice in N.Y.
---------------------------------------------------------------
Continuing to strengthen its global M&A platform, Paul Hastings LLP
announced that premier public M&A and corporate governance lawyer
Timothy Fesenmyer has joined the firm as a partner in New York.
Mr. Fesenmyer joins from King & Spalding LLP after spending nearly
two decades at Skadden, Arps, Slate, Meagher & Flom LLP. He
reunites on the Paul Hastings platform with the top-ranked
11-partner, 20-lawyer team of restructuring, private credit, and
special situations lawyers that joined the firm from King &
Spalding in June.
Mr. Fesenmyer focuses on high-profile domestic and cross-border M&A
work, advising companies, boards of directors, board committees,
legal teams, and executive management on complex transactions and
in matters involving corporate governance, compliance, and other
strategic and business-related matters. Additionally, Mr. Fesenmyer
has robust experience in restructuring and special situations,
including Chapter 11 cases, out-of-court restructurings, and
distressed acquisitions.
Recent top-tier partner additions to Paul Hastings' M&A and
shareholder activism platform have propelled the firm to #2 in
FactSet's Company Defense Top Law Firms league tables through the
first half of 2024. Paul Hastings was recently added to a small and
elite group of Chambers-ranked firms for Corporate/M&A: Takeover
Defense that includes Wachtell, Lipton, Rosen & Katz, Kirkland &
Ellis LLP, Skadden, Paul, Weiss, Rifkind, Wharton & Garrison LLP,
and Sullivan & Cromwell LLP.
"As we continue to deepen our strategic M&A, corporate takeover
defense, and private equity platforms, Tim's broad
experience-especially across public and distressed M&A, together
with his exceptional corporate governance advisory work-further
enhances our ability to serve clients around the world in all of
their M&A transactions, and will also be a valuable resource for
our special situations clients," said firm Chair Frank Lopez.
With clients that have included Anheuser-Busch Companies, Inc., Ben
& Jerry's Homemade, Inc., Citigroup, Red Lobster, Tumi Holdings,
Inc., and Xerox, Mr. Fesenmyer works across diverse sectors,
including media and entertainment, financial services, consumer
products, technology, and telecommunications. His corporate
advisory work ranges from public company sales, carveouts,
spin-offs, private mergers, acquisitions, dispositions, and joint
ventures to out-of-court restructurings and reorganizations.
"I look forward to helping clients strategically navigate the
current deal landscape from the robust global M&A platform that
Paul Hastings has built while contributing to the firm's ongoing
efforts to capture more market share," said Fesenmyer. "I'm also
excited to join an ambitious culture driven by a focus on
collaboration of exceptional lawyers and practices across the
firm."
Mr. Fesenmyer arrives at Paul Hastings on the heels of nearly 20
other notable strategic M&A and private equity partner hires since
the beginning of 2023, including:
-- Technology M&A and emerging growth lawyer Ian Engstrand, who
joined the firm last week in Boston, and M&A and shareholder
activism lawyer Andrew Goodman, who joined in August and works
across Boston and New York;
-- The seven-lawyer private equity buyout team led by partners
Alex Temel and Bill Schwab that established the firm's Boston
office in April;
-- Elite private equity and M&A teams from Goodwin Procter LLP,
including global co-chair of private equity Scott Joachim, vice
chair of private equity Josh Ratner, and preeminent technology
transactional lawyer Ryan LaForce, along with a dozen additional
lawyers;
-- A three-partner, seven-lawyer Chambers-ranked corporate team
led by David Elder, Chris Centrich, and Patrick Hurley in Houston;
-- M&A partner Jon Kubek in New York;
-- An insurance M&A team comprising partners Kirk Lipsey, Chad
Vance, and Sanjiv Tata, along with Brad Drake, in New York and
Chicago;
-- Private equity and infrastructure M&A partner Frederik Muhl,
and leading corporate and M&A partner Nikolaos Paschos in
Frankfurt; and
-- Top-ranked infrastructure M&A partner Jessamy Gallagher in
London.
About Paul Hastings
Paul Hastings is a top law firm renowned for its market-leading
teams in finance, mergers & acquisitions, private equity,
restructuring and special situations, litigation, employment, and
real estate. The firm provides premier legal services for
investment banks, asset managers, and corporations
internationally.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***