/raid1/www/Hosts/bankrupt/TCR_Public/240917.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, September 17, 2024, Vol. 28, No. 260
Headlines
100 WEST 93RD: Lender Sets Nov. 21 Auction
22ND CENTURY: Inks $1.22-Mil. Payment Agreement With NCSU
23 INVESTMENTS: U.S. Trustee Seeks Chapter 7 Conversion
271 WEST 11TH: Secured Party Sets Oct. 15 Auction
2U INC: Latham Served as Adviser in Bankruptcy Emergence
301CRAINCOMMONS LLC: Hits Chapter 11 Bankruptcy Protection
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 19% Discount
AHS REALTY: Plan Exclusivity Period Extended to Nov. 5
AIP MC: S&P Alters Outlook to Positive, Affirms 'B- ICR
AIRWAY AIR: Airway Unsecureds to Split $76K over 3 Years
ARCON CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
AS SPECIFIED: Jerrett McConnell Named Subchapter V Trustee
ASP LS ACQUISITION: $125MM Bank Debt Trades at 32% Discount
ASTRA ACQUISITION: Credit Suisse Marks $615,000 Loan at 63% Off
ATLAS CC: Credit Suisse Marks $315,000 Loan at 26% Off
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 18% Discount
BAUSCH + LOMB: Fitch Keeps 'B-' IDR on Watch Evolving
BAUSCH HEALTH: Fitch Affirms 'CCC' LongTerm IDR
BIG LOTS: Discusses With Lenders Its $760 Million Offer
BITTREX INC: Ghader Dispute Won't Proceed to Mediation
BLACK WOLF: Kicks Off Subchapter V Bankruptcy
BOWLING CENTER: Seeks to Extend Plan Filing Deadline to Oct. 31
BRUIN XPRESS: Voluntary Chapter 11 Case Summary
CARESTREAM DENTAL: Moody's Appends 'LD' Designation to PDR
CARESTREAM DENTAL: Raises Over $525MM Capital for Strategic Growth
CARVANA CO: Ernest Garcia II Holds 37.9% Stake as of Sept. 6
CARVANA CO: Moody's Ups CFR to Caa1 & Alters Outlook to Positive
CASPIAN TECHNOLOGY: Unsecured Creditors to Split %210K in Plan
CATHETER PRECISION: Jenkins Family Charitable Holds 9.5% Stake
CELEBRATION TITLE: Commences Subchapter V Bankruptcy Case
CHEMTRADE LOGISTICS: DBRS Gives BB(high) Issuer Rating
CL CRESSLER: Seeks Chapter 11 Bankruptcy
CNEX LABS: Online Public Auction Set for September 24
COMMERCEHUB INC: Credit Suisse Marks $600,000 Loan at 18% Off
CONNEXA SPORTS: Prosperity Age Limited Holds 8% Equity Stake
CONNEXA SPORTS: Winz Technology Holds 6.1% Equity Stake
CONNEXA SPORTS: Xingtan Enterprise Management Holds 5.4% Stake
CREAGER MERCANTILE: Unsecureds to Split $600K over 5 Years
CS-TSG WST: Secured Party Sets Nov. 6 Auction
CURVES AND COMBAT: Continue Operations to Fund Plan
DEL MONTE: $725MM Bank Debt Trades at 61% Discount
DIGITAL MEDIA: Secures $122M Financing for Chapter 11 Sale Process
DNC AND TCPA: Unsecureds Will Get 100% of Claims over 5 Years
DRF LOGISTICS: Creditors to Get Proceeds From Liquidation
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 33% Discount
EVERLASTING TRUCKING: Amends Kubota Credit Secured Claims Pay
FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 16% Discount
FRANCHISE GROUP: $300MM Bank Debt Trades at 35% Discount
GIP PILOT: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
GLOBAL BENEFITS: Creditors to Get Proceeds From Liquidation
GRAND FUSION: Unsecureds to Get Share of GUC Recovery
GRANITE CITY MECHANICAL: Commences Subchapter V Bankruptcy Process
HAWKERS HOLDINGS: Seeks Bankruptcy to Stop Lender
HAWKERS HOLDINGS: Voluntary Chapter 11 Case Summary
HAZ MAT SPECIAL: Case Summary & 20 Largest Unsecured Creditors
HENDRIX FARMING: Amended Subchapter V Plan Filing Extended
HERTZ CORP: Bondholders Win Bankruptcy Interest Payoff Fight
HUTCHENS PERRY: Unsecured Creditors Out of Money in Plan
I-ON DIGITAL: Modifies Certificate of Incorporation, Voting Rights
ILS PRODUCTS: Starts Subchapter V Bankruptcy Process
INDRA HOLDINGS: $50MM Bank Debt Trades at 37% Discount
INGRAM MICRO: Fitch Assigns 'BB+' Rating on Proposed Term Loan
INJAWE INC: Case Summary & One Unsecured Creditor
ISLAND FAMILY: Unsecureds to Split $36K in Consensual Plan
JDC RENTALS: Case Summary & Six Unsecured Creditors
LA HACIENDA: Orrick Herrington Revises Rule 2019 Statement
LAMAR ADVERTISING: S&P Affirms 'BB' ICR, Outlook Stable
LASERSHIP INC: Credit Suisse Marks $400,000 Loan at 27% Off
LEFEVER MATTSON: Files for Chapter 11, Blames Founder
LIGONIER TAVERN: Hires David A. Colecchia as Bankruptcy Counsel
M&G TRANSPORTATION: Unsecureds Will Get 2% to 4% of Claims in Plan
MAXLINEAR INC: S&P Downgrades ICR to 'B', Outlook Negative
NAKED JUICE: $1.82BB Bank Debt Trades at 18% Discount
NAT'L ASSOC. OF TELEVISION: Reaches Settlement with Fontainebleau
NCR ATLEOS: Fitch Affirms 'BB-' LongTerm IDR; Outlook Stable
NEW INSIGHT: S&P Assigns 'B-' ICR On Chapter 11 Emergence
NINO LAND: Hits Chapter 11 Bankruptcy Protection
NORTHEAST LANDSCAPING: Seeks Chapter 11 Bankruptcy
OP DEVELOPMENT: Oct. 1 Public Sale Auction Set
PARLEMENT TECHNOLOGIES: Exclusivity Period Extended Feb. 10, 2025
PASKEY INC: Gets OK to Hire Lewis Brisbois Bisgaard as Counsel
PECF USS: $2BB Bank Debt Trades at 32% Discount
PIKE CORP: Moody's Affirms 'B2' CFR, Outlook Stable
POLARITYTE INC: Creditors to Get Proceeds From Liquidation
PRESPERSE CORP: Sept. 19 Deadline Set for Panel Questionnaires
PRIME HARVEST: In Talks with Banks to Resolve Lawsuit
PRIMELAND REAL ESTATE: Sec. 341(a) Meeting of Creditors on Oct. 7
QURATE RETAIL: Fitch Assigns 'BB-' Rating on Senior Secured Notes
RED BAY COFFEE: Sec 341(a) Meeting of Creditors on Sept. 30
RED LOBSTER: Exits Chapter 11, Completes Acquisition by RL Investor
SERTA SIMMONS: Credit Suisse Marks $1.2MM Loan at 19% Off
SERVICE PROPERTIES: S&P Downgrades ICR to 'B', Outlook Negative
SHANGRI-LA DEVELOPMENT: Seeks to Extend Plan Exclusivity to Dec. 26
SHINECO INC: Falls Short of Nasdaq's Minimum Bid Price Requirement
SHORT FORK FARMS: Amended Subchapter V Plan Filing Extended
SHORT FORK: Amended Subchapter V Plan Filing Extended
SI SE PUEDE: Christopher Simpson Named Subchapter V Trustee
STAFFING 360: Swaps 101,190 Common Shares for Warrant
SUNPOWER CORP: Complete Solar Named as Bidder in Asset Sale
SUNPOWER CORP: Taps Hilco to Monetize Assets Amid Chapter 11
SWF HOLDINGS: $1.63BB Bank Debt Trades at 21% Discount
TECHPRECISION CORP: Incurs $7.04M Net Loss in FY Ended March 31
THERAPY BRANDS: $235MM Bank Debt Trades at 17% Discount
TOLL ROAD: S&P Lowers Debt Rating to 'BB-', Outlook Negative
TRUGREEN LTD: Credit Suisse Marks $400,000 Loan at 22% Off
UGS PRIVATE: Seeks to Extend Plan Exclusivity to November 30
UPSTREAM NEWCO: $140MM Bank Debt Trades at 17% Discount
US JET TRANS: Walter Dahl of Dahl Law Named Subchapter V Trustee
US TELEPACIFIC: $331.5MM Bank Debt Trades at 59% Discount
VERTEX ENERGY: S&P Lowers ICR to 'CCC-' on Elevated Default Risk
VIASAT INC: All Proposals Approved at Annual Meeting
VIASAT INC: Proposes Private Placement of $1.25BB of Senior Notes
WHEEL PROS: Sept. 20 Deadline Set for Panel Questionnaires
WINSTON AND DUKE: Case Summary & 20 Largest Unsecured Creditors
WOOF HOLDINGS: Credit Suisse Marks $1MM Loan at 48% Off
YELLOW CORP: Junior Creditors Express Concern on Restructuring Plan
[*] Commercial Bankruptcy Filings Increased 9% in August 2024
[*] Esses Joins Brattle Group as Principal in Bankruptcy Practice
[*] Milbank Adds Former SEC Chief Litigator Olivia Choe as Partner
[^] Large Companies with Insolvent Balance Sheet
*********
100 WEST 93RD: Lender Sets Nov. 21 Auction
------------------------------------------
Nalin Advisors SA, a company registered in Panama, in its capacity
as lender ("lender" or "Secured Party"), offers for sale at public
auction on Nov. 21, 2024, at 12:00 p.m. (Prevailing Eastern Time)
at the offices of Herrick, Feinstein LLP, 2 Park Avenue, New York,
New York, and via WebEx virtual link to the live auction, in
connection with Uniform Commercial Code: (i) 100% of the issued and
outstanding limited liability company interest of 93rd Holdings LLC
("pledgor") in 100 West 93rd Owner LLC ("Debtor"); (ii) all other
collateral pledged under the pledged and security agreement dated
as of Aug. 21, 2021, between pledgor and lender; and all other
tangible and intangible property in respect of which lender is
granted any lien, security interests, claim, liability, charge or
encumbrances of any kind of nature under the loan documents, as
defined in that certain consolidation, extension and modification
of mortgage and security agreement dated as of Aug. 6, 2021,
between Debtor, as mortgagor, and lender, as mortgagee recorded on
Sept. 22, 2021, in the offices of the City Register of the County
of New York as CRFN 2021000374401 ("mortgage")(romanettes (i)
through (iii) collectively are the "Collateral").
The Debtor executed a promissory note in favor of the secured party
pursuant to that certain consolidated, amended and restated
promissory note dated as of Aug. 6, 2021, for the principal sum of
$35 million.
Any individual or entity desiring to bid at the sale must register
with the BK Real Estate Advisor LLC ("Broker"), at 135 West 36th
Street, 5th Floor, New York, New York 10018, Atten: Robert A.
Knakai, bk@bkrea.com, at 907-507-9501, and must justify the
requirements for becoming a qualified bidder as set forth in the
terms and conditions.
Any individual intending to attend the sale must contact lender's
counsel, Stephen B. Selbst, sselbst@herrick.com at 212-592-1405, at
least 72 hours prior to the sale date to obtain access to the
offices of lender's counsel, Herrick Feinstein LLP, at 2 Park
Avenue, New York, New York or to register for the video conference
auction.
22ND CENTURY: Inks $1.22-Mil. Payment Agreement With NCSU
---------------------------------------------------------
22nd Century Group, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on September 5,
2024, the Company entered into a Payment Agreement with North
Carolina State University to satisfy outstanding payments due under
existing License Agreements with NCSU and to prepay license fees
and minimum royalty payments related to sponsored research for the
Company's intellectual property program through the end of 2025.
The total amount of $1,220,438.34 is payable in cash or through the
issuance of Company common stock, at the Company's election. The
payments must be issued in three separate installments commencing
on or before September 15, 2024 and ending on or before January 15,
2025.
The Shares, if issued at the Company's election, will be issued in
a private placement and were exempt from registration under the
Securities Act of 1933, as amended, in reliance on Section 4(a)(2)
thereof as a transaction not involving a public offering and/or
Rule 506 of Regulation D promulgated thereunder. Shares issued
pursuant the Agreement shall be issued at an effective price per
share equal to the 5-day closing price of the Company's common
stock ending the day prior to the applicable issuance date. The
total amount of Shares issued under the Agreement shall not exceed
19.99% of the Company's total outstanding shares on the Effective
Date.
The Company has agreed to file a registration statement on Form S-3
(or other appropriate form if the Company is not then S-3 eligible)
providing for the resale by NCSU of the Shares issued within three
business days of each Share issuance installment under the
Agreement.
Larry Firestone, Chairman and CEO comments: "We recently secured
our relationship with NCSU in November of 2023, bringing on
additional IP to enhance our reduced nicotine content tobacco
capabilities. This latest agreement further aligns NCSU with our
continued success at 22nd Century."
About 22nd Century Group
Mocksville, N.C.-based 22nd Century Group, Inc. is a tobacco
products company with sales and distribution of its own proprietary
new reduced nicotine tobacco products authorized as Modified Risk
Tobacco Products by the FDA. Additionally, it provides contract
manufacturing services for conventional combustible tobacco
products for third-party brands.
Buffalo, N.Y.-based Freed Maxick, CPAs, PC, the Company's auditor
since 2011, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has incurred
significant losses and negative cash flows from operations since
inception and expects to incur additional losses until such time
that it can generate significant revenue and profit in its tobacco
business. Further, the Company has negative working capital and a
shareholders' deficit as of December 31, 2023. This raises
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended December 31, 2023, the Company reported a net
loss of $140.8 million compared to a net loss of $59.8 million in
2022. As of June 30, 2024, 22nd Century Group had $24.1 million in
total assets, $25 million in total liabilities, and $955,000 in
total stockholders' deficit.
23 INVESTMENTS: U.S. Trustee Seeks Chapter 7 Conversion
-------------------------------------------------------
A Justice Department bankruptcy watchdog asked the U.S. Bankruptcy
Court for the Northern District of Texas to convert the Chapter 11
case of 23 Investments, LLC to one under Chapter 7, or direct the
appointment of an independent trustee to take over the case.
Kevin Epstein, the U.S. Trustee for Region 6, said the case should
be converted under Section 112(b)(4)(B) of the Bankruptcy Code for
gross mismanagement, citing the diversion of $298,000 in company
funds by Steve Nabors, 23 Investments' principal, to another
business he owns.
"Such diversion of estate funds is a breach of Mr. Nabors'
fiduciary duty and constitutes gross mismanagement of the estate,"
the U.S. Trustee said.
The bankruptcy watchdog also cited the "lack of good faith" in
prosecuting the case, which warrants the conversion of the case or,
in the alternative, the appointment of a Chapter 11 trustee.
"Mr. Nabors has prosecuted this case in bad faith by not
safeguarding the [company's] funds for the benefit of the
[company's] unsecured creditors. Rather, he appears to have
converted the use of the [company's] funds for the benefit of
another non-debtor business wholly owned by him," the U.S. Trustee
said.
About 23 Investments
23 Investments, LLC, a company in Mesquite, Texas, filed Chapter 11
petition (Bankr. N.D. Texas Case No. 23-32911) on Dec. 6, 2023,
with $1 million to $10 million in both assets and liabilities.
Steve Nabors, sole member, signed the petition.
Judge Michelle V. Larson oversees the case.
Brandon Tittle, Esq., at Tittle Law Group, PLLC represents the
Debtor as bankruptcy counsel.
271 WEST 11TH: Secured Party Sets Oct. 15 Auction
-------------------------------------------------
Maguire Stone LLC ("secured party") will offer at public auction,
by Matthew D. Mannion of Mannion Auctions, all of 271 West 11th
Street LLC's ("pledgor") ownership interest in 100% of the
membership interest in and to Orsipel V LLC ("pledged entity")
which entity, directly or indirectly owns, leases, and operates the
real property located at 53-55 Stone Street aka 15-17 South William
Street, New York, New York (Block 29, Lots 46, and 47).
The public auction will be held virtually via zoom remote meeting
on Oct. 15, 2024, at 11:00 a.m. (Prevailing Eastern Time).
To review and execute a confidentiality agreement, contact David
Schechtman ("Broker"), at Meridian Investment Sales with Offices at
One Battery Park Plaza, 25th Floor, New York, New York 1004, (212)
468-5907, dschechtman@meridiancapital.com.
2U INC: Latham Served as Adviser in Bankruptcy Emergence
--------------------------------------------------------
2U, a global leader in online education, announced it has
successfully completed its financial restructuring and emerged from
Chapter 11 as a privately held entity. With this transaction
complete, 2U now operates with a significantly strengthened balance
sheet, firmly positioning the company to support leading
universities in delivering high-impact, career-focused education
essential for building a skilled global workforce. 2U moves forward
with complete continuity of its operations and the full support of
a deeply-aligned new ownership group.
Latham & Watkins LLP represents 2U in the matter with a
restructuring & special situations team led by New York partners
George Davis, George Klidonas, and Anu Yerramalli, with associates
Randall Weber-Levine, Scott Yousey, Thomas Fafara, Alexandra
Lisner, Nikhil Gulati, Marty Lazzaro, Tess Winston, Stephen Young,
and Noah Morris. Advice was also provided on tax matters by Chicago
partner Joseph Kronsnoble, with associate Lukas Kutilek; on
benefits matters by New York counsel Rifka Singer, with associate
Alisa Hand; on corporate matters by Washington, D.C. partners
Patrick Shannon and Christopher Clark, and Washington, D.C. counsel
Christopher Cronin, with associate Thalia Garcia; on finance
matters by Washington, D.C. partners Melissa Fabian, Manu
Gayatrinath, and Katherine Putnam, with associates Eleni Belay, Max
Fin, Brian Herskowitz, and Katie Inglis; on real estate matters by
New York partner Justin Elliott; on intellectual property matters
by Washington, D.C. partner Morgan Brubaker; on insurance matters
by San Diego partner Drew Gardiner, with associate John Niemeyer;
and on litigation matters by Washington, D.C. partners Roman
Martinez and Alice Fisher, New York partner Christopher Harris,
Boston partner Betsy Marks, and Bay Area partner Melanie Blunschi,
with associates Thomas Humphrey, Suzanne Schlossberg, and Danielle
McCall.
About 2U, Inc.
Headquartered in Lanham, Maryland, 2U is an online education
platform company. The Company's mission is to expand access to
high-quality education and unlock human potential. As a trusted
partner to top-ranked nonprofit universities and other leading
organizations, the Company delivers technology and services that
enable its clients to bring their educational offerings online at
scale.
2U Inc. and its affiliates, including EdX LLC, 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.
Latham & Watkins LLP served as legal counsel, Moelis & Company
served as investment banker, AlixPartners LLP served as financial
advisor, and C Street Advisory Group served as strategic
communications advisor to 2U. Epiq is the claims agent.
Weil, Gotshal & Manges LLP served as legal counsel to the
ad hoc group of noteholders of 2U, Schulte Roth & Zabel LLP served
as counsel to a significant noteholder, Greenvale Capital LLP, and
Houlihan Lokey served as investment banker to the ad hoc group of
noteholders and Greenvale.
Milbank LLP served as legal counsel and FTI Consulting, Inc. served
as financial advisor to the ad hoc group of first lien term loan
lenders.
* * *
2U on Sept. 13, 2024, announced that it has emerged from
Chapter 11 bankruptcy. The Debtor won approval of a Plan that
eliminates over 50% of its total debt, infuses $110 million of new
capital into the business, and extends the maturity date of its
revolving and term loans to over two years following closing of the
transaction. The Plan handed all of the equity to holders of
unsecured bonds owed in excess of $500 million.
301CRAINCOMMONS LLC: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------------------
301Craincommons LLC filed Chapter 11 protection in the District of
Maryland. According to court filing, the Debtor reports $276,252 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 301Craincommons LLC
301Craincommons LLC is the fee simple owner of undeveloped land
located at SE Robert Crain Hwy., Upper Marlboro, Maryland 20772
having an appraised value of $1.75 million.
301Craincommons LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-17244) on August 29,
2024. In the petition filed by Garcia Omar Staley, Sr., as managing
member, the Debtor reports total assets of $1,750,000 and total
liabilities of $276,252.
The Debtor is represented by:
William C. Johnson, Jr., Esq.
THE JOHNSON LAW GROUP, LLC
6305 Ivy Lane
Suite 630
Greenbelt, MD 20770
Tel: (301) 477-3450
Fax: (301) 477-4813
Email: William@JohnsonLG.Law
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 19% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ACProducts Holdings
Inc is a borrower were trading in the secondary market around 81.3
cents-on-the-dollar during the week ended Friday, Sept. 13, 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.
AHS REALTY: Plan Exclusivity Period Extended to Nov. 5
------------------------------------------------------
Judge Christine M. Gravelle of the U.S. Bankruptcy Court for the
District of New Jersey extended AHS Realty LLC's exclusive periods
to file their plan of reorganization, and solicit acceptances
thereof to November 5, 2024 and January 13, 2025, respectively.
The Debtor claims that its Case involves multifaceted issues
concerning an affiliated debtor in a matter for which joint
administration is being sought, joint ownership of and secured
interests in real property, intangible assets, potential new
business operations, and multiple competing proposals for sale of
varying assets.
The Debtor explains that it has spent considerable time and effort
administering these cases and negotiating sales that substantively
affect a potential plan of reorganization or orderly liquidation.
Unfortunately, due to the scope of work performed to date and the
time it took to achieve the immediate goals, there will be
insufficient time before the current exclusivity period expires to
finalize a plan of reorganization or orderly liquidation.
As set forth in the Certification of Robert H. Sickles, the Debtor
has made good-faith progress in this case. The Debtor has engaged
in numerous discussions regarding the sale of assets. Debtor has
been engaging in ongoing discussions with Northfield bank with
regard to the Northfield Loans and alternatives to liquidate assets
and satisfy the outstanding amounts.
The Debtor cites that it has engaged in numerous communications
with counsel for the PACA Plaintiffs and has disputed the assertion
of the attachment of trust claims to Debtor's assets.
With regard to the 5 Harrisson property, the Debtor is exploring
alternatives for the maximization of the value of the property.
Debtor received numerous expressions of interest from developers
and has met with the Borough of little Silver to discuss
development of the property. Debtor continues to gauge interest
regarding the sale of the property.
The Debtor states that it has been approached by numerous parties
wishing to lease all or the majority of the Sickles Market space
and are prepared to make a substantial cash payment in exchange for
the use of Sickles Market trademark, kitchen, and other facilities.
Debtor is actively seeking an operator interested in taking over
operations of a "turnkey" garden center and seeking a short-term
tenant for the 5 Harrison house.
The Debtor's Counsel:
Daniel M. Stolz, Esq.
Jeffrey R. Rich, Esq.
Donald W. Clarke, Esq.
Jaclynn M. McDonnell, Esq.
GENOVA BURNS LLC
110 Allen Road, Suite 304
Basking Ridge, NJ 07920
Tel: (973) 467-2700
Fax: (973) 467-8126
E-mail: dstolz@genovaburns.com
About AHS Realty
AHS Realty LLC is the owner of real property located at 1 Harrison
Ave., Little Silver, N.J., valued at $10.4 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-14779) on May 9, 2024,
with $10,400,000 in assets and $4,420,780 in liabilities. Robert
Sickles, sole member, signed the petition.
Daniel M. Stolz, Esq. at Genova Burns, LLC, is the Debtor's legal
counsel.
AIP MC: S&P Alters Outlook to Positive, Affirms 'B- ICR
-------------------------------------------------------
S&P Global Ratings revised the outlook on Grinding media producer
AIP MC Holdings LLC (doing business as Molycop) to positive from
stable. At the same time, S&P affirmed its 'B-' issuer credit
rating and issue-level ratings on Molycop. The associated '3'
recovery rating remains unchanged.
The positive outlook reflects S&P's expectation that Molycop's debt
to EBITDA will trend toward 6x over the next 12 months due to
earnings growth and lower debt as commodity prices and growing
production increase demand for Molycop's products.
S&P said, "Molycop has repaid $275 million of debt, which we expect
will improve leverage and strengthen free cash flow generation. We
believe this transaction should help accelerate leverage trending
toward 6x or lower and improve free operating cash flow (FOCF)
because it reduced the company's S&P Global Ratings-adjusted debt
balance by about 15% and lowered interest expenses by about $33
million. Molycop received an equity infusion of $280 million from
its financial sponsors, American Industrial Partners, in June 2024.
The funds were used repay its $225 second-lien term loan and $50
million of debt outstanding under its revolving credit facilities.
S&P Global Ratings-adjusted debt declined to about $1 billion in
fiscal 2024 compared to $1.2 billion at the end of fiscal 2023. The
debt repayment resulted in debt to EBITDA of 8.2x as of the end of
fiscal 2024 (ended June), compared to our previous expectation of
9.3x. We note, our fiscal year 2024 S&P Global Ratings-adjusted
EBITDA of $125 million, reflects a $50 million impact from
restructuring charges related to putting the Waratah steel mill on
care and maintenance in the first quarter of 2024. We view this
action as positive in the longer term and assume the site closure
will result in about $10 million of cost savings annually. These
actions are consistent with the company's efforts in recent years
to simplify its footprint, take out cost, and make its cost
structure more flexible.
"Strong tailwinds in the copper industry provide a positive
backdrop for earnings growth. We believe EBITDA could increase to
$160 million-$180 million in 2025 because the impact from
restructuring actions taken during fiscal 2024 will roll off and
market demand prospects are supportive (despite the continued
closure of the Cobre Panama mine). There could be upside to our
forecast range if the Cobre Panama situation is resolved during
fiscal 2025. Based on this, we expect leverage to trend to or below
6x over the next 12 months. Declining gold and copper grades from
existing mines and customers seeking to maximize production yields
under the current strong pricing environment increases the value
proposition of Molycop's products. We believe this will support
incremental demand for Molycop's grinding media and technology
services that are aimed at increasing yields and output as well as
increasing customer stickiness. We believe Molycop is well
positioned for future earnings and volume growth given its leading
market share, global footprint, and entrance into the high chrome
grinding media production. Additionally, we expect global copper
production will increase in the next several years, further
supporting the company's future earnings growth. Molycop has an
established presence in the key regions where we expect this growth
will be prominent, such as North and South America; the company is
simultaneously executing on a strategy to increase market share in
newer markets such as Africa.
"The positive outlook reflects our expectation that Molycop's debt
to EBITDA will trend toward 6x over the next 12 months due to
earnings growth and lower debt as commodity prices and growing
production increase demand for Molycop's products."
S&P could revise its outlook back to stable on Molycop if leverage
increases above 6x. This could occur if the company experiences:
-- Negative FOCF, indicating a deterioration in profitability and
possible loss of market share; or
-- An increase in debt-funded discretionary spending such as
acquisitions or shareholder distributions.
S&P could raise its rating on Molycop if its leverage reaches 6x.
This could result from:
-- Stronger profitability and FOCF, indicating Molycop's business
is strengthening from its restructuring and footprint
simplification strategies; or
-- Earnings growth from market share gains as it aims to
capitalize on customers looking to grow their gold and copper
production.
AIRWAY AIR: Airway Unsecureds to Split $76K over 3 Years
--------------------------------------------------------
Airway Air Charter, Inc. and Noble Jet Holdings filed with the U.S.
Bankruptcy Court for the Southern District of Florida a Joint
Subchapter V Plan of Reorganization dated August 14, 2024.
Airway is a Florida for-profit corporation formed on January 13,
2005, which maintains its principal place of business at a leased
premises located on Miami-Opa Locka Executive Airport (KOPF) at:
14950 NW 44th Court, Suite 16, Opa Locka, Florida 33054.
Noble Jet is Florida limited liability company organized on
November 16, 2021. which maintains its principal place of business
at a leased premises located on Miami-Opa Locka Executive Airport
(KOPF) at: 14950 NW 44th Court, Suite 16, Opa Locka, Florida
33054.
Between 2021-2023 Debtors experienced a cash flow shortage due to
rising interest rates and non-payment from certain aircraft
owner/operators. The combination of rising debt servicing
requirements and slow paying operators caused the Debtors to seek
out additional forms of short-term financing.
In late 2023 and early 2024, Debtors obtained 2 merchant cash
advance loans for nearly $500,000.00, the terms of which required
daily/weekly withdrawals from the Debtors' operating accounts.
Unfortunately, the Debtors were unable to sustain operations with
frequent cash withdraws of their operating funds, and with creditor
demands mounting they elected to utilize the Chapter 11 process to
restructure their respective creditor obligations for the benefit
of their estates.
Class 6 consists of all Allowed General Unsecured Claims against
Airway. As set forth in Airway's financial projections, Airway's
projected disposable income is $76,317.73. In full satisfaction of
the Allowed Class 6 General Unsecured Claims, Holders of Class 6
Claim shall receive a pro rata share of Distributions from Airway
totaling $76,317.73 paid pursuant to the following payment schedule
which payments shall commence on the Effective Date:
* Quarters 1 through 4 (Plan Year 1): $6,359.81 per quarter.
* Quarters 5 through 8 (Plan Year 2): $6,359.81 per quarter.
* Quarters 9 through 12 (Plan Year 3): $6,359.81 per quarter.
In addition to the quarterly distributions outlined herein, Class 6
Claimholders shall also receive a pro rata share of the net
proceeds recovered from all Causes of Action after payment of
professional fees and costs associated with such collection
efforts, and after Administrative Claims and Priority Claims are
paid in full. The maximum Distribution to Class 6 Claimholders
shall be equal to the total amount of all Allowed Class 6 General
Unsecured Claims. Class 6 is Impaired.
Class 7 consists of all Allowed General Unsecured Claims against
Noble Jet Holdings, LLC. In full satisfaction of their Allowed
Class 7 Claims, on the Effective Date Holders of Allowed General
Unsecured Claims against Noble shall receive a pro rata share of
the Sale Proceeds after Payment in full of all Allowed
Administrative Claims, Allowed Priority Tax Claims, Allowed
Priority Claims, and Allowed Class 5 Claims. Class 7 is Impaired.
Class 8 consists of all equity interests in Airway Air Charter,
Inc. Class 8 Interest Holders shall retain their respective
Interests in Airway Air Charter, Inc. in the same proportions such
Interests were held as of the Petition Date (i.e., 100.00% Interest
retained by Venture Air Solutions, Inc.). Class 8 is Unimpaired.
Class 9 consists of all equity interests in Noble Jet Holdings,
LLC. Class 9 Interest Holders shall retain their respective
Interests in Noble Jet Holdings, LLC in the same proportions such
Interests were held as of the Petition Date (i.e., 100.00% Interest
retained by Jonathan L. Jackson). Class 9 is Unimpaired.
The Plan contemplates Airway will continue to manage and operate
its business in the ordinary course, but with restructured debt
obligations and a scaled down operation with 3 aircraft on its
current Federal Aviation Administration Part 135 Certificate. It is
anticipated the Debtor's post-confirmation business will mainly
involve continued operation of its air charter business with
service within the State of Florida and to the Bahamas, the income
from which will be committed to make the Plan Payments to the
extent necessary.
Funds generated from the Debtors' respective operations through the
Effective Date will be used for Plan Payments; however, cash on
hand of the Debtors as of date of the Confirmation Order will be
available for payment of Administrative Expenses.
A full-text copy of the Joint Subchapter V Plan dated August 14,
2024 is available at https://urlcurt.com/u?l=vM6YgU from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Daniel A Velasquez, Esq.
Latham Luna Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: dvelasquez@lathamluna.com
About Airway Air Charter
Airway Air Charter, Inc. is a private jet company dedicated to
excellence, personalized service, and adherence to safety
standards. Its private aircraft can land at numerous airports not
serviced by commercial airlines.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-16200) on June 21,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Jonathan Jackson, president, signed the
petition.
Judge Robert A. Mark presides over the case.
Daniel A. Velasquez, Esq. at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
ARCON CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Arcon Construction Corporation
333 Gellert Bld, Suite 160
Daly City, CA 94015
Chapter 11 Petition Date: September 13, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-30679
Debtor's Counsel: Eric J. Gravel, Esq.
THE LAW OFFICES OF ERIC J. GRAVEL
1390 Market St., Suite 200
San Francisco, CA 94102
Tel: (650) 931-6000
Fax: (650) 931-6424
Email: ctnotices@gmail.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Andrey Libov as chief operating
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/EXSTE7I/Arcon_Construction_Corporation__canbke-24-30679__0001.0.pdf?mcid=tGE4TAMA
AS SPECIFIED: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for As
Specified, Inc.
Mr. McConnell 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. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About As Specified
As Specified, Inc., doing business as Indon International,
specializes in the manufacturing of custom case goods and seating
for 3 to 5-star hospitality projects worldwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04465) on August 23,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Rick J. Gursky, sole shareholder, signed the
petition.
Judge Tiffany P. Geyer presides over the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
ASP LS ACQUISITION: $125MM Bank Debt Trades at 32% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which ASP LS Acquisition
Corp is a borrower were trading in the secondary market around 67.9
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $125 million Term loan facility is scheduled to mature on
September 29, 2027. The amount is fully drawn and outstanding.
ASP LS Acquisition Corp. was formed to effectuate the acquisition
of Laser Ship, Inc. by the private equity firm American Securities
LLC.
ASTRA ACQUISITION: Credit Suisse Marks $615,000 Loan at 63% Off
---------------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$615,000 loan extended to Astra Acquisition Corp to market at
$227,552 or 37% of the outstanding amount, according to Credit
Suisse's Form N-CSR for the Semi-Annual on Report June 30, 2024,
filed with the Securities and Exchange Commission September 3,
2024.
Credit Suisse is a participant in a Bank Loan to Astra Acquisition
Corp (3 mo. USD Term SOFR + 5.250%). The loan matures on October
25, 2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ATLAS CC: Credit Suisse Marks $315,000 Loan at 26% Off
------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$315,000 loan extended to Atlas CC Acquisition Corp to market at
$233,430 or 74% of the outstanding amount, according to Credit
Suisse's Form N-CSR for the Semi-Annual on Report June 30, 2024,
filed with the Securities and Exchange Commission September 3,
2024.
Credit Suisse is a participant in a Bank Loan to Atlas CC
Acquisition Corp. The loan matures on May 25, 2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
Atlas CC Acquisition Corp serves transportation, defense command,
control, communication, computers, intelligence, surveillance and
reconnaissance (C4ISR), and defense training customers globally.
Cubic sells integrated payment and information systems,
expeditionary communications, cloud-based computing and
intelligence delivery, as well as training and readiness solutions.
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 18% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aventiv
Technologies LLC is a borrower were trading in the secondary market
around 81.9 cents-on-the-dollar during the week ended Friday, Sept.
13, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.03 billion Term loan facility is scheduled to mature on
November 1, 2024. The amount is fully drawn and outstanding.
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
BAUSCH + LOMB: Fitch Keeps 'B-' IDR on Watch Evolving
-----------------------------------------------------
Fitch Ratings has maintained Bausch + Lomb Corporation's (BLCO)
'B-' Issuer Default Rating (IDR) and its 'BB-'/'RR1' senior secured
debt on Rating Watch Evolving. The Evolving Rating Watches reflect
Bausch Health Companies' and Bausch Health Americas' (collectively
BHC) ownership of BLCO. BLCO's ratings could be downgraded should
BHC's ratings be downgraded before a potential separation and could
be upgraded upon completion of a separation.
BLCO's ratings could also be downgraded should Fitch reconsider the
strength of the linkage between the entities that results in less
than the current two-notch uplift. Resolution of the Rating Watches
may occur after six months.
Key Rating Drivers
BLCO's Ratings Tied to BHC's: The primary driver of BLCO's ratings
is BHC's 'CCC' IDR until the separation is finalized. Fitch views
BLCO as having a stronger standalone credit profile than BHC;
however, the ratings are tied and notched up by two notches given
its view that there are only some limitations on BHC's ability to
access BLCO due to the ring-fencing via the debt documents and the
presence of minority shareholders limiting their access and
control. Until separation, any changes in the linkage could lower
BLCO's ratings.
BLCO's stronger standalone credit profile reflects the following
Key Rating Drivers:
Solid Position in Eye Care Market: Fitch views BLCO's end market
favorably as age demographics, improved income demographics in
emerging markets, increasing digital screen times and the rise in
the incidence of diabetes will likely drive low- to
mid-single-digit growth in demand for eye health products and
services.
Moreover, Fitch believes BLCO benefits from a solid market position
given a large number of BLCO's products enjoy leading market
positions and strong brand recognition, consumer-facing products
account for about 79% of revenue, and the product portfolio has
only limited exposure to market exclusivity losses.
Pipeline to Support Growth: Fitch expects the company will continue
to pursue innovation in Vision Care with technological advancements
more incremental in nature to remain competitive. Fitch believes
the company's R&D efforts will help to drive intermediate- and
long-term revenue growth while also supporting margins. BLCO makes
consistent and large investments in new product development. Its
R&D efforts span all three businesses with intensity geared more
toward surgical and ophthalmic pharmaceuticals.
Increased Leverage Post-Acquisition: Fitch expects BLCO will
maintain leverage between 5x and 6x pro forma for its recent
acquisition of Novartis' ocular surface pharmaceuticals portfolio,
which includes Xiidra. Fitch assumes the company will continue to
invest in some debt-funded business development.
Fitch views the most recent acquisition favorably as this is a
growing product for the treatment of dry eye disease and should
contribute significantly to the company's profitability and carries
far higher margins than overall BLCO. The acquisition also included
a mid-stage developmental pharmaceutical product and AcuStream, an
investigational device intended to facilitate precise dosing and
accurate delivery of certain topical ophthalmic medications.
Stable Margins: Fitch assumes that margins will remain relatively
stable over the forecast period. Improving sales should help to
partly offset potential pricing pressure. Operating costs are
expected to grow at a slower rate than revenue, also helping to
support margins. In addition, less than 15% of BLCO's revenue is
exposed to branded pharmaceuticals pricing issues in the U.S.
Consistently Positive Free Cash Flow: Advancing sales, relatively
stable margins, solid working capital management and moderate capex
requirements should support consistently positive and increasing
free cash flow (FCF). Fitch does not expect that BLCO will pay
dividends or engage in share repurchases. Capital deployment will
focus on internal investment, external collaborations and targeted
acquisitions.
For a leading global eye health company, BLCO has relatively
minimal contingent liability risk regarding product liability,
intellectual property and other regulatory issues. Fitch expects
the company to reduce leverage, primarily through debt reduction
and EBITDA growth.
Derivation Summary
BLCO's 'B-'/Rating Watch Evolving is based on it being a
majority-owned subsidiary of Bausch Health until the separation.
BLCO is a stronger subsidiary than the weaker parent and notches
BLCO's ratings by up by two from the consolidated parent's IDR. The
notching is based on its assessment of the ring-fencing as porous
between Open and Insulated due to its opinion of the ring-fencing
provided by the terms of the debt documents.
Access and control are deemed to be porous due to overlapping board
of directors members despite the presence of minority shareholders
and independent capitalizations. Until separation, BLCO's ratings
will be influenced by BHC, which has a rating derivation described
in "Fitch Affirms Bausch Health's IDR at 'CCC'," dated Sept. 11,
2024.
Fitch also compares BLCO to other medical device companies
typically rated in the 'BBB' category including Boston Scientific
Corp. (BBB+/Stable), Becton, Dickinson & Company (BBB/Stable) and
Zimmer Biomet Holdings, Inc. (BBB/Stable). Fitch considers the
diversification benefits provided by BLCO operating in consumer
health and prescription pharmaceuticals and moderate regulatory
risk over drug pricing. These factors are viewed against it being
less diversified than Becton, Dickinson; BLCO is solely focused on
eye health, while all of its peers address a number of disease
markets. The higher rated peers also operate with significantly
stronger balance sheets and lower EBITDA leverage.
Key Assumptions
- Mid-single-digit organic revenue growth driven by the uptake of
new product commercialization, moderately offset by increased
competitive pressure for some established products;
- Normalized annual FCF generation greater than $100 million-$130
million during 2025 through 2027. FCF somewhat muted in 2024 due in
part to working capital changes;
- Dividends are not included in the forecast, but, if instituted,
would decrease FCF by the same amount as Fitch defines as cash flow
from operations-capex-dividends;
- EBITDA leverage gradually declines over the forecast period due
to increasing EBITDA;
- $700 million of acquisitions, cumulative, from 2025 through
2027.
Recovery Analysis
In assigning and maintaining instrument ratings on issuers with
IDRs of 'B+' and below, Fitch conducts a bespoke recovery analysis.
The recovery analysis assumes that BLCO would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch estimates a going concern enterprise
value of $5.6 billion for BLCO and assumes that administrative
claims consume 10% of this value in the recovery analysis.
The going concern enterprise value is based on estimates of
post-reorganization EBITDA and the assignment of an EBITDA
multiple. The assumed going concern EBITDA reflects Fitch's
expectation that operational stress at the parent would lead to a
reorganization prior to the separation and thus Fitch's estimate of
BLCO's going concern EBITDA of $800 million is broadly in line with
Fitch's expectations for 2024. This assumption has increased from
the $740 million used at the last review given BLCO's strengthening
EBITDA generation.
Fitch assumes a recovery enterprise value/EBITDA multiple of 7.0x
for BLCO. This is generally in line with the 6.0x-7.0x Fitch
typically assigns to medical device/specialty pharmaceutical
manufacturers. BLCO's operating environment does not face many of
the challenges that pure pharmaceutical companies often face,
according to Fitch.
Fitch applies a waterfall analysis to the going concern enterprise
value based on the relative claims of the debt in the capital
structure, and assume that the company would fully draw the its
$500 million revolver in a bankruptcy. The first-lien term loans
and the first-lien secured bonds, which Fitch estimates to be
roughly $4.3 billion, have outstanding recovery prospects in a
reorganization. The term loans and bonds are rated
'BB-'/'RR1'/Rating Watch Evolving.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch viewing BLCO on a standalone basis;
- An upgrade at BHC.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Evidence of factors related to ring-fencing and access and
control that would lead Fitch to rate BLCO on a consolidated basis
with BHC or with a one notch uplift rather than two notches;
- A downgrade at BHC.
Liquidity and Debt Structure
BLCO Liquidity: Fitch expects BLCO will have sufficient liquidity
with $285 million unrestricted cash and $121 million availability
on its $500 million five-year secured revolving credit facility net
of $29 million outstanding letters of credit at June 30, 2024. In
addition, Fitch forecasts consistently positive annual FCF over the
forecast period. The company has no impending debt maturities but
does have mandatory annual amortization on its term loan of $30
million.
Issuer Profile
BLCO is currently a majority-owned subsidiary of BHC and a leading
global eye health company with a portfolio of over 400 products.
The company has a global research, development, manufacturing and
commercial footprint of approximately 12,000 employees and a
presence in approximately 90 countries.
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
Bausch + Lomb Corporation has an ESG Relevance Score of '4' for
Exposure to Social Impacts due to pressure to contain health care
spending growth, highly sensitive political environment and social
pressure to contain costs or restrict pricing, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors. Pharmaceuticals account for less
than 15% of the firm's total sales.
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
----------- ------ -------- -----
Bausch + Lomb
Corporation LT IDR B- Rating Watch Maintained B-
senior
secured LT BB- Rating Watch Maintained RR1 BB-
BAUSCH HEALTH: Fitch Affirms 'CCC' LongTerm IDR
-----------------------------------------------
Fitch Ratings has affirmed Bausch Health Companies' (BHC) and
Bausch Health America's (BHA) (collectively: Bausch Health)
Long-Term Issuer Default Ratings (IDRs) at 'CCC' and first-lien
debt at 'B'/'RR1'. Fitch has also affirmed BHC's second-lien debt
at 'CC'/'RR6' and Bausch Health's unsecured debt at 'C'/'RR6'.
The 'CCC' IDRs reflect BHC's elevated refinancing risk amid the
following two key uncertainties: when and to what degree does
competition impact BHC's XIFAXAN product, and whether and when the
company completes its separation of Bausch + Lomb Corporation
(BLCO). The BLCO separation would reduce diversification and likely
increase leverage.
Key Rating Drivers
Mixed Impact of XIFAXAN Rulings: Favorable rulings on BHC's XIFAXAN
antibiotic have mixed implications for the company's credit
profile. Fitch expects cash flow to be more resilient to
competition, assuming the favorable decisions made by the U.S.
Circuit Court affirming the patents for XIFAXAN are upheld
throughout remaining litigation, if any.
Market exclusivity for XIFAXAN will likely remain until 2028 if the
Circuit ruling is upheld. However, this benefit may increase the
likelihood that BHC will proceed with its planned separation of
BLCO. The separation would likely negatively affect BHC's credit
profile with the remaining company being more concentrated and
reliant on XIFAXAN and having high leverage.
Planned Separation Could Raise Leverage: The potential loss of
BLCO's operating and financial stability upon a separation of BHC's
interest creates significant risk to BHC's credit profile. Fitch
estimates that BHC's EBITDA leverage, excluding BLCO, would be
around 7x prior to any decline in XIFAXAN revenue upon separation
considering consolidated leverage of 6.8x at year end-2023 and
around 6x for BLCO on a standalone basis, all else being equal.
BLCO became a publicly traded company in 1H22 after BHC sold 11% of
its shares in an IPO. Since then, the retained interests have
become unrestricted under the terms of BHC's debt agreements.
Refinancing Risk for 2025 Maturities: Fitch views refinancing risk
of BHC's significant 2025 debt maturities ($1.7 billion of secured
bonds and $535 million of unsecured bonds) to be high given the
aforementioned uncertainties. The company has some liquidity to
address them including but not limited to almost full availability
under its $975 million revolving credit facility. Fitch notes the
potential for transactions that could be considered a distressed
debt exchange, however, the company has publicly denied media
reports that it was considering a bankruptcy or insolvency
proceeding of any kind and stated that it has not been involved in
related discussions with its creditors.
Operations Stabilizing: BHC's operating fundamentals improved in
2023 and that has continued in 1H24, driven by increasing revenue
from its subsidiaries, Solta Medical business, Salix, and its
international segment. Advancing sales combined with relatively
stable margins resulted in improved cash generation. The company
moderately reduced debt during the period. Fitch looks for this
trend to continue during the intermediate term, if XIFAXAN
continues to retain market exclusivity.
Reliant on New Products: BHC benefits from its increased focus on
developing an internal research and development pipeline, which
should bolster its credit profile in the long term. However, the
strategy hinges on BHC's successful ramp-up of the utilization of
newly approved products via commercialization efforts. Fitch
expects BHC will seek external pipeline candidates through M&A or
collaboration, as BHC, like many other specialty pharmaceutical
manufacturers, performs only limited early-stage drug discovery and
development.
The company has a phase III candidate, RED-C, for the prevention of
cirrhosis complications related to hepatic encephalopathy. BHC also
has a late-phase II pipeline candidate for the treatment of
ulcerative colitis and a number of products that it will
incorporate into its International business as greenfield
geographic expansion opportunities. Fitch expects that the company
will inevitably need to pursue external pipeline candidates through
M&A and/or collaborations. BHC, like many other specialty
pharmaceutical manufacturers perform only limited early-stage drug
discovery and development.
Pressure from Payers: The defensibility of pricing power is always
a top-of-mind issue affecting the sales outlook for pharmaceutical
firms. The "Inflation Reduction Act" threatens the profitability of
companies that manufacture and market some of the top-selling,
older drugs in the Medicare Part-D program. The effective prices
for the first cohort of drugs impacted by the law was recently
announced but long-term implications remain less certain.
While the political environment has recently raised the issue in
the public conscience, managing price and product accessibility
negotiations with health insurers and pharmacy benefit managers has
long been an issue facing drug companies. Fitch's ratings case
forecast for Bausch Health and peer pharmaceutical firms generally
assumes better price defensibility for truly innovative and newer
products, while more commoditized products are likely to face
escalating headwinds.
Derivation Summary
BHC's rating reflects heightened refinancing risk amid the
uncertain competition against a key product and whether and when it
separates from a key segment. Key financial metrics are strong for
the current IDR, but would likely deteriorate significantly should
either event above occur.
BHC's rating relative to specialty pharmaceutical industry peer,
Mallinckrodt plc (B-/Positive), is largely a function of
Mallinckrodt's emergence from bankruptcy with significantly reduced
debt liabilities. BHC has higher gross debt leverage and
significant patent expiry risk, which is amplified by the proposed
spinoff of BLCO.
Fitch rates BHC by comparing its credit profile with that of its
subsidiaries, Bausch Health Americas, Inc. (BHA; CCC) and BLCO,
under its Parent and Subsidiary Rating Linkage Criteria. Fitch
regards BHA as a 'Stronger' subsidiary and BHC as the 'Weaker'
parent. Fitch believes there is open ringfencing and access and
control between BHA and BHC and therefore rate the entities at the
consolidated level with no notching between the two.
Meanwhile, Fitch takes a weak parent (BHC)/strong subsidiary (BLCO)
approach. Using Fitch's PSL criteria, Fitch concludes there is
porous ring fencing and porous access & control. As such, Fitch
rates the parent and subisidiary at the consolidated level while
notching the subsidiary's rating up by two above BHC's IDR. Fitch
has not deconsolidated BLCO despite the 2022 IPO.
Key Assumptions
- BHC eventually completes the full spin-off in the later years of
the forecast period, but Fitch notes the ultimate timing remains
uncertain. Fitch assumes EBITDA of $2.2 billion-$2.4 billion should
BLCO be spun-off and significantly lower if XIFAXAN patent defense
does not prevail;
- No significant acquisitions, dividends or share repurchases;
- BHC can generate meaningful FCF prior to a potential BLCO
separation and potentially flat to negative FCF, if the XIFAXAN
patent defense does not prevail and BLCO is separated.
Recovery Analysis
Fitch conducts a going concern analysis to determine instrument
ratings that are based on the issuer's IDR. The recovery analysis
assumes that BHC would be considered a going concern in bankruptcy
and that it would be reorganized rather than liquidated.
Fitch estimates a standalone reorganized enterprise value of
approximately $10.5 billion for BHC, excluding its ownership of
BLCO, and assume administrative claims consume 10% of this value.
Fitch estimates a going concern EBITDA, excluding BLCO, of $1.5
billion. This reflects a scenario where XIFAXAN loses significant
market share and BHC experiences shortfalls in commercializing its
R&D pipeline.
Fitch assumes a recovery enterprise value/EBITDA multiple of 7.0x.
This is at the higher end of the 6.0x-7.0x Fitch typically assigns
to specialty pharmaceutical manufacturers, as BHC is more
diversified than many peers.
Fitch assumes its $975 million revolving credit facility will be
fully drawn. Fitch applies a waterfall analysis to the going
concern enterprise value based on the relative claims of the debt
in the capital structure. The first-lien senior secured credit
facility and senior secured notes, which Fitch estimates at about
$9.78 billion, also have outstanding recovery prospects and are
rated 'B'/'RR1', three notches above the IDR. The second-lien
secured notes, which Fitch estimates at $352 million, and senior
unsecured notes of about $5.2 billion have poor recovery prospects
and are rated 'CC'/RR6' and 'C'/RR6', respectively.
The inclusion or exclusion of BHC's equity interests in BLCO does
not influence the notching and therefore the separation, in and of
itself, does not necessarily influence the notching of BHC's
instruments relative to its IDR. The A/R securitization credit
facility reduces the going-concern enterprise valuation and is not
included as debt in the waterfall.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Favorable resolution of XIFAXAN patent litigation;
- BHC choosing not to spin-off BLCO.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- BHC completes the spin-off of BLCO prior to a favorable
resolution of XIFAXAN patent litigation;
- Significant and durable deterioration of FCF generation.
Liquidity and Debt Structure
BHC had adequate near-term liquidity at June 30, 2024. It reported
$595 million of available cash and equivalents (includes $285
million of cash held by BLCO) and $952 million availability on its
revolver. Fitch expects BHC to generate positive FCF during the
forecast period. Fitch also notes BHC has access to a $600 million
accounts receivable facility which had $300 million outstanding at
June 30, 2024. Debt maturities are concentrated in 2025, 2027 and
2028 with the latter two years comprising approximately 2/3 of the
total debt including BLCO's and falling shortly before the XIFAXAN
patent is to expire.
Issuer Profile
BHC is a multinational health care company headquartered in Laval,
Quebec that develops, manufactures and markets pharmaceutical and
medical products.
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
BHC has an ESG Relevance Score of '4' for Exposure to Social
Impacts, due to pressure to contain health care spending growth, a
highly sensitive political environment and social pressure to
contain costs or restrict pricing. This has a negative impact on
the credit profile and is relevant to the rating in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Bausch Health
Americas, Inc. LT IDR CCC Affirmed CCC
senior
unsecured LT C Affirmed RR6 C
senior secured LT B Affirmed RR1 B
Bausch Health
Companies Inc. LT IDR CCC Affirmed CCC
senior secured LT B Affirmed RR1 B
senior
unsecured LT C Affirmed RR6 C
Senior Secured
2nd Lien LT CC Affirmed RR6 CC
BIG LOTS: Discusses With Lenders Its $760 Million Offer
-------------------------------------------------------
Steven Church of Bloomberg News reports that lenders to discount
retailer Big Lots Inc. are talking to Nexus Capital Management
about how the private equity firm would finance its $760 million
bid to buy the company and bring it out of bankruptcy.
According to Bloomberg News, Nexus has agreed to pay $2.5 million
in cash plus an amount needed to repay Big Lots' major lenders,
according to court records. There's no deal between the banks and
Nexus, Big Lots attorney Brian Resnick said during the retailer's
first bankruptcy hearing on Tuesday. He didn't name the lenders or
provide any other details about the negotiations.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value. The
Company is dedicated to being the big difference for a better life
by delivering bargains to brag about on everything for the home,
including furniture, decor, pantry and more. It fulfills its
mission to help customers "Live BIG and Save LOTS" with sourcing
strategies to grow extreme bargains through closeouts,
liquidations, overstocks, private labels, and value-engineered
products. The Big Lots Foundation, together with the Company's
customers, associates, and vendors, has delivered more than $176
million of philanthropic support to critical needs in hunger,
housing, healthcare, and education. On the Web:
http://biglots.com/
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the
Honorable J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus.
BITTREX INC: Ghader Dispute Won't Proceed to Mediation
------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware has determined that mediation is
not appropriate in the case captioned as AZIM GHADER, Appellant, v.
THE PLAN ADMINISTRATOR, BITTREX, INC. and BITTREX MALTA, LTD.,
Appellees, Civil Action No. 24-686-JLH (D. Del.).
After conducting an initial review of the case, including having
gathered information from the parties and their counsel, the Court
recommends that the assigned District Judge issue an order
withdrawing the matter from mediation.
Ghader is taking an appeal from certain orders entered by the
bankruptcy court overseeing Bittrex's Chapter 11 case:
(i) the Court's Order Sustaining Debtors' Objection to Claims
597-238, 597-296, 598 998, 598-1021, 598-10408, 599-35, 599-38,
599-10018, 600-87, 600-96, and 600-10052 Filed by Azim Ghader,
entered June 4, 2024 [D.I. 205];
(ii) the Court's Opinion, entered on May 22, 2024 [D.I. 147] in
support of the Order;
(iii) the Court's Letter Regarding Request for Additional
Briefing and Argument, entered on January 26, 2024 [D.I. 980];
(iv) the Court's denial of Ghader's Motion for Reconsideration
Pursuant to Bankruptcy Rule 9024, which denial occurred pursuant to
the above referenced Order [D.I. 205]; and
(v) the Court's oral ruling sustaining the Plan
Administrator's Motion to Exclude Testimony of Ghader's Expert,
Stephanie Rice [D.I. 901] recorded in the trial transcript [1/16/24
Hearing Tr. 8:14–20].
Ghader asks the District Court to determine whether the Bankruptcy
Court erred in:
1. sustaining the Debtors' Objection to Claims 597-238,
597-296, 598 998, 598-1021, 598-10408, 599-35, 599-38, 599-10018,
600-87, 600-96, and 600-10052 Filed by Azim Ghader. [D.I. 411]?
2. its Letter Ruling precluding Appellant from arguing that
the contract - i.e. the 2015 and 2018 Bittrex Terms of Service --
violated the Iranian Transactions and Sanctions Regulations, 31
C.F.R. part 560, are void ab initio and not enforceable as a matter
of law?
3. summarily denying Appellant's Motion for Reconsideration
of the Court's Letter Ruling, including denying Appellant's
arguments that: (a) the illegality and unenforceability of the
Bittrex Terms of Service may be raised and considered at any time;
(b) the Bittrex Terms of Service were illegal and unenforceable;
(c) the Bittrex Terms of Service, were made in violation of ITSR,
are null and void, and not enforceable as a matter of law; and (d)
the Bittrex Terms of Service, made in violation of the ITSR, are
void as a matter of public policy?
4. sustaining the Motion to Exclude, excluding the testimony
of Appellant's ITSR and Office of Foreign Assets Control expert
Stephanie Rice?
5. finding and concluding as a matter of law: (a) Appellant
agreed to and accepted the Bittrex Terms of Service; (b) the
Bittrex Terms of Service are enforceable against the Appellant; (c)
Appellees did not breach the Bittrex Terms of Service; (d)
Appellant's claims of negligence, negligent misrepresentation,
conversion, fraud, breach of fiduciary duty, unjust enrichment,
negligent or intentional emotional distress, civil conspiracy
claims expire after a three-year limitation period; (d) Appellant's
tort claims and non-contract causes of action are time barred; (f)
Appellant's tort claims fail under the State of Washington's
independent duty doctrine; (g) Appellees did not violate the State
of Washington Unfair Business Practices Act, RCW 19-86-020; and (h)
Appellant failed to prove up his surviving claims by a
preponderance of the evidence?
A copy of Judge Burke's decision dated September 11, 2024, is
available at https://urlcurt.com/u?l=saqqFG
About Bittrex Inc.
Bittrex is a regulated digital assets exchange platform.
Desolation Holdings and three of its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del., Lead Case No. 23-10597) on May 8, 2023. Desolation
Holdings' debtor affiliates are Bittrex, Inc., Bittrex Malta
Holdings Ltd. and Bittrex Malta Ltd.
At the time of filing, the Debtors estimated consolidated assets of
$500 million to $1 billion in assets and $500 million to $1 billion
in liabilities.
The Hon. Brendan Linehan Shannon presides over the cases.
Quinn Emanuel Urquhart & Sullivan, LLP, led by partner Patricia B.
Tomasco, is the Debtors' counsel. Berkeley Research Group, LLC, is
the Debtors' restructuring advisor. Omni Agent Solutions is the
claims agent.
* * *
The Bankruptcy Court confirmed the Debtors' Amended Joint Chapter
11 Plan of Liquidation on Oct. 31, 2023. The Plan was declared
effective Nov. 15, 2023.
BLACK WOLF: Kicks Off Subchapter V Bankruptcy
---------------------------------------------
Black Wolf Holdings LLC filed Chapter 11 protection in the Middle
District of Florida. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 26, 2024 at 1:00 p.m. in Room Telephonically via US
Trustee - Tampa/Ft. Myers.
About Black Wolf Holdings
Black Wolf Holdings LLC sells and installs manufactured and modular
homes serving the Southwest Florida area.
Black Wolf Holdings LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01313)
on August 30, 2024. In the petition filed by Steven Game, as
managing member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Caryl E. Delano oversees the case.
The Debtor is represented by:
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
E-mail: jluna@lathamluna.com
BOWLING CENTER: Seeks to Extend Plan Filing Deadline to Oct. 31
---------------------------------------------------------------
Bowling Center, Inc., asked the U.S. Bankruptcy Court for the
District of Puerto Rico to extend its period to file a chapter 11
plan of reorganization to October 31, 2024.
During the status conference held on March 20, 2024, Debtor
informed the Court that its plan of reorganization would be filed
by April 24, 2024. After said hearing, Debtor retained Luis R.
Carrasquillo, CPA as its financial consultant to assist Debtor in
its financial reorganization and in the drafting, completion and
discussion of the Plan.
Carrasquillo, Debtor's management and Debtor's counsel have been
evaluating Debtor's financial performance and have concluded that
in order to file a confirmable Plan, Debtor needs to install 10
additional bowling lanes to increase Debtor's revenues.
Based on Debtor's management and the internal accountant's
experience, they estimate that the 10 additional lanes will result
in additional revenues of not less than 30% of current revenues.
Such additional revenues will support the payments under the Plan
and provide feasibility to Debtor's operations under any plan
scenario.
The Debtor has engaged in conversations with Signus Group's
(formerly Acrecent Financial Corporation) representatives to
explore DIP financing alternatives for a payment to creditors on
the Effective Date of a plan.
If interested, Signus' underwriting process, which requires
appraisals, financial projections evaluation, among others, takes
not less than sixty days.
Therefore, Debtor needs an additional 60 days to be able to file a
confirmable plan.
Bowling Center, Inc. is represented by:
Charles A. Cuprill, Esq.
CHARLES A. CUPRILL, P.S.C., LAW OFFICES
356 Fortaleza Street 2nd Floor
San Juan, PR 00901
Tel: (787) 977-0515
Email: ccuprill@cuprill.com
About Bowling Center
Bowling Center, Inc. in Carolina, PR, filed its voluntary petition
for Chapter 11 protection (Bankr. D.P.R. Case No. 24-00215) on
January 25, 2024, listing $3,592,343 in assets and $2,581,376 in
liabilities. Roger Acosta Hernandez, president, signed the
petition.
The Debtor tapped Charles A. Cuprill, PSC Law Offices as legal
counsel and CPA Luis R. Carrasquillo & Co., PSC as financial
consultant.
BRUIN XPRESS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Bruin Xpress, Inc.
1720 S. Michigan Avenue
Unit 1706
Chicago, IL 60616
Business Description: The Debtor is a trucking company which
primarily hauls in Illinois, Wisconsin,
Michigan, and Indiana.
Chapter 11 Petition Date: September 16, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-13626
Judge: Hon. David D. Cleary
Debtor's Counsel: Robert Glantz, Esq.
MUCH SHELIST PC
191 N Wacker Drive Suite 1800
Chicago, IL 60606
Tel:(312) 521-2000x0
Email: rglantz@muchlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kevin Qin as president or authorized
officer.
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/VKUEAXQ/Bruin_Xpress_Inc__ilnbke-24-13626__0001.0.pdf?mcid=tGE4TAMA
CARESTREAM DENTAL: Moody's Appends 'LD' Designation to PDR
----------------------------------------------------------
Moody's Ratings has appended a limited default (LD) designation to
the Caa2-PD Probability of Default Rating of Carestream Dental
Technology, Inc. (Carestream Dental), changing it to Caa2-PD/LD
from Caa2-PD following the company's distressed exchange of its
second lien term loans into new debt.
This follows the company's transaction in which it repaid its
senior secured first lien credit facilities at par and exchanged
its second lien debt with new debt. Subsequent to this transaction,
Moody's will withdraw the ratings as the previously rated debt is
no longer outstanding.
Headquartered in Atlanta, GA, Carestream Dental is a manufacturer
of dental imaging systems and a provider of dental practice
management software. The company's offerings include 2D and 3D
imaging equipment, practice management software products and
equipment aftermarket services. The company is owned by affiliates
of General Atlantic, Canyon Partners and several others.
CARESTREAM DENTAL: Raises Over $525MM Capital for Strategic Growth
------------------------------------------------------------------
Carestream Dental Technology Parent Limited, a global leader in
digital transformation for the oral healthcare industry, announced
on Sept. 9, 2024, that it has secured new investment as part of a
recapitalization to support the continued execution of its
strategic innovation agenda. Facilitated by raising more than $525
million of new capital, with General Atlantic Credit's (GA Credit)
Atlantic Park fund leading a six-year first lien term loan, the
transaction establishes an equity partnership comprising GA Credit,
Canyon Partners, and several others. Clayton, Dubilier & Rice will
continue as a minority investor. The proceeds from the transaction
will aim to significantly reduce debt, meaningfully extend
maturities and provide ample flexibility for continued investment
in tools and technology and support organic and inorganic strategic
initiatives.
Carestream Dental was formed in 2017 as an innovation and
digital-led dental company with a mission to transform dentistry,
simplify technology and change lives. Serving more than one million
users across over 100 countries, the Company delivers
industry-leading oral healthcare solutions, supported by market
leading expertise and experience in engineering; practice and DSO
operational and clinical workflow; and treatment planning. Year to
date, Carestream Dental has successfully expanded its range of
products and solutions, including the launch of a new cone beam
computed topography (CBCT) system; executed the significant
expansion of its Sensei Cloud practice management software for
specialty and enterprise customers; and formed several new
partnerships to provide customers with a more seamless and
integrated workflow experience.
"We are thrilled to partner with GA Credit, Canyon Partners and our
broader investor base as we work to build the future of oral
healthcare," Lisa Ashby, chief executive officer, Carestream
Dental, said. "This transaction significantly strengthens
Carestream Dental's financial position, providing a stronger
platform for us to continue investing in our business and
customers. We will continue to innovate with expanded partnerships;
the application of AI across our solutions; and novel technology
focused on the prevention, treatment and management of oral
healthcare. We are excited for our strong future ahead."
In addition to the recapitalization, Carestream Dental has launched
the Company's Oral Healthcare Innovation Hub (OHIH), an innovation
incubator focused on revolutionizing oral healthcare. OHIH will
unveil Oral Healthcare Practice 2040 at the International Dental
Show (IDS) in March 2025 in Cologne, Germany.
"Carestream Dental has a demonstrated track record of successfully
delivering differentiated products and comprehensive solutions to
its global customer base," Matthew Bonanno, managing director, GA
Credit, said. "We believe this recapitalization positions
Carestream Dental to take advantage of strong secular tailwinds in
the global marketplace by continuing to invest in innovation and
strategic partnerships. Further, we believe Carestream Dental is
poised for meaningful growth across multiple markets as the
standard of care continues to migrate to the digitally enabled
dental market. We look forward to leveraging our healthcare and
software expertise to support Lisa and the team in achieving the
Company's growth objectives."
About General Atlantic Credit
General Atlantic Credit (GA Credit) is the dedicated credit
investment platform within General Atlantic, a leading global
growth investor. GA Credit leverages a demonstrated track record of
strategic credit partnerships across market cycles and capital
structures alongside General Atlantic's more than 44 years of
domain expertise and company-building capabilities. GA Credit's
Atlantic Park strategy provides flexible capital to high-quality
companies seeking a strategic partner at various stages of the
corporate and economic lifecycle. This partnership approach enables
Atlantic Park to create customized capital solutions tailored to a
company's specific capital needs.
General Atlantic has approximately $83 billion in assets under
management inclusive of all products as of June 30, 2024. For more
information, please visit: generalatlantic.com.
About Carestream Dental
Carestream Dental is a digital solutions leader built on more than
125 years of experience that's committed to transforming dentistry,
simplifying technology and changing lives. In this pursuit, it
offers three brand portfolios that enable practice optimization,
efficiency and growth: The Carestream Dental brand portfolio of
world-class oral healthcare devices; the Swissmeda brand portfolio
of market-leading clinical software and services; and the Sensei
brand portfolio of best-in-class practice management software and
services. These solutions connect industry partners, laboratories
and payers to optimize oral healthcare providers' preferred
workflows. For more information, please visit carestreamdental.com.
CARVANA CO: Ernest Garcia II Holds 37.9% Stake as of Sept. 6
------------------------------------------------------------
Ernest C. Garcia II disclosed in a Schedule 13D/A Report filed with
the U.S. Securities and Exchange Commission that as of September 6,
2024, he and affiliated entities, Verde Investments, Inc. and ECG
II SPE, LLC, beneficially owned shares of Carvana Co.'s Class A
Common Stock.
Ernest C. Garcia II holds 74,319,152 shares, representing 37.9% of
the shares outstanding based on 123,824,087 Class A Shares
outstanding as of July 29, 2024, and assuming the conversion of all
Class A Units of Carvana Group held by Mr. Garcia into Class A
Shares, in accordance with Rule 13d-3 of the Act.
This number is comprised of the Class A Shares held by:
(i) Ernest C. Garcia II (40,733,131 shares on an as-converted
basis) and (ii) ECG II SPE, LLC (8,000,000 shares on an
as-converted basis), which Mr. Garcia wholly owns and controls.
Mr. Garcia may be considered to have shared voting and dispositive
power with respect to the Class A Shares held by: (i) the Ernest
Irrevocable 2004 Trust III (12,684,021 shares, including 11,834,021
shares on an as-converted basis), of which Mr. Garcia is a
non-voting co-trustee and Mr. Garcia's son, Ernie Garcia III, is
the sole beneficiary; and (ii) the Ernest C. Garcia III
Multi-Generational Trust III (12,902,000 shares, including
11,952,000 shares on an as-converted basis), of which Mr. Garcia is
a non-voting co-trustee and Ernie Garcia III and his children are
the sole beneficiaries.
A full-text copy of Mr. Garcia's SEC Report is available at:
https://tinyurl.com/yhtxpf8d
About Carvana
Founded in 2012 and based in Tempe, Arizona, Carvana Co. --
http://www.carvana.com-- is an e-commerce platform for buying and
selling used cars. The Company is transforming the used car buying
and selling experience by giving consumers what they want, a wide
selection, great value and quality, transparent pricing, and a
simple, no pressure transaction. Each element of its business, from
inventory procurement to fulfillment and overall ease of the online
transaction, has been built for this singular purpose.
Carvana reported a net income of $150 million for the year ended
Dec. 31, 2023, compared to a net loss of $2.89 billion for the year
ended Dec. 31, 2022. As of June 30, 2024, Carvana had $7.17 billion
in total assets, $7.05 billion in total liabilities, and $115
million in total stockholders' equity.
* * *
Moody's Investors Service upgraded Carvana Co.'s corporate family
rating to Caa3 from Ca, the TCR reported on Sept. 22, 2023. Moody's
said the upgrade of Carvana's CFR to Caa3 reflects the completion
of its debt exchange that pushes out some near-term maturities,
reduces outstanding debt, and materially reduces cash interest
expense in the two years following the exchange.
In August 2024, S&P Global Ratings raised its issuer credit rating
on U.S.-based Carvana Co. to 'B-' from 'CCC+'. S&P said, "At the
same time, we raised our unsolicited issue-level rating on
Carvana's senior secured debt to 'B-' from 'CCC+' with a '4'
recovery rating (30%-50%; rounded estimate: 40%). We also raised
our issue-level rating on its senior unsecured debt to 'CCC' from
'CCC-' with a '6' recovery rating (0%-10%; rounded estimate: 0%).
"The stable outlook reflects our view that Carvana will continue
increasing EBITDA, generating positive free cash flow, and
maintaining leverage of 6x-7x over the next 12 months.
CARVANA CO: Moody's Ups CFR to Caa1 & Alters Outlook to Positive
----------------------------------------------------------------
Moody's Ratings upgraded Carvana Co.'s corporate family rating to
Caa1 from Caa3 and probability of default rating to Caa1-PD from
Caa3-PD. The company's senior secured global notes ratings were
upgraded to Caa1 from Ca and senior unsecured global notes ratings
were upgraded to Caa3 from Ca. The speculative grade liquidity
rating (SGL) was upgraded to SGL-3 from SGL-4 and the outlook was
changed to positive from stable.
The upgrade and positive outlook reflects Carvana's better
operating performance which has resulted in a material improvement
in leverage. Debt/EBITDA has improved to 7.0x for the LTM ending
June 30, 2024 down from 16.8x at the end of fiscal 2023. In
addition, Carvana's liquidity has improved as it has maintained
positive free cash flow and ample cash balances. However, the
ratings also recognize that leverage remains high and that free
cash flow has been bolstered by the material benefit of not having
to pay cash interest on the substantial majority of its capital
structure.
RATINGS RATIONALE
Carvana's Caa1 CFR reflects its high leverage and modest interest
coverage with debt to EBITDA about 7.0 times and EBIT to interest
of 0.7 times for the LTM period ending June 30, 2024. The ratings
also recognize Carvana's improved operating performance that has
been driven by higher unit sales, total gross profit per vehicle
and a more focused approach to cost control. Over the past several
quarters, Carvana generated positive operating earnings, which
along with the material benefit of not having to pay cash interest
on the substantial majority of its capital structure has improved
its liquidity with positive free cash flow and unrestricted cash
balance of about $540 million as of 2Q24. For the LTM period ending
June 30, 2024, the non-cash pay-in-kind (PIK) interest component of
the company's capital structure was over $425 million.
The positive outlook recognizes that Moody's expect futher
improvement in Carvana's operating earnings and that if the company
is successful in sustaining its earnings momentum, should enable it
to convert interest expense to entirely cash pay while at the same
time improving credit metrics and maintaining at least adequate
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded should Carvana be able to sustain its
current operating performance improvement and generate free cash
flow while transitioning its capital structure to fully cash pay
while maintaining at least adequate liquidity. Quantitatively, an
upgrade would require debt to EBITDA sustained below 6.0 and EBITDA
less capex to interest sustained well above 1.25 times. An upgrade
would also require maintaining at least adequate liquidity.
Ratings could be downgraded in the event operating performance
weakened or financial policies became more aggressive such that
liquidity weakened or credit metrics deteriorated from current
levels.
Headquartered in Tempe, Arizona, Carvana Co., is a leading online
retailer of used vehicles, with revenue for the last twelve month
period ending June 30, 2024, of around $11.7 billion.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
CASPIAN TECHNOLOGY: Unsecured Creditors to Split %210K in Plan
--------------------------------------------------------------
Caspian Technology Concepts LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of Wisconsin a Plan of
Reorganization dated August 14, 2024.
The Debtor, which was formed in 2002 by Dale G. Boehm, provides a
wide range of Information Technology-related services to small and
middle-market businesses, including advice on internal process
improvement, IT outsourcing, and cybersecurity advice and
training.
The Debtor is owned solely by Dale G. Boehm, who also serves as its
President/CEO. The Debtor's customers are in various industry
sectors including healthcare, manufacturing, financial, retail,
hospitality, education, and government. During its prime, the
Debtor employed over 35 people, and was well-known and trusted by
many Global company executives for IT services and security.
Prior to filing this Bankruptcy Case, Caspian proposed repayment
plans to its vendors to avoid the need to seek bankruptcy
protection. It employed Michael Best & Friedrich LLP to help
negotiate with creditors. A number of vendors were willing to work
with Caspian; however Caspian's largest vendors, which were
associated with the Rotech project, were unable/unwilling to
provide any acceptable resolution.
Without agreements in place with each vendor, Caspian faced
operational challenges and was eventually sued on June 7, 2024 by
Arrow Enterprise Computing Solutions, Inc., one of its largest
unsecured creditors, in District Court in Colorado. Ultimately, the
Debtor made the decision to file this Case and seek protection
under Subchapter V of Chapter 11.
The Debtor's Plan proposes to pay Secured Claims in full, assume
and reject certain of its contracts, and pay Unsecured Claims
pursuant to the Debtor's 3-year cash flow Projections.
Under the terms outlined in this Plan, the Debtor's Secured
Creditors, Administrative Claim Holders, and Creditors holding
priority Claims will be paid in full. Additionally, the Debtor
estimates that General Unsecured Creditors will receive a Pro Rata
distribution of $209,693, which reflects more than parties would
receive in a liquidation scenario.
Class 4 consists of Allowed Unsecured Claims. Each Claim in Class 4
shall receive a Pro Rata Share of the Reorganized Debtor's
Disposable Income, to be distributed by the Plan Proponent. The
treatment afforded to Class 4 Claims pursuant to this section shall
fully discharge all Class 4 Claims as of the Effective Date of the
Plan, provided that the Plan is confirmed under Section 1191(a) of
the Bankruptcy Code.
In the event the Plan is confirmed under Section 1191(b) of the
Bankruptcy Code, each Class 4 Claim shall only be discharged upon
payment in full of such Creditor's Pro Rata Share of the
Reorganized Debtor's Disposable Income. The Reorganized Debtor
shall make Pro-Rata payments to Creditors within Class 4 on (or
before) September 30th for each of the first three years following
the Effective Date, in such amounts consistent with the Disposable
Income in the Debtor's Projections. Allowed Unsecured Claims in
Class 4 are impaired.
Members in Class 5 that hold Allowed Equity Interests in the Debtor
are unimpaired by the Plan. Holders of Allowed Equity Interests
shall retain their interests.
Cash necessary to fund payments shall be from the Reorganization
Fund and the Debtor's normal business operations and cash on hand
as of the Effective Date.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=v7dEd7 from
PacerMonitor.com at no charge.
Counsel to the Debtor
Justin M. Mertz, Esq.
Michael Best & Friedrich LLP
790 N. Water St., Ste. 2500
Milwaukee, WI 53202
Tel: (414) 271-6560
Fax: (414) 277-0656
Email: jmmertz@michaelbest.com
About Caspian Technology Concepts
Caspian Technology Concepts, LLC, is a global business technology
management firm in Waukesha Wis. It offers strategic advisory
services, managed infrastructure solutions, cybersecurity services,
and advanced communications services.
Caspian Technology Concepts filed its voluntary petition for
Chapter 11 protection (Bankr. E.D. Wis. Case No. 24-23280) on June
20, 2024, listing $100,000 to $500,000 in assets and $1 million to
$10 million in liabilities. Dale G. Boehm as member, signed the
petition.
Judge Katherine M Perhach oversees the case.
Michael Best & Friedrich, LLP serves as the Debtor's legal counsel.
CATHETER PRECISION: Jenkins Family Charitable Holds 9.5% Stake
--------------------------------------------------------------
Jenkins Family Charitable Institute and its Trustee, Casey A.
Jenkins disclosed in a Schedule 13D Report filed with the U.S.
Securities and Exchange Commission that as of August 30, 2024, they
beneficially owned shares of Catheter Precision's Common Stock.
Jenkins Family Charitable Institute is reported to beneficially own
265,226 shares of the common stock, representing 9.5% of the shares
outstanding based on 2,804,152 shares of common stock outstanding
on September 4, 2024. Casey Jenkins is reported to have 271,109,
representing 9.7% of the shares outstanding.
A full-text copy of the Institute's SEC Report is available at:
https://tinyurl.com/mknfzzzp
About Catheter Precision Inc.
Catheter Precision is a U.S.-based medical device company bringing
new solutions to market to improve the treatment of cardiac
arrhythmias. It is focused on developing groundbreaking technology
for electrophysiology procedures by collaborating with physicians
and continuously advancing its products. Reincorporated as Ra
Medical Systems, Inc. in Delaware in 2018, the Company changed its
name to Catheter Precision, Inc. on August 17, 2023.
East Brunswick, New Jersey-based WithumSmith+Brown, PC., the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated March 29, 2024, citing that the
Company has incurred recurring losses from operations and expects
to continue to incur operating losses that raise substantial doubt
about its ability to continue as a going concern.
During the year ended December 31, 2023, Catheter Precision
reported a net loss of $70.6 million, compared to a net loss of
$$26.9 million in 2022. As of June 30, 2024, Catheter Precision had
$26.3 million in total assets,
$11.9 million in total liabilities, and $14.3 million in total
stockholders' equity.
CELEBRATION TITLE: Commences Subchapter V Bankruptcy Case
---------------------------------------------------------
Celebration Title Group LLC filed Chapter 11 protection in the
Middle District of Florida. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 7, 2024 at 10:00 a.m. in Room Telephonically. Call in Number:
877-801-2055. Passcode: 8940738#.
About Celebration Title Group
Celebration Title Group LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-04600) on Aug. 29, 2024. In the petition filed by Amanda C.
Douglas, as manager, the Debtor estimated assets and liabilities
between $1 million and $10 million.
The Honorable Bankruptcy Judge Lori V. Vaughan oversees the case.
The Debtor is represented by:
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
CHEMTRADE LOGISTICS: DBRS Gives BB(high) Issuer Rating
------------------------------------------------------
DBRS Limited (Morningstar DBRS) assigned a final Issuer Rating of
BB (high) and a provisional Senior Unsecured Notes rating of BB to
Chemtrade Logistics Inc. (Chemtrade or the Company), both with
Stable trends. The Senior Unsecured Notes rating is based on a
recovery rating of RR5.
KEY CREDIT RATING CONSIDERATIONS
The credit ratings are supported by Chemtrade's strong market
position within its key product segments in North America, solid
customer and end-market diversification, and barriers to entry in a
number of its product categories. The credit ratings also consider
the intense competitive environment within the industry, the
Company's exposure to fluctuations in commodity prices, and
uncertainty surrounding the long-term viability of the production
of liquid chlorine products at the Company's North Vancouver
facility.
The provisional credit rating on the up to $250 million proposed
Senior Unsecured Notes (the Notes) is not a final credit rating
with respect to the above-mentioned security and may change or be
different from the final credit rating assigned or may be
discontinued. The provisional credit rating of BB is based on
annual reports; quarterly financial statements; management budgets;
a Description of Notes for the proposed Senior Unsecured Notes; and
information provided by Chemtrade, including that the guarantors
and co-borrowers of the existing Credit Facilities are the same as
for the Notes, received to Morningstar DBRS as of August 21, 2024.
The assignment of final credit ratings is subject to receipt by
Morningstar DBRS of all information and final documentation that
Morningstar DBRS deems necessary to finalize the credit rating.
CREDIT RATING DRIVERS
Should Chemtrade materially improve its business-risk profile,
including increased size and scale, while maintaining key credit
metrics at commensurate levels, a positive credit rating action
could occur. Conversely, should Chemtrade's credit metrics weaken
for a sustained period (i.e., debt-to-EBITDA increasing materially
above 3.00 times (x)) as a result of a deterioration in operating
income, or more aggressive financial management, a negative rating
action could ensue. Furthermore, should the Company materially draw
down on its existing revolving credit facilities, such that the
recovery position of the Senior Secured Notes is weakened, a
negative rating action on said Notes could ensue.
EARNINGS OUTLOOK
Looking ahead, Morningstar DBRS anticipates Chemtrade's earnings
profile will remain adequate for the current rating despite an
expectation that the Company will experience some earnings
moderation in 2024, compared with record 2023 levels, before
stabilizing through 2025. Before returning to growth in 2025,
Morningstar DBRS forecasts that in 2024, revenue will decline in
the mid-single digits from $1.85 billion in 2023. The decline is
expected to be primarily driven by the scheduled biennial North
Vancouver plant turnaround; lower average selling prices across a
number of products, including caustic soda; and the impact of the
sale of the P2S5 business in Q4 2023, partially offset by higher
prices in the water treatment business and higher revenue
attributable to sodium chlorate, HCl, and chlorine. Morningstar
DBRS anticipates EBITDA margins to decline to approximately 24% in
2024 and 2025, compared with approximately 27% in 2023, primarily
driven by the impact of lower caustic pricing, the plant
turnaround, and higher corporate costs related to compensation and
unfavorable foreign exchange impacts, partially offset by the
higher water treatment margin, despite the increased raw materials
cost in the segment. As such, Morningstar DBRS anticipates EBITDA
to decline into the Company's guidance range of $430 to $460
million in 2024, from approximately $500 million in 2023, before
settling in the $400 to $450 million range in 2025.
FINANCIAL OUTLOOK
Morningstar DBRS expects Chemtrade's financial profile to remain
strong for the current rating category, supported by conservative
capital allocation practices, despite the expectation of
normalization in credit metrics due to lower earnings year over
year in 2024. Morningstar DBRS anticipates cash flow from
operations will continue to track operating income, declining below
$350 million in 2024 and 2025. Capital expenditures (capex) are
expected to increase slightly to approximately $180 million in
2024, from $166 million in 2023, as the Company is expected to
invest in growth initiatives related to the ultrapure sulphuric
acid and the water treatment businesses. Morningstar DBRS forecasts
capex to moderate slightly in 2025 but to remain above $150
million. Morningstar DBRS anticipates dividends to increase to
approximately $80 million in 2024, and track operating income in
line with the Company's dividend policy over the medium term.
Morningstar DBRS believes Chemtrade will use free cash flow and
funds from the Notes for the repayment of outstanding convertible
debentures and lease principal payments. As such, credit metrics
should remain within the range considered acceptable for the
current rating category.
Notes: All figures are in Canadian dollars unless otherwise noted.
CL CRESSLER: Seeks Chapter 11 Bankruptcy
----------------------------------------
CL Cressler Inc. filed Chapter 11 protection in the Middle District
of Pennsylvania. According to court filings, the Debtor reports
$12,231,972 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
October 2, 2024 at 10:00 a.m. in Room Telephonically.
About CL Cressler Inc.
CL Cressler Inc. -- https://cppg-rx.com/ -- doing business as Care
Capital Management, Inc. and The Medicine Shoppe, is a community
healthcare company.
CL Cressler Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02143) on Aug. 29,
2024. In the petition filed by Daniel A. Brown, as owner, the
Debtor reports total assets of $1,559,353 and total liabilities of
$12,231,972.
The Debtor is represented by:
Lawrence V. Young, Esq.
CGA LAW FIRM
135 North George Street
York, PA 17401
Tel: 717-848-4900
Fax: 717-843-9039
E-mail: lyoung@cgalaw.com
CNEX LABS: Online Public Auction Set for September 24
-----------------------------------------------------
Point Financial Inc. will be conducting a public auction for the
sale of rights to the legal claims of CNEX Labs Inc. The auction
will be held via Zoom on Sept. 24, 2024, at 11:00 a.m. PST, and
hosted by the law offices of Jaburg & Wilk P.C. Auction details:
Claims description: The claims are described in the material in
that superseding indictment brought by the United States of America
vs Huawei Technologies Co. Ltd and indicated affiliates in Case
1:18-cr-00457-AMD, in the portions of the indictment relating to
Company 6.
Possible Value: A possible value measure of damages to CNEX Labs
Inc. arising out of the claims could be between $19 million and
$250 million. A potential for treble damages under a claim of
violation of the Racketeer Influenced and Corrupt Organization Act
exist.
Disclaimers: Point Financial said it makes to representation that
the allegations against Huawei stated in or in connection with the
indictment are factually accurate or any viable legal claim against
Huawei exists. The right to the claims, as they may exist, will be
sold "as is, where is, with all faults", with no representation or
warranties of any kind by Point Financial Inc. express or implied.
Bidders must register by Sept. 17, 2024.
Interested parties may inspect relevant documents and obtain
additional information by contacting:
Point Financial Inc.
Eric Koontz
Tel: 480-707-9234
Email: admin@pointfin.com
Cnex Labs -- https://www.cnexlabs.com/ -- is a company that
specializes in semiconductor devices. It offers solid-state storage
controllers and software for cloud, hyperscale, and enterprise data
centers. The company also features FTL control, network
scalability, and hardware acceleration.
COMMERCEHUB INC: Credit Suisse Marks $600,000 Loan at 18% Off
-------------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$600,000 loan extended to CommerceHub, Inc to market at $492,000 or
82% of the outstanding amount, according to Credit Suisse's Form
N-CSR for the Semi-Annual on Report June 30, 2024, filed with the
Securities and Exchange Commission September 3, 2024.
Credit Suisse is a participant in a Bank Loan to CommerceHub, Inc
(3 mo. USD Term SOFR + 7.000%). The loan matures on December 29,
2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
CommerceHub, Inc. provides cloud-based technologies and services.
The Company operates a cloud-based e-commerce fulfillment and
marketing software platform of integrated supply, demand, and
delivery solutions for large retailers, online marketplaces, and
digital marketing channels, as well as consumer brands,
manufacturers, distributors, and other market participants.
CONNEXA SPORTS: Prosperity Age Limited Holds 8% Equity Stake
------------------------------------------------------------
Prosperity Age Limited filed a Schedule 13G Report with the U.S.
Securities and Exchange Commission disclosing that as of August 27,
2024, it beneficially owned 515,040 shares of Connexa Sports
Technologies Inc.'s common stock, representing 8% of the shares
outstanding.
A full-text copy of the Prosperity Age's SEC Report is available
at:
https://tinyurl.com/2sp7as6b
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports
Technologies Inc. -- www.connexasports.com -- is a connected sports
company delivering products, technologies, and services across a
range of activities in sports. Connexa's mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today's sports consumer.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated July 24, 2024, citing that the Company suffered an
accumulated deficit of $(167,387,028), net loss of $(15,636,418)
and decline in net sales. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
Connexa Sports reported a net loss of $15.64 million for the year
ended April 30, 2024, compared to a net loss of $71.15 million for
the year ended April 30, 2023. As of April 30, 2024, Connexa Sports
had $21.62 million in total assets, $12.02 million in total
liabilities, and $9.60 million in total stockholders' equity.
CONNEXA SPORTS: Winz Technology Holds 6.1% Equity Stake
-------------------------------------------------------
Winz Technology Co., Limited filed a Schedule 13G Report with the
U.S. Securities and Exchange Commission disclosing that as of
August 27, 2024, it beneficially owned 393,450 shares of Connexa
Sports Technologies Inc.'s common stock, representing 6.1% of the
shares outstanding.
A full-text copy of the Winz Technology Co.'s SEC Report is
available at:
https://tinyurl.com/2vcku442
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports
Technologies Inc. -- www.connexasports.com -- is a connected sports
company delivering products, technologies, and services across a
range of activities in sports. Connexa's mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today's sports consumer.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated July 24, 2024, citing that the Company suffered an
accumulated deficit of $(167,387,028), net loss of $(15,636,418)
and decline in net sales. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
Connexa Sports reported a net loss of $15.64 million for the year
ended April 30, 2024, compared to a net loss of $71.15 million for
the year ended April 30, 2023. As of April 30, 2024, Connexa Sports
had $21.62 million in total assets, $12.02 million in total
liabilities, and $9.60 million in total stockholders' equity.
CONNEXA SPORTS: Xingtan Enterprise Management Holds 5.4% Stake
--------------------------------------------------------------
Xingtan Enterprise Management Co., Limited filed a Schedule 13G
Report with the U.S. Securities and Exchange Commission disclosing
that as of August 27, 2024, it beneficially owned 350,000 shares of
Connexa Sports Technologies Inc.'s common stock, representing 5.4%
of the shares outstanding.
A full-text copy of the Xingtan Enterprise's SEC Report is
available at:
https://tinyurl.com/5fcpyvey
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports
Technologies Inc. -- www.connexasports.com -- is a connected sports
company delivering products, technologies, and services across a
range of activities in sports. Connexa's mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today's sports consumer.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated July 24, 2024, citing that the Company suffered an
accumulated deficit of $(167,387,028), net loss of $(15,636,418)
and decline in net sales. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
Connexa Sports reported a net loss of $15.64 million for the year
ended April 30, 2024, compared to a net loss of $71.15 million for
the year ended April 30, 2023. As of April 30, 2024, Connexa Sports
had $21.62 million in total assets, $12.02 million in total
liabilities, and $9.60 million in total stockholders' equity.
CREAGER MERCANTILE: Unsecureds to Split $600K over 5 Years
----------------------------------------------------------
Creager Mercantile Co. ("CMC") filed with the U.S. Bankruptcy Court
for the District of Colorado a Plan of Reorganization dated August
14, 2024.
The Debtor is a Colorado corporation. Debtor is a locally owned and
operated family business and has been serving Denver metro and
Colorado front range businesses since 1958.
Donald "Chip" Creager owns 95% of the Debtor, and his mother, Mary
Creager, owns the remaining 5%. As a wholesale grocery distributor,
the Debtor supplies a variety of products to its clients, such as
grocery items, baking supplies, candy, air fresheners, beverages,
smoking accessories, and an endless list of items to smaller
convenience stores and businesses.
The Debtor's primary source of income is derived from the sale of
goods. The Debtor also receives $20,000 per month from an
affiliated entity, Maxwell Distributors, who rents a portion of the
Debtor's current premises. The $20,000 is paid by the affiliated
entity directly to the landlord on account of the monthly rent
due.
The Debtor's cash flow began to suffer in 2023 when it was in the
process of moving from one building to another, but was
unexpectedly required to pay rent for two facilities at the same
time due to delays in moving into the new premises. As a result,
the Debtor's cash flow suffered and it fell behind on agreed
payments to the Colorado Department of Revenue ("CDOR") for over
two million dollars in past due excise taxes. The Debtor previously
disputed and litigated the applicability of the excise taxes as to
one product, however, the Debtor did not succeed in that litigation
and instead the court issued a large judgment in favor of the CDOR.
The delinquencies on the Debtor's payment plan with the CDOR and
anticipated enforcement by the CDOR ultimately caused the Debtor to
seek protection under the Bankruptcy Code. As a result of the
ongoing financial difficulties, and sudden threats to have its
business shut down, the Debtor filed its voluntary petition for
relief pursuant to Chapter 11, Subchapter V of the Bankruptcy Code
on May 16, 2024.
Class 7 is comprised of the Allowed General Unsecured Claims
holding unsecured claims against the Debtor. Class 7 shall receive
a pro-rata distribution equal to an escalating percentage of the
Debtor's Gross Revenue calculated on annual basis for a five year
period beginning on the one year anniversary of the Effective Date
of the Plan ("Class 7 Plan Term") as follows:
* Year 1: 0.001%
* Year 2: 0.03%
* Year 3: 0.1%
* Year 4: 0.4%
* Year 5: 1.9%
Commencing on the first day of the second calendar year following
the commencement of the Class 7 Plan Term and continuing each year
thereafter, the Debtor shall distribute an amount equal to the
respective percentage of the prior year's Gross Revenue. Based on
the Debtors' projections, the Debtor estimates that Class 7 Claims
will receive approximately $600,000 over a five-year period, or
approximately 24% on account of their claims totaling approximately
$2.47 million.
Class 8 is comprised of the holders of common shares existing as of
the Petition Date. Class 8 is unimpaired by the Plan. On the
Effective Date of the Plan, Class 8 interest holders shall retain
all interests held on the Petition Date.
On the Effective Date of the Plan, Donald "Chip" Creager shall be
appointed pursuant to Section 1142(b) of the Bankruptcy Code for
the purpose of carrying out the terms of the Plan, and taking all
actions deemed necessary or convenient to consummating the terms of
the Plan.
As evidenced by the Debtor's prepared projections, the Debtor
anticipates that its income will be positive each year of the Plan,
and will generate sufficient revenue to meet its obligations under
the Plan. The Debtor has used its best efforts to prepare accurate
projections. The Debtor's actual income will fluctuate based on
actual sales and changes in the market.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=vzI2Ut from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Jeffrey S. Brinen, Esq.
Jenny M.F. Fujii,
Kutner Brinen Dickey Riley, PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Telephone: (303) 832-2400
E-mail: jsb@kutnerlaw.com
About Creager Mercantile Co.
Creager Mercantile Co. is a a wholesale grocery distributor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-12652-KHT) on May 16,
2024. In the petition signed by Donald Creager, president, the
Debtor disclosed $10 million in both assets and liabilities.
Judge Kimberly H. Tyson oversees the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley PC,
represents the Debtor as legal counsel.
CS-TSG WST: Secured Party Sets Nov. 6 Auction
---------------------------------------------
ACF L5-M LLC will sell all right, title, and interest of CS-TSG WST
LLC, 1922 Skibo Holdings LLC and DC-East Bay Holdings LLC to the
highest qualified bidder on Nov. 6, 2024, at 11:00 a.m. (Eastern
Standard Time) at the offices of Paul Hastings LLP, 200 Park
Avenue, New York, New York, 10166, with access afforded in person
and remotely via zoom or other web-based video conferencing or
telephonic conferencing program selected by secured party.
Interested parties who intend to bid must contact Brock Canon of
Newmark at email: brock.cannon@nmrk.com, Tel: 212-372-2066.
Attorney for the secured party can be reached at:
Eric R. Allendorf, Esq.
Paul Hastings LLP
200 Park Avenue
New York, NY 10166
Tel: (212) 318-6383
Fax: (212) 303-7073
Email: ericallendorf@paulhastings.com
CURVES AND COMBAT: Continue Operations to Fund Plan
---------------------------------------------------
Curves and Combat Boots LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Texas a Chapter 11 Plan of
Reorganization dated August 14, 2024.
Founded in 2017, the Debtor is a veteran owned and operated
ecommerce sportswear store that sells women fitness apparel.
The Debtor's mission is to provide the same quality of leggings as
that of named-brands, including LULU, but affordable to our women
in uniform. The Debtor currently operates out of its location in
McKinney, Texas. The Debtor has 4 employees.
Due to cash flow issues resulting from a drop in revenue in the
year 2023, the Debtor was unable meet its monthly debt obligations.
Making matters worse, the Debtor was unable to secure additional
capital to fund operations. The net effect was that the Debtor did
not have sufficient liquidity to continue its business outside the
protection of the Bankruptcy Court and was forced to seek relief
pursuant to Chapter 11 of the Bankruptcy Code.
The Debtor is currently 100% owned by Elijah Maine. After
confirmation, Mr. Maine will remain the owner of the Debtor.
Class 6 consists of Allowed Unsecured Claims. In the event the Plan
is a consensual plan pursuant to Sections 1191(a) and 1129(a), the
Debtor shall make 60 consecutive monthly payments commencing 30
days after the Effective Date of $97.85. The Holders of Allowed
Unsecured Claims shall receive their pro rata share of the monthly
payment.
In the event the Plan is a nonconsensual plan under Section
1191(b), the Debtor shall calculate its Disposable Income each
month and shall distribute the Disposable Income to the Holders of
Unsecured Claims once every three months commencing 30 days after
the Effective Date. The Holders of Allowed Unsecured Claims shall
receive their pro rata share of the Disposable Income payment. The
Class 6 Claimants are impaired and entitled to vote on the Plan.
Class 7 consists of Current Owner. The current owner will receive
no payments under the Plan; however, he will be allowed to retain
his ownership in the Debtor. The Class 7 Claimant is unimpaired.
From and after the Effective Date, the Debtor will continue to
exist as a Reorganized Debtor. By reducing the Debtor's monthly
obligations to creditors to the Reorganized Debtor's Disposable
Income, the Reorganized Debtor will have sufficient cash to
maintain operations and will allow the Reorganized Debtor to
successfully operate following the Effective Date of the Plan.
During the period from the Confirmation Date through and until the
Effective Date, the Debtor shall continue to operate its business
as a debtor-in-possession, subject to the oversight of the
Bankruptcy Court as provided in the Bankruptcy Code, the Bankruptcy
Rules, and all orders of the Bankruptcy Court that are then in full
force and effect.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=dmAvJ5 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Brandon J. Tittle, Esq.
Tittle Law Group, PLLC
5465 Legacy Dr., Ste. 650
Plano, TX 75024
Telephone: (972) 731-2590
Email: btittle@tittlelawgroup.com
About Curves and Combat Boots
Curves and Combat Boots LLC is an athletic apparel company.
Curves and Combat Boots LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41331) on June
4, 2024. In the petition signed by Elijah Maine, as sole member,
the Debtor reports estimated assets between $500,000 and $1 million
and estimated liabilities between $1 million and $10 million.
The Debtor is represented by Brandon Tittle, Esq. at Tittle Law
Group, PLLC.
DEL MONTE: $725MM Bank Debt Trades at 61% Discount
--------------------------------------------------
Participations in a syndicated loan under which Del Monte Foods Inc
is a borrower were trading in the secondary market around 39.2
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $725 million Term loan facility is scheduled to mature on May
16, 2029. About $104.3 million of the loan is withdrawn and
outstanding.
DEL MONTE FOODS, INC. manufactures and distributes packaged food
products. The Company provides canned fruits and vegetables, as
well as a wide range of snacks. Del Monte Foods serves customers
worldwide.
DIGITAL MEDIA: Secures $122M Financing for Chapter 11 Sale Process
------------------------------------------------------------------
Digital Media Solutions, Inc., a leading provider of
technology-enabled digital performance advertising solutions
connecting consumers and advertisers, announced September 13 that
it has entered into an asset purchase agreement with existing
lenders, including a consortium of leading financial institutions.
In addition, the Company has secured an approximately $122 million
financing commitment from certain of the Lenders to facilitate
voluntary Chapter 11 proceedings and execute a court-supervised
sale process designed to maximize value, strengthen the business's
financial foundation and position DMS for continued growth.
"DMS has a strong foundation and serves our expansive blue-chip
client base across the insurance, e-commerce, education, home
services and non-profit sectors through our differentiated
performance marketing solutions," said Joe Marinucci, Co-Founder
and CEO of DMS. "The steps we are taking are the result of the
strategic review that the DMS Board of Directors initiated in
April. We are now moving forward with the support of highly
sophisticated investors, and we believe their commitments for new
financing and the APA underscore their conviction in our business
and the future of DMS. We are continuing our growth trajectory and
are confident we will be an even stronger partner for our clients
and vendors."
Mr. Marinucci continued, "We expect this to be an orderly and
efficient process and, as we move through it, we remain committed
to connecting advertisers with high-intent consumers. We appreciate
the continued support of our customers, vendors and financial
stakeholders. We also thank our employees for their continued hard
work and dedication to innovating and serving our clients."
To facilitate the sale process, DMS today commenced voluntary
Chapter 11 proceedings in the U.S. Bankruptcy Court for the
Southern District of Texas. The Company's ClickDealer subsidiaries
are not part of the Chapter 11 proceedings, but they are included
in the proposed sale to the Lenders. DMS is operating in the
ordinary course across its businesses, including its ClickDealer
subsidiaries, and continuing to provide innovative solutions,
vertical expertise and outstanding support to its clients and
vendors.
The Chapter 11 Proceedings
The court-supervised sale process will be conducted pursuant to
section 363 of the U.S. Bankruptcy Code. Accordingly, the proposed
transaction with the Lenders is subject to higher or otherwise
better offers, Court approval and other customary conditions.
In connection with the Chapter 11 proceedings, DMS has received a
commitment for approximately $122 million in debtor-in-possession
financing from certain of its existing lenders, comprising $30
million in new money commitments and approximately $92 million in a
"roll-up" of pre-petition funded debt. Upon approval from the
Court, the DIP financing, coupled with cash generated from the
Company's ongoing operations, is expected to support the business
throughout the court-supervised sale process.
The Company has filed a number of customary motions seeking Court
authorization to continue to support its business operations during
the court-supervised sale process, including authority to continue
payment of employee and contractor wages and benefits. The Company
expects to receive Court approval for these requests and,
accordingly, anticipates continuing its ordinary course operations.
The Company also intends to pay vendors and suppliers in full under
normal terms for services contracted for on or after the filing
date.
Additional information is available at AdvancingDMS.com. Court
filings and other information related to the sale process are
available on a separate website administered by the Company's
claims agent, Omni Agent Solutions, at
https://omniagentsolutions.com/DMS; by calling Omni representatives
toll-free at (866) 680-8083, or (818) 574-6886 for calls
originating outside of the U.S. or Canada; or by emailing
DMSInquiries@OmniAgnt.com.
Advisors
Kirkland & Ellis LLP and Porter Hedges LLP are serving as legal
counsel to DMS, Portage Point Partners is serving as restructuring
advisor and Houlihan Lokey Capital, Inc. is serving as investment
banker.
About Digital Media
Headquartered in Clearwater, Fla., Digital Media Solutions Inc.
(NYSE: DMS) -- @digitalmediasolutions.com -- is a provider of
data-driven, technology-enabled digital performance advertising
solutions connecting consumers and advertisers within the auto,
home, health, and life insurance, plus a long list of top consumer
verticals. The DMS first-party data asset, proprietary advertising
technology, significant proprietary media distribution, and
data-driven processes help digital advertising clients de-risk
their advertising spend while scaling their customer bases.
DNC AND TCPA: Unsecureds Will Get 100% of Claims over 5 Years
-------------------------------------------------------------
DNC and TCPA List Sanitizer, LLC, filed with the U.S. Bankruptcy
Court for the District of Colorado a Small Business Plan of
Reorganization under Subchapter V dated August 14, 2024.
The Debtor is a Colorado limited liability company based out of
Colorado Springs, Colorado. It is primarily an internet-based
business. The Debtor was initially established in March 1, 2019 by
Michael O'Hare and his wife, Tania O'Hare.
The O'Hares own 1% of DNC and the other 99% is owned by another
company known as Cashyew Holdings, LLC. Michael O'Hare owns 75% of
Cashyew Holdings, LLC and Tania O'Hare owns the remaining 25%. The
Debtor has operated successfully and profitably since its
inception. DNC stands for "do not call" and TCPA is the
abbreviation for "Telephone Consumer Protection Act."
The debtor filed suit against Ringba (and others in El Paso County
District Court, State of Colorado) because it believed that
creditor Ringba stole its database of do not call contacts. In
time, the case against Ringba was dismissed and a scheduled trial
was vacated. The trial court judge awarded Ringba attorney's fees
of $500,000 and its costs of approximately $140,000.00.
The Debtor was not able to resolve the Ringba judgment before this
case was filed. Ringba, filed a writ of execution on the Debtor's
internet payment account, forcing it to file this bankruptcy. To
further the Debtor's restructuring efforts, the Debtor filed its
voluntary petition for relief pursuant to Chapter 11, Subchapter V,
on May 16, 2024 to continue as a going concern.
Class 4 consists of General Unsecured Claims. There are only two
unsecured claims in this class both belonging to American Express.
One for $10,2154.15 and the other for $49,014.09, for a total of
$59,228.24. Mr. O'Hare is currently negotiating a payoff of the
American Express Claims and will pay them off in full personally.
This Class is impaired.
This Class 4 claimant shall receive payment of its Allowed Claims
in full over 5 years without interest if Mr. O'Hare is not able to
resolve it prior to the Effective Date of this plan. Based on the
Debtor's projections, the Debtor estimates that American Express
will be paid approximately $987.14 per month and be paid in full in
5 years. Based on the estimated distributions, Class 4 Claimant is
anticipated to receive approximately 100% of their allowed claims.
Class 5 consists of General Unsecured Claim of Ringba, LLC. Class 5
is disputed and is subject to a pending appeal which should be
resolved soon. Oral arguments are scheduled for September 3, 2024.
If the judgment in favor of Ringba is affirmed, debtor will pay its
claim in full over 5 years without interest. Pending the appeal,
debtor will escrow and pay to the Subchapter V trustee $10,935.13
per month until this claim is paid in full.
Class 6 consists of the unsecured claim of Gary Tucker. This Class
shall be paid in full on the Effective Date of the Plan unless
otherwise agreed to by the Debtor and the claimant.
Class 7 consists of the Claim of Jeffrey Cohen. The Debtor disputes
that it owes this creditor anything. Debtor has objected to its
claims and believes that this creditor’s claims should be
litigated as part of the state court legal malpractice claim debtor
believes it has against this creditor.
The Debtor has based payments to Class 4 Unsecured Creditors on
Gross Revenue to further support the feasibility of the Plan. As
the Debtor's revenue fluctuates, the amount set aside for creditors
will fluctuate as well, but the Debtor will not be overburdened
with fixed debt payments. The Debtor generally operates at a profit
margin of approximately 15% of its gross revenue.
Post-petition, the Debtor's revenue is growing at approximately
3.5% annually. Debtor anticipates that it will be able to meet or
exceed the revenue projected under the Plan.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=qyjvFM from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
John A. Cimino, Esq.
Cimino Law Office LLC
5500 East Yale Ave., Suite 201A
Denver, CO 80222
Telephone: (720) 434-0434
Email: JC925AVE@yahoo.com
About DNC and TCPA Sanitizer
DNC and TCPA List Sanitizer, LLC, is a Colorado limited liability
company that is primarily an internet-based business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-12624) on May 16,
2024, with $50,001 to $100,000 in assets and $500,001 to $1 million
in liabilities.
Judge Kimberley H. Tyson oversees the case.
The Debtor tapped John Cimino, Esq., at Cimino Law Office, LLC as
bankruptcy counsel and Vandana Koelsch, Esq., at Allen Vellone Wolf
Helfrich & Factor PC as special litigation counsel.
DRF LOGISTICS: Creditors to Get Proceeds From Liquidation
---------------------------------------------------------
DRF Logistics, LLC and DRF, LLC filed with the U.S. Bankruptcy
Court for the Southern District of Texas a Disclosure Statement for
Joint Plan of Liquidation dated August 15, 2024.
Headquartered in Austin, Texas, the Debtors are providers of
domestic ecommerce parcel ("GEC") services, operating approximately
$35 billion in total addressable market and working with over 350
customer brands, including leading retailers and marketplaces.
The Debtors faced certain financial difficulties prior to the
Petition Date and commenced these chapter 11 cases to effectuate an
orderly and efficient wind-down of the Debtors" operations. On
August 8, 2024, the Debtors, Pitney Bowes International Holdings,
Inc. ("PBIH"), Pitney Bowes, Inc. ("PBI" and together with its
affiliates "Pitney Bowes"), and certain funds and Affiliates of
Oaktree Capital Management, L.P., entered into that certain
Restructuring Support Agreement (as may be amended, supplemented,
or otherwise modified from time to time and including all exhibits
thereto, the "RSA"). Under the RSA, PBI, PBIH, and Oaktree have
agreed, subject to the terms and conditions of the RSA, to vote in
favor of and support the Plan.
The Plan contemplates a liquidation and eventual wind-down of the
Debtors. Prior to the Effective Date, the Debtors will use
commercially reasonable efforts to sell their assets. To implement
the provisions of the Plan, including making distributions to
holders of Claims and Interests, the Plan contemplates the
appointment of Hilco Commercial Industrial, LLC as the Liquidating
Agent for each Debtor (the "Liquidating Agent"). The Liquidating
Agent will carry out and implement all provisions of the Plan after
the Effective Date and wind down the Debtors' estates.
The Plan incorporates the terms of that certain Settlement and
Release Agreement, dated August 8, 2024 (the "Settlement and
Release Agreement"), entered into between the Debtors, PBI, and
PBIH. The Settlement and Release Agreement represents a full,
final, integrated, complete, and good-faith compromise, settlement,
release, and resolution of, among other matters, disputes and any
potential claims between the Debtors and Pitney Bowes.
Additionally, in connection with the Settlement and Release
Agreement, Pitney Bowes agreed to support the Plan and committed to
provide up to $18.5 million to fund Plan distributions to holders
of Oaktree Secured Claims and General Unsecured Claims in exchange
for the release of any and all claims and Causes of Action the
Debtors may have against Pitney Bowes.
The Plan further provides for certain distributions on the
Effective Date, including (i) the establishment of, initial funding
of, and distributions from the Senior Claims Recovery Pool, (ii)
funding of the Fee Escrow and payment of Fee Claims therefrom,
(iii) establishment of and funding of the Wind Down Estates, (iv)
funding of and distributions from the Unsecured Claims Initial
Distribution, (v) funding of and distributions from the Oaktree
Initial Funding Amount, and thereafter (vi) payment of the DIP
Claims, in each case, in accordance with the Plan.
After the Effective Date, the proceeds from the sale of any Wind
Down Estate Assets and any other Assets of the Wind Down Estates
will become Post-Effective Date Available Cash of the applicable
Wind Down Estate. Any distributions of Post-Effective Date
Available Cash will be allocated in accordance with the below
described Waterfall (and as set forth in more detail in the Plan):
* to fund any deficits in the Wind Down Reserve;
* to fund any deficits in the Senior Claims Recovery Pool;
* to fund the Oaktree Additional Recovery Amount until all
Oaktree Secured Claims are paid in full;
* to fund the Unsecured Claims Subsequent Distribution until
all Allowed General Unsecured Claims are paid in full;
* to fund any Allowed DIP Claims not otherwise paid on the
Effective Date until the Allowed DIP Claims are paid in full; and
* to Existing DRF Logistics Equity Interests.
Class 4 consists of General Unsecured Claims. Each holder of an
Allowed General Unsecured Claim shall receive, from the Debtors or
Liquidating Agent, in full and final satisfaction, settlement,
release, and discharge of such Allowed General Unsecured Claim,
such holder's Pro Rata share of (i) Unsecured Claims Initial
Distribution; provided that, for the purposes of this clause (i),
the PB Unsecured Claim shall not participate in or receive any
recovery from the Unsecured Claims Initial Distribution, plus (ii)
the Unsecured Claims Subsequent Distribution with such
distribution(s) pursuant to this clause (ii) made in accordance
with the Debtor Distribution Ratio. Allowed General Unsecured
Claims are Impaired.
Class 6A consists of Existing DRF Logistics Equity Interests. In
accordance with the Amended and Restated Limited Liability Company
Agreement of DRF Logistics, LLC, each holder of an Allowed Existing
DRF Logistics Equity Interest as of the Effective Date shall be
entitled to receive, from the Debtors or Liquidating Agent any
remaining Cash from DRF Logistics, LLC's Estate or Wind Down Estate
following the satisfaction in full in accordance with the
Bankruptcy Code and the Plan of all (i) Allowed General Unsecured
Claims, (ii) Allowed Oaktree Secured Claims, and (iii) Allowed DIP
Claims against DRF Logistics, LLC. For the avoidance of doubt, the
Existing DRF Logistics Equity Interests shall remain in existence
until the day following the Wind Down Completion Date, at which
time such interests shall be automatically extinguished.
Class 6B consists of Interdebtor Interests. On the Effective Date
and without the need for any further corporate or limited liability
company action or approval of any board of directors, board of
managers, member, manager, management, or Security holders of any
Debtor or Wind Down Estate, (as applicable) all Interdebtor
Interests shall be unaffected by the Plan and continue in place
following the Effective Date, solely for the administrative
convenience of maintaining the existing corporate structure of the
Debtors.
The Debtors and Liquidating Agent shall fund Cash distributions
under this Plan with Cash proceeds available from: (i) Cash
available on or after the Effective Date in accordance with the
Plan, including the PB Settlement Amount, and (ii) any additional
proceeds of the Wind Down, if any.
A full-text copy of the Disclosure Statement dated August 15, 2024
is available at https://urlcurt.com/u?l=xL2nsq Stretto, Inc.,
claims agent.
Proposed Attorneys for the Debtors:
Gabriel A. Morgan, Esq.
Clifford W. Carlson, Esq.
WEIL, GOTSHAL & MANGES LLP
700 Louisiana Street, Suite 3700
Houston, Texas 77002
Tel: (713) 546-5000
Fax: (713) 224-9511
E-mail: Gabriel.Morgan@weil.com
Clifford.Carlson@weil.com
- and -
Ray C. Schrock, Esq.
Ronit J. Berkovich, Esq.
Lauren Tauro, Esq.
Alexander P. Cohen, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
E-mail: Ray.Schrock@weil.com
Ronit.Berkovich@weil.com
Lauren.Tauro@weil.com
Alexander.Cohen@weil.com
About DRF Logistics
Headquartered in Austin, Texas, DRF Logistics, LLC and DRF, LLC are
providers of domestic ecommerce parcel services, as well as
cross-border logistics services, operating approximately $35
billion in total addressable market and working with over 350
customer brands, including leading retailers and marketplaces. The
Debtors' domestic parcel services include delivery, returns,
underlying client and consumer-facing software. The Debtors'
cross-border services include modular delivery solutions to over
200 destinations.
DRF Logistics and DRF filed their voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 24-90447) in August 8, 2024, listing $100 million to $500
million in both assets and liabilities. The petitions were signed
by Eric Kaup as chief restructuring officer.
Judge Christopher M Lopez presides over the case.
Gabriel Adam Morgan, Esq., at Weil, Gotshal & Manges LLP, is the
Debtors' counsel.
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 33% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Employbridge LLC is
a borrower were trading in the secondary market around 66.9
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on July
19, 2028. The amount is fully drawn and outstanding.
Employbridge, LLC operates as an industrial staffing company. The
Company offers temporary associates in manufacturing, logistics,
warehousing, and contact centers.
EVERLASTING TRUCKING: Amends Kubota Credit Secured Claims Pay
-------------------------------------------------------------
Everlasting Trucking, LLC, submitted an Amended Plan of
Reorganization dated August 14, 2024.
This Plan provides for 9 classes of secured claims and 1 class of
unsecured claims. Unsecured creditors holding allowed claims will
receive distribution under this Plan as determined by Section
1129(a)(15) and pursuant to this Plan.
Class 5 consists of the Secured Claim of Kubota Credit Corporation.
Kubota holds a secured claim, secured by the Debtor's Kubota
Tractor Excavator. The Debtor shall value the secured claim in the
amount of $35,000.00. The amount shall be paid together with
interest at the rate of 8.50% per annum simple interest, by 60
payments of $718.08 per month, from the effective date of this
plan.
Class 6 consists of the Secured Claim of Kubota Credit Corporation.
Kubota holds a secured claim, secured by the Debtor's Kubota
Skidsteer. The Debtor shall value the secure claim in the amount of
$27,852.70. The amount shall be paid together with interest at the
rate of 8.50% per annum simple interest, by 60 payments of $571.44
per month, from the effective date of this plan.
Class 7 consists of the Secured Claim of Kubota Credit Corporation.
Kubota holds a secured claim, secured by the Debtor's Kubota Hay
Baler. The Debtor shall surrender the collateral to the Creditor.
Creditor shall have a secured claim in the amount of the value of
the collateral and an unsecured claim as to any remaining debt that
exceeds the value of the collateral.
Class 8 consists of the Secured Claim of Kubota Credit Corporation.
Kubota holds a secured claim, secured by the Debtor's Kubota
Tractor/Loader. The Debtor shall surrender the collateral to the
Creditor. Creditor shall have a secured claim in the amount of the
value of the collateral and an unsecured claim as to any remaining
debt that exceeds the value of the collateral.
Like in the prior iteration of the Plan, holders of Class 10
General Unsecured Claims shall receive 1.00% of the amount owed
pre-petition in 60 months, paid in at a total of $50.00 per month
commencing on the effective date of the Plan.
The Debtor will retain all property of the estate and such property
shall re-vest in the Debtor at discharge. As of the effective date
of this Plan, all property retained by the Debtors and sold shall
be free and clear of any and all liens and interests except as
specifically provided in the Plan or the order confirming the
Plan.
A full-text copy of the Amended Plan dated August 14, 2024 is
available at https://urlcurt.com/u?l=O8uWOq from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Rehan N. Khawaja
Bankruptcy Law Offices of Rehan N. Khawaja
817 North Main Street
Jacksonville, Florida 32202
Telephone: (904) 355-8055
Facsimile: (904) 355-8058
Electronic Mail: Khawaja@Fla-Bankruptcy.com
About Everlasting Trucking
Everlasting Trucking, LLC, opened its trucking business in 2017.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00001) on January 1,
2024, with $100,001 to $500,000 in both assets and liabilities.
Judge Jacob A. Brown oversees the case.
Rehan N. Khawaja, Esq., at the Law Offices of Rehan N. Khawaja, is
the Debtor's bankruptcy counsel.
FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 16% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Flexsys Holdings
Inc is a borrower were trading in the secondary market around 83.6
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $475 million Term loan facility is scheduled to mature on
November 1, 2028. The amount is fully drawn and outstanding.
Flexsys, Inc. was founded in 2000. The company's line of business
includes developing or modifying computer software and packaging.
FRANCHISE GROUP: $300MM Bank Debt Trades at 35% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Franchise Group Inc
is a borrower were trading in the secondary market around 65.5
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on March
10, 2026. About $296.3 million of the loan is withdrawn and
outstanding.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy’s Home Furnishings and
Sylvan Learning Systems, Inc.
GIP PILOT: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
------------------------------------------------------------
S&P Global Ratings revised the outlook on GIP Pilot Acquisition
Partners L.P. (GIP Pilot) to positive from stable and affirmed its
'BB-' issuer credit rating on the company.
S&P also affirmed its 'BB-' issue-level rating, with a '3' recovery
rating, on the company's debt.
The positive outlook reflects S&P's expectation that GIP Pilot will
receive a larger distribution from CPHC in 2025 because CPHC
accelerated a portion of previously budgeted growth capital
expenditure to 2024.
S&P said, "Our rating on GIP Pilot continues to reflect the
difference in credit quality between it and CPHC. GIP Pilot relies
solely on distributions from CPHC to service its senior secured
term loan B (TLB) due 2030. Therefore, among other factors, we rate
GIP Pilot under our noncontrolling equity interest (NCEI) criteria.
Our view of GIP Pilot's credit profile incorporates the company's
financial ratios, CPHC's cash flow stability, GIP Pilot's ability
to influence CPHC's financial policy, and ability to liquidate its
investment in CPHC to repay the $1.1 billion TLB.
"We expect GIP Pilot's stand-alone credit metrics will improve in
2025. We evaluate GIP Pilot's financial ratios on a stand-alone
basis. We define the company's stand-alone EBITDA as the net
distribution received from CPHC minus GIP Pilot's operating and
administrative expenses as per our criteria. We expect GIP Pilot
will receive about $460 million in net distributions in 2024, $625
million in 2025, and $460 million in 2026. The improving 2025 net
distribution is because CPHC accelerated a portion of its
previously budgeted 2025 growth capital expenditure into 2024 and
therefore created more cash flow capacity in 2025 to make
distributions to its owners. In addition, we expect GIP Pilot will
not draw on its revolving credit facility (RCF) over the forecast
period. On a stand-alone basis, we expect GIP Pilot's debt to
EBITDA will be about 2.2x in 2024, 1.3x in 2025, and 1.6x in 2026;
and interest coverage will be about 5.7x in 2024, 9.8x in 2025, and
10.3x in 2026.As a result, we revised our financial ratios
assessment on the company to positive from neutral.
"Our assessments on other NCEI characteristics are unchanged. We
expect the company will continue to receive stable distributions
from CPHC over the life of the loan. Asset-level cash flows are
supported by the significant scale of the CPHC pipeline system, its
access to the Appalachian basin, and its robust credit profile
underpinned by 95% of its revenue subject to take-or-pay contracts
with a diverse and creditworthy customer base. The weighted-average
contract life is about seven years, with a strong track record of
contract renewals. CPHC's pipeline system stretches over 15,000
miles and supports 15.6 billion cubic feet per day (Bcf/d) of
throughput capacity. It also has one of the largest underground
natural gas storage systems, with 273 billion cubic feet (Bcf) of
integrated working gas capacity. These characteristics support our
positive cash flow stability assessment. In addition, GIP Pilot has
substantial governance rights over CPHC and CPHC is required to
distribute all its distributable cash flow on a quarterly basis to
its owners--TC Energy Corp. and GIP Pilot. GIP Pilot holds voting
power on key decisions, including growth projects, capital
structure, leverage, and financial policy. Budget changes need GIP
Pilot's approval, and any adjustments to distributions from CPHC
require a unanimous decision. In our view, however, there is not a
sufficient track record of stable or growing distributions through
various industry cycles from the pipeline, which limits our
assessment of corporate governance and financial policy at neutral.
Lastly, our view of GIP Pilot's ability to liquidate its investment
in CPHC is negative because CPHC is not publicly traded.
"The positive outlook reflects our expectation that GIP Pilot will
receive increased distributions from CPHC in 2025 because CPHC
accelerated a portion of previously budgeted growth capital
expenditure to 2024, resulting in more capacity for upstream
distribution in 2025.
"We could revise the outlook to stable if we expect the company's
stand-alone debt to EBITDA will remain above 2x or the interest
coverage ratio below 5x.
"We could upgrade GIP Pilot if we view the company's actual 2024
credit metrics as consistent with our expectation and that we
forecast the company sustaining its debt to EBITDA below 2x and
interest coverage ratio above 5x."
GLOBAL BENEFITS: Creditors to Get Proceeds From Liquidation
-----------------------------------------------------------
Global Benefits Group, Inc., filed with the U.S. Bankruptcy Court
for the District of New Jersey a Plan of Liquidation dated August
14, 2024.
The Debtors are U.S.-based subsidiaries of GBG Insurance Limited
("GIL"), a Guernsey-based insurance company. The Debtors serviced
health, life, disability, travel, and education insurance policies
primarily to expatriates, international citizens, teachers, and
international students of American and international schools.
Debtor Global Benefits Group, Inc. ("GBG Inc.") is a Delaware
corporation, which wholly-owns Debtor GBG Holding Incorporated and
Debtor International Claims Services, Inc. In turn, GBG Inc. is
wholly owned by non-Debtor GIL, a Guernsey-based insurance company,
which itself is wholly owned by GBGI Limited, another
Guernsey-based company ("GBGI" and, together with the Debtors, GIL
and other non-Debtor affiliates and subsidiaries, the "GBG
Group").
Historically, GIL had no employees of its own. Rather, it operated
as part of an international integrated group (of which the Debtors
were a part) but was reliant on the Debtors and other members of
the GBG Group to carry out its operational functions. Based on
information provided by the finance department regarding its
initial assessment, and despite earlier clean audits, BDO USA,
GIL's auditor, identified certain deficiencies regarding historical
internal controls at GIL.
Given that GIL supplied the Debtors with the resources necessary to
operate and perform the administrative functions of the GBG Group,
GIL's financial struggles and its commencement of administration
proceedings caused the Debtors to experience financial distress as
well. As a result, the Debtors took the necessary steps of
commencing these cases to preserve and maximize the value of their
assets.
Through this Plan, the Debtors intend to wind down their businesses
as expeditiously as possible and distribute the proceeds from the
liquidation of their limited remaining assets to creditors.
As of the Plan Effective Date, all of the Debtors' Cash on hand and
other assets, including potential claims and causes of action
against third parties, accounts receivable, and other amounts owed
to or collectible by the Debtors' estates, will be transferred to a
Liquidation Trust, which will be vested with authority to pursue
such claims and causes of action and monetize such assets, so that
any resulting proceeds and other assets can be distributed to
creditors as quickly as possible.
Class 3 consists of the General Unsecured Claims. As soon as
practicable after the Effective Date, each Holder of an Allowed
General Unsecured Claim shall receive, in full satisfaction,
settlement, discharge, and release of, and in exchange for, such
Allowed General Unsecured Claim (unless the applicable Holder
agrees to a less favorable treatment), its Pro Rata share of
Liquidation Trust Interests, which shall entitle such Holder to its
Pro Rata share of the Liquidation Trust Assets.
The Liquidation Trust Assets shall initially consist of, inter
alia: (i) any Cash on hand; (ii) the proceeds of the domain name
asset sale; (iii) proceeds realized from the MGEN Settlement
Agreement and the Settlement Sum Allocation Agreement; (iv) any
accounts receivable and other amounts owed to or collectible by the
Debtors' estates; (v) the D&O Liability Insurance Policies; (vi)
the Retained Causes of Action; and (vii) the proceeds of the
foregoing. Plan Distributions on account of such Liquidation Trust
Assets shall be made on or as soon as reasonably practicable after
the later of: (i) the Initial Distribution Date if such General
Unsecured Claim is Allowed on the Effective Date, or (ii) the date
on which such General Unsecured Claim becomes an Allowed General
Unsecured Claim. Class 3 is an Impaired.
Class 4 consists of of Equity Interest Holders. The Debtors are
corporations organized under the laws of the state of Delaware.
Class 4 consists of Equity Interests in the Debtors. As of the
Effective Date, all Equity Interests shall be deemed void,
cancelled, and of no further force and effect. Holders of Equity
Interests shall not be entitled to, and shall not receive or retain
any property or interest in property under the Plan on account of
such Equity Interests unless and until all Holders of Claims in
Class 1, Class 2 and Class 3 have been paid in full. In the event
sufficient funds are available to distribute to Holders of Equity
Interests, such Holders shall receive such distributions on a Pro
Rata basis.
This Plan provides for: (a) the formation of the Liquidation Trust;
(b) the disposition of substantially all the assets of the Debtors'
and their estates and the distribution of the net proceeds thereof
(including the proceeds of the sale of the Debtors' domain name) to
Holders of Allowed Claims, consistent with the priority provisions
of the Bankruptcy Code; (c) the winding down of the Debtors and
their affairs by the Liquidation Trustee; and (d) the creation of a
mechanism for the Liquidation Trustee to pursue, litigate, waive,
settle, and compromise Causes of Action and to collect accounts
receivable, and other amounts owed to or collectible by the
Debtors' estates to maximize Creditor recoveries.
A full-text copy of the Liquidating Plan dated August 14, 2024 is
available at https://urlcurt.com/u?l=48L1yP from Omni Agent
Solutions, claims agent.
Counsel to the Debtors:
SILLS CUMMIS & GROSS P.C.
Andrew H. Sherman, Esq.
S. Jason Teele, Esq.
Gregory A. Kopacz, Esq.
Oleh Matviyishyn, Esq.
One Riverfront Plaza
Newark, New Jersey 07102
(973) 643-7000 (Telephone)
(973) 643-6500 (Facsimile)
Email: asherman@sillscummis.com
steele@sillscummis.com
gkopacz@sillscummis.com
omatviyishyn@sillscummis.com
About Global Benefits Group
Global Benefits Group, Inc., operating in conjunction with its
affiliates and subsidiaries, is a global insurance service company
servicing health, life, disability, and travel insurance for a
client base that spans multinational corporations, expatriates,
international students, high net-worth individuals, international
schools, and non-profit organizations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-16134) on June 18, 2024,
with $1,927,677 in assets and $11,981,444 in liabilities. Joseph
Schwartz, Esq., at Riker Danzig Scherer Hyland & Perretti, LLP
serves as Subchapter V trustee.
Judge Christine M. Gravelle presides over the case.
The Debtor tapped S. Jason Teele, Esq., at Sills Cummis & Gross
P.C. as legal counsel; Getzler Henrich & Associates, LLC as
financial advisor; and Omni Agent Solutions as claims and noticing
agent.
GRAND FUSION: Unsecureds to Get Share of GUC Recovery
-----------------------------------------------------
Grand Fusion Housewares, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Texas a Chapter 11 Plan of
Reorganization dated August 14, 2024.
The Debtor was founded in 2016 on a shoe-string budget as a vehicle
to bring unique consumer products to market in the United States.
The business experienced quick initial success generating over
$700,000 in revenue in year one and doubling in size in year two
with a fast growing list of retail customers. Unfortunately, in
2023 the industry experienced a sudden decline in consumer demand.
Retailers were already overstocked from the pandemic, and
competitors had a glut of inventory creating a sudden decline in
demand across the industry.
In an attempt to right the ship, the Debtor took aggressive action
to reduce costs, down-size and move to a less expensive thirty
party warehouse. The Debtor also engaged in efforts to raise new
equity capital and/or sell the business outright. But the entire
houseware industry was in distress, with companies much larger than
the Debtor experiencing similar difficulties. The Debtor went
through a significant reduction in force and moved from its
third-party warehouse to a smaller less expensive location in
California.
The Debtor filed this case to commence an orderly restructuring of
its business to maximize the value of its estate for the benefit of
creditors. The Debtor has a profitable online business which has
stabilized and is growing. The Debtor has a small portfolio of
unique products that perform very well on Amazon and other
websites. Those products are proving to be consistently profitable.
The Debtor intends to pay creditors over time through funds
received from operation of its online business.
Class 7 consists of all General Unsecured Claims against any
Debtor. Except to the extent that a holder of an Allowed General
Unsecured Claim agrees to less favorable treatment, in full and
final satisfaction, compromise, settlement, release, and discharge
of and in exchange for each General Unsecured Claim, each holder of
an Allowed Class General Unsecured Claim shall receive its pro rata
share of the GUC Recovery. The GUC Recovery shall be paid by the
Debtor to holders of Allowed General Unsecured Claims prior to the
Plan Completion Date in accordance with the Plan Projections. Class
7 is Impaired.
Class 8 consists of all the Interests in the Debtor. On the
Effective Date, all Class 8 Interests shall remain in place at
their prepetition priority and status. The Class 8 Interests are
Unimpaired and are deemed to have accepted the Plan.
The Reorganized Debtor shall fund Plan Distributions with: (1) Cash
on hand; (2) the Royalty and Sales Commission due to the Debtor in
connection with the Debtor's sale of the Transferred Assets to
Evriholder Products, LLC; and (3) the proceeds of operations.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=ZfQyT4 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Bryan C. Assink, Esq.
Bonds Ellis Eppich Schafer Jones, LLP
420 Throckmorton Street, Suite 1000
Fort Worth, TX 76102
Telephone: (817) 405-6900
Facsimile: (817) 405-6902
Email: bryan.assink@bondsellis.com
About Grand Fusion Housewares
Grand Fusion Housewares, LLC, a company in Carrollton, Texas, is
engaged in the retail sales of home accessories.
Grand Fusion Housewares filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No.
24-41694) on May 16, 2024, with $469,526 in assets and $3,134,245
in liabilities. Behrooz Vida, Esq., at the Vida Law Firm, PLLC,
serves as Subchapter V trustee.
Judge Mark X. Mullin oversees the case.
Bryan C. Assink, Esq., at Bonds Ellis Eppich Schafer Jones, LLP, is
the Debtor's legal counsel.
GRANITE CITY MECHANICAL: Commences Subchapter V Bankruptcy Process
------------------------------------------------------------------
Granite City Mechanical Inc. filed Chapter 11 protection in the
Western District of North Carolina. According to court filings,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 2, 2024 at 1:00 p.m. in Room Telephonically.
About Granite City Mechanical
Granite City Mechanical Inc. is a mechanical contractor in Mount
Airy, North Carolina.
Granite City Mechanical Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-50323) on Aug.
30, 2024. In the petition signed by Sherri Fore, as officer, the
Debtor estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Laura T. Beyer oversees the case.
The Debtor is represented by:
John C. Woodman, Esq.
ESSEX RICHARDS PA
1701 South Boulevard
Charlotte, NC 28203
Tel: (704) 377-4300
Fax: (704) 372-1357
Email: jwoodman@essexrichads.com
HAWKERS HOLDINGS: Seeks Bankruptcy to Stop Lender
-------------------------------------------------
Hawkers Asian Street Fare, the Orlando-based pan-Asian restaurant
chain, filed for Chapter 11 bankruptcy protection in federal court
Monday.
Kirk O'Neil of The Street reports that Hawkers Hawkers Asian Street
Food filed for Chapter 11 bankruptcy to maintain operational
control of the company and protect it from an overreaching lender,
the Debtor said in a statement to Nation's Restaurant News.
Shortly after receiving a default notice from its lender -- ABC
Funding LLC, an administrative agent for Boston-based Summit
Partners Subordinated Debt Fund IV-A LP -- Hawkers leadership
retained business bankruptcy attorney Scott Shuker of Orlando firm
Shuker & Dorris PA, according to reporting by WFTV.
The Orlando, Fla.-based Asian restaurant chain's parent Hawkers
Holdings and four affiliates filed bare-bones Chapter 11 petitions
in the U.S. Bankruptcy Court for the Middle District of Florida
listing $10 million to $50 million in assets and debt.
The 15-unit chain in early 2023 signed "a debt capital agreement
with the intention of growing the brand into a household name
across the United States." The Company's lender in the last 60
days reportedly revealed an intention to gain control of the
company, though Hawkers claims it has never missed a loan payment.
"This filing will allow Hawkers to continue normal, uninterrupted
operations and vendor payments while company control is
re-stabilized in a way that secures a thriving and successful
future for Hawkers and its dedicated team," according to a
statement by the Company.
The Debtor, founded in 2011, opened one new location last year, and
had 18.5% sales growth, Nation's reported. The company in 2023 had
a 26% increase in same-store sales and gross sales of almost $100
million.
The Debtor, which already has 15 locations in 7 states, reportedly
plans to open new locations in the Washington, D.C. area;
Charlotte, N.C.; and Texas. It will continue opening restaurants
in current markets and then expand to new cities and states in
2026.
Restaurant Business Online notes that Hawkers joins a long list of
restaurant chains both large and small that have sought bankruptcy
protection this year, amid rising costs and falling traffic.
About Hawkers Holdings
Hawkers Holdings LLC -- https://www.eathawkers.com -- owns an
Orlando-based pan-Asian restaurant chain known as Hawkers Asian
Street Food. Four friends, many with family roots in Asia, founded
Hawkers in 2011, with the goal to "bring the streets of Asia to the
streets of Orlando." Hawkers has 15 locations in 7 states,
including Florida, Georgia, Maryland, North Carolina, Tennessee,
Texas, and Virginia.
Hawkers Intermediate, LLC, and its affiliates, including Hawkers
Holdings, LLC, sought Chapter 11 protection (Bankr. M.D. Fla. Lead
Case No. 24-04935) on Sept. 16, 2024. In the petitions filed by
Kaleb C. Harrell, as manager, the Debtors each estimated assets and
liabilities between $10 million and $50 million.
The Debtors are represented by:
R Scott Shuker, Esq.
Shuker & Dorris, P.A.
54 W. Church St., Ste. 250
Orlando, FL 32801
HAWKERS HOLDINGS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Hawkers Intermediate, LLC 24-04935
54 W. Church St., Ste. 250
Orlando, FL 32801
Hawkers Topco, LLC 24-04936
54 W. Church St., Ste. 250
Orlando, FL 32801
Hawkers Growth Fund I, LLC 24-04937
54 W. Church St., Ste. 250
Orlando, FL 32801
Hawkers Growth Fund II, LLC 24-04938
54 W. Church St., Ste. 250
Orlando, FL 32801
Hawkers Holdings, LLC 24-04940
54 W. Church St., Ste. 250
Orlando, FL 32801
Business Description: The Debtors comprise a restaurant chain
offering authentic Asian street food made
from generational recipes. They also
provide exotic cocktails, Japanese whisky
and sake matched with fun vibes.
Chapter 11 Petition Date: September 16, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Judge: Hon. Lori V Vaughan (24-04935 and 24-04940)
Hon. Grace E Robson (24-04936, 24-04937, and 24-04938)
Debtors' Counsel: R.Scott Shuker, Esq.
SHUKER & DORRIS, P.A.
121 S. Orange Avenue
Suite 1120
Orlando, FL 32801
Tel: (407) 337-2060
Email: rshuker@shukerdorris.com
Each Debtor's
Estimated Assets: $10 million to $50 million
Each Debtor's
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Kaleb C. Harrell as manager.
The Debtors failed to include in the petitions lists of their 20
largest unsecured creditors.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/X7Y723A/Hawkers_Growth_Fund_II_LLC__flmbke-24-04938__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/BE46EDA/Hawkers_Topco_LLC__flmbke-24-04936__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AZPHWXI/Hawkers_Intermediate_LLC__flmbke-24-04935__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/UGHLCEQ/Hawkers_Holdings_LLC__flmbke-24-04940__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/XUCY52I/Hawkers_Growth_Fund_I_LLC__flmbke-24-04937__0001.0.pdf?mcid=tGE4TAMA
HAZ MAT SPECIAL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Haz Mat Special Services, LLC
2200 Pasadena Fwy.
Pasadena TX 77506
Business Description: Haz Mat Special Services (HMSS) specializes
in 24/7 Emergency Response Services and is
ready for the most challenging circumstances
involving hazardous materials incidents in
all modes of transportation & fixed sites.
The Company's focus is responding to
emergency situations involving hazardous
materials, industrial fires, explosions,
Chem/Bio, WMDs, radiologicals (TENORM) or
weather related events occur.
Chapter 11 Petition Date: September 13, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-34269
Debtor's Counsel: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
5465 Legacy Drive, Ste. 650
Plano, TX 75024
Tel: 972-731-2590
Email: btittle@tittlelawgroup.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joshua Williams as sole member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/JMDRH7I/Haz_Mat_Special_Services_LLC__txsbke-24-34269__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Jack Doheny Companies, Inc. Services $514,061
777 Doheny Drive
Northville, MI, 48167
2. Ironclad Environmental Solutions Services $305,871
4888 Loop Central Dr., Ste. 440
Houston, TX 77081
3. Aqua Clean Environmental Services $221,411
Company, LLC
3210 Whitten Road
Lakeland, FL, 33811
4. McBride Operating LLC Services $175,685
4010 Water View Dr.
Longview, TX, 75605
5. MTI Enterprises, LLC Services $155,043
423 W. 55t St., 2nd Floor
New York, NY 10019
6. Northstar Marine, Inc. Services $135,559
36 Clermont Drive
Cape May Court House, NJ 08210
7. Alpha-Omega Training and Services $134,151
Compliance
1540 Armstrong Drive
Titusville, FL 32780
8. Republic Services Utility Services $121,244
18500 N. Allied Way
Phoenix, AZ, 85054
9. United Rentals Services $115,912
100 First Stamford Place,
Ste. 700
Stamford, CT, 06902
10. Legacy Environmental, LLC Services $105,000
119 Causeway Blvd.
New Orleans, LA, 90121
11. Goose Creek Consolidated Property Tax $85,354
Independent School District
4544 Interstate 10 East
Baytown, TX, 77521
12. Environmental Rental Services Suppliers or $54,352
855 East Hwy 79 Vendors
Rockdale, TX, 76567
13. Lea Land, LLC Services $51,974
1300 W. Main St.
Oklahoma City, OK, 73106
14. Miller Environmental Group Services $46,658
538 Edwards Avenue
Calveston, NY, 11933
15. Envirotech, Inc. Services $40,000
5796 US-64
Farmington, NM, 87401
16. Stallion Oilfield Services $35,328
Services, LLC
950 Corbindale Rd., Ste. 300
Houston,TX 77024
17. GFL Environmental Services $34,046
100 New Park Place, Ste. 500
ON L4K 0H9
Canada
18. Ann Harris Bennett Tax $26,051
7300 N. Shepherd Dr.
Houston, TX 77091
19. Rogue Waste Recovery Services $12,837
& Environmental, Inc.
12697 Rocky Rd.
Conroe, TX, 77306
20. Trustmark National Bank $11,375
248 E. Capital St.
Melbourne, FL, 32901
HENDRIX FARMING: Amended Subchapter V Plan Filing Extended
----------------------------------------------------------
Judge Jason D. Woodard of the U.S. Bankruptcy Court for the
Northern District of Mississippi extended Hendrix Farming, LLC's
additional time to file an Amended Subchapter V Plan of
Reorganization.
The Debtor explains that the amended plan of reorganization was due
June 24, 2024. Unfortunately, events have occurred, subsequent to
the order scheduling the deadline for the filing of the amended
plan that made it impossible for the Debtor-in-Possession to file
an amended plan.
Specifically, as outlined in Debtor's counsel's Motion to Remove
Debtor-in-Possession, Burke Hendrix, who owns 1/2 of the equity
security interests of the Debtor, has indicated that he is
unwilling to continue to participate in any aspect of the
bankruptcy process, which would include, but not be limited to, a
plan of reorganization.
In the meantime, there are pending motions to sell in this case, in
Short Fork Development, LLC, Case No. 23-13660-JDW, and in Guy B.
Hendrix, Sr. Revocable Living Trust, Case No. 23-13664-JDW (which
is not a Subchapter V case), that will go a long way, if granted,
toward providing for debt reduction that will create an easier path
to reorganization and confirmation of a plan than currently
exists.
Accordingly, for all of those reasons, the Court grants the Debtor
an additional 60 days from the date of this Order within which to
file an amended plan.
Hendrix Farming, LLC, is represented by:
Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Hendrix Farming
Hendrix Farming, LLC, a company in Holy Springs, Miss., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Miss. Case No. 23-13663) on Nov. 30, 2023, with $1
million to $10 million in both assets and liabilities. Robert Byrd,
Esq., at Byrd & Wiser, serves as Subchapter V trustee.
Judge Jason D. Woodard oversees the case.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC
represents the Debtor as bankruptcy counsel.
HERTZ CORP: Bondholders Win Bankruptcy Interest Payoff Fight
------------------------------------------------------------
An appeals court ruled that rental car company The Hertz Corp. owes
about $270 million in interest to bondholders who were paid off
early as a result of the company's 2021 bankruptcy.
According to Bloomberg Law, a three-judge panel of the U.S. Court
of Appeals for the Third Circuit ruled on Tuesday, Sept. 10, 2024,
that Hertz must pay unsecured noteholders post-bankruptcy interest
at the higher rate agreed to in their contracts plus special
"make-whole" fees.
The Appellate Court, Bloomberg report, said that Hertz, which
emerged from bankruptcy in 2021, owes the noteholders the
"make-whole" payments and the higher interest payments because it
became solvent during its Chapter 11 case.
Reuters recounts that Hertz' bankruptcy was an unexpected success
for the company's former shareholders, who received $1.1 billion in
total value when the company was sold to a group of private equity
funds. But the payout to equity holders improperly came at the
expense of bondholders, who were repaid $2.7 billion in Hertz'
bankruptcy, a 2-1 panel of the Court of Appeals said in the Sept.
10 ruling.
A Hertz spokesperson, according to Reuters, said the company was
disappointed in the decision and "considering what additional steps
may be appropriate."
The bondholders' lead attorney, Mark Stancil of Willkie Farr &
Gallagher, said his clients were pleased with the ruling, "which
awards bondholders virtually every dollar they were denied as part
of Hertz's bankruptcy plan."
Reuters notes that Hertz's credit agreements allowed bondholders to
claim "make whole" payments if the debt was repaid early, to
compensate them for the loss of expected interest payments. Those
"make whole" payments would have amounted to $270 million if Hertz
had repaid its bonds in 2021 without filing for bankruptcy.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan of
Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HUTCHENS PERRY: Unsecured Creditors Out of Money in Plan
--------------------------------------------------------
Hutchens Perry Enterprises, Inc., filed with the U.S. Bankruptcy
Court for the Western District of Arkansas a Small Business Plan of
Reorganization under Subchapter V dated August 14, 2024.
The Debtor is an Arkansas business corporation in good standing. It
is a going concern engaged in commerce as a landscape maintenance
and installation company for residential and commercial customers.
The Debtor has 16 full- and part-time employees and a fluctuating
seasonal complement of 27 independent contractors. The Debtor's
sole shareholder is Jamison Shipman, who also provides the
day-to-day management of the Debtor as well as occasional as-needed
labor and other services and is also one of the 16 employees.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of approximately $10,500 a
month. The Debtor shall pay into the plan for 60 months.
This Plan of Reorganization proposes to pay creditors of the Debtor
from operation of the Debtor's business.
Non-priority unsecured creditors holding allowed claims will
receive no distributions. This Plan also provides for the payment
of administrative and priority claims.
Class 7 consists of Unsecured Non-priority Claims. The claims of
this class will receive no distribution. The accompanying
Liquidation Analysis indicates that if the Debtor were liquidated,
this class of claims could anticipate no distribution because
payment of administrative claims and for priority and secured
claims would leave no funds available for the payment of any
dividend to this class of claims. The claims of this class total
approximately $550,550.00. This class of claims is impaired.
Class 8 consists of Interests of the Equity Security Holder of the
Debtor. The Debtor has one equity security holder, Jamison Shipman.
Jamison Shipman shall continue to manage the Debtor's business and
shall be paid a salary but shall receive no dividend or capital
distribution on account of his equity until all payments under this
Plan are made.
The Debtor will continue to engage in the landscaping maintenance
and installation business and any other lawful activity.
A full-text copy of the Plan of Reorganization dated August 14,
2024 is available at https://urlcurt.com/u?l=PigNIU from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Stanley V. Bond, Esq.
Bond Law Office
PO Box 1893
Fayetteville, AR 72702-1893
Tel: (479) 444-0255
Fax: (479) 235-2827
Email: attybond@me.com
About Hutchens Perry Enterprises
Hutchens Perry Enterprises, Inc., sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 24-70811)
on May 16, 2024, with $100,001 to $500,000 in assets and $500,001
to $1 million in liabilities.
Judge Bianca M. Rucker presides over the case.
Stanley V. Bond, Esq., at Bond Law Office, is the Debtor's
bankruptcy counsel.
I-ON DIGITAL: Modifies Certificate of Incorporation, Voting Rights
------------------------------------------------------------------
I-ON Digital Corp. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company filed two
amendments to its Certificate of Incorporation with the Delaware
Secretary of State, which became effective upon filing. The
provisions of its Certificate of Incorporation changed by the
amendments are as follows:
1. The Company eliminated its series of Series A Convertible
Preferred Stock that was established by filing a Certificate of
Designation of Rights and Preferences of Series A Convertible
Preferred Stock with the Delaware Secretary of State on December
15, 2015. The Company's Series A Convertible Preferred Stock that
was established by filing a Certificate of Designation of Series A
Convertible Preferred Stock with the Delaware Secretary of State on
September 30, 2024 remains in full force and effect.
2. The Company increased the voting rights of the New Series A
Convertible Preferred Stock from 100 votes per share to 10,000
votes per share. This increase has the effect of making the voting
rights consistent with the conversion ratio of the New Series A
Convertible Preferred Stock which is convertible into common stock
at a ratio of 10,000 shares of common stock for each share of New
Series A Convertible Preferred Stock.
About I-On
Chicago, Ill.-based I-ON Digital Corp. was incorporated on July 5,
1999, and is engaged in providing digital-based enterprise
solutions, including the digitization and distribution of precious
metals, primarily gold, and other asset-based digital securities on
the blockchain.
I-ON Digital reported a net loss of $805,138 and $27,625 for the
years ended December 31, 2023 and 2022, respectively. As of June
30, 2024, the Company had $18,640,608 million in total assets,
$1,681,177 in total liabilities, and $16,959,431 in total
stockholders' equity.
New York, N.Y.-based Kreit & Chiu CPA LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 6, 2024. The report noted that the Company had an
accumulated deficit of $3,496,501 and $2,691,363 at December 31,
2023 and 2022, respectively; working capital deficits of $707,969
and $0 at December 31, 2023 and 2022, respectively; net losses of
$805,138 and $27,625 for the years ended December 31, 2023 and
2022, respectively; and net cash used in operating activities of
approximately $498,834 and $792,936 for the years ended December
31, 2023 and 2022, respectively. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
ILS PRODUCTS: Starts Subchapter V Bankruptcy Process
----------------------------------------------------
ILS Products LLC filed Chapter 11 protection in the Western
District of Texas. According to court documents, the Debtor reports
$1,308,513 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 26, 2024 at 2:00 p.m. via Phone: (866)711-2282; Code:
3544189#.
About ILS Products LLC
ILS Products LLC manufactures solar lighting systems, which include
light, light pole and all mounting hardware, for oil & gas, retail,
commercial, and farm & ranch applications.
ILS Products LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11040) on
August 29, 2024.
The Honorable Bankruptcy Judge Shad Robinson oversees the case.
The Debtor is represented by:
Robert C. lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr. Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
E-mail: notifications@lanelaw.com
INDRA HOLDINGS: $50MM Bank Debt Trades at 37% Discount
------------------------------------------------------
Participations in a syndicated loan under which Indra Holdings Corp
is a borrower were trading in the secondary market around 63
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $50 million Term loan facility is scheduled to mature on
December 23, 2024. The amount is fully drawn and outstanding.
Indra Holdings Corp was founded in 2014. The company's line of
business includes holding or owning securities of companies other
than banks.
INGRAM MICRO: Fitch Assigns 'BB+' Rating on Proposed Term Loan
--------------------------------------------------------------
Fitch Ratings has assigned 'BB+'/'RR2' ratings to Ingram Micro
Inc.'s (IMI) proposed $1.16 billion term loan due 2031. Proceeds
are intended to refinance Ingram's existing term loan, which has an
outstanding balance of $1.26 billion. Ingram plans to repay $100
million of its term loan borrowings, but Fitch expects the
refinancing will be leverage neutral because the repayment will be
funded by a draw on its ABL facility.
The Long-Term Issuer Default Ratings (IDRs) for IMI and its parent
Ingram Micro Holding Corporation (IMHC), collectively Ingram, are
'BB-'. Both have Positive Rating Outlooks.
Ingram's ratings reflect its solid market position as a leading
global IT distributor, large scale, diversified customer base and
counter-cyclical FCF profile. The ratings also reflect high
leverage, with Fitch-adjusted EBITDA leverage of 4.0x as of Dec.
30, 2023, and ownership by private equity sponsor Platinum Equity.
The Positive Outlook is based on Fitch's expectation that Ingram
will continue to pay down debt and achieve EBITDA growth over the
next few years. This would support deleveraging to below 4.0x on a
sustained basis.
Key Rating Drivers
Market Leadership and Scale: Ingram is one of the largest global
technology distributors, offering customers and suppliers a global
footprint that optimizes logistics and enables suppliers to reach
fragmented demand. With revenues approaching $50 billion and
operations in 57 countries, the company leverages its global
footprint to optimize logistics and meet demand where it exists for
over 160,000 customers. Ingram's market position is underpinned by
its scale, broad product portfolio with over 1,500 vendor partners,
and extensive distribution footprint.
Fitch believes Ingram is well positioned to adapt to the changing
technology environment, partially due to its advanced solutions and
cloud businesses. Ingram's advanced solutions business has eight
Centers of Excellence that focus on critical and emerging
technologies such as cyber security and data centers, and are
staffed by 1,000 engineers. Ingram's cloud business, while still a
small proportion of revenue, bolsters its ability to adapt as
technology moves to "as a service" offerings.
Financial Flexibility: A counter-cyclical FCF profile supports
Ingram's strong financial flexibility. During periods of expansion,
the company invests in working capital, which results in cash
outflows. However, this dynamic reverses during contractionary
periods, and sales declines typically lead to cash inflows. As a
result, Ingram naturally deleverages during periods of revenue
declines, although there can be a lag due to inventory building on
the balance sheet and accounts receivables extending. Both could
cause write-downs in periods of economic contractions.
Ingram had substantial liquidity at June 29, 2024, primarily due to
its $929 million cash balance and full availability on its $3.5
billion ABL facility. Fitch considers all Ingram's cash readily
available, but a significant proportion is located outside the
U.S., which could result in friction if Ingram wishes to repatriate
it.
High but Improving Leverage: Ingram's EBITDA leverage is high
relative to its peers but is consistent with the rating. Ingram
voluntarily repaid its $500 million ABL term loan in 2022 and
prepaid $550 million of its term loan in 2023, driving down EBITDA
leverage to 4.0x as of December 2023 from 4.2x at YE 2021. Fitch
expects additional deleveraging in 2024 and believes Ingram is
committed to reducing leverage. Ingram paid down an additional $150
million of its term loan on June 28, 2024 and is repaying an
additional $100 million of term loan borrowings with this
refinancing.
Ownership by private equity sponsor Platinum Equity Partners
(Platinum) and Ingram's lack of a stated financial policy constrain
the rating. However, these factors do not prevent Ingram from
moving to a 'BB' rating if debt repayment continues and if Fitch
believes Platinum is committed to maintaining credit metrics
consistent with this rating. Ingram announced its intent for an IPO
in September 2022, which Fitch believes could result in Platinum
relinquishing some control and lead to a more defined financial
policy. However, the timing and success of an IPO are unclear.
Challenging Industry Dynamics: The IT distribution business is
relatively consolidated, with Ingram and TD SYNNEX representing a
significant share of the total market. The industry is still
competitive and low-margin due to vibrant competition between IT
distributors and the significant leverage that IT vendors have over
distributors. Certain vendors are very large and account for a
meaningful proportion of Ingram's consolidated sales, which enables
them to influence the company's margins.
Ingram's EBITDA margins have historically been below 2.5%. They can
deteriorate quickly during economic downturns due to the need for
some fixed costs, as well as the potential for inventory
write-downs associated with product obsolescence. In addition, FCF
tends to be weak or negative during periods of growth due to the
substantial working capital investments needed to fund inventory
and receivables. Ingram still has a solid track record of
profitable growth.
Rating Linkage: There is a parent subsidiary relationship between
IMHC and IMI. Fitch determines IMHC's standalone credit profile
(SCP) based on consolidated metrics and considers IMI's SCP
stronger than that of IMHC. As such, Fitch has followed the
stronger subsidiary path. Legal ring fencing is open given the
limited limitations on flows between the entities. Access and
control are also open given IMHC's 100% ownership interest in IMI.
Due to the aforementioned rating linkages, Fitch rates both
entities on a consolidated credit profile with the same IDRs.
Derivation Summary
Ingram's ratings reflect a defensible market position and strong
financial flexibility, which are balanced against credit metrics
that are weaker than investment-grade peers. Ingram competes
directly with TD SYNNEX Corporation (TD SYNNEX; BBB-/Stable) and
regional players such as ScanSource, Inc. and ALSO Holding, which
are not rated by Fitch. Ingram also competes to a lesser extent
with Arrow Electronics, Inc. (BBB-/Stable) and Avnet, Inc.
(BBB-/Stable).
Ingram is one of the largest IT wholesale distributors globally. It
is moderately smaller than TD SYNNEX, which has lower leverage than
Ingram, with 2.8x compared to 4.0x as of December 2023. TD SYNNEX
also has a defined financial policy targeting leverage in the
2.0x-3.0x range. Ingram has no stated leverage target and is owned
by a private equity sponsor, and this makes it difficult to assess
the company's tolerance for leverage over time. The rating variance
between TD SYNNEX and Ingram primarily reflects Ingram's higher
leverage and uncommitted financial policies. TD SYNNEX's EBITDA
margin is approximately 50bps higher than Ingram's.
Avnet and Arrow are primarily semiconductor and component wholesale
distributors; therefore, these companies do not generally compete
with Ingram, though there is some overlap in certain areas. They
have lower leverage than Ingram and stated leverage targets of 3.0x
or below. In addition, their EBITDA margins exceed Ingram's.
Key Assumptions
- Revenue growth in the low single digits through 2026;
- EBITDA margin of about 2.5%;
- SOFR rate of 5.1% in 2024 and 4.50% in 2025;
- Assumed cash taxes of 27% as a percent of pre-tax income;
- No acquisitions or shareholder distributions, with the exception
of $5 million in annual minority interest distributions;
- Voluntary debt repayment of $275 million annually;
- Factoring, receivables and uncommitted lines forecasted to be
constantly renewed.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage sustained below 4.0x;
- Introduction of a formal financial policy with an explicit
leverage target consistent with a stronger rating;
- FCF margins averaging near 1% through a cycle.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.5x;
- Sustained cash burn through a cycle.
Liquidity and Debt Structure
Strong Liquidity and Financial Flexibility: As of June 29, 2024,
Ingram's liquidity consisted of $929 million of cash and full
availability on its $3.5 billion multi-currency ABL revolving
credit facility. In addition, Fitch expects Ingram to generate
meaningful free cash flow through the rating horizon. Uses of cash
include modest principal amortization of under $15 million annually
on the proposed new term loan and repayment requirements on
short-term borrowing lines and receivables-backed financing
programs, which Fitch expects will be rolled over in the normal
course of business.
Ingram may also access additional sources of liquidity, not counted
in Fitch's calculation of liquidity, including accounts receivables
factoring facilities and $1.3 billion of other liquidity sources
including lines of credit and short-term overdraft facilities, most
of which are on an uncommitted basis. Ingram's diversified sources
of liquidity provide significant operating flexibility, with no
need to access capital markets in the next 24 months.
Ingram typically maintains above $10 billion in aggregate accounts
receivables and inventory balances, suggesting that the borrowing
base provides for significant overcollateralization and full
availability on the ABL facility. Fitch believes liquidity is
further enhanced by Ingram's counter-cyclical working capital
profile, which typically results in improved FCF during a downturn,
providing elevated liquidity support during adverse macro
environments.
Issuer Profile
Ingram is one of the largest global wholesale distributors of
Information Technology (IT) products. The company primarily
distributes IT hardware (servers, storage, PCs) as well as software
and services to value-added resellers (VARs) who in-turn sell these
offerings to end-customers.
Summary of Financial Adjustments
Fitch has adjusted historical EBITDA to remove the effects of
reported merger, integration and transaction costs; restructuring
costs; gain or loss on investments and other asset sales (including
the divestiture of the Commerce & Lifecycle Services business); and
acquisition consideration revaluation. Fitch also deducts minority
interest dividends from its EBITDA calculation.
In addition, Fitch has added off-balance sheet factored receivables
back to reported debt and balance sheet working capital and
adjusted the relevant cash flow items to reflect the annual changes
related to such balances. Fitch has also reclassified proceeds from
deferred purchase price of factored receivables from cash flow from
investing to cash flow from operations.
Date of Relevant Committee
15 April 2024
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
Ingram has an ESG Relevance Score of '4' for Governance Structure
due to private equity ownership, which has a negative impact on the
credit profile, and is relevant to the ratings, in conjunction with
other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Ingram Micro Inc.
senior secured LT BB+ New Rating RR2
INJAWE INC: Case Summary & One Unsecured Creditor
-------------------------------------------------
Debtor: Injawe Inc.
15 Harden Street
Brooklyn, NY 11234
Case No.: 24-43820
Business Description: Injawe is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: September 16, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Elizabeth S Stong
Debtor's Counsel: Narissa A. Joseph, Esq.
LAW OFICE OF NARISSA A. JOSEPH
305 Broadway, Suite 1001
New York, NY 10007
Tel: 212-233-3060
Fax: 646-607-3335
E-mail: njosephlaw@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Dina John as president.
The Debtor listed Greystone Servicing Company as its sole unsecured
creditor holding a claim fo $993,162.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7F7V4OQ/Injawe_Inc__nyebke-24-43820__0001.0.pdf?mcid=tGE4TAMA
ISLAND FAMILY: Unsecureds to Split $36K in Consensual Plan
----------------------------------------------------------
Island Family Health, LLC, submitted a First Amended Plan of
Reorganization dated August 14, 2024.
This Plan provides for: 11 classes of secured claims; 1 class of
unsecured claims; and 1 class of equity security holders.
The Debtor's projected Disposable Income over the life of the Plan
is $35,130.58.
Class 1 consists of the Secured Claim of Dext. This Claim is
secured by a lien on the Dext Collateral. This Class is Unimpaired.
In full satisfaction of the Dext Secured Claim, the Debtor will
surrender the Dext Collateral to Dext as the indubitable equivalent
of its Claim.
Class 3 consists of the Secured Claim of Flagstar. This Claim is
secured by a lien on the Flagstar Collateral. This Class is
Unimpaired. In full satisfaction of the Flagstar Secured Claim, the
Debtor will surrender the Flagstar Collateral to Flagstar as the
indubitable equivalent of its Claim.
Class 7 consists of the Secured Claim of NewLane. This Claim is
secured by a lien on the NewLane Collateral. This Class is
Unimpaired. In full satisfaction of the NewLane Secured Claim, the
Debtor will surrender the NewLane Collateral to NewLane as the
indubitable equivalent of its Claim.
Class 8 consists of the Secured Claim of Everbank. This Claim is
secured by a lien on the Everbank Collateral. This Class is
Unimpaired. In full satisfaction of the Everbank Secured Claim, the
Debtor will surrender the Everbank Collateral to Everbank as the
indubitable equivalent of its Claim.
Class 9 consists of the Secured Claim of American. This Claim is
secured by a lien on the American Collateral. This class is
Unimpaired. In full satisfaction of the American Secured Claim, the
Debtor will surrender the American Collateral to American as the
indubitable equivalent of its Claim.
Class 12 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired.
* Consensual Plan Treatment: The Debtor proposes to pay
unsecured creditors a pro rata portion of $36,000.00. Payments will
be made in equal quarterly payments of $3,000.00. Payments shall
commence on the fifteenth day of the month, on the first month that
begins more than ninety days after the Effective Date and shall
continue quarterly for eleven additional quarters. Pursuant to
Section 1191 of the Bankruptcy Code, the value to be distributed to
unsecured creditors is greater than the Debtor's projected
disposable income to be received in the 3-year period beginning on
the date that the first payment is due under the plan.
* Nonconsensual Plan Treatment: The Debtor proposes to pay
unsecured creditors a pro rata portion of its projected Disposable
Income, $35,130.58. If the Debtor remains in possession, plan
payments shall include the Subchapter V Trustee's administrative
fee which will be billed hourly at the Subchapter V Trustee's then
current allowable blended rate. Plan Payments shall commence on the
fifteenth day of the month, on the first month that is one year
after the Effective Date and shall continue annually for two
additional years. The initial annual payment shall be $12,511.86.
Holders of Class 12 claims shall be paid directly by the Debtor.
The Plan contemplates that the Reorganized Debtor will continue to
operate the Debtor's business.
Except as explicitly set forth in this Plan, all cash in excess of
operating expenses generated from operation until the Effective
Date will be used for Plan Payments or Plan implementation, cash on
hand as of Confirmation shall be available for Administrative
Expenses.
A full-text copy of the First Amended Plan dated August 14, 2024 is
available at https://urlcurt.com/u?l=9HMvIj from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Jeffrey S. Ainsworth, Esq.
Jacob D. Flentke, Esq.
Flentke Legal Consulting, PLLC, Of Counsel
Branson Law, PLLC
1501 E. Concord St.
Orlando, FL 32803
Telephone: (407) 894-6934
Facsimile: (407) 894-8559
Email: jeff@bransonlaw.com
jacob@bransonlaw.com
jacob@flentkelegal.com
About Island Family Health
Island Family Health LLC is a Family Medical Practice providing a
wide array of primary care services located in Merritt Island,
Florida.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01091) on Mar. 5,
2024. In the petition signed by Nikolaos Kanellopoulos, managing
member, the Debtor disclosed $149,188 in assets and $2,000,809 in
liabilities.
Judge Grace E. Robson oversees the case.
Branson Law, PLLC serves as the Debtor's counsel.
JDC RENTALS: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: JDC Rentals, LLC
985 S. Main Street
Snowflake, AZ 85937
Case No.: 24-07708
Chapter 11 Petition Date: September 16, 2024
Court: United States Bankruptcy Court
District of Arizona
Judge: Hon. Daniel P Collins
Debtor's Counsel: D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
402 E. Southern Ave
Tempe, AZ 85282
Tel: 602-888-9229
E-mail: lamar@guidant.law
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jordan Dale Call as sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/WK5WXCQ/JDC_RENTALS_LLC__azbke-24-07708__0001.0.pdf?mcid=tGE4TAMA
LA HACIENDA: Orrick Herrington Revises Rule 2019 Statement
----------------------------------------------------------
The law firm of Orrick, Herrington & Sutcliffe LLP filed a second
amended 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").
The Amended Statement represented that TEUC is an unincorporated
association representing 18 of the approximately 25 remaining
resident-occupied spaces in the 60 space mobilehome park located at
104 E Sierra Ave, Fresno, California (the "Park"). That statement
was accurate at the time made. However, on August 28, 2024, Orrick
learned that the residents of two additional spaces at the Park had
joined TEUC, raising the total of spaces represented by Orrick to
20.
The TEUC Tenant Members' address and names are:
1. David Willis
104 E Sierra Ave, Space 41, Fresno,
California 93710
2. Sharon Smith
104 E Sierra Ave, Space 32, Fresno,
California 93710
3. Patsy Rajskup
104 E Sierra Ave, Space 29A, Fresno,
California 93710
4. Teresa Jaimes
104 E Sierra Ave, Space 5, Fresno, California
93710
5. Angelica Silvestre
104 E Sierra Ave, Space 30, Fresno,
California 93710
6. Angelica Lepe
104 E Sierra Ave, Space 1, Fresno, California
93710
7. Jose De Jesus
104 E Sierra Ave, Space 49, Fresno,
California 93710
8. Jesus Rey Aguilar
104 E Sierra Ave, Space 39, Fresno,
California 93710
9. Alejandro Bautista
104 E Sierra Ave, Space 13, Fresno,
California 93710
10. Jasmin Ramirez
104 E Sierra Ave, Space 10D, Fresno,
California 93710
11. Paul Shahzade
104 E Sierra Ave, Space 31, Fresno,
California 93710
12. Leslie Wright
104 E Sierra Ave, Space 15A, Fresno,
California 93710
13. Angelina Robles
104 E Sierra Ave, Space 44, Fresno,
California 93710
14. Pedro Moreno Cruz
104 E Sierra Ave, Space 17, Fresno,
California 93710
15. Elvia Cervantes-Moreno Lopez
16. Emily Moreno
Attorneys for Trails End United for Change:
ORRICK, HERRINGTON & SUTCLIFFE LLP
Marc A. Levinson, Esq.
The Orrick Building
405 Howard Street
San Francisco, CA 94105-2669
Telephone: (916) 329 4910
Email: malevinson@orrick.com
-and-
Michael Trentin, Esq.
51 West 52nd Street
New York, NY 10019-6142
Telephone: (212) 506 5000
Email: mtrentin@orrick.com
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.
LAMAR ADVERTISING: S&P Affirms 'BB' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on Lamar
Advertising Co. While Lamar's S&P Global Ratings-adjusted net
leverage of 3.6x is relatively low for the current rating, the
company is willing to tolerate leverage of 4.0x-4.5x for
debt-financed acquisitions.
S&P said, "We also affirmed our 'BB' issue-level rating on the
company's senior unsecured debt, although we revised our recovery
rating to '3' from '4' as the lower amount of secured debt
outstanding in our hypothetical default scenario increases recovery
prospects for unsecured debtholders.
"The stable outlook reflects our expectation that, despite current
leverage in the mid-3x area, we believe Lamar is willing to
increase leverage to 4.0x-4.5x for acquisitions.
"We believe Lamar is willing to tolerate leverage of 4.0x-4.5x for
acquisitions. While our base case forecast assumes leverage will
remain in the mid-3x area over the next couple of years, the
company could increase leverage to support acquisitions. We believe
acquisition activity will pick up in 2025 as interest rates come
down. Management has said that its current leverage (about 3x on a
company-adjusted basis) is below its target range and that it would
be comfortable increasing leverage to 4x, which would roughly
translate to 4.5x-4.75x on an S&P Global Ratings-adjusted basis.
While Lamar's leverage will fluctuate depending on the pace and
magnitude of potential acquisitions, we believe the company will
likely operate with S&P Global Ratings-adjusted leverage between
4.0x and 4.5x, where it operated for several years before the
pandemic."
Lamar is less exposed to more volatile national advertising than
its peers. National advertising has been soft for several quarters
in connection with a slowdown in consumer spending while local
advertising has been more resilient given its greater focus on
bottom of the funnel campaigns. S&P said, "As a result, we expect
national advertising will be flat to slightly down in 2024 while
local advertising will continue to grow in the low-to-mid
single-digit percent area. We believe Lamar is better positioned
than its peers due to its greater percentage of local advertising
revenue (79% versus 55%-60%) as a result of its greater focus on
smaller markets. We continue to view the outdoor industry favorably
because it faces less pressure from online advertising than other
media sectors, including television and radio." It is relatively
inexpensive, and outdoor advertisements primarily target a stable
demographic of drivers, commuters, and pedestrians.
The conversion to more profitable digital billboards will continue
to fuel revenue growth. Lamar will continue to convert static
displays to digital since they produce higher yields, with 83
digital display additions through the first half of 2024. A digital
billboard in an area with heavy traffic generates about 4x-6x the
revenue of a static billboard because Lamar can rotate several
advertisements and provide customers more advertising flexibility.
The cost to operate a digital board is only about 2x that of a
static billboard, which provides a meaningful incentive for Lamar
to convert as many billboards as it can. However, as the percentage
of digital billboards in Lamar's portfolio increases, we expect
digital conversions will expand into areas with marginally less
traffic and demand, which would likely lower the revenue benefit of
each incremental conversion, but not for several years.
The stable outlook reflects S&P's expectation that, despite current
leverage in the mid-3x area, Lamar is willing to increase leverage
to 4.0x-4.5x for acquisitions.
S&P could lower its rating on Lamar if it expected its leverage
would increase and remain above 4.5x. This could occur if:
-- An economic recession caused steep declines in core advertising
revenue, or
-- The company aggressively pursued debt-financed acquisitions.
S&P could raise the rating if:
-- The company commited to maintaining S&P Global Ratings-adjusted
leverage below 4x on a sustained basis, but S&P views this as
unlikely given the potential for debt-financed acquisitions; and
-- Lamar continued to generate sustainable revenue growth in
static and digital billboards driven by improved advertising
yields.
LASERSHIP INC: Credit Suisse Marks $400,000 Loan at 27% Off
-----------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$400,000 loan extended to LaserShip, Inc to market at $292,166 or
73% of the outstanding amount, according to Credit Suisse's Form
N-CSR for the Semi-Annual on Report June 30, 2024, filed with the
Securities and Exchange Commission September 3, 2024.
Credit Suisse is a participant in a Bank Loan to Lasership, Inc (3
mo. USD Term SOFR + 7.500%). The loan matures on May 7, 2029.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LEFEVER MATTSON: Files for Chapter 11, Blames Founder
-----------------------------------------------------
LeFever Mattson and 58 affiliated entities sought Chapter 11
bankruptcy protection, blaming its collapse to one of its
founders.
In 1990, Timothy LeFever purchased 50% of a real estate investment
business owned by Kenneth W. Mattson, creating LeFever Mattson.
The company's business was the ownership of investment real
estate-single family homes as well as multi-unit properties.
Properties were owned by LeFever Mattson alone or as a tenant in
common with other investors.
Eventually the business model shifted to creating limited liability
companies, and then limited partnerships, to purchase multi-family
or other commercial properties. This structure allowed LeFever
Mattson to pool more capital by selling limited interests to a
small number of accredited investors while typically reserving an
ownership interest in the investment entity for itself as general
partner or managing member. LeFever Mattson directly or indirectly
controls or has ownership interests in 50 limited partnerships and
eight limited liability companies.
LeFever Mattson has grown substantially since 1990 and today
manages a portfolio of more than 200 properties, comprised of
commercial, residential, office, and mixed-use real estate, as well
as vacant land, located throughout Northern California, primarily
in Sonoma, Sacramento, and Solano Counties.
Actions of Mr. Mattson
As of the Petition Date, Messrs. LeFever and Mattson have resigned
from any director or officer positions with any of the Debtors, and
the Board of Directors of LeFever Mattson is comprised of two
independent directors: Rishi Jain and Lance Miller
Bradley D. Sharp, the President and Chief Executive Officer of
Development Specialists, Inc., was engaged as CRO effective July
18, 2024.
In court filings, Mr. Sharp blamed the Company's woes to "a decade
or more of financial misconduct by Mr. Mattson."
According to Mr. Sharp, Mr. Mattson appears to have used LeFever
Mattson and many of the LPs and LLCs to facilitate a years-long
campaign of self-serving transactions, many of which were not
recorded in the books and records of LeFever Mattson, the Debtor,
or any of the other LPs or LLCs (collectively, the "Mattson
Transactions").
Mr. Sharp explains that the Mattson transactions took two primary
forms:
1. Mr. Mattson purported to sell equity interests in over 25
of the LPs and LLCs to hundreds of investors through transactions
that, on information and belief, were unknown to Mr. LeFever and
not recorded in the books and records of LeFever Mattson or the
appropriate LP or LLC. The proceeds of the Mattson Interest Sales
-- which, based on initial investigation, appear to have amounted
to over $45 million during the period of May 2017 through March
2024 -- appear to have gone ultimately to Mr. Mattson, rather than
to LeFever Mattson or the appropriate LP or LLC.
2. On information and belief, Mr. Mattson caused certain of
the LPs and LLCs to purchase properties owned by Mr. Mattson’s
own investment company -- by executing the transactions himself on
behalf of both buyer and seller. Some of the Mattson Property
Sales were at inflated prices, and some conveyed properties
encumbered by high-interest loans with balloon payments, which Mr.
Mattson took out through his own investment company. The Mattson
Property Sales have clouded title on a significant portion of the
LeFever Mattson real estate portfolio, and a number of LPs and LLCs
now hold properties, obtained through Mattson Property Sales, that
are encumbered by loans that are in default.
Investigation into the Mattson Transactions is ongoing.
The Debtors believe the Chapter 11 cases are necessary to fairly
and transparently resolve the uncertainty that the Mattson
Transactions have created for the Debtors and their stakeholders.
Events Leading Up to Chapter 11 Filing
LeFever Mattson, the Property Manager, and 12 of the LPs and LLCs
are defendants in lawsuits, including a putative class action, by
investors alleging that they were parties to Mattson Interest
Sales. A primary purpose of these Chapter 11 Cases is to
consolidate those claims -- and any similar claims against the
Debtors yet to be filed -- for fair and transparent resolution.
A second purpose of the Chapter 11 Cases is to address the Mattson
Property Sales, many of which involved loans from a particular
lender, Socotra Capital.
From approximately 2019 through 2023, Mr. Mattson caused KS Mattson
Partners L.P. -- Mattson Partnership -- a partnership that he
beneficially owns, to purchase numerous properties -- Mattson
Properties -- that were financed by loans issued by Socotra, and
then caused the Mattson Partnership to sell the Mattson Properties,
sometimes at inflated prices, to the LPs and LLCs -- still
encumbered by the Socotra Loans.
The Mattson Partnership has not made required payments on the
Socotra Loans, such that the Mattson Properties, now all held by
the LPs and LLCs, are subject to foreclosure proceedings by
Socotra.
The Debtors have thus far successfully negotiated forbearances with
Socotra prior to the foreclosure sale of any of the Mattson
Properties. However, absent a stay, the Debtors believe that
foreclosure sales of Mattson Properties are likely.
The Debtors believe that there may be meaningful equity value in
the Mattson Properties and intend to engage one or more brokers to
market and sell the properties.
Accordingly, the Debtors have filed Chapter 11 cases to facilitate
the fair and transparent resolution of claims arising from Mattson
Interest Sales, to stay foreclosure sales of Mattson Properties,
and to otherwise preserve and maximize value for the benefit of the
Debtor's stakeholders.
About LeFever Mattson
LeFever Mattson, a California corporation, manages a large real
estate portfolio. Timothy LeFever and Kenneth W. Mattson each own
50% of the equity in LeFever Mattson.
LeFever Mattson manages a portfolio of more than 200 properties,
comprised of commercial, residential, office, and mixed-use real
estate, as well as vacant land, located throughout Northern
California, primarily in Sonoma, Sacramento, and Solano Counties.
The Debtors generate income from the Properties through rents and
use the proceeds to fund their operations.
On Sept. 12, 2024, LeFever Mattson and 58 affiliated LLCs and LPs
sought Chapter 11 protection (Bankr. N.D. Cal. Lead Case No.
24-10545).
LeFever Mattson estimated $100 million to $500 million in total
assets and liabilities as of the bankruptcy filing.
The Debtors tapped San Francisco, California-based KELLER
BENVENUTTI KIM LLP as counsel. KURTZMAN CARSON CONSULTANTS, LLC,
doing business as VERITA GLOBAL, is the claims agent.
LIGONIER TAVERN: Hires David A. Colecchia as Bankruptcy Counsel
---------------------------------------------------------------
Ligonier Tavern & Table, Inc. and 137 West Main Street, LLC seek
approval from the U.S. Bankruptcy Court for the Western District of
Pennsylvania to hire David A. Colecchia and Associates as counsel.
The firm's services include:
a. providing continuing legal advice concerning the powers,
duties, and responsibilities of the Debtor-in-Possession in the
current bankruptcy and in the operation of its business;
b. taking any and all necessary action for the benefit of the
Debtor and of the Estate, such as prosecution and compromise of
actions held by the Debtor, defense of actions against the Debtor,
review of all documents, motions, and claims filed by other parties
and objecting to the same as necessary;
c. preparing any and all documents, schedules, petitions,
pleadings, and other legal papers as are reasonably necessary for
the above or for the continued administration of the above case;
and
d. performing any and all other legal services for the Debtor
which are in connection with this Chapter 11 case or otherwise are
reasonably necessary for the Debtor-in-Possession's normal
operations.
The firm will be paid at these rates:
David A. Colecchia, Esq. $335 per hour
Justin P. Schantz, Esq. $335 per hour
Paralegal and office staff $95 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The counsel has received a pre-petition retainer totaling $4,000.
Justin P. Schantz, member of David A. Colecchia and Associates,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtor and its estates.
David A. Colecchia can be reached at:
Justin P. Schantz, Esq.
DAVID A. COLECCHIA AND ASSOCIATES
324 South Maple Ave.
Greensburg, PA 15601-3219
Tel: (724) 837-2320
Fax: (724) 837-0602
E-mail: colecchia542@comcast.net
About Ligonier Tavern & Table, Inc.
Ligonier Tavern & Table, Inc. an emergency petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
24-22181) on August 30, 2024, listing $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities. Justin P.
Schantz, Esq. at Law Care represents the Debtor as counsel.
M&G TRANSPORTATION: Unsecureds Will Get 2% to 4% of Claims in Plan
------------------------------------------------------------------
M&G Transportation, LLC, filed with the U.S. Bankruptcy Court for
the Northern District of Texas a Plan of Reorganization under
Subchapter V dated August 13, 2024.
The Debtor is a freight transportation company based in Amarillo,
Texas. The company provides regional, long-haul, and coast-to coast
transportation for refrigerated products. Debtor is owned by M&G
Transportation Holdings, LLC.
The membership interests of M&G Transportation Holdings, LLC are
owned by Manuel Gutierrez (50%) and German Gutierrez (50%). In
2016, Messrs. Gutierrez began to operate Debtor, starting with one
truck driven by themselves to haul regional groceries. As of the
date hereof, Debtor presently maintains a fleet of 71 trucks and
trailers and contracts with additional third parties to support its
customer base.
There were various factors and circumstances that led to Debtor's
decision to file a Chapter 11 bankruptcy proceeding. Most
significantly, Debtor needed to reduce its debt load and
contractual obligations to pay such debt. Despite best efforts to
reach out of court resolutions, Debtor was unable to come to terms
with all of its creditors. Given mounting creditor pressure, Liens
filed by the Internal Revenue Service and lawsuits, Debtor filed
the Bankruptcy Case.
The Debtor intends to continue to operate as a going concern.
Debtor will fund the Plan through the continuation of its
operations through its downsized Company Fleet and its recovery on
Avoidance Claims, including those Avoidance Claims that it has
resolved through this Plan. Debtor seeks to restructure its debts
with the 941 Obligations, receive favorable concessions from
certain Secured Claims, and address its General Unsecured Claims
through this Plan in order to improve its cash flow and streamline
its ability to make payments under this Plan.
The operation of Debtor's business can (i) support its payments to
the Holders of Allowed Priority Tax Claims and Allowed
Administrative Expense Claims; (ii) meet the operating expenses of
the business; (iii) pay Allowed Secured Claims over time; and (iv)
pay Allowed General Unsecured Claims pursuant the terms of this
Plan. Debtor submits that it will generate enough cash over the
life of the Plan to make the required Plan payments and operate
Debtor's business.
Class 12 consists of General Unsecured Claims. Following the
Effective Date, Holders of Allowed General Unsecured Claims shall
receive a Pro Rata share of Debtor's Disposable Income through a
combination of the following under the Plan:
* Holders of Allowed General Unsecured Claims will receive a
Pro-Rata share of 12 consecutive quarterly payments of $5,000.00
for total payments of $60,000.00. Such payments shall commence on
the last Business Day of the month in which the Effective Date
occurs and continue thereafter on the last Business Day of each
quarter for 11 consecutive quarters.
* Holders of Allowed General Unsecured Claims will receive a
Pro-Rata share of 5% of the net cash balance, if any, held by
Reorganized Debtor on the Effective Date. Such payment will be paid
on the last Business Day of the month in which the Effective Date
occurs. There is no guaranty there will be a net cash balance that
will result in such payment.
* Holders of Allowed General Unsecured Claims will receive a
Pro-Rata share of 5% of the net cash balance, if any, held by
Reorganized Debtor on the last Business Day for the 12 consecutive
quarters following the month in which the Effective Date occurs.
Such payments shall be made on the last Business Day of the month
following the end of each quarter. There is no guaranty there will
be a net cash balance that will result in such quarterly
payment(s).
The Debtor projects that Holders of Allowed General Unsecured
Claims will yield a recovery of 2 to 4% on their Allowed Claims
pursuant the projected Disposable Income. Payments shall be
distributed by Reorganized Debtor directly to the Holders of
Allowed General Unsecured Claims.
Class 13 consists of Equity Security Interests. M&G Transportation
Holdings, LLC, a holding company wholly owned by Manuel Gutierrez
and German Gutierrez, owns 100% of the Interests of Debtor. On the
Effective Date, the Holder of the Equity Security Interests in
Debtor shall retain such Interests following the Effective Date.
Following the Effective Date, Reorganized Debtor will continue and
operate the business with its downsized Company Fleet and with the
operational and financial improvements implemented with Ascend's
assistance. Through Reorganized Debtor's continued operations,
Reorganized Debtor will meet its obligations to creditors under
this Plan.
A full-text copy of the Plan of Reorganization dated August 13,
2024 is available at https://urlcurt.com/u?l=cP522C from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Harrison A. Pavlasek, Esq.
FORSHEY & PROSTOK LLP
777 Main St., Suite 1550
Fort Worth, TX 76102
Telephone: (817) 877-8855
Facsimile: (817) 877-4151
Email: hpavlasek@forsheyprostok.com
Patrick W. Carothers, Esq.
Gregory W. Hauswirth, Esq.
Carothers & Hauswirth LLP
Foster Plaza 10
680 Andersen Drive, Suite 230
Pittsburgh, PA 15220
Telephone: (412) 910-7500
Facsimile: (412) 910-7510
Email: pcarothers@ch-legal.com
ghauswirth@ch-legal.com
About M&G Transportation
M&G Transportation, LLC, is a freight transportation company based
in Amarillo, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-20129-rlj11) on May
15, 2024. In the petition signed by Manuel Gutierrez, president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Harrison Pavlasek, Esq., at Forshey Prostok LLP, represents the
Debtor as legal counsel.
MAXLINEAR INC: S&P Downgrades ICR to 'B', Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
provider of radio frequency, analog, and mixed-signal integrated
circuits MaxLinear Inc. to 'B' from 'BB-' and its issue-level
rating on its first-lien term loan to 'B' from 'BB-'.
S&P said, "The negative outlook on MaxLinear reflects our
expectation that the cyclical downturn in the company's performance
will continue into 2025. In addition, we forecast MaxLinear will
sustain S&P Global Ratings-adjusted leverage of more than 5x over
the next 12 months. Although we expect a rebound in the company's
performance in 2025, the outlook captures the risk that it will
sustain metrics exceeding our downside triggers or face costs from
the arbitration process with Silicon Motion that go beyond our
base-case assumptions.
"We have materially lowered our revenue expectations for the
company in fiscal years 2024 and 2025.MaxLinear experienced a sharp
revenue decline in the first half of fiscal due 2024 due to
continued inventory digestion by its customers and unexpected
export restriction on some telecom and industrial products to its
Chinese customers. We now expect the company's customer inventory
issues, weak end-market demand (especially from telecom operators),
and the restrictions on its exports to China will continue to
negatively affect its performance throughout 2024. That said, we
expect MaxLinear's Infrastructure business will experience the
smallest revenue decline among its segments, supported by the
demand for 5G wireless backhaul products, storage accelerators, and
high-throughput (400 gigabit and 800 gigabit) optical data center
products.
"We now expect the company will generate total revenue of about
$360 million in 2024, which is 65%-70% lower than the peak it
achieved in 2022. This represents a significantly greater level of
volatility than the 24.5% peak-to-trough revenue decline it
experienced during the last downcycle in 2017-2019. Compared with
its larger analog and communications semiconductor peers, like
Broadcom Inc., we believe this volatility reflects MaxLinear's
relatively small scale and greater end-market and product
concentration."
MaxLinear's revenue decline will cause it to generate negative S&P
Global Ratings-adjusted EBITDA and FOCF during fiscal 2024. In
response to the weak demand environment, management has implemented
significant cost-reduction measures, including workforce
reductions. S&P said, "We anticipate this will likely reduce its
operating expenses by 20%-25% in fiscal year 2025 relative to 2024.
Nonetheless, we project that the company's S&P Global
Ratings-adjusted EBITDA margins will decline significantly from the
peak of 32.5% in 2022 and turn negative in 2024 before potentially
recovering to the mid-single digit percent area (about 7%) in 2025.
Additionally, we expect MaxLinear will generate a FOCF deficit of
about $45 million to $50 million in 2024. We project that FOCF will
be breakeven in 2025. We believe the company has sufficient
liquidity, supported by its about $185 million of cash and
short-term investments as of June 30, 2024, to cover any
obligations from its ongoing litigation with Silicon Motion (which
is seeking $160 million in termination fees)."
S&P said, "The negative outlook on MaxLinear reflects our
expectation that the cyclical downturn in the company's performance
will continue into 2025. In addition, we forecast MaxLinear will
sustain S&P Global Ratings-adjusted leverage of more than 5x over
the next 12 months. Although we expect a rebound in the company's
performance in 2025, the outlook captures the risk that it will
sustain metrics exceeding our downside triggers or face costs from
the arbitration process with Silicon Motion that go beyond our
base-case assumptions."
S&P could lower its ratings on MaxLinear if:
-- The ongoing weak demand environment leads to revenue and EBITDA
declines in 2024 than exceed our base-case assumptions;
-- S&P expects its leverage will remain above 5x beyond fiscal
year 2025;
-- S&P expects it will generate materially negative FOCF in fiscal
year 2025; or
-- The ongoing litigation with Silicon Motion drags on and we
project the company will have to increase its borrowings to fund a
significant cash settlement or penalties.
S&P could revise its outlook on MaxLinear to stable if:
-- It increases revenue to normalized levels and improves its
profitability such that it sustains S&P Global Ratings-adjusted
leverage of below 5x and FOCF to debt of more than 5%; and
-- It realizes a relatively favorable outcome from its arbitration
with Silicon Motion.
NAKED JUICE: $1.82BB Bank Debt Trades at 18% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 82.5
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.82 billion Term loan facility is scheduled to mature on
January 24, 2029. The amount is fully drawn and outstanding.
Naked Juice LLC is the entity resulting from a spin-off from
PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39%
stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and
other select juice brands.
NAT'L ASSOC. OF TELEVISION: Reaches Settlement with Fontainebleau
-----------------------------------------------------------------
National Association of Television Program Executives, Inc.
submitted a First Amended Plan of Liquidation.
The Debtor was a non-profit global content association and
professional membership organization dedicated to shaping the
future of content through global marketplaces and conferences,
screenings, awards, and networking events.
The Debtor sold substantially all of its assets through a Court
approved sale. The Court approved the sale at the hearing, and an
order has been entered. This Plan incorporates the $150,000 cash
payment which will be transferred to the Debtor upon entry of the
sale order, and accounts for the liabilities being assumed by the
buyer which will no longer be liabilities for the estate upon entry
of the sale order.
In 2024, the Debtor and Fontainebleau Florida Hotel, LLC engaged in
extended negotiations to reach mutually agreed upon terms
("Settlement"). Those Settlement terms are reflected in this
Amended Plan.
This is a liquidating plan, where in the Debtor will be disbursing
all funds on hand as of the Effective Date to creditors and ceasing
all operations.
Pursuant to the Settlement with Fontainebleau, Jeremy Faith will be
appointed as Plan Fiduciary ("Plan Fiduciary") upon entry of an
order confirming this Plan. The Plan Fiduciary will serve as
Disbursing Agent under the Plan. The Plan Fiduciary's fees and
expenses will be paid only from funds he collects through the
prosecution of estate claims against third-parties to be filed
postconfirmation.
The Plan Proponent's financial projections show that the Debtor
will have sufficient cash on hand to make the Effective Date
payments to creditors. The first payments are expected to be paid
on the Effective Date. The Plan Fiduciary will make additional pro
rata payments to creditors under the Plan as funds warrant.
Pursuant to the projections, the Debtors anticipate having a total
of approximately $ 140,000 in cash on hand as of the effective
date. A total of $ 140,000 will be paid to creditors under the Plan
as follows: $50,000 estimated to administrative legal creditors,
estimated $5,000 in Subchapter V fees, $65,125.73 to priority
unsecured creditors, and $19,874.27 to general unsecured
creditors). These are estimates only, and the Plan Fiduciary and
other parties have the right to object to these claims.
Class 3 consists of Non-priority unsecured creditors. Class 3
claims are impaired, and will be paid their pro rata share of the
funds remaining in the estate after payment of administrative, sub
V trustee and priority unsecured claims, estimated to be
$19,874.27, resulting in payment of 0.51% of their claims. Pursuant
to the Settlement, Fountainebleau's unsecured claim, which
otherwise will be capped at 85% of the total funds being paid to
Class 3 creditors. Accordingly, on the Effective Date,
Fontainebleau will receive 85% of the estimated $19,874.27 that
will be paid to Class 3 creditors, and the other Class 3 creditors
will receive their pro rata share of 15% of the estimated
$19,874.27 that will be paid to Class 3 creditors.
Additionally, the Plan Fiduciary make additional pro rata payments
to creditors under the Plan as funds warranted from his recoveries
for the estate. Pursuant to the Settlement, Fontainebleau will
receive 85% of any funds paid out, with the other Class 3 creditors
receiving their pro rata share of 15% of any funds paid out.
The Plan will be funded from funds on hand with the Debtor on the
Effective Date. The Debtor estimates that it will have $140,000.
General unsecured claims will be paid their pro-rata share of the
funds remaining on hand on the Effective Date, estimated to be
$19,874.27. Additionally, the Plan Fiduciary will make additional
pro rata payments to general unsecured creditors under the Plan as
funds warranted from his recoveries for the estate.
A full-text copy of the First Amended Liquidating Plan dated August
14, 2024 is available at https://urlcurt.com/u?l=z8kBI8 from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Leslie A. Cohen, Esq.
Leslie Cohen Law, PC
506 Santa Monica Blvd., Suite 200
Santa Monica, CA 90401
Tel.: (310) 394-5900
Fax: (310) 394-9280
Email: leslie@lesliecohenlaw.com
About National Association of Television
Program Executives
The National Association of Television Program Executives (NATPE)
is a professional association of television and emerging media
executives established in 1963.
NATPE sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11181) on Oct. 11,
2022, with up to $50,000 in assets and up to $1 million in
liabilities. Judge Martin R. Barash oversees the case.
Leslie A Cohen, Esq., at Leslie Cohen Law, PC serves as the
Debtor's counsel.
NCR ATLEOS: Fitch Affirms 'BB-' LongTerm IDR; Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of NCR Atleos Corporation (NCR Atleos, formerly NCR Atleos,
LLC) at 'BB-'. The Rating Outlook is Stable. Fitch has also
affirmed the ratings on NCR Atleos' first lien senior secured debt
including its revolver, term loans and senior notes at
'BB+'/'RR2'.
NCR Atleos is a market leader in ATM solutions and has one of the
largest independent ATM networks in the U.S., with its Allpoint
Network. Fitch believes there are material secular pressures the
company could face over time, but believes it has executed well
post its 2023 separation from NCR Corporation (now NCR Voyix
Corporation; BB-) and will continue to generate meaningful cash
through at least the medium-term horizon. Fitch expects the company
will manage its financial leverage at a reasonable level that
positions it at the 'BB-' rating.
Key Rating Drivers
Solid Position in ATM Services: NCR Atleos' credit profile benefits
from its market leadership, as the company is one of the global
market leaders in ATM hardware, software and services and operates
one of the largest U.S. ATM networks (Allpoint). NCR Atleos was the
market leader in ATMs shipped globally in recent years and has the
leading share position for ATM installs in more than 30 countries.
The ATM hardware market is concentrated with three manufacturers
comprising roughly 85% of units shipped globally. ATM networks are
more fragmented, but NCR holds a solid position with more than
800,000 ATMs managed globally (including 81,000 of its own units).
This comprises roughly low- to mid-20% of the estimated 3.2
million-3.5 million ATMs operated worldwide, by Fitch's estimate.
Secular Challenges: ATM sales and network volumes could be
pressured over the long term as consumers use less cash, although
increased bank outsourcing could offset this. Consumers shifted
further away from cash since the pandemic, particularly in certain
markets such as the U.S. where NCR Atleos generates meaningful
revenue. However, Fitch believes demand for cash/ATMs will have a
long tail and NCR Atleos, as a market leader in hardware/software
solutions and as an independent network operator, will continue to
derive material profitability from the business.
Shift to Service Model: NCR Atleos is in the midst of a multi-year
business model transition away from upfront hardware sales plus
software/services updates paid over time to an ATM-as-a-service
(ATMaaS) model, whereby it would manage a bank's ATM tech footprint
for zero dollars upfront but a monthly recurring subscription fee
over time. This fee includes hardware, software, services, cash
management and 24x7 monitoring. Management expects this to drive
higher lifetime customer value, or more than 2x revenue and EBITDA
of its prior model, and EBITDA margin expansion over time into the
mid-20% versus high-teens currently. Sustained margin expansion may
prove challenging as the hardware intensive component of its
business may be a limiting factor.
ATMaaS revenue are relatively small today, approaching nearly $200
million annually, or approximately 9% of 1H24 revenue, but sales
are growing quickly with revenue up 31% YoY in 2Q24.
Regional Diversification: NCR Atleos' IDR benefits from global
diversification, with only 46% of its revenue from the U.S. in 1H24
and the remaining portion well spread across other countries. Cash
usage varies meaningfully globally and NCR Atleos' worldwide
presence functions as somewhat of an offset to the long-term
secular shift away from paper-based cash. It also has a global
manufacturing footprint, but manufactures the largest portion of
its ATMs in India (Chennai).
Manageable Leverage: Fitch expects the company will maintain
leverage at a moderate level over time due to secular challenges
facing cash usage. Fitch projects EBITDA leverage (gross) will
decline through 2025 and could be in the mid- to high-3.0x range
beyond 2024, or approaching 3.0x on a Fitch-calculated EBITDA net
leverage basis. Management is targeting net leverage, which
excludes the company's trade receivable facility that Fitch
includes in its calculations, in the 2.5x-3.0x range over the
long-term but Fitch has a more conservative view on revenue growth
and margin expansion due to secular industry concerns.
While leverage is manageable for the IDR, EBITDA interest coverage
is notably low for BB- and above rated issuers and is projected to
be in the mid-2.0x range in 2024. Coverage could trend higher over
the next few years with debt reduction and declining rates. The
company could also potentially benefit from refinancing in the
future.
Stable FCF Profile: Fitch expects NCR Atleos will continue to
generate positive FCF in the future and projects FCF margins in the
mid-single digits as a percentage of revenue over the ratings
horizon, which benefits its IDR and supports its leverage profile.
Despite notable secular risks over the long term, Fitch believes
the business should be reasonably stable in the near to medium
term. Global cash usage remains significant in terms of volumes and
varies meaningfully by country. Further, with banks expected to
continue closing branches, consumers will increasingly rely on ATMs
as their "touch point" when physical cash and/or check deposits are
needed.
Derivation Summary
NCR Atleos' ratings and Outlook are supported by its market
position across its business, relatively stable business, regional
diversification, expectation of positive FCF generation, and
manageable leverage for the rating category. Secular challenges
inherent in the company's key end market is also a key rating
consideration that limits the rating and positions the company at
the 'BB-' IDR. Fitch considers the company relative to other
hardware and services companies in the technology and business
services industries.
NCR's next closest industry peer, Diebold Nixdorf, Incorporated,
filed for bankruptcy during 2023 due to a confluence of high
leverage, limited liquidity and significant fundamental pressures
on its business. Euronet Worldwide, Inc. (BBB/Stable) has
relatively similar scale but operates a more diversified business
that historically had much lower financial leverage and higher
coverage, as well as a long track record of conservative balance
sheet management.
While operating in a different business and part of the cash value
chain as a provider of secure transportation services (including
cash and other valuables), The Brink's Company (BB+/Stable), has
relatively similar revenue/EBITDA scale but generates moderately
higher FCF, operates with long-term contracts, is projected to have
similar EBITDA leverage but higher interest coverage.
Fitch rates numerous hardware companies much larger than NCR Atleos
as investment grade, such as Motorola Solutions, Inc. (BBB/Stable),
HP Inc. (BBB+/Stable), Dell Technologies Inc. (BBB/Stable).
However, these companies benefit from much larger scale, greater
diversification, better end markets and more attractive
FCF/leverage characteristics.
Key Assumptions
- Organic revenue growth in the low-single digit range in the next
few years;
- EBITDA margins improve to 19%-20%, with modest expansion
supported by its planned business model shift to ATMaaS;
- Capex near 4%-5% of revenue;
- Excess cash flow used for debt repayment in the near-term, but
Fitch estimates capital allocation priorities shift to dividends
and buybacks starting in 2025;
- EBITDA leverage trends lower toward the mid-3.0x versus low-4.0x
currently;
- Floating rate debt assumes SOFR trends lower toward 4% by 2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage, defined as debt/EBITDA, sustained at/below
3.5x;
- Revenue growth projected to be sustained in the mid-single digit
percentage range or higher over time;
- Improving EBITDA Interest Coverage metrics.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained at/above 4.0x;
- Revenue growth deteriorates and is expected to be pressured over
a multi-year period;
- Deterioration in key fundamentals including EBITDA margins or FCF
generation.
Liquidity and Debt Structure
Sufficient Liquidity: NCR Atleos has sufficient liquidity to
support its operations as well as growth plans in the next few
years. Liquidity is supported by the following as of June 2024: (i)
$374 million of cash and equivalents; (ii) undrawn capacity on its
$500 million senior secured revolver; and (iii) positive FCF
generation that Fitch projects could be approaching $200 million or
higher annually through 2027.
Debt Profile: NCR's debt includes a mix of floating rate and fixed
securities, with all of its debt being newly issued to finance its
2023 separation into a newly public company. As of June 2024, the
company's outstanding debt includes: (i) roughly $1.5 billion of
borrowings on a senior secured term loan; (ii) $1.4 billion of
senior secured notes (9.5% fixed); and (iii) a $500 million senior
secured revolver.
The company also has a trade receivables facility, which allows the
company to sell certain receivables on a revolving basis via
wholly-owned, bankruptcy remote subsidiaries. The trade receivables
facility provides for capacity of up to $166 million at any point
in time. There is some maturity risk as its revolver expires in
2028 and most of the company's debt, including its term loan and
senior secured notes, mature in 2029.
Issuer Profile
NCR Atleos Corporation is the global leader in ATM hardware sales
and one of the largest ATM network operators globally. The company
was formed via a 2023 spin-off from NCR Corporation (now NCR Voyix
Corporation), but has history in ATMs dating back to the 1980s.
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
----------- ------ -------- -----
NCR Atleos
Corporation LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR2 BB+
NEW INSIGHT: S&P Assigns 'B-' ICR On Chapter 11 Emergence
---------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
Connecticut-based survey data and market research provider, New
Insight Holdings Inc. (dba Dynata), reflecting a lightened debt
load and improved liquidity position.
S&P said, "At the same time, we assigned a 'B+' issue-level rating
and a '1' recovery rating to the first-out first-lien term loan due
2028. The '1' recovery rating reflects our expectation for very
high recovery (90%-100%; rounded estimate: 95% in a hypothetical
default.
"We also assigned a 'B-' issue-level rating and '3' recovery rating
to the second-out first-lien term loan due 2028. The '3' recovery
rating reflects our expectation of meaningful (50%-70%; rounded
estimate: 55%) recovery in a hypothetical default. The borrower of
first out lien term and second-out first lien term loans is Dynata
LLC.
"The stable outlook reflects our expectation that Dynata will
continue to execute its operational turnaround plan during the next
12-24 months. Furthermore, we expect that Dynata will have adequate
liquidity during this period to improve operations.
"The 'B-' rating and stable outlook on New Insight reflect our view
of an improved capital structure and liquidity profile.New Insight
recently emerged from bankruptcy, restructuring its existing $90
million senior secured first-lien revolving credit facility, $975
million senior secured first-lien term loan, and $250 million
senior secured second-lien term loan with a new $75 million
asset-backed revolving credit facility and a total of $776 million
first-lien term debt, which reduced its debt by approximately 40%.
Topline declines due to weaker end-market demand and market share
loss, as well as a heavy debt load and increased interest expense
caused a sharp deterioration in liquidity in 2022 and 2023 and led
the company to file for bankruptcy in May 2024.
"Given the reduced debt load and consequentially decreased interest
burden post emergence (annual interest savings of more than $50
million) we expect the company will be able to maintain adequate
liquidity for the next 12-24 months. During this time, we expect
the company will continue to focus on improving its go-to market
strategy, investing in new growth strategies.
"Our business risk assessment reflects operational challenges that
New Insight continues to face due to declines in end-market demand,
yet market-leading position and improving EBITDA generation. The
company's operating performance continues to be negatively impacted
by end-market trends, including reduced advertising budgets, a weak
merger and acquisition (M&A) environment, and larger companies
insourcing its market research. We expect the end-market headwinds,
coupled with execution risk will result in revenue decline through
2024. We project modest revenue growth in 2025 (excluding political
revenue which ties to election cycles) driven by sales enablement
and marketing and additional product development.
"While we expect revenue decline in the second half of 2024, the
company has focused on cost-cutting initiatives and gross margin
expansion and we expect S&P Adjusted EBITDA will increase
year-over-year, despite the topline decline. Management has worked
to decrease waste, right-size staffing, standardize and re-engineer
business processes, and combine and improve internal technology
systems. We expect these initiatives will result in continued
margin improvement in 2024 (expect S&P Global Ratings-adjusted
EBITDA margins of about 26%, compared to 21% in 2022)."
While Dynata faces operational challenges over the next year or so,
this is somewhat offset by its strong market position as a leading
online panel data and technology-based research solutions company.
Their market position is supported by a substantial database of
panelists, with over 600 attributes per member.
S&P said, "Our financial risk assessment reflects that while the
company's debt load has been reduced 40%, the company's leverage
remains elevated. We forecast leverage will remain elevated for the
next several quarters in the mid- to high- 5.0x area. Additionally,
as a result of restructuring fees and expenses associated with the
bankruptcy and operational headwinds this year, we expect that free
operating cash flow (FOCF) will be negative through the remainder
of 2024, further underpinning our financial risk assessment. We
expect the company's credit metric profile will significantly
improve in 2025 because we anticipate the company will begin to
generate cash flow and de-lever on the back of debt amortization
and EBITDA expansion with leverage in the high-5.0x area and FOCF
to debt of 4% for 2025.
"Our rating reflects our expectation of operational improvements
through the ongoing company's transformation plan, yet high
execution risk associated with the initiatives. The company is
currently working on a three-stage turnaround plan focused on
stabilizing the business, optimizing business operations, and
investing in growth. While we forecast revenue growth in 2025 as a
result of the implemented transformation plan, there is significant
execution risk as the company rebuilds customer relationships,
improves technology, and returns to growth. The company has a
limited timeline to improve operations as cash burn due to
operational missteps or implementation delays could result in
weakening liquidity.
"The stable outlook reflects our expectation that New Insight's
capital structure will allow it to implement its turnaround
strategy while maintaining adequate liquidity. We expect leverage
will remain elevated through 2024 and 2025. We expect improvement
in cash flow generation in 2025 as bankruptcy and restructuring
costs roll off.
"We could lower the credit rating if we believe cash flow is
insufficient to service the company's debt interest and
amortization payments such that we view the capital structure as
unsustainable. This could occur if FOCF falls and remains negative
on a sustained basis due to operational challenges, revenue
declines, or EBITDA margin deterioration.
"We could raise our rating if the company were able to sustain
leverage comfortably under 6.0x with FOCF/debt sustained above 5%.
This scenario would most likely include solid organic revenue
growth in the mid-single-digit percentage area and stable
profitability."
NINO LAND: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------
Nino Land & Investment Co. LLC filed Chapter 11 protection in the
Northern District of Illinois. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Nino Land & Investment
Nino Land & Investment Co. LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-12705) on
August 29, 2024. In the petition filed by Kent Maynard, Jr., as
attorney, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
Kent Maynard, Jr, Esq.
KENT MAYNARD & ASSOCIATES
17 N State Street, Suite 1730
Chicago IL 60602
Tel: 312-423-6586
Email: service@kentmaynard.com
NORTHEAST LANDSCAPING: Seeks Chapter 11 Bankruptcy
--------------------------------------------------
Northeast Landscaping & Tree Services Inc. filed Chapter 11
protection in District of Rhode Island. According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
October 1, 2024 at 11:00 a.m.
A meeting of creditors under 11 U.S.C. Sec. 341(a) is scheduled to
be held on Oct. 1, 2024, at 11:00 a.m.
About Northeast Landscaping & Tree Services
Northeast Landscaping & Tree Services Inc. is an exterior facility
maintenance provider.
Northeast Landscaping & Tree Services Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. R.I. Case No.
24-10611) on August 30, 2024. In the petition filed by Antonio
Portonato, as president, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The Honorable Bankruptcy Judge Diane Finkle handles the case.
The Debtor is represented by:
Andre S. Digou, Esq.
CHACE RUTTENBERG & FREEDMAN, LLP
One Park Row, Suite 300
Providence, RI 02903
Tel: 401-453-6400
Email: adigou@crfllp.com
OP DEVELOPMENT: Oct. 1 Public Sale Auction Set
----------------------------------------------
OP Development FL LLC's 100% membership interest in Cornerstone-ICM
Oak Plantation LLC will be up for sale on Oct. 1, 2024, at 11:00
a.m. ET. The pledged collateral is a 242 Unit Multifamily
Development and other associated collateral. Further information
on the sale, contact: Francis D. Santos, Tel: 754-220-4116.
PARLEMENT TECHNOLOGIES: Exclusivity Period Extended Feb. 10, 2025
-----------------------------------------------------------------
Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the
District of Delaware extended Parlement Technologies, Inc.'s
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to February 10, 2025 and April 10, 2025,
respectively.
As shared by Troubled Company Reporter, cause exists to extend the
Exclusive Periods. First, the Debtor and its professionals have
made significant progress in moving this Chapter 11 Case to a
successful completion, including: (a) minimizing the adverse
effects caused by the commencement of the Chapter 11 Case on its
business by securing various first-day relief; (b) obtaining entry
of interim and final orders approving DIP financing; (c) continuing
efforts to market and sell its assets through a robust sale process
and engaging in extensive diligence and negotiations with
interested parties; (d) preparing and filing the schedules of
assets and liabilities and statements of financial affairs; and (e)
continuing negotiations with its key stakeholders regarding a
potential exit path from chapter 11.
Second, allowing the expiration of the Exclusive Periods at this
critical stage would serve only to interfere with the progress of
this Chapter 11 Case. Now that the Debtor has expended substantial
time and resources in: (a) stabilizing its business, (b) marketing
its assets through the sale process, (c) complying with the
requirements of the Bankruptcy Code and the Bankruptcy Rules; and
(d) otherwise administering its estates for the benefit of its
stakeholders, the Debtor requires additional time to complete the
sale of its assets and to engage in discussions with key
stakeholders before pursuing an exit from bankruptcy.
Lastly, creditors will not be harmed by extending the Exclusive
Periods. This Motion is the Debtor's first request for an extension
of the Exclusive Periods. The Debtor is not seeking the extension
of the Exclusive Periods to delay administration of this Chapter 11
Case or to exert pressure on its creditors, but rather to allow the
Debtor to continue with a value-maximizing sale process and to work
to propose and seek confirmation of a plan in the most
cost-efficient manner.
Parlement Technologies, Inc. is represented by:
Jeremy W. Ryan, Esq.
R. Stephen McNeill, Esq.
Sameen Rizvi, Esq.
Potter Anderson & Corroon, LLP
Hercules Plaza
1313 North Market Street, 6th Floor
P.O. Box 951
Wilmington, DE 19801
Telephone: (302) 984-6108
Email: jryan@potteranderson.com
About Parlement Technologies
Parlement Technologies, Inc. is a technology services company in
Nashville, Tenn., serving businesses and organizations of all
sizes.
Parlement Technologies filed Chapter 11 petition (Bankr. D. Del.
Case No. 24-10755) on April 15, 2024, listing up to $50 million in
both assets and liabilities. Craig Jalbert, chief restructuring
officer, signed the petition.
Judge Craig T. Goldblatt oversees the case.
Jeremy W. Ryan, Esq., at Potter Anderson & Corroon, LLP serves as
the Debtor's bankruptcy counsel.
PASKEY INC: Gets OK to Hire Lewis Brisbois Bisgaard as Counsel
--------------------------------------------------------------
Paskey Incorporated received approval from the U.S. Bankrutpcy
Court for the Southern District of Texas to hire Lewis Brisbois
Bisgaard & Smith, LLP as its counsel.
The firm will render these services:
a. advise the Debtor concerning its rights, powers, and
responsibilities under the Bankruptcy Code, Federal Rules of
Bankruptcy Procedure, and Local Bankruptcy Rules, and the
requirements of the United States Trustee pertaining to its rights
and duties as debtor-in-possession in the continued operation of
its business and affairs and its administration of the bankruptcy
estate;
b. prepare motions, applications, answers, orders, memoranda,
reports, papers, and any other pleadings necessary to further the
Debtor's interests and objectives, in connection with the
administration of the bankruptcy estate;
c. provide legal services with respect to formulating and
negotiating a plan of reorganization or liquidation, or a
structured dismissal of the Bankruptcy Case, and other legal
services for the Debtor as may be required and appropriate during
the course of this Chapter 11 Bankruptcy Case;
d. provide representation in all negotiations and proceedings
involving the Debtor in matters relating to, inter alia, the
administration of the bankruptcy estate, if the case is not
dismissed, then the terms of the Debtor's Chapter 11 disclosure
statement and plan of reorganization or liquidation and
confirmation of the Chapter 11 plan and all other legal aspects of
the Debtor's Bankruptcy Case;
e. protect and preserve the bankruptcy estate by prosecuting
and defending actions commenced by or against the Debtor, and
preparing necessary objections to proofs of claim or interest filed
in the Bankruptcy Case;
f. investigate and prosecute preference avoidance, fraudulent
transfer, and other actions arising under the Debtor's avoiding
powers; and
g. render such other legal advice and services as the Debtor
may require in connection with this Bankruptcy Case and any related
proceedings.
The current billing rates for attorneys range from $300 to $500 per
hour, and paraprofessionals will bill at an hourly rate of $150.
The primary attorneys who will provide legal services and their
hourly rates are:
Bennett G. Fisher $500
Sean Walsh Hourly $400
Audrey Ramirez $300
The firm received a retainer in the amount of $50,000.
In addition, the firm will seek reimbursement for expenses
incurred.
Bennett Fisher, Esq., a partner at Lewis Brisbois Bisgaard & Smith,
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:
Bennett G. Fisher, Esq.
Audrey E. Ramirez, Esq.
LEWIS BRISBOIS BISGAARD & SMITH, LLP
24 Greenway Plaza, Suite 1400
Houston, Texas 77046
Tel: (346) 241-4095
Fax: (713) 759-6830
Email: bennett.fisher@lewisbrisbois.com
audrey.ramirez@lewisbrisbois.com
About Paskey Incorporated
Paskey Incorporated is a general contractor in La Porte, Texas.
Paskey Incorporated sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90433) on July 28,
2024. In the petition filed by Curtis W. Paskey, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor is represented by Bennett G. Fisher, Esq. at LEWIS
BRISBOIS BISGAARD & SMITH.
PECF USS: $2BB Bank Debt Trades at 32% Discount
-----------------------------------------------
Participations in a syndicated loan under which PECF USS
Intermediate Holding III Corp is a borrower were trading in the
secondary market around 68.5 cents-on-the-dollar during the week
ended Friday, Sept. 13, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $2 billion Term loan facility is scheduled to mature on
December 15, 2028. About $206 million of the loan is withdrawn and
outstanding.
PECF USS Intermediate Holding III Corporation is the issuing entity
for a debt extended to United Site Services Inc., a provider of
portable sanitation and related site services.
PIKE CORP: Moody's Affirms 'B2' CFR, Outlook Stable
---------------------------------------------------
Moody's Ratings affirmed Pike Corporation's B2 corporate family
rating, its B2-PD probability of default rating its Ba3 backed
senior secured first lien credit facilities, and the B3 rating on
its senior unsecured notes. The rating outlook is stable.
RATINGS RATIONALE
Pike's credit profile is supported by the favorable industry
fundamentals as utilities continue to focus on replacing aging
infrastructure, modernizing and expanding the electricity grid, and
outsourcing more engineering and construction services to third
parties. The majority of Pike's sales are generated by smaller work
orders under master service agreements ("MSAs"), which provide some
revenue visibility and stability. Pike has demonstrated a strong
track record of sales and earnings growth over the past ten years.
Moody's adjusted Total Leverage, including adjustments for
operating leases, has been in the range of 4x to 5x over the last
five years, consistent with Moody's expectation for the rating as
well as management's leverage target commitment.
Pike Corporation's credit profile is constrained by its limited end
market diversity, predominately providing engineering,
construction, maintenance, repair, replacement, and upgrade work
for electric utilities. The credit profile also considers its
customer concentration and moderate scale relative to other rated
peers. The rating also considers Pike's history of debt-funded
acquisitions and frequency of dividend distributions.
Moody's expect, in the absence of dividend recap or large
debt-funded acquisitions, Pike's Debt / EBITDA ratio to be in the
low to mid 4x range and forecasts the company to generate annual
free cash flow in the $100 million range over the next 12-18
months.
Augmenting its organic growth strategy, Pike has executed multiple
acquisitions in recent years, expanding its geographic presence,
customer base, and service offering. Most recently in June 2024,
Pike completed the acquisition of the Power Delivery business of
United Engineers & Constructors for approximately $140 million,
bolstering the company's capabilities in the Transmission segment.
Moody's expect management to continue opportunistically pursuing
additional acquisitions given the consolidation opportunities in a
fragmented utility service sector.
The company's liquidity is supported by its available revolving
credit facility and free cash flow generation over time. At the end
of June 2024, the company had $23.4 million of cash on hand and
$216 million availability (after giving effect to $21.9 million of
outstanding LCs) under its $253 million revolver due in December
2028. The revolver is subject to a 5.8x springing senior secured
leverage covenant that is tested when utilization exceeds 25% of
the commitment (excluding up to $20 million of non-cash
collateralized L/Cs). Moody's expect Pike to satisfy the covenant
testing. There are no maintenance covenants.
The stable ratings outlook reflects Moody's expectation that Pike
will continue to perform despite the current slowdown in capital
spending by some electric utilities due to the high interest rate
environment, election year uncertainties, and unfavorable rate
cases with certain customers. Moody's do expect Pike to continue
benefiting from favorable macro industry trends and good customer
relationships in the medium to long term. The stable outlook also
assumes the company will maintain credit metrics that are
commensurate with its B2 corporate family rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company increases its scale
and geographic diversity and strengthens its cash generating
ability as evidenced by FFO/debt increasing to more than 17.5%,
while maintaining good margins and a leverage ratio (debt/EBITDA)
below 4.0x.
A downgrade could occur if deteriorating operating results,
debt-financed acquisitions or shareholder distributions result in
the company's leverage ratio being sustained above 5.5x, or
FFO/debt sustained below 12.5%. A weakening of its liquidity
profile could also result in downward pressure.
Headquartered in Charlotte, North Carolina, Pike Corporation
provides installation, repair and maintenance and storm restoration
services for investor-owned, municipal, and cooperative electric
utilities and telecommunications companies in the United States.
The company provides engineering and design services and constructs
and maintains substations, underground and overhead distribution
networks and transmission lines. Eric Pike and his affiliates hold
the majority of the voting rights in the company. Revenue for the
twelve months ended June 2024 was approximately $2.7 billion.
The principal methodology used in these ratings was Chemicals
published in October 2023.
POLARITYTE INC: Creditors to Get Proceeds From Liquidation
----------------------------------------------------------
PolarityTE, Inc., a Delaware corporation, and its affiliates filed
with the U.S. Bankruptcy Court for the District of Utah a
Disclosure Statement for Amended Chapter 11 Plan of Liquidation
dated August 15, 2024.
The Debtors were a clinical stage biotechnology company with a
promising product, SkinTE. PTE MD and PTE NV are both wholly owned
subsidiaries of PTE, a publicly traded company.
The Debtors' product, SkinTE, is a regenerative tissue product
(produced by a proprietary mechanism for the patient's own skin)
that has been shown to be effective in clinical trials for treating
diabetic skin ulcers and venous leg ulcers. The Market for the
treatment of diabetic skin ulcers alone is $1 billion annually.
After the Petition Date, the Debtors sought and obtained approval
from the Bankruptcy Court to run an auction and sale process for
the sale of substantially all their assets. After sale process
supported by a stalking horse bidder, the Bankruptcy Court on July
31, 2023, approved the sale of substantially all the Debtors'
operating assets to Grander Acquisition LLC ("Grander" and the
"Grander Sale"). Under the Grander Sale, Grander purchased
substantially all the Debtors' operating assets related to the
operation of the Debtors' business for the price of $6,500,000.
Grander also agreed to assume the Assumed Liabilities, as defined
in the purchase agreement related to the Grander Sale.
After satisfaction of certain secured claims and the compromise of
certain administrative claims, the Debtors' remaining assets
consist of cash and certain causes of action under applicable law
and the Bankruptcy Code. The Plan's purpose is to place the
Debtors' remaining assets into a Liquidating Trust for the benefit
of the Debtors' creditors and equity holders. The Liquidating Trust
will pursue the remaining causes of action and distribute the
Debtors' assets to creditors and equity holders according to the
waterfall of priorities in the Bankruptcy Code and applicable law.
Under the Plan, the Debtors' Estate and all its remaining assets
would become property of the Liquidating Trust, and a Liquidating
Trustee would be appointed to conduct an orderly liquidation of the
assets with the goal of maximizing returns to holders of Claims and
Interests. The Plan proposes that John H. Curtis, of Rocky Mountain
Advisory, LLC ("Rocky Mountain Advisory"), serve as the Liquidating
Trustee for the Liquidating Trust and would have overall
responsibility for the liquidation and distributions.
In particular, the Liquidating Trustee will be responsible for
liquidating all remaining assets, including evaluating and
prosecuting Avoidance Actions to the extent appropriate, objecting
to Claims as appropriate, and making distributions to creditors.
The Liquidating Trustee would also be responsible for holding and
administering all post-confirmation cash and bank accounts of the
Liquidating Trust.
The Debtors submit that the liquidation of all remaining assets of
its Estate through the Liquidation Trust mechanism has the best
potential for maximizing the returns to creditors and equity
holders. The Liquidating Trustee is familiar with the claims
against the Debtors and the Debtors' remaining assets because of
his work through Rocky Mountain Advisory as restructuring advisor
for the Debtors during the Chapter 11 Bankruptcy Cases and will be
able to efficiently work with Rocky Mountain Advisory and Parsons
Behle & Latimer to maximize the proceeds of these assets and to
seek the disallowance of any objectionable claims.
The purpose of the Plan is to establish an efficient mechanism for
promptly and efficiently (a) completing the liquidation of the
remaining assets of the Debtors' Estate in an orderly fashion, (b)
evaluating claims against the Estate and pursuing objections to
Claims where appropriate, and (c) distributing the net funds of the
Estate to holders of allowed Claims and Interests in the order of
their lawful priority.
Class 3 shall consist of all Allowed General Unsecured Claims
against the Debtors. In full satisfaction of their Claims, holders
of Allowed Class 3 Claims shall be given their Pro Rata share of
distributions as beneficiaries of the Liquidating Trust until they
have received payment in full plus interest at the Federal Judgment
Rate from the Petition Date through the date of payment. The
Liquidating Trustee shall pay holders of Allowed Class 3 Claims
their Pro Rata share (subject to the Disputed Claims Reserve) as
funds become available in the Distribution Account, subject to the
Liquidating Trustee's discretion and required holdbacks for
potential for Allowed Claims. Class 3 is unimpaired.
The Debtors listed certain Unsecured Claims in Schedule E/F of
their Schedules in the approximate amount of $60,427.41. However,
due to the assumption of certain executory contracts in the Grander
Sale, payment of critical contracts, reconciliation of invoices,
filed proofs of claims and other payments made during the
Bankruptcy Cases, the total of General Unsecured Claims is
estimated to be approximately $3,803,648.17.
Class 4 shall consist of all Equity Interests in the Debtors and
Rescission Claims. On the terms and conditions set forth in the
Liquidating Trust (including the establishment of a reserve),
holders of Equity Interests in the Debtors shall receive their Pro
Rata share of remaining Cash after Class 3 (General Unsecured
Claims) have received their distributions and all Equity Interests
in the Debtors shall be cancelled. Claims arising from the purchase
or rescission of Equity Interests subordinated under Bankruptcy
Code Section 510(b) shall be determined by the Bankruptcy Court in
shares equivalent to Equity Interests.
On the terms and conditions set forth in the Liquidating Trust
(including the establishment of a reserve), in full satisfaction of
their Rescission Claims, holders of Equity Interests shall be
entitled to their Pro Rata share of remaining Cash after Class 3
(General Unsecured Claims) have received their distributions Pro
Rata with Equity Interests in the Debtors. Class 4 is impaired
under the plan. On the Effective Date, all Equity Interests shall
be cancelled. Each holder of an Equity Interest or Rescission Claim
is deemed to have rejected the Plan and is not entitled to vote to
accept or reject the Plan.
The Plan is to be executed and implemented through the means of the
Liquidating Trust, acting through the Liquidating Trustee. The
Liquidating Trust will receive all property of the Estate as of the
Effective Date, and the Liquidating Trustee, among other things,
will liquidate the remaining property, review and object to Claims
as appropriate, and make distributions to holders of Allowed Claims
and the holders of Rescission Claims or Equity Interests.
A full-text copy of the Disclosure Statement dated August 15, 2024
is available at https://urlcurt.com/u?l=tHu9LL from
PacerMonitor.com at no charge.
Attorneys for the Debtors:
Bruce H. White, Esq.
J. Thomas Beckett, Esq.
Darren Neilson, Esq.
PARSONS BEHLE AND LATIMER
201 S. Main Street Suite 1800
Salt Lake City UT 84111
Tel: 801-532-1234
Facsimile: 801.536.6111
Email: TBeckett@parsonsbehle.com
BRothschild@parsonsbehle.com
DNeilson@parsonsbehle.com
About PolarityTE Inc.
PolarityTE is focused on developing regenerative treatments for
some of the most complex wounds -- where disease burden on patients
and families is immense and current therapeutic options are often
limited or do not exist.
PolarityTE, Inc., a Delaware corporation, PolarityTE MD, Inc. and
PolarityTE, Inc., and PolarityTE, Inc., (a Nevada Corporation)
concurrently filed voluntary petitions for relief under Chapter 11
of the Bankruptcy Code (Bankr. D Utah Lead Case No. 23-22358). The
petitions were signed by Richard Hague as CEO and president.
Each Debtor estimated $500,000 to $1 million in assets and up to
$50,000 in liabilities.
Brian M. Rothschild, Esq. and Darren Neilson, Esq. at PARSONS BEHLE
AND LATIMER represent the Debtor as counsel.
PRESPERSE CORP: Sept. 19 Deadline Set for Panel Questionnaires
--------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Presperse
Corporation.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/255h8nvj and return by email it to
Timothy Fox - timothy.Fox@usdoj.gov - at the Office of the United
States Trustee so that it is received no later than 2:00 p.m.,
Sept. 19, 2024.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Presperse Corporation
Presperse Corporation provides premium specialty ingredients to
formulators of skincare, sun care, hair care, color cosmetics, and
diverse areas of beauty and wellness.
Presperse Corporation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. New Jersey Lead Case No. 24-18921) on
Sept. 9, 2024. In the petition filed by Mehul Shah as chief
financial officer, Presperse Corporation disclosed $10 million to
$50 million in assets and $50 million to $100 million in debt.
The Hon. Michael B Kaplan presides over the case.
Duane Morris LLP is the Debtors' general bankruptcy counsel.
Getzler Henrich is the Debtors' financial advisor. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
PRIME HARVEST: In Talks with Banks to Resolve Lawsuit
-----------------------------------------------------
Judge Scott L. Palk of the United States District Court for the
Western District of Oklahoma granted the request of Prime Harvest,
Inc. for permissive extension of its deadline to effect service of
process in the case it filed against Legacy Bank et, al. The
deadline is extended until November 6, 2024.
Plaintiff represents it has been exploring global settlement
options with Defendants and considering whether to file an
adversary complaint in its ongoing Chapter 11 bankruptcy proceeding
in lieu of proceeding in this action.
The Court says it must extend the deadline for service when a
plaintiff shows good cause.
Based on Plaintiff's representations, the Court finds the
circumstances of this case justify a permissive extension.
Prime Harvest alleges breach of contract against Legacy Bank and
Midstate Bancorp Inc.
A copy of the Court's decision dated September 9, 2024, is
available at https://urlcurt.com/u?l=6LER9h
About Prime Harvest
Prime Harvest, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10841) on April 1,
2024. In the petition signed by Calvin Burgess, president, the
Debtor disclosed up to $100 million in assets and up to $50 million
in liabilities.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's legal counsel.
PRIMELAND REAL ESTATE: Sec. 341(a) Meeting of Creditors on Oct. 7
-----------------------------------------------------------------
Primeland Real Estate Development LLC filed Chapter 11 protection
in the Middle District of Florida. According to court documents,
the Debtor reports $41,815,331 in debt owed to 200 and 999
creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 7, 2024 at 11:00 a.m. in Room Telephonically. Call in Number:
877-801-2055. Passcode: 8940738#.
About Primeland Real Estate Development
Primeland Real Estate Development LLC is the fee simple owner of an
incomplete condominium project known as Sycamore Orlando Resort
located at 2691 Livingston Rd, Kissimmee, FL 34747 having an
appraised value of $40 million.
Primeland Real Estate Development LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04612)
on August 29, 2024. In the petition filed by Karen M. Costa, as
president, the Debtor reports total assets of $40,828,477 and total
liabilities of $41,815,331.
The Honorable Bankruptcy Judge Lori V. Vaughan oversees the case.
The Debtor is represented by:
Frank M. Wolff, Esq.
NARDELLA & NARDELLA, PLLC
135 W. Central Blvd
Suite 300
Orlando, FL 32801
Tel: 407-966-2680
Fax: 407-966-2681
E-mail: fwolff@nardellalaw.com
QURATE RETAIL: Fitch Assigns 'BB-' Rating on Senior Secured Notes
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Fitch Ratings has assigned a 'BB-'/'RR2' rating to Qurate Retail,
Inc.'s proposed senior secured notes to be issued by subsidiary
QVC, Inc. The notes will be issued as part of an exchange offer
whereby up to $1.075 billion of secured notes due 2027/2028 would
be exchanged for a combination of cash and the new secured notes.
Maximum participation would yield cash deployment of approximately
$375 million and the issuance of $700 million of new secured notes,
which will be pari passu with QVC's existing secured notes and due
April 2029.
Qurate's ratings, including its 'B' Long-Term Issuer Default Rating
(IDR) and Negative Rating Outlook, reflects recent revenue declines
across Qurate's business, which has led to an increase in EBITDAR
leverage and questions about the company's ability to maintain
longer term market share. Topline pressure caused EBITDA to decline
to $1.2 billion in 2023 from its recent peak of $2.2 billion in
2020; EBITDAR leverage rose to 7.2x from 4.0x during that time.
The company is executing on a number of cost reduction activities
that should help keep EBITDA over $1.1 billion and EBITDAR leverage
in the low-6x range, although the timing and magnitude of a topline
turnaround is unclear. The rating reflects Qurate's good cash flow
generation, with annual FCF expected at approximately $300 million,
which could support further debt reduction.
Key Rating Drivers
Ongoing Topline Declines: Qurate's business revenue has been
challenged, with revenue declining to $10.4 billion in the LTM
ending June 2024 from $11.9 billion (excluding Zulily, which was
sold in early 2023) in pre-pandemic 2019. Sales have declined
across most of Qurate's categories, including key businesses like
beauty which has seen good secular growth in recent years.
The revenue trajectory has been driven by declines in QxH (domestic
QVC/Home Shopping Network) customer count, which has contracted to
eight million in the LTM ending in June 2024 from 10.6 million in
2019. Qurate's topline challenges amidst reasonable industry retail
sales growth suggest a mix of execution issues and business model
concerns, particularly given declines in linear TV viewership.
The company is combating revenue declines by expanding its
streaming reach, investing in its e-commerce platform (which
generates around 60% of QxH revenue) across desktop and mobile, and
on-boarding new brands. In April 2024, the company announced its
new Age of Possibility program to target female customers over 50
years old with product and content influenced by 50 female leaders
and celebrities in this age cohort.
While revenue declines moderated somewhat from 11% in 2022 to 5% in
2023, the timing and magnitude of a stabilization is unknown. Fitch
projects revenue (ex Zulily) could decline by around 3% in 2024 and
decline in the 1% to 2% range beginning 2025. The company needs to
sustain flattish revenue to support a stabilization of its
Outlook.
Cost Reductions Support Current EBITDA: As part of Qurate's Project
Athens announcement in June 2022, the company targeted hundreds of
millions of dollars of margin-driven profit growth through improved
product mix, cost structure reduction, and efficiency efforts in
supply chain operations. Qurate's cost reduction efforts, in
addition to the sale of the loss-making Zulily division in early
2023, has supported EBITDA growing to $1.16 billion in the TTM
ending June 2024 from $826 million in the TTM ending June 2023
despite topline contraction.
Assuming ongoing cost realization, Fitch expects 2024 EBITDA could
be flattish around $1.2 billion with margins in the mid-11% range,
albeit below the recent peak in the 15% range from 2020. While some
cost reductions could extend into 2025, Fitch expects medium term
EBITDA will be a function of Qurate's topline trajectory. Given
Fitch's revenue assumptions, Qurate's EBITDA could decline modestly
from the $1.2 billion expected in 2024 over the medium term,
trending in the $1.1 billion to $1.2 billion range.
Positive Cash Flow: Qurate generates reasonable FCF, including
around $500 million in 2023 (albeit supported by close to $300
million of insurance proceeds). Fitch projects annual FCF could
trend in the low- to mid-$300 million range beginning 2024, given
Fitch's EBITDA assumptions, around $400 million of interest expense
and capex in the low-$300 million range. The company repaid $423
million of secured notes in 1Q24 and indicated plans addressing its
$586 million of secured notes due February 2025 with a mix of cash
and revolver borrowings.
The company's net leverage target, which excludes approximately
$1.6 billion of unsecured notes at Liberty, is 2.5x. This equates
to around mid-5.0x on a Fitch-adjusted EBITDAR basis, including the
notes at Liberty, leases capitalized at 8x and Qurate's $1.3
billion of preferred equity, which Fitch treats as debt. Qurate
could continue to deploy FCF toward debt reduction, including
revolver borrowings which were $1.2 billion at the end of June 2024
and $575 million and $500 million of secured notes due in 2027 and
2028, respectively.
Elevated Leverage: Qurate's EBITDAR leverage rose from the high
3x/low 4x range in 2018-2021 to approximately 8x in 2022 on EBITDA
declines before moderating to 7.2x in 2023 given around $1 billion
of debt reduction and flattish EBITDA. Assuming some EBITDA
expansion in 2024 and the 1Q24 repayment of $423 million of secured
notes, EBITDAR leverage could trend in the low-6x range in 2024.
EBITDAR leverage could remain near 6.0x beginning 2025 given
Fitch's EBITDA assumptions and some debt reduction using FCF.
Parent Subsidiary Linkage: Fitch's analysis includes a strong
subsidiary/weak parent approach between the parents, Qurate and
Liberty, and their respective subsidiaries, Liberty and QVC, Inc.
given proximity to operating assets. Fitch assesses the quality of
the overall linkages as high, which results in an equalization of
the ratings. The equalization reflects open legal ring-fencing and
open access and control across the capital structure.
Derivation Summary
Qurate's IDR and Negative Outlook reflects questions regarding the
company's ability to stabilize market share longer term following
recent revenue declines across its business. Qurate's cash flow
generation remains good, with annual FCF expected to be at least
$300 million, which could support further debt reduction.
Qurate's peers include national department store competitors Macy's
Inc. (BBB-/Stable), Kohl's Corp (BB/Stable), and Nordstrom, Inc.
(BB/Stable). Each of these companies contend with secular headwinds
affecting the department store industry and are continuously
refining strategies to defend market share. Initiatives include
investments in omnichannel models, portfolio reshaping to reduce
exposure to weaker indoor malls, and efforts to strengthen
merchandise assortments and service levels.
Pre-pandemic, the three national peers operated with EBITDAR
leverage below 3.5x (closer to mid-2x for Kohl's) to support
investment-grade ratings. Current ratings embed expectations of
Macy's, Kohl's, and Nordstrom operating with leverage under 3.0x,
4.0x, and 4.0x respectively.
Key Assumptions
- Fitch projects 2024 revenue could decline around 6% to
approximately $10.25 billion. This assumes around 3% organic sales
declines with the remainder due to the full-year impact of the
mid-2023 disposal of Zulily. Revenue beginning 2025 could decline
modestly in the 1%-2% range, assuming continued challenges in
Qurate's linear TV business and some ongoing customer count
contraction;
- EBITDA in 2024 could grow toward $1.2 billion from $1.07 billion
in 2023, assuming margins expand to the mid-11% range from 9.8% as
Qurate benefits from its cost management program. EBITDA beginning
2025 could trend in the $1.1 billion to $1.2 billion range, given
modest topline declines and some ongoing expense reduction
activity, offset by general cost inflation;
- FCF, which was approximately $500 million in 2023 including
around $300 million in insurance proceeds, could trend in the low-
to mid-$300 million range beginning 2024, given Fitch's EBITDA
projections and approximately $400 million of annual cash interest
and $300 million of annual capex.
In 1Q24, the company repaid its $423 million of secured notes due
April 2024 and indicated it expects to use a mix of cash and
revolver borrowings to repay its $586 million of notes due February
2025. Longer term, the company could deploy cash toward a mix of
business reinvestment, debt reduction and shareholder friendly
activities in the context of its financial policy, targeting 2.5x
net leverage (excluding debt at Liberty);
- EBITDAR leverage, which declined to 7.2x in 2023 from a recent
peak of 8.2x in 2022 due to about $1 billion of debt reduction,
could moderate further to the low-6x range in 2024 on EBITDA
expansion and the recent debt repayment. EBITDAR leverage could
sustain in the low-6x range in the medium term, assuming EBITDA
moderation from 2024 levels and debt reduction, which could include
around $400 million in 2024 and another $300 million to $350
million in 2025.
Recovery Analysis
Fitch's recovery analysis assumes Qurate's value is maximized as a
going-concern in a post default scenario, given a going concern
valuation of about $5.4 billion relative to a liquidation value of
about $1.6 billion.
Fitch's going concern value is derived from a projected EBITDA of
about $900 million. The scenario assumes a lower revenue base of
about $8 billion, about 20% below projected 2024 levels, assuming
continued customer count declines and market share erosion. EBITDA
margins could trend in the low-11% range, modestly below projected
2024 levels, assuming the impact of lost sales on Qurate's fixed
expenses are somewhat offset by cost reductions.
Fitch selected a going-concern multiple of 6x, within the 4x-8x
range observed for North American corporates, reflecting an
assessment of Qurate's industry dynamics and company-specific
factors. This is at the upper end of the range used in its analysis
of retailers, given the company's outsized exposure to the
fast-expanding e-commerce channel and good cash conversion.
After deducting 10% administrative claims from the going concern
valuation, Qurate's secured revolver and secured notes would have
superior recovery prospects while its unsecured notes and preferred
equity would have poor prospects. Fitch assumes the $3.25 billion
revolving credit facility, secured by the equity of QVC and
Cornerstone (which together own most of Qurate's operating assets)
would be fully drawn.
The secured notes - including the newly proposed notes - have
similar security as the revolver although they are not secured by
Cornerstone, which generates about 6% of Qurate's EBITDA. Fitch
assumes a small concession payment is made to the unsecured notes
issued by Liberty, which owns Cornerstone alongside the parent
Qurate. Given the various recovery prospects, the secured debt is
rated 'BB-'/'RR2', while the unsecured debt and preferred equity
are rated 'CCC+'/'RR6'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Qurate's Outlook could be stabilized if revenue trends improved
to flat while sustaining EBITDAR leverage under 6.5x.
- An upgrade could result from a demonstrated track record of
stable revenue and EBITDA alongside EBITDAR leverage sustaining
under 5.0x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade could result from continued topline declines, leading
to heighted business model concerns. A combination of EBITDA
contraction and capital structure actions which drove EBITDAR
leverage over 6.5x could also yield a downgrade.
Liquidity and Debt Structure
Good Liquidity: Qurate's liquidity is good, with $1.2 billion of
cash on hand as of June 30, 2024 plus $1.9 billion of availability
on its $3.25 billion secured revolving credit facility due October
2026. Qurate's cash is split between cash held at its QVC entity
($315 million as of June 30, 2024), CBI ($116 million) and the
Qurate/Liberty entities ($779 million). Revolver availability as of
this date was reduced by $1.2 billion of outstanding borrowings.
Qurate's liquidity is further supported by Fitch's expectation of
positive FCF in the low- to mid-$300 million range annually
beginning 2024. The company has publicly indicated that it could
downsize its revolver in the medium term given its analysis of cash
flow generation and liquidity needs.
As of June 30, 2024, Qurate's capital structure consisted of its
revolving credit facility, $3.1 billion of secured notes due
between 2025 and 2068, $1.6 billion of unsecured debt due in
2029/2030 and $1.3 billion in preferred equity which Fitch treats
as debt. The secured credit facility is co-borrowed by QVC Inc.,
QVC Global Corporate Holdings LLC, and Cornerstone Brands Inc,
which together own Qurate's operating assets. The revolver is
secured by the equity of its borrowers.
The secured notes are issued by QVC Inc. and secured by QVC Inc.
equity. The unsecured notes are issued by Liberty, a direct
subsidiary of Qurate and QVC Inc.'s parent.
After the recent repayment of $423 million of secured notes in 1Q,
Qurate's next maturity is approximately $586 million of secured
notes due February 2025; Qurate indicated it expects to repay this
debt with a mix of cash and revolver borrowings.
The company has $575 million of 4.75% secured notes due February
2027 and $500 million of 4.375% secured notes due September 2028.
The company is proposing an exchange offer to holders of the
secured notes due 2027 and 2028. Holders of the 2027 secured notes
who tender will receive $650 of cash and $350 of new secured notes
for every $1,000 of tendered principal, while holders of the 2028
notes who tender will receive $1,000 of the new notes. The new
6.875% secured notes will be issued by QVC Inc., mature in April
2029 and will be pari passi with Qurate's existing secured notes.
The company intends to use cash held by both QVC and Liberty in
this exchange.
The exchange, if successful, would modestly reduce Qurate's debt
balance and extend some of its maturities, which could allow Qurate
to extend the maturity of its revolver (currently due October
2026).
Issuer Profile
Qurate Retail, Inc. is a global leader in video retail and
e-commerce across multiple linear, streaming and online platforms
including QVC, HSN, Ballard Design, Frontgate, Garnet Hill, and
Grandin Road.
Summary of Financial Adjustments
- EBITDA adjusted to exclude stock-based compensation;
- Operating lease expense capitalized by 8x to calculate historical
and projected adjusted debt;
- Qurate's cumulative redeemable preferred stock receives 0% equity
treatment.
Date of Relevant Committee
03 June 2024
ESG CONSIDERATIONS
Qurate has an ESG Relevance Score of '4' for Group Structure due to
the structure's complexity and related-party transactions, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
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.
Entity/Debt Rating Recovery
----------- ------ --------
QVC, Inc.
senior secured LT BB- New Rating RR2
RED BAY COFFEE: Sec 341(a) Meeting of Creditors on Sept. 30
-----------------------------------------------------------
Red Bay Coffee Company Inc. filed Chapter 11 protection in the
Northern District of California. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 30, 2024 at 10:00 a.m. via UST Teleconference.
About Red Bay Coffee Company
Red Bay Coffee Company Inc. is a wholesale specialty coffee
roasting company based in Oakland, California.
Red Bay Coffee Company Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-41317) on August 29, 2024. In the petition filed by Keba A.
Konte, as chief executive officer, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
The Honorable Bankruptcy Judge William J. Lafferty handles the
case.
The Debtor is represented by:
Matthew D. Metzger, Esq.
BELVEDERE LEGAL, PC
1777 Borel Place, Suite 314
San Mateo, CA 94402
Tel: 415-513-5980
Fax: 415-513-5985
Email: info@belvederelegal.com
RED LOBSTER: Exits Chapter 11, Completes Acquisition by RL Investor
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The Red Lobster(R) restaurant chain announces its exit from Chapter
11 restructuring and the completion of its acquisition by RL
Investor Holdings LLC.
"Red Lobster is now a stronger, more resilient company, and today
is the start of a new chapter in our history," said Damola
Adamolekun, CEO of Red Lobster. "From the opening of our first
restaurant in 1968, Red Lobster has focused on serving diners
high-quality seafood at affordable prices. I've been a Red Lobster
fan since my first dining experience as a 9-year-old at our
Springfield, Ill, restaurant -- and as I've prepared to step into
the role of CEO, I've met hundreds of diners across the country
who, just like me, are as passionate about Red Lobster now as they
were on their first visit."
Mr. Adamolekun continues, "As part of our new ownership structure,
we have backers who have a history of making successful investments
in restaurants. Our comprehensive and long-term investment plan for
Red Lobster includes a commitment of more than $60 million in new
funding which will help us to deliver improvements across every
aspect of our company. I'm looking forward to working with our
30,000-strong team to bring our plan to life."
Completion of acquisition by RL Investor Holdings LLC
RL Investor Holdings LLC has completed its acquisition of the Red
Lobster restaurant chain. As a result of the acquisition, Red
Lobster has exited its Chapter 11 bankruptcy restructuring. RL
Investor Holdings LLC is an entity created by funds managed by
affiliates of Fortress Investment Group LLC ("Fortress"), alongside
co-investors TCW Private Credit and Blue Torch.
From Sept. 16, 2024, Red Lobster is an independent, privately held
company with 545 restaurant locations across 44 U.S. states and
four Canadian Provinces.
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case NO. 24-02486) on May 19,
2024. As part of these filings, Red Lobster has entered into a
stalking horse purchase agreement pursuant to which Red Lobster
will sell its business to an entity formed and controlled by its
existing term lenders.
King & Spalding LLP is lead counsel to the Debtors; Berger
Singerman LLP serves as local counsel; and Blake, Cassel & Graydon,
LLC represents the Canadian applicants.
Alvarez & Marsal North America, LLC is serving as financial advisor
and providing corporate leadership as Chief Executive and Chief
Restructuring Officers. Jonathan Tibus, a Managing Director at
Alvarez & Marsal, serves as the debtors' CEO.
Hilco Corporate Finance is serving as M&A advisor to Red Lobster.
Keen-Summit is serving as real estate advisor.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
SERTA SIMMONS: Credit Suisse Marks $1.2MM Loan at 19% Off
---------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$1,277,000 loan extended to Serta Simmons Bedding LLC to market at
$1,029,196 or 81% of the outstanding amount, according to Credit
Suisse's Form N-CSR for the Semi-Annual on Report June 30, 2024,
filed with the Securities and Exchange Commission September 3,
2024.
Credit Suisse is a participant in a Bank Loan to Serta Simmons
Bedding LLC (3 mo. USD Term SOFR + 7.500%). The loan matures on
June 29, 2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
Serta Simmons Bedding, the nation's largest mattress company,
combined all of their company's locations into a new headquarters
in Atlanta, Georgia.
SERVICE PROPERTIES: S&P Downgrades ICR to 'B', Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Service
Properties Trust (SVC) to 'B' from 'B+'.
S&P said, "At the same time, we lowered our issue-level rating on
the company's nonguaranteed senior unsecured notes to 'B' from 'B+'
and our issue-level ratings on its guaranteed unsecured notes and
senior secured notes to 'BB-' from 'BB'. Our '4' recovery rating on
the nonguaranteed senior unsecured notes and our '1' recovery
rating on the guaranteed unsecured notes and senior secured notes
are unchanged.
"The negative outlook reflects our expectation for limited EBITDA
growth over the near term and for upcoming debt maturities to be
refinanced at higher interest rates. Therefore, we believe that the
company will likely need to sell assets and reduce its leverage to
improve its key credit metrics and covenant headroom."
The company's covenant headroom has tightened, which could limit
its ability to refinance upcoming maturities. SVC's debt service
incurrence covenant was 1.6x as of June 30, 2024, only slightly
above the 1.5x required covenant level. The metric has declined
steadily from 2.02x as of Sept. 30, 2023, and a breach of this
covenant would limit the company's ability to incur additional
debt, pressuring liquidity and increasing refinancing risk. SVC
faced a similar situation during the early part of the pandemic,
during which it fully drew on its revolver in anticipation of its
noncompliance with the incurrence covenant.
S&P said, "We believe that SVC will need to sell assets and reduce
leverage in order to materially improve its covenant headroom. The
company has demonstrated the ability to sell assets, generating
proceeds of more than $700 million between 2022 and 2023, primarily
from the sale of hotels, giving us some confidence that it can
restore its covenant headroom to a more comfortable level. However,
we believe it could take some time for the company to execute these
asset sales.
"We expect hotel operating performance will remain uneven and for
limited total portfolio EBITDA growth over the next 12 months. We
expect U.S. revenue per available room (RevPAR) will be flat to up
2% in 2024, relative to 2023, for hotels nationwide. We also
believe SVC will modestly underperform this forecast due to its
reliance on a less well-known brand in Sonesta, and the significant
ongoing renovation activity throughout its portfolio. For the six
months ended June 30, 2024, SVC's RevPAR for comparable hotels was
down 1.8% year over year. We expect the company will report similar
performance in the back half the year before improvement in 2025.
In addition, the company's comparable hotel EBITDA declined almost
17% over the same time frame due primarily to expense pressure.
While SVC's net-lease portfolio provides stable operating
performance, it generates low organic growth. As such, we expect
the company's EBITDA will contract in the back half of the year
before improving modestly in 2025.
"We expect SVC's key credit metrics will remain pressured absent
significant asset sales and a reduction in its debt. As of June 30,
2024, the company's S&P Global Ratings-adjusted debt to EBITDA was
10.0x, an increase from 9.5x a year prior. Its S&P Global
Ratings-adjusted fixed charge coverage (FCC) has also deteriorated
over this period, falling to 1.6x from 1.9x. The company's EBITDA
has declined as operating performance within its hotel segment has
weakened relative to 2023, due primarily to softening demand for
leisure travel trends and increasing expenses. Furthermore, while
the company completed several successful refinancings in 2023 and
2024, its weighted average interest rate has risen, applying
additional pressure on its FCC.
"Due to the deterioration in SVC's key credit metrics and our
expectation they will remain near current levels for a prolonged
period, we revised our assessment of its financial risk profile to
aggressive from significant.
"The negative outlook reflects our expectation for limited EBITDA
growth over the near term and for upcoming debt maturities to be
refinanced at higher interest rates. Therefore, we believe that the
company will likely need to sell assets and reduce its leverage to
improve its key credit metrics and covenant headroom."
SHANGRI-LA DEVELOPMENT: Seeks to Extend Plan Exclusivity to Dec. 26
-------------------------------------------------------------------
Shangri-La Development, LLC, asked the U.S. Bankruptcy Court for
the Northern District of California to extend its exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to December 26, 2024 and April 25, 2025, respectively.
The Debtor is the real estate developer and asset manager for
Shangri-La Industries, LLC. SL Industries operated a vertically
integrated real estate company that constructed, among other
things, permanent supportive housing for at-risk populations.
Since the Petition Date, the Debtor has encountered significant
challenges. One major obstacle arose when the alleged general
partner, Step Up GP, failed to consent to the SPE bankruptcy
filings, leading to Step Up GP's successful dismissal of the SPE
cases due to a lack of corporate authority. This dismissal
disrupted a prospective financing arrangement that was contingent
upon the joint administration of the Debtor's case and the debtor
SPEs.
Additionally, through ongoing investigations since the Petition
Date, the Debtor and its professionals have uncovered the full
extent of the fraud perpetrated by Cody Holmes, including the
commingling of records with other entities within the Shangri-La
Enterprise to conceal the fraud. This falsification and
intermingling of records have significantly hampered the Debtor's
ability to propose a reorganization plan, underscoring the need for
substantive consolidation.
The Debtor explains that substantive consolidation will allow the
Debtor and its professionals to access the financial records of
other entities within the Shangri-La Enterprise and resolve the
discrepancies found in the Debtor's books and records.
The Debtor believes that extension of the Exclusive Periods to the
dates requested is necessary for continuing to resolve
discrepancies in the Debtor's records and preparing either a
consolidated or non-consolidated plan, regardless of whether
substantive consolidation is granted or not.
The Debtor asserts that it is not seeking an extension of
exclusivity to pressure creditors to submit to their demands and
little time has elapsed in these Bankruptcy Cases. The Debtor is
not seeking these extensions to artificially delay the
administration of the Bankruptcy Case or to otherwise hold
creditors hostage. Rather, the Debtor seeks to extend the Exclusive
Periods in order to negotiate and file a plan, whether on a
consolidated or non-consolidated basis.
Shangri-La Development, LLC, is represented by:
Jonathan S. Shenson, Esq.
Ira M. Steinberg, Esq.
Cole F. Nicholas, Esq.
Greenberg Glusker Fields Claman & Machtinger LLP
2049 Century Park East, Suite 2600
Los Angeles, CA 90067
Tel: (310) 553-3610
Fax: (310) 553-0687
Email: JShenson@ggfirm.com
ISteinberg@ggfirm.com
CNicholas@ggfirm.com
About Shangri-La Development
Shangri-La Development, LLC, sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-50639) on
April 30, 2024, listing under $1 million in both assets and
liabilities.
Judge M. Elaine Hammond oversees the case.
The Debtor tapped Greenberg Glusker Fields Claman & Machtinger LLP
as bankruptcy counsel and Norton Rose Fulbright US, LLP as special
litigation counsel.
SHINECO INC: Falls Short of Nasdaq's Minimum Bid Price Requirement
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Shineco Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commissin on Sept. 12, 2024, that the Company received on
Sept. 3, 2024, a deficiency letter from the Listing Qualifications
Department of The Nasdaq Stock Market LLC notifying the Company
that, based upon the closing bid price of the Company's common
stock for the last 30 consecutive business days, the Company is not
currently in compliance with the requirement to maintain a minimum
bid price of $1.00 per share for continued listing on The Nasdaq
Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2).
The Notice has no immediate effect on the continued listing status
of the Company's Common Stock on The Nasdaq Capital Market, and,
therefore, the Company's listing remains fully effective.
The Company is provided a compliance period of 180 calendar days
from the date of the Notice, or until March 3, 2025, to regain
compliance with Nasdaq Listing Rule 5550(a)(2). If at any time
before March 3, 2025, the closing bid price of the Company's Common
Stock closes at or above $1.00 per share for a minimum of 10
consecutive business days, subject to Nasdaq's discretion to extend
this period pursuant to Nasdaq Listing Rule 5810(c)(3)(G), Nasdaq
will provide written notification that the Company has achieved
compliance with the Minimum Bid Requirement, and the matter would
be resolved.
If the Company does not regain compliance with the Minimum Bid
Requirement during the initial 180 calendar day period, the Company
may be eligible for an additional 180 calendar day compliance
period. To qualify, the Company would be required to meet the
continued listing requirement for market value of publicly held
shares and all other initial listing standards for The Nasdaq
Capital Market, with the exception of the Minimum Bid Requirement,
and would need to provide written notice of its intention to cure
the deficiency during the second compliance period, by effecting a
reverse stock split, if necessary.
The Company will continue to monitor the closing bid price of its
Common Stock and seek to regain compliance with all applicable
Nasdaq requirements within the allotted compliance periods. If the
Company does not regain compliance within the allotted compliance
periods, including any extensions that may be granted by Nasdaq,
Nasdaq will provide notice that the Company's Common Stock will be
subject to delisting. The Company would then be entitled to appeal
that determination to a Nasdaq hearings panel.
The Company intends to actively monitor the closing bid price of
the Common Stock and will evaluate available options to regain
compliance with the Minimum Bid Requirement. However, there can be
no assurance that the Company will regain compliance with the
Minimum Bid Requirement during the 180-day compliance period,
secure a second period of 180 days to regain compliance or maintain
compliance with the other Nasdaq listing requirements.
About Shineco
Headquartered in Beijing, People's Republic of China, Shineco, Inc.
aims to 'care for a healthy life and improve the quality of life',
by providing health and medical products and services to society.
Shineco, operating through subsidiaries, has researched and
developed 33 vitro diagnostic reagents and related medical devices
to date, and the Company also produces and sells healthy and
nutritious foods.
Singapore-based AssentSure PAC, the Company's auditor since 2021,
issued a "going concern" qualification in its report dated Sept.
28, 2023, citing that the Company had net losses of US$13,956,031
and US$27,067,139, and cash outflow of US$5,390,594 and
US$5,712,562 from operating activities for the years ended June 30,
2023 and 2022, respectively. The auditor also draws attention to
Note 19 of the financial statements, which describes the
uncertainty related to the outcome of the lawsuits filed against
the Company. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
"As disclosed in the Company's unaudited condensed consolidated
financial statements, the Company had recurring net losses of
US$12.9 million and US$6.9 million, and continuing cash outflow of
US$2.9 million and US$2.5 million from operating activities from
continuing operations for the nine months ended March 31, 2024 and
2023, respectively. As of March 31, 2024, the Company had negative
working capital of US$20.9 million. Management believes these
factors raise substantial doubt about the Company's ability to
continue as a going concern for the next twelve months. In
assessing the Company's going concern, management monitors and
analyzes the Company's cash on-hand and its ability to generate
sufficient revenue sources in the future to support its operating
and capital expenditure commitments. The Company's liquidity needs
are to meet its working capital requirements, operating expenses
and capital expenditure obligations. Direct offering and debt
financing have been utilized to finance the working capital
requirements of the Company," said Shineco in its Quarterly Report
on Form 10-Q for the period ended March 31, 2024.
SHORT FORK FARMS: Amended Subchapter V Plan Filing Extended
-----------------------------------------------------------
Judge Jason D. Woodard of the U.S. Bankruptcy Court for the
Northern District of Mississippi extended Short Fork Farms, LLC's
additional time to file an Amended Subchapter V Plan of
Reorganization.
The Debtor explains that the amended plan of reorganization was due
June 24, 2024. Unfortunately, events have occurred, subsequent to
the order scheduling the deadline for the filing of the amended
plan that made it impossible for the Debtor-in-Possession to file
an amended plan.
Specifically, as outlined in Debtor's counsel's Motion to Remove
Debtor-in-Possession, Burke Hendrix, who owns 1/2 of the equity
security interests of the Debtor, has indicated that he is
unwilling to continue to participate in any aspect of the
bankruptcy process, which would include, but not be limited to, a
plan of reorganization.
In the meantime, there are pending motions to sell in Short Fork
Development, LLC, Case No. 23-13660-JDW, Hendrix Farming, LLC, Case
No. 23-13663-JDW, and in Guy B. Hendrix, Sr. Revocable Living
Trust, Case No. 23-13664-JDW (which is not a Subchapter V case),
that will go a long way, if granted, toward providing for debt
reduction that will create an easier path to reorganization and
confirmation of a plan than currently exists.
Accordingly, for all of those reasons, the Court grants the Debtor
an additional 60 days from the date of this Order within which to
file an amended plan.
Short Fork Farms LLC is represented by:
Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Short Fork Farms
Short Fork Farms, LLC, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No. 23-13661) on Nov.
30, 2023. In the petition signed by Guy Hendrix, member the Debtor
disclosed up to $50,000 in both assets and liabilities.
Craig M. Geno, Esq., at Law Offices of Craig M. Geno, PLLC, is the
Debtor's legal counsel.
SHORT FORK: Amended Subchapter V Plan Filing Extended
-----------------------------------------------------
Judge Jason D. Woodard of the U.S. Bankruptcy Court for the
Northern District of Mississippi extended Short Fork Development,
LLC's additional time to file an Amended Subchapter V Plan of
Reorganization.
The Debtor explains that the amended plan of reorganization was due
June 24, 2024. Unfortunately, events have occurred, subsequent to
the order scheduling the deadline for the filing of the amended
plan that made it impossible for the Debtor-in-Possession to file
an amended plan.
Specifically, as outlined in Debtor's counsel's Motion to Remove
Debtor-in-Possession, Burke Hendrix, who owns 1/2 of the equity
security interests of the Debtor, has indicated that he is
unwilling to continue to participate in any aspect of the
bankruptcy process, which would include, but not be limited to, a
plan of reorganization.
In the meantime, there are pending motions to sell in this case, in
Hendrix Farming, LLC, Case No. 23-13663-JDW, and in Guy B. Hendrix,
Sr. Revocable Living Trust, Case No. 23- 13664-JDW (which is not a
Subchapter V case), that will go a long way, if granted, toward
providing for debt reduction that will create an easier path to
reorganization and confirmation of a plan than currently exists.
Accordingly, for all of those reasons, the Court grants the Debtor
an additional 60 days from the date of this Order within which to
file an amended plan.
Short Fork Development, LLC, is represented by:
Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Short Fork Development
Short Fork Development, LLC, a company in Hernando, Miss., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Miss. Case No. 23-13660) on Nov. 30, 2023, with $1
million to $10 million in both assets and liabilities. Guy Hendrix,
member, signed the petition.
Judge Jason D. Woodard oversees the case.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC
represents the Debtor as bankruptcy counsel.
SI SE PUEDE: Christopher Simpson Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 14 appointed Christopher Simpson, Esq.,
at Osborn Maledon P.A. as Subchapter V trustee for Si Se Puede
Enterprises, LLC.
Mr. Simpson will be paid an hourly fee of $495 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Simpson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher C. Simpson
Osborn Maledon, P.A.
2929 N. Central Avenue, 21st Fl.
Phoenix, AZ 85012
Phone: (602) 640-9349
Fax: (602) 640-9050
Email: csimpson@omlaw.com
About Si Se Puede Enterprises
Si Se Puede Enterprises, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-07108) on August 27, 2024, with as much as $50,000 in both
assets and liabilities.
Charles N. Kendall, Jr., Esq. at the Law Offices of Charles N.
Kendall, Jr., P.L.L.C. represents the Debtor as bankruptcy counsel.
STAFFING 360: Swaps 101,190 Common Shares for Warrant
-----------------------------------------------------
Staffing 360 Solutions, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on September
8, 2024, the Company entered into a securities exchange agreement
with a certain institutional investor ("the Holder") pursuant to
which the Company agreed to issue an aggregate of:
(i) 101,190 shares of common stock, par value $0.00001 per
share; and
(ii) a pre-funded warrant to purchase up to 411,630 shares of
Common Stock, in exchange for a certain outstanding warrant held by
the Holder to purchase up to 552,234 shares of Common Stock at an
exercise price of $8.30 per share.
The Company has cancelled the Warrant reacquired in the Exchange
and such Warrant will not be reissued. The consummation of the
Exchange now permits the Company to consider and execute on
strategic options that could, among others, provide shareholder
value.
The issuance of the Shares and the Pre-Funded Warrant pursuant to
the Exchange Agreement was made in reliance on an exemption from
registration under Section 3(a)(9) of the Securities Act of 1933,
as amended (the "Securities Act"). Neither the issuance of the
Shares or the Pre-Funded Warrant, nor the Pre-Funded Warrant Shares
issuable upon the exercise of the Pre-Funded Warrant, has been
registered under the Securities Act and as such, the Securities may
not be offered or sold in the United States absent registration or
an exemption from registration under the Securities Act and any
applicable state securities laws.
About Staffing 360
Headquartered in New York, Staffing 360 Solutions, Inc. is engaged
in the execution of a buy-integrate-build strategy through the
acquisition of domestic and international staffing organizations in
the United States. The Company believes that the staffing industry
offers opportunities for accretive acquisitions and, as part of its
targeted consolidation model, is pursuing acquisition targets in
the finance and accounting, administrative, engineering, IT, and
light industrial staffing space.
New York, NY-based RBSM LLP, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated June 11,
2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
Staffing 360 Solutions reported a net loss of $26.04 million for
the fiscal year ended Dec. 30, 2023, compared to a net loss of
$16.99 million for the fiscal year ended Dec. 31, 2022. As of June
29, 2024, the Company had $63.44 million in total assets, $75.42
million in total liabilities, and $11.97 million in total
stockholders' deficit.
SUNPOWER CORP: Complete Solar Named as Bidder in Asset Sale
-----------------------------------------------------------
Complete Solar Holdings, Inc. d/b/a Complete Solar, on Sept. 16,
2024, announced that SunPower has determined Complete Solar to be
the prevailing bidder for the assets of SunPower pursuant to the
Asset Purchase Agreement previously filed with the Bankruptcy
Court. Accordingly, subject to the Bankruptcy Court's final
approval of the sale at the hearing on September 23, 2024, Complete
Solar will acquire the assets of SunPower.
T.J. Rodgers. Complete Solar CEO, said, "Just a week ago, Complete
Solar announced it would offer interviews to join the 'New
SunPower,' officially Complete Solar, the 'Ark' in the Noah's Ark
reverse merger by which the 100-person Complete Solar will hire
1,000 people from the current SunPower family of companies into new
jobs with fresh stock option grants. Complete Solar will also begin
to manage three SunPower business units, while leaving the rest of
the company to complete its bankruptcy process.
Rodgers continued, "When I wrote the invitation to interview to all
SunPower family company members, I intentionally mentioned that the
1,000 we hired would have to do the work of 2,000 because we would
have a Silicon Valley-style startup work ethic. My intent was to
reduce the number of applications to ease our interviewing burden
-- three interviews for each of 1,000 people requires a team of 30
interviewers to perform 100 interviews each. To my surprise 1,925
employees signed up in just a few hours. With 1,000 hand-picked
employee-shareholders, we're going to turn the recent shareholder
complaints into at least respect and hopefully praise over the next
year."
About Complete Solar
Complete Solar is a solar company and end-to-end customer offering,
which includes financing, project fulfilment and customer service.
Complete Solar's digital platform together with premium solar
products enable one-stop service for clean energy needs for
customers wishing to make the transition to a more energy-efficient
lifestyle. For more information visit https://www.completesolar.com
and follow us on LinkedIn.
About SunPower
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage, and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and nine of its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead
Case No. 24-11649) on August 5, 2024. In the petition signed by
Matthew Henry as chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors have engaged Richards, Layton & Finger, P.A. and
Kirkland & Ellis LP as bankruptcy counsel. Alvarez & Marsal North
America, LLC serves as financial advisor to the Debtors. Moelis &
Company LLC acts as investment banker to the Debtors, and Epiq
Systems Inc. acts as notice and claims agent.
SUNPOWER CORP: Taps Hilco to Monetize Assets Amid Chapter 11
------------------------------------------------------------
Hilco Commercial Industrial (HCI), a leading provider of commercial
industrial asset monetization solutions, is pleased to announce its
engagement to monetize inventory and other select assets associated
with SunPower Corporation's Chapter 11 bankruptcy cases. This
partnership presents an opportunity for interested buyers to
acquire previously exclusively offered high efficiency solar
solutions at competitive pricing.
As part of the Chapter 11 proceedings, HCI will oversee the
efficient liquidation of a portion of SunPower's inventory and a
broad range of select assets. The sale of these assets, includes,
but is not limited to, over 120 megawatts of solar modules with
related BOS (balance of system) and support equipment.
"Our engagement in the SunPower case exemplifies HCI's commitment
to delivering tailored solutions for distressed companies," said
Brent Bonham Managing Director at Hilco Commercial Industrial.
"This is an opportunity for businesses to purchase assets that are
no longer tied to SunPower's go-forward restructuring efforts."
HCI will manage the entire sale process of the above-mentioned
inventory and select assets, aiming to ensure that the accompanying
transactions are handled with the highest level of professionalism
and efficiency.
Interested parties are encouraged to contact Hilco Commercial
Industrial for more information on the available assets and the
process for making acquisitions. Detailed information and a catalog
of assets will be made available upon request.
For more information, please visit
www.hilcoglobal.com/companies/hilco-commercial-industrial/sunpower
or contact SunPowerSales@hilcoglobal.com.
About Hilco Commercial Industrial
Hilco Commercial Industrial (www.HilcoCI.com) is the preeminent
global authority on providing clients with highly customized
acquisition, disposition, and advisory solutions with respect to
commercial and industrial assets, as well as providing bespoke
capital solutions. Based upon a thorough understanding of its
clients' assets and the intricacies of the business operations that
utilize those assets, Hilco Commercial Industrial has established a
dependable reputation for delivering results to companies at every
stage of their life cycles.
Hilco Commercial Industrial is part of Northbrook, Illinois based
Hilco Global (www.hilcoglobal.com), the world's leading authority
on maximizing the value of business assets by delivering valuation,
monetization, advisory, and capital solutions to an international
marketplace. Hilco Global operates more than twenty specialized
business units offering services that include asset valuation and
appraisal, retail and industrial inventory acquisition and
disposition, real estate and strategic capital equity investments.
About SunPower
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage, and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and nine of its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead
Case No. 24-11649) on August 5, 2024. In the petition signed by
Matthew Henry as chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors have engaged Richards, Layton & Finger, P.A. and
Kirkland & Ellis LP as bankruptcy counsel. Alvarez & Marsal North
America, LLC serves as financial advisor to the Debtors. Moelis &
Company LLC acts as investment banker to the Debtors, and Epiq
Systems Inc. acts as notice and claims agent.
SWF HOLDINGS: $1.63BB Bank Debt Trades at 21% Discount
------------------------------------------------------
Participations in a syndicated loan under which SWF Holdings I Corp
is a borrower were trading in the secondary market around 78.7
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
October 6, 2028. The amount is fully drawn and outstanding.
Headquartered in Middleton, Wisconsin, Springs Windows designs and
manufactures window coverings.
TECHPRECISION CORP: Incurs $7.04M Net Loss in FY Ended March 31
---------------------------------------------------------------
TechPrecision Corporation filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$7.04 million on $31.59 million of net sales for the year ended
March 31, 2024, compared to a net loss of $979,006 on $31.43
million of net sales for the year ended March 31, 2023.
As of March 31, 2024, the Company had $34.75 million in total
assets, $26.94 million in total liabilities, and $7.80 million in
total stockholders' equity.
Philadelphia, Pennsylvania-based Marcum LLP, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated Sept. 13, 2024, citing that the Company has incurred
significant losses, is in default on its debt obligations since the
Company is out of compliance with its debt covenants and is
expected to continue to be out of compliance, its revolving line of
credit is due within the year, 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.
A full-text copy of the Annual Report is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1328792/000141057824001590/tpcs-20240331x10k.htm
About Techprecision
Through its wholly owned subsidiaries, Ranor, Inc. and Stadco,
TechPrecision Corporation offers a full range of services required
to transform raw materials into precision finished products. The
Company's manufacturing capabilities include fabrication operations
(cutting, press and roll forming, assembly, welding, heat treating,
blasting, and painting) and machining operations including CNC
(computer numerical controlled) horizontal and vertical milling
centers. The Company also provides support services to its
manufacturing capabilities: manufacturing engineering (planning,
fixture and tooling development, manufacturing), quality control
(inspection and testing), materials procurement, production control
(scheduling, project management and expediting) and final assembly.
All manufacturing is done in accordance with its written quality
assurance program, which meets specific national and international
codes, standards, and specifications.
THERAPY BRANDS: $235MM Bank Debt Trades at 17% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Therapy Brands
Holdings LLC is a borrower were trading in the secondary market
around 83.4 cents-on-the-dollar during the week ended Friday, Sept.
13, 2024, according to Bloomberg's Evaluated Pricing service data.
The $235 million Term loan facility is scheduled to mature on May
18, 2028. The amount is fully drawn and outstanding.
Therapy Brands, founded in 2013 and headquartered in Birmingham,
AL, is a provider of integrated software-as-a-service solutions
including, EHR (electronic health record), PMS (practice
management
solutions) RCM (revenue cycle management) and payment solutions to
the mental health, behavioral health and rehabilitation markets.
The company is majority owned by Kohlberg Kravis Roberts & Co. Inc.
(KKR), a New York based private equity firm, with a significant
minority ownership held by Providence Strategic Growth. Revenues
for last twelve months ended December 31, 2023 were $146 million.
TOLL ROAD: S&P Lowers Debt Rating to 'BB-', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its rating on Toll Road Investors
Partnership II L.P.'s (TRIP II) debt to 'BB-' from 'BB'.
The downgrade follows Virginia State Corporation Commission's (SCC)
final order on TRIP II's application for an increase in toll rates
on the Dulles Greenway. The commission rejected the entire toll
rate increase request, and TRIP II management is evaluating its
options. Uncertainty remains around the timing and magnitude of
toll increases.
The negative outlook reflects the mounting pressure on the
project's liquidity in the absence of meaningful toll escalations
or substantial improvement in traffic performance.
The downgrade reflects uncertainty around potential toll increases
and mounting pressure on the project's liquidity, as traffic
remains well below pre-pandemic levels. Since 2020, the project's
toll increases have been regulated by the Virginia SCC through
rate-case proceedings. The project has filed two rate cases so far.
The first was filed in 2019 and approved in April 2021; however, it
was only partially approved, allowing for off-peak toll increases
of 5.3% in 2021 and 5.0% in 2022. The next rate case was filed in
July 2023, requesting an average toll increase of about 27.3% in
2024. The commission denied the request in its entirety in
September 2024, stating that the proposed toll increases failed to
meet the statutory criteria.
Notably, in addition to the proposed toll increases, the rate case
submitted by the project also included alternate toll increases of
about 11.4%, which it arrived at by employing an alternative method
to determine whether the proposed tolls materially discourage
traffic. The SCC order states that it was only ruling on the
proposed tolls and not on the alternate tolls, as the project had
explicitly mentioned that it did not agree with this alternative
method and was only providing it for illustrative purposes.
S&P said, "Pending further information, we have revised our toll
increase assumptions to reflect the deferral in toll increase
(unchanged at 27.3%) by one year to July 2025 from July 2024 and we
continue to assume Consumer Price Index (CPI)-driven toll increases
of approximately 2% thereafter. We have also revised our traffic
forecast, given it had an element of price elasticity to toll
increase; accordingly, it now plays out after a toll increase in
July 2025 compared with July 2024 previously. We continue to assume
that traffic will recover to 80% of 2019 levels by 2027 and then
increase at the same rate assumed under our previous base-case
scenario.
"With our revised base-case assumptions and the high debt service
obligations (including mandatory early redemption payments on the
2005B bonds), the project generates a minimum DSCR of 0.64x in
2024, which gradually recovers to above 1.0x in 2027. This
translates into a shortfall of approximately $46 million from
2024-2026; however, the project's liquidity (including trapped cash
of about $79 million as of December 2023) is sufficient to remedy
it. However, we conducted a sensitivity analysis to determine the
potential financial risk, and we believe that should the toll
increase fall about in line with the alternative 11.4%, the project
would have to draw on its liquidity for longer, implying a
deterioration in credit quality.
"We believe the project's poor track record of realizing toll
increases under the SCC regime warrants an adjustment to its
business and financial profiles. We capture the former by changing
the competitive position to weak from neutral. This results in an
operations phase business assessment (OPBA) of 5 compared with 3
previously. With the new OPBA of 5 and minimum DSCR of 0.64x, we
arrive at a preliminary operations phase stand-alone credit profile
(SACP) that is one notch lower at 'b-'. We capture the latter by
changing the resiliency assessment to modest from moderate in
recognition of increased reliance on, and faster depletion of,
liquidity. While this lowers the SACP by one notch, the impact is
neutralized by the removal of one negative notch in our holistic
analysis for a stricter tolling regime than that of peers, as we
believe the legislative risk is now adequately accommodated in the
revised OPBA. As a result, we arrive at an issue-level rating of
'BB-'.
"We will decide whether further rating action is necessary after we
have more visibility into management's plan of action in the
aftermath of this rejection. Management's options could include a
request to SCC to reconsider its ruling or an appeal to the
Virginia Supreme Court. We will also continue to monitor the
project's campaign for a legislative change to allow for
restructuring of the concession and the introduction of
distance-based tolling.
"Our negative outlook reflects uncertainty over the magnitude and
timing of future toll rate increases and mounting pressure on the
project's liquidity in the absence of meaningful toll escalations
or substantial improvement in traffic performance.
"We could lower the rating if any approved toll rate increase is
materially lower than the levels requested or the project's traffic
doesn't perform in line with our expectations such that we forecast
the debt service coverage ratio (DSCR) will remain below 1.0x in
the medium term, and liquidity depletes materially.
"We could revise our outlook to stable if the project is able to
achieve toll rate increase closer to the levels requested or
traffic performance improves such that forecast DSCR metrics return
to above 1.0x in the near term."
TRUGREEN LTD: Credit Suisse Marks $400,000 Loan at 22% Off
----------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$400,000 loan extended to TruGreen Ltd. Partnership to market at
$311,000 or 78% of the outstanding amount, according to Credit
Suisse's Form N-CSR for the Semi-Annual on Report June 30, 2024,
filed with the Securities and Exchange Commission September 3,
2024.
Credit Suisse is a participant in a Bank Loan to TruGreen Ltd.
Partnership (3 mo. USD Term SOFR + 8.500%). The loan matures on
November 2, 2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
TruGreen provides lawn care services. The Company offers healthy
lawn analysis, fertilization, tree and shrub care, weed control,
insect control, and other related services.
UGS PRIVATE: Seeks to Extend Plan Exclusivity to November 30
------------------------------------------------------------
UGS Private Security, Inc., asked the U.S. Bankruptcy Court for the
Central District of California to extend its exclusivity period to
file a chapter 11 plan of reorganization and disclosure statement
to November 30, 2024.
The Debtor filed a case for protection under Chapter 11 of the
Bankruptcy Code on March 1, 2024. Some filed claims are being
considered as disputed debts, and the debtor is gathering all the
information necessary to file the corresponding objections to such
claims.
Likewise, the lawsuits that the debtor currently faces need to be
reevaluated and, where appropriate, negotiated with the plaintiffs
so that a plan can be proposed with all the claims with their
negotiated amounts and thus be able to present a feasible plan.
The Debtor claims that there are currently five lawsuits against it
that are pending resolution at Los Angeles Superior Court and the
Workers Compensation Appeals Board, which the debtor considers
invalid and therefore needs to present the documentation that
supports this assertion, the debtor is working to be able to gather
all the evidence to dismiss these lawsuits for which he needs more
time to put them together and know whether or not they should be
part of the plan.
The Debtor considers that he needs more time to have a more real
and clear picture of all the debts and their respective amounts in
order to propose a plan that is for the benefit of all parties and
be feasible and confirmable.
The Debtor believes that an extension of time to file its Chapter
11 Plan of Reorganization and the Disclosure Statement would allow
him the time necessary to list all of its debts at the most
accurate.
UGS Private Security, Inc. is represented by:
Onyinye N Anyama, Esq.
ANYAMA LAW FIRM, APC
E-mail: info@anyamalaw.com
About UGS Private Security
UGS Private Security, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11631) on
March 1, 2024, with $0 to $50,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Julia W. Brand presides over the case.
Onyinye N. Anyama, Esq. at Anyama Law Firm, A Professional Corp.
represents the Debtor as legal counsel.
UPSTREAM NEWCO: $140MM Bank Debt Trades at 17% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Upstream Newco Inc
is a borrower were trading in the secondary market around 82.8
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $140 million Term loan facility is scheduled to mature on
November 22, 2027. The amount is fully drawn and outstanding.
Upstream Newco, Inc., headquartered in Birmingham, Alabama, is a
provider of outpatient rehabilitation services -- primarily
physical therapy. Through its subsidiaries, Upstream operates about
1,150 clinics in 28 states, with a strong presence in the
Southeast.
US JET TRANS: Walter Dahl of Dahl Law Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Walter Dahl, Esq., a
partner at Dahl Law, as Subchapter V trustee for US Jet Trans Inc.
Mr. Dahl will be compensated at $485 per hour for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
In court filings, Mr. Dahl declared that he is a disinterested
person according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Walter R. Dahl
Dahl Law
2304 "N" Street
Sacramento, CA 95816-5716
Telephone: (916) 446-8800
Telecopier: (916) 741-3346
Email: wdahl@dahllaw.net
About US Jet Trans
US Jet Trans Inc. filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-12501) on
August 27, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Jennifer E. Niemann presides over the case.
David C. Johnston, Esq., represents the Debtor as legal counsel.
US TELEPACIFIC: $331.5MM Bank Debt Trades at 59% Discount
---------------------------------------------------------
Participations in a syndicated loan under which US TelePacific Corp
is a borrower were trading in the secondary market around 41.5
cents-on-the-dollar during the week ended Friday, Sept. 13, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $331.5 million Pik Term loan facility is scheduled to mature on
May 4, 2026. The amount is fully drawn and outstanding.
US TelePacific Corp., doing business as TPx Communications,
provides communications and managed services.
VERTEX ENERGY: S&P Lowers ICR to 'CCC-' on Elevated Default Risk
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Vertex
Energy Inc. (Vertex) to 'CCC-' from 'CCC'. S&P also lowered the
issue-level rating on the senior secured term loan to 'CCC-' from
'CCC' and revised its recovery rating on the term loan to '4' from
'3', indicating its expectation for average (30%-50%; rounded
estimate: 45%) recovery.
The negative outlook reflects the elevated risk of a distressed
debt exchange or default within the next six months absent a
successful refinancing or external capital support.
S&P said, "The downgrade reflects our expectation that Vertex will
not generate sufficient cash flows to fully retire its term loan
and therefore a default or distressed debt exchange is inevitable
in the next six months. In the second quarter of 2024, Vertex
generated negative EBITDA and operating cash flow, and we do not
expect its operating performance will significantly improve in the
coming quarters in an amount sufficient to fully retire the term
loan due April 1, 2025. We also expect the company will have
challenges complying with the financial covenant that requires a
minimum liquidity reserve of $12 million in the coming quarters,
given its cash balance of about $18 million as of June 30, 2024.
The company is still working on refinancing the term loan; however,
it has not reached a definitive agreement at this point. Meanwhile,
Vertex appointed a CRO in July to explore opportunities for
restructuring the company. Overall, we believe that the default
risk of the company is elevated and we envision a default or
distressed debt exchange as inevitable in the next six months.
"The negative outlook reflects our view that Vertex could face a
potential default or distressed debt exchange scenario within the
next six months because of a liquidity shortfall absent external
capital support or a concrete refinancing plan.
"We would consider a negative rating action if we expect a default
or distressed debt exchange is a virtual certainty.
"We would consider a positive rating action if the company
completes the refinancing of its term loan or can demonstrate
sufficient liquidity sources to fully repay the debt."
VIASAT INC: All Proposals Approved at Annual Meeting
----------------------------------------------------
At the annual meeting of stockholders of Viasat, Inc. held on
September 5, 2024, stockholders approved the amendment and
restatement of the 1996 Equity Participation Plan of Viasat, Inc.
The Restated Equity Plan was previously approved by the Board of
Directors of Viasat and implemented the following changes:
(1) Increased the number of shares of common stock available
for issuance under the Restated Equity Plan by 3,430,000 shares to
a total of 59,401,000 shares; and
(2) Extended the period during which incentive stock options
may be granted from 2033 to 2034.
The Restated Equity Plan became effective upon stockholder approval
at the Annual Meeting.
On September 5, 2024, after the conclusion of the Annual Meeting,
the Board approved the 2024 Employment Inducement Incentive Award
Plan of Viasat, Inc. The terms of the Inducement Plan are
substantially similar to the terms of the Restated Equity Plan with
the exception that incentive stock options may not be issued under
the Inducement Plan and awards under the Inducement Plan may only
be issued to eligible recipients under the applicable Nasdaq rules.
The Inducement Plan was adopted by the Board without stockholder
approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.
The Board has initially reserved 377,500 shares of Viasat's common
stock for issuance pursuant to awards granted under the Inducement
Plan. In accordance with Rule 5635(c)(4) of the Nasdaq Listing
Rules, awards under the Inducement Plan may only be made to an
employee who has not previously been an employee or member of the
board of directors of Viasat or any subsidiary, or following a bona
fide period of non-employment by Viasat or a subsidiary, if he or
she is granted such award in connection with his or her
commencement of employment with Viasat or a subsidiary and such
grant is an inducement material to his or her entering into
employment with Viasat or such subsidiary.
Furthermore, at the Annual Meeting, Viasat's stockholders approved
to:
(1) Elect John Stenbit, Andrew Sukawaty and Theresa Wise to
serve as Class I Directors;
(2) Ratify the appointment of PricewaterhouseCoopers LLP as
Viasat's independent registered public accounting firm for the
fiscal year ending March 31, 2025;
(3) Conduct an advisory vote on executive compensation.
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum, and provides
voice and data services to customers on land, at sea, and in the
air.
As of June 30, 2024, the Company had $16.1 billion in total assets,
$11 billion in total liabilities, and $5.1 billion in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
VIASAT INC: Proposes Private Placement of $1.25BB of Senior Notes
-----------------------------------------------------------------
Viasat, Inc. announced that its wholly-owned indirect subsidiaries,
Connect Finco SARL and Connect U.S. Finco LLC, intend to commence
an offering of $1,250 million in aggregate principal amount of
Senior Secured Notes due 2029, subject to market and other
conditions. The Issuers are wholly-owned indirect subsidiaries of
Connect Bidco Limited, a wholly-owned indirect subsidiary of
Viasat.
The notes will be offered and sold to persons reasonably believed
to be qualified institutional buyers in the United States through a
private placement pursuant to Rule 144A and outside the United
States pursuant to Regulation S under the Securities Act of 1933,
as amended. The notes and the related guarantees will be secured on
a first-lien basis by assets that also secure on a first-lien basis
the indebtedness under the Issuers' existing senior secured credit
facilities.
The Issuers intend to use the net proceeds from the offering,
together with cash on hand, to redeem a portion of the Issuers'
outstanding 6.750% Senior Secured Notes due 2026 and to pay related
fees and expenses. The foregoing does not constitute a notice of
redemption with respect to the Inmarsat 2026 Notes.
In addition, since June 30, 2024 to date, Viasat (i) has
repurchased $50.5 million aggregate principal amount of Viasat's
outstanding 5.625% Senior Notes due 2025 and (ii) has caused the
Issuers to repurchase $101.7 million aggregate principal amount of
Inmarsat 2026 Notes. Viasat may continue to repurchase and cause
the Issuers to repurchase up to an additional aggregate amount of
$300.0 million of 2025 Notes and Inmarsat 2026 Notes, as
applicable. Viasat intends to focus on its earlier maturities. Such
repurchases, if any, are opportunistic and will depend on a number
of factors, including, but not limited to, Viasat's priorities for
the use of cash, price, market and economic conditions, its
liquidity requirements, and legal and contractual restrictions. To
the extent the 2025 Notes or the Inmarsat 2026 Notes are not
repurchased, Viasat intends to redeem such notes at maturity.
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum, and provides
voice and data services to customers on land, at sea, and in the
air.
As of June 30, 2024, the Company had $16.1 billion in total assets,
$11 billion in total liabilities, and $5.1 billion in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
WHEEL PROS: Sept. 20 Deadline Set for Panel Questionnaires
----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of Wheel Pros, LLC
(d/b/a Hoonigan), et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/4pu39a6e and return by email it to
Jane M. Leamy - Jane.M.Leamy@usdoj.gov - at the Office of the
United States Trustee so that it is received no later than 4:00
p.m., Sept. 20, 2024.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Wheel Pros
Wheel Pros, LLC, together with its direct and indirect subsidiaries
and certain affiliates, is a designer, marketer, and distributor of
state-of-the-art, premium aftermarket automotive products. Founded
in 1994, the Company began as a producer of customized wheels and
wheel accessories and has expanded its portfolio over the course of
three decades to include aftermarket suspension systems, lighting,
powersports products, and a digital content brand. Headquartered
in Denver, Colorado, the Company operates a global enterprise
employing approximately 1,750 individuals.
Wheel Pros, LLC (d/b/a Hoonigan) and certain of its North
American-based affiliates, including Hoonigan Industries, LLC,
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
24-11939) on Sept. 8, 2024. The petitions were signed by Vance
Johnston as chief executive officer.
The Debtors declared estimated consolidated assets and liabilities
of $1 billion to $10 billion.
Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP are
serving as legal counsel to the Debtors; Houlihan Lokey, Inc. is
serving as investment banker; Alvarez & Marsal is serving as
financial advisor; and C Street Advisory Group is serving as
strategic communications advisor to the Company. Stretto is the
claims agent.
WINSTON AND DUKE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Winston and Duke Inc.
d/b/a Merit Tool Company
d/b/a Merit Industries
2008 West 16th Street
Erie, PA 16505
Business Description: The Debtor is a provider of manufacturing
support, products, and services,
specializing in close tolerance processes,
complex geometry and super alloy production
machining coupled with small to large run
production capability.
Chapter 11 Petition Date: September 13, 2024
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 24-10535
Debtor's Counsel: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
938 Penn Avenue, 5th Fl.
Suite 501
Pittsburgh, PA 15222
Tel: 412-232-0930
Fax: 412-232-3858
Email: dcalaiaro@c-vlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by John R. Chruchill Jr. as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RH32QYA/Winston_and_Duke_Inc__pawbke-24-10535__0001.0.pdf?mcid=tGE4TAMA
WOOF HOLDINGS: Credit Suisse Marks $1MM Loan at 48% Off
-------------------------------------------------------
Credit Suisse Asset Management Income Fund, Inc has marked its
$1,000,000 loan extended to WOOF Holdings, Inc to market at
$523,330 or 52% of the outstanding amount, according to Credit
Suisse's Form N-CSR for the Semi-Annual on Report June 30, 2024,
filed with the Securities and Exchange Commission September 3,
2024.
Credit Suisse is a participant in a Bank Loan to WOOF Holdings, Inc
(3 mo. USD Term SOFR + 7.250%). The loan matures on December 21,
2028.
Credit Suisse was incorporated on February 11, 1987 and is
registered as a diversified, closed end management investment
company under the Investment Company Act of 1940, as amended.
Credit Suisse is led by Omar Tariq, Chief Executive Officer and
President and Rose Ann Bubloski, Chief Financial Officer and
Treasurer. The Fund can be reached through:
Omar Tariq
Credit Suisse Asset Management Income Fund, Inc
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
Headquartered in Tewksbury, Massachusetts, Woof Holdings, Inc.,
through its acquisition of The Wellness Pet Food Holdings Company,
Inc., is a manufacturer of premium pet food and treats, mainly in
North America.
YELLOW CORP: Junior Creditors Express Concern on Restructuring Plan
-------------------------------------------------------------------
Yellow Corp.'s junior creditors raised concerns over the bankrupt
trucker's proposed restructuring plan, including issues surrounding
liability releases for the company's leaders.
The Official Committee of Unsecured Creditors, in its objection to
the Debtors' motion for a 60-day extension of the period during
which the Debtors have the exclusive right to solicit votes on a
chapter 11 plan, said it is not supportive of the Debtors' Initial
Chapter 11 Plan in its current form.
The Committee has numerous concerns with the current version of the
Initial Chapter 11 Plan ranging from the failure to provide the
Committee with appropriate oversight and consent rights associated
with its implementation to the scope of the proposed releases for
current and former directors and officers. The Committee has
commenced discussions with the Debtors regarding its issues with
the Initial Chapter 11 Plan and expects to engage in good faith and
constructive negotiations with the Debtors and the other parties in
interest during the Solicitation Exclusivity Extension in an effort
to reach agreement on a consensual plan (which may be an amended
version of the Initial Chapter 11 Plan).
The Debtors request the exclusivity extension because they do not
intend to prosecute the Initial Chapter 11 Plan until the Court
issues a ruling with respect to the SFA MEPP Litigation. The
Committee agrees that a ruling in the SFA MEPP Litigation will
bring additional clarity to the outcome of the chapter 11 cases
and, therefore, the Committee does not object to the fundamental
relief sought by the Exclusivity Motion. The Motion suggests,
however, that a ruling in favor of the Debtors in the SFA MEPP
Litigation will enable the Debtors to consider alternative plan
structures that may provide a recovery for equity holders. The
Committee continues to believe, however, that equity holders will
not be entitled to a recovery in these chapter 11 cases regardless
of the outcome of the SFA MEPP Litigation. As such, the
consideration of alternative transactions premised on distributions
to equity holders would be a waste of estate resources, the
Committee said.
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
[*] Commercial Bankruptcy Filings Increased 9% in August 2024
-------------------------------------------------------------
Overall commercial bankruptcy filings increased 8 percent in August
2024 to 2,562 from 2,358 in August 2023, according to data provided
by Epiq AACER, the leading provider of U.S. bankruptcy filing data.
August 2024 commercial chapter 11 filings decreased 3 percent to
616 from the 635 filings in August 2023. The number of distressed
small businesses electing to file for subchapter V of chapter 11 of
the U.S. Bankruptcy Code increased 5 percent to 185 last month from
176 registered in August 2023.
The 45,131 total U.S. bankruptcy filings in August 2024 increased 8
percent from the August 2023 total of 41,642. Individual bankruptcy
filings also registered an 8 percent increase, to 42,569 in August
2024 from the August 2023 individual total of 39,284. The number
of consumers filing for chapter 7 increased 11 percent to 25,432 in
August 2024 from the 22,888 who filed for chapter 7 last August,
while chapter 13 filings increased 4 percent to 17,056 in August
2024 from the 16,338 chapter 13 filings in August 2023.
"August new filing volumes remained relatively flat
month-over-month to end the summer while year-over-year volumes
continue to show a steady increase," said Michael Hunter, vice
president of Epiq AACER. "As delinquency rates increase in many
domains, debt levels continue to grow, high interest rates remain
intact with relatively flat household income, we expect continued
increases in new filing volumes this fall and into the winter of
2024."
August's total bankruptcy filings represented a 2 percent increase
from July's total of 44,439. Total individual filings for August
represented a 1 percent increase from the July 2024 individual
filing total of 42,083. Commercial filings registered a 9 percent
increase from the July 2024 commercial filing total of 2,356, and
commercial chapter 11 filings grew 21 percent over the 511 filings
in July 2024. Consumer chapter 13 filings increased 5 percent over
the 16,303 filings last month, while chapter 7 filings decreased 1
percent from the 25,716 chapter 7s filed in July 2024.
"As debt loads continue to steadily climb, access to the financial
lifeline of bankruptcy is imperative for consumers and businesses,"
said ABI Executive Director Amy Quackenboss. "ABI remains committed
to research focused on improving the availability of a financial
fresh start for struggling families and businesses."
ABI recently launched a portal for practitioners and experts to
provide their experiences on the real-world impact of small
businesses electing to file for subchapter V. The site, available
at https://abi.org/subvstories, allows professionals to share
videos and written accounts about their experiences with distressed
small businesses or creditors who have used or benefited from the
subchapter.
Subchapter V originally went into effect on February 19, 2020, to
provide a more streamlined path for distressed small businesses to
restructure their debts. Although it launched with a debt
eligibility limit of $2,725,625, Congress increased the subchapter
V debt eligibility limit to $7.5 million through the CARES Act in
March 2020. Congress subsequently extended the higher debt
eligibility limit twice, but despite legislative efforts to extend
it further, the limit reset on June 21, 2024, to $3,024,725 due to
a statutory sunset.
The impact of the lower debt eligibility limit on subchapter V
filings has been substantial. Between January 1 and June 21, 2024,
there were 1,153 subchapter V cases filed — an increase of 66.2
percent from the same period in 2023. Since then, 391 subchapter V
cases have been filed, an increase of only 4.5 percent from last
year.
[*] Esses Joins Brattle Group as Principal in Bankruptcy Practice
-----------------------------------------------------------------
The Brattle Group has welcomed Edmond Esses to its New York office
as a Principal in the firm's Bankruptcy & Restructuring practice.
Mr. Esses brings nearly two decades of experience advising clients
on complex bankruptcy and restructuring disputes.
Specializing in corporate value and solvency, Mr. Esses has
experience as a financial advisor and an expert witness in major
bankruptcy litigation, restructuring, and other financial disputes,
including many that arose from the global financial crisis. His
expertise extends to transfers of value and related-party
transactions, inter-creditor disputes, avoidance actions,
settlement evaluation, corporate fraud, credit lending, and the
development and review of projections.
"Edmond's insights and experience working on high-profile disputes
-- from Puerto Rico's debt recovery plan to the Lehman Brothers
bankruptcy on behalf of RMBS Trustees -- will be a tremendous asset
to Brattle's clients," said Torben Voetmann, Brattle President &
Principal.
Mr. Esses's clients have included investment banks and other
financial institutions, groups of residential mortgage-backed
securities (RMBS) trustees, federal agencies, and retailers. He has
consulted on several US Securities and Exchange Commission (SEC)
matters, representing both the SEC and defendants, including on
investigations into a third-party valuation agent and a subprime
auto loan funding and servicing company.
"Brattle has a reputation as a proven leader in financial advisory
and expert services, and it is an exciting time at the firm as it
continues expanding its Bankruptcy & Restructuring practice," said
Mr. Esses. "I look forward to collaborating with my new colleagues
to address clients' needs resulting from complex and contentious
bankruptcy, restructuring, distressed, and special situations."
A member of the American Bankruptcy Institute, Mr. Esses is a
Chartered Financial Analyst (CFA) and a Certified Insolvency &
Restructuring Advisor (CIRA). Prior to joining Brattle, he was a
Senior Director at a global financial and risk advisory firm, and
he has previous experience in securities analysis and valuation at
an asset management firm.
To learn more about Mr. Esses, please see his full bio at
https://www.brattle.com/experts/edmond-esses/.
ABOUT BRATTLE
The Brattle Group answers complex economic, finance, and regulatory
questions for corporations, law firms, and governments around the
world. We are distinguished by the clarity of our insights and the
credibility of our experts, which include leading international
academics and industry specialists. Brattle has 500 talented
professionals across four continents. For more information, please
visit brattle.com.
[*] Milbank Adds Former SEC Chief Litigator Olivia Choe as Partner
------------------------------------------------------------------
Milbank LLP announced the addition of Olivia Choe as a partner in
Washington, DC, starting on October 1. Ms. Choe's arrival adds
significant depth to the firm's experience and capabilities in
Securities and Exchange Commission matters, and further strengthens
the firm's Litigation & Arbitration group. Ms. Choe joins Milbank
from the SEC, where she served as Chief Litigation Counsel. In this
role she oversaw the nationwide litigation and trial program for
the SEC's Division of Enforcement, leading over 150 trial attorneys
across the country.
As the agency's top enforcement litigator, Ms. Choe developed and
directed litigation strategy across the Division's highly active
docket and advised trial teams in a wide range of high-profile
cases, including SEC v. Panuwat; SEC v. Musk; SEC v. Coinbase; SEC
v. Binance; and SEC v. Terraform. She also provided strategic
advice and guidance to Commission leadership and enforcement staff
on complex policy issues and legal developments. Ms. Choe joined
the SEC as a trial attorney in 2016 and has tried multiple SEC
cases in federal court. She previously served for six years as an
Assistant United States Attorney in the Criminal Division of the US
Attorney's Office for the Southern District of Florida (Miami),
where she tried numerous complex and white-collar cases and argued
multiple appeals before the United States Court of Appeals for the
Eleventh Circuit.
"We are thrilled to welcome Olivia to Milbank," said Milbank
Chairman Scott A. Edelman. "During her tenure at the SEC, Olivia
decisively led litigation strategy for the Commission's
highest-profile and most complex cases. We know that our clients
will benefit from her fierce advocacy, her ability to lead talented
teams and her invaluable experience as both a federal prosecutor
and as a senior SEC official."
Milbank has been actively developing its litigation practice and
has been engaged to handle large-scale white-collar and securities
regulatory matters for corporations and their senior executives and
officers. Last year, the firm welcomed Nola B. Heller, a
market-leading white-collar and investigations partner and former
unit chief at the US Attorney's Office for the Southern District of
New York.
Andrew M. Leblanc, managing partner for Milbank's Washington, DC
office, said, "Olivia will greatly enhance our DC office's
litigation and white-collar strengths. Our clients, and Olivia's
new colleagues, will benefit from her experience as the SEC's top
litigator, as well as the stature she has built through years of
success and leadership."
Equally adept at criminal and civil litigation, Ms. Choe will work
closely with Milbank partner George S. Canellos, global head of the
Litigation & Arbitration group and a former co-director of the
SEC's Enforcement Division.
"As a former federal prosecutor and senior SEC enforcement official
myself, I am extremely pleased to welcome a colleague with similar
government experience to our practice," said Mr. Canellos.
"Milbank's clients seek not just talented individuals, but strong
teams. Olivia is not only a proven member of top-performing legal
teams, but a proven leader as well."
As Chief Litigation Counsel, Ms. Choe also oversaw the SEC Division
of Enforcement's Distributions, Collections, Bankruptcy, and
Receivership programs, including the return of nearly $1 billion
annually to harmed investors. During her eight years at the SEC,
Ms. Choe was a two-time recipient of the prestigious Arthur F.
Mathews Award for creativity in applying federal securities laws
for the benefit of investors.
"I cannot think of a law firm I would rather join than Milbank,"
said Ms. Choe. "The firm operates at the apex of the legal
profession, and I am tremendously excited to bring my experience to
bear on behalf of our clients and my new colleagues."
Ms. Choe received her J.D. from Yale Law School, where she served
as articles editor of the Yale Law Journal. She received her B.A.
from Harvard College, summa cum laude and Phi Beta Kappa. Ms. Choe
clerked for Judge Rya W. Zobel of the US District Court for
Massachusetts and Judge John M. Walker, Jr. of the US Court of
Appeals for the Second Circuit.
ABOUT MILBANK
Milbank LLP is a leading international law firm that provides
innovative legal services to clients around the world. Founded in
New York over 150 years ago, Milbank has offices in Beijing,
Frankfurt, Hong Kong, London, Los Angeles, Munich, New York, São
Paulo, Seoul, Singapore, Tokyo and Washington, DC. Milbank's
lawyers collaborate across practices and offices to help the
world's leading commercial, financial and industrial enterprises,
as well as institutions, individuals and governments, achieve their
strategic objectives. To learn more about Milbank, please visit
www.milbank.com and follow us on LinkedIn and Instagram.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
99 ACQUISITION G NNAGU US 78.5 (2.9) (0.9)
AGENUS INC AGEN US 292.4 (220.8) (170.7)
ALCHEMY INVESTME ALCYU US 124.6 (5.8) (0.7)
ALCHEMY INVESTME ALCY US 124.6 (5.8) (0.7)
ALNYLAM PHARMACE ALNY US 4,009.6 (3.1) 2,117.6
ALPHAVEST ACQUIS ATMVU US 52.2 (0.9) (0.9)
ALTRIA GROUP INC MO US 34,387.0 (2,966.0) (4,242.0)
AMC ENTERTAINMEN AMC US 8,594.7 (1,696.6) (575.7)
AMERICAN AIRLINE AAL US 64,125.0 (4,746.0) (9,815.0)
AMNEAL PHARM INC AMRX US 3,509.9 (4.1) 371.1
ANNOVIS BIO ANVS US 5.0 (1.8) 1.0
APPIAN CORP-A APPN US 554.6 (45.7) 70.3
AQUESTIVE THERAP AQST US 117.6 (35.5) 90.1
AULT DISRUPTIVE ADRT/U US 0.8 (5.3) (2.6)
AUTOZONE INC AZO US 17,108.4 (4,838.2) (1,903.1)
AVEANNA HEALTHCA AVAH US 1,664.5 (119.0) (25.1)
AVIS BUDGET GROU CAR US 33,882.0 (482.0) (406.0)
BATH & BODY WORK BBWI US 4,948.0 (1,718.0) 169.0
BAUSCH HEALTH CO BHC US 26,495.0 (227.0) 842.0
BAUSCH HEALTH CO BHC CN 26,495.0 (227.0) 842.0
BELLRING BRANDS BRBR US 804.1 (243.2) 346.3
BEYOND MEAT INC BYND US 711.2 (590.0) 233.7
BIOCRYST PHARM BCRX US 472.4 (475.6) 258.9
BIOTE CORP-A BTMD US 92.9 (141.7) 15.5
BOEING CO/THE BA US 142,720.0 (17,982.0) 17,809.0
BOMBARDIER INC-A BBD/A CN 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-A BDRAF US 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-B BBD/B CN 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-B BDRBF US 12,603.0 (2,144.0) 283.0
BOOKING HOLDINGS BKNG US 28,541.0 (4,276.0) 3,087.0
BOWLERO CORP - A BOWL US 3,114.0 (49.9) (68.8)
BRIDGEBIO PHARMA BBIO US 794.4 (1,082.1) 481.9
BRIDGEMARQ REAL BRE CN 194.8 (54.9) (75.6)
BRIGHTSPHERE INV BSIG US 533.1 (18.8) -
CALUMET INC CLMT US 2,670.9 (320.8) (424.5)
CANTOR PA CEP US 0.0 (0.3) (0.4)
CARDINAL HEALTH CAH US 45,121.0 (3,212.0) (756.0)
CARTESIAN THERAP RNAC US 347.7 (101.5) 98.7
CHENIERE ENERGY CQP US 17,515.0 (756.0) (658.0)
CHILDREN'S PLACE PLCE US 921.4 (68.9) (71.2)
CHOICE HOTELS CHH US 2,518.9 (146.8) (3.9)
CINEPLEX INC CGX CN 2,247.5 (14.1) (277.7)
CINEPLEX INC CPXGF US 2,247.5 (14.1) (277.7)
CLIPPER REALTY I CLPR US 1,274.6 (4.7) -
COMMSCOPE HOLDIN COMM US 8,821.0 (2,124.5) 93.7
COMMUNITY HEALTH CYH US 14,411.0 (879.0) 1,027.0
COMPOSECURE IN-A CMPO US 213.4 (209.1) 87.5
CONSENSUS CLOUD CCSI US 608.5 (124.4) 3.5
CONTANGO ORE INC CTGO US 66.2 (34.0) (23.7)
COOPER-STANDARD CPS US 1,767.0 (160.9) 218.9
CPI CARD GROUP I PMTS US 321.4 (44.6) 110.8
CROSSAMERICA PAR CAPL US 1,164.7 (8.2) (39.8)
DELEK LOGISTICS DKL US 1,623.3 (51.3) 26.5
DELL TECHN-C DELL US 82,687.0 (2,797.0) (14,490.0)
DENNY'S CORP DENN US 459.9 (53.2) (60.9)
DIGITALOCEAN HOL DOCN US 1,536.8 (253.8) 323.6
DINE BRANDS GLOB DIN US 1,693.5 (231.7) (74.6)
DOMINO'S PIZZA DPZ US 1,856.0 (3,891.1) 478.3
DOMO INC- CL B DOMO US 197.8 (166.4) (95.8)
DROPBOX INC-A DBX US 2,718.5 (371.3) 47.4
ELUTIA INC ELUT US 41.9 (64.3) (9.5)
EMBECTA CORP EMBC US 1,267.5 (763.7) 410.4
ETSY INC ETSY US 2,448.1 (635.0) 794.5
EXCO RESOURCES EXCE US 1,032.7 (1,026.5) (421.2)
FAIR ISAAC CORP FICO US 1,708.8 (829.3) 293.9
FENNEC PHARMACEU FRX CN 63.2 (1.4) 54.4
FENNEC PHARMACEU FENC US 63.2 (1.4) 54.4
FERRELLGAS PAR-B FGPRB US 1,487.7 (262.7) 148.3
FERRELLGAS-LP FGPR US 1,487.7 (262.7) 148.3
FOGHORN THERAPEU FHTX US 328.6 (14.3) 238.8
GCM GROSVENOR-A GCMG US 543.9 (93.7) 125.0
GOAL ACQUISITION PUCKU US 4.0 (11.1) (13.4)
GOOSEHEAD INSU-A GSHD US 338.2 (19.7) 6.3
GRINDR INC GRND US 435.0 (41.7) 8.1
GUARDANT HEALTH GH US 1,609.3 (1.6) 1,088.4
HAWAIIAN HOLDING HA US 4,242.8 (105.5) 155.0
HERBALIFE LTD HLF US 2,602.2 (1,037.2) 237.6
HILTON WORLDWIDE HLT US 15,737.0 (3,078.0) (1,537.0)
HP INC HPQ US 38,059.0 (1,392.0) (7,728.0)
HUMACYTE INC HUMA US 138.3 (28.3) 78.4
IMMUNITYBIO INC IBRX US 444.3 (697.4) 180.7
INSEEGO CORP INSG US 149.6 (101.8) (146.0)
INSPIRED ENTERTA INSE US 326.6 (77.4) 47.8
INTUITIVE MACHIN LUNR US 140.1 (10.4) (1.9)
IRONWOOD PHARMAC IRWD US 395.6 (321.7) 132.7
JACK IN THE BOX JACK US 2,745.2 (845.8) (249.2)
LAUNCH ONE ACQUI LPAAU US 0.2 (0.0) (0.3)
LAUNCH ONE ACQUI LPAA US 0.2 (0.0) (0.3)
LESLIE'S INC LESL US 1,105.2 (168.2) 171.1
LIFEMD INC LFMD US 63.8 (2.1) (6.6)
LINDBLAD EXPEDIT LIND US 858.3 (155.5) (99.0)
LOWE'S COS INC LOW US 44,934.0 (13,763.0) 4,091.0
MADISON SQUARE G MSGS US 1,346.3 (266.3) (305.0)
MADISON SQUARE G MSGE US 1,552.7 (23.2) (286.7)
MANNKIND CORP MNKD US 443.8 (225.8) 245.9
MARBLEGATE ACQ-A GATE US 7.0 (15.8) (0.4)
MARBLEGATE ACQUI GATEU US 7.0 (15.8) (0.4)
MARRIOTT INTL-A MAR US 25,740.0 (2,091.0) (4,783.0)
MARTIN MIDSTREAM MMLP US 535.1 (57.9) 26.3
MATCH GROUP INC MTCH US 4,368.9 (130.1) 773.6
MBIA INC MBI US 2,304.0 (1,985.0) -
MCDONALDS CORP MCD US 53,801.0 (4,824.0) 295.0
MCKESSON CORP MCK US 71,670.0 (1,381.0) (4,182.0)
MEDIAALPHA INC-A MAX US 198.2 (78.0) 11.5
METTLER-TOLEDO MTD US 3,249.2 (152.8) (102.9)
MSCI INC MSCI US 5,456.8 (734.5) (61.4)
NATHANS FAMOUS NATH US 58.5 (25.5) 30.8
NEW ENG RLTY-LP NEN US 383.7 (67.0) -
NOVAGOLD RES NG CN 121.6 (27.5) 110.1
NOVAGOLD RES NG US 121.6 (27.5) 110.1
NOVAVAX INC NVAX US 1,818.6 (431.7) 45.6
NUTANIX INC - A NTNX US 2,143.9 (728.1) 237.0
O'REILLY AUTOMOT ORLY US 14,393.2 (1,583.4) (2,443.7)
ODYSSEY MARINE OMEX US 26.3 (93.9) (29.7)
OMEROS CORP OMER US 356.3 (124.6) 143.5
OTIS WORLDWI OTIS US 9,858.0 (4,882.0) (1,657.0)
OUTLOOK THERAPEU OTLK US 47.1 (83.7) 3.1
PAPA JOHN'S INTL PZZA US 838.4 (445.2) (49.5)
PELOTON INTERA-A PTON US 2,185.2 (519.1) 580.8
PHATHOM PHARMACE PHAT US 319.4 (233.8) 257.8
PHILIP MORRIS IN PM US 65,782.0 (7,942.0) (1,388.0)
PITNEY BOWES INC PBI US 4,078.4 (427.9) (72.4)
PLANET FITNESS-A PLNT US 2,974.0 (319.8) 221.7
PRIORITY TECHNOL PRTHU US 1,673.4 (64.6) 23.6
PRIORITY TECHNOL PRTH US 1,673.4 (64.6) 23.6
PROS HOLDINGS IN PRO US 384.9 (83.0) 36.2
PTC THERAPEUTICS PTCT US 1,916.4 (963.7) 748.1
RAPID7 INC RPD US 1,526.6 (52.9) 95.8
RE/MAX HOLDINGS RMAX US 571.4 (69.2) 45.1
REDFIN CORP RDFN US 1,181.5 (12.8) 171.0
REVANCE THERAPEU RVNC US 494.8 (129.7) 256.5
RH RH US 4,376.4 (234.7) 208.7
RIGEL PHARMACEUT RIGL US 128.4 (29.9) 36.1
RINGCENTRAL IN-A RNG US 1,831.8 (328.8) 66.5
RUBRIK INC-A RBRK US 1,218.2 (499.3) 112.3
SABRE CORP SABR US 4,666.4 (1,476.9) 80.5
SBA COMM CORP SBAC US 9,786.2 (5,275.9) (1,999.6)
SCOTTS MIRACLE SMG US 3,489.3 (146.2) 684.0
SEAGATE TECHNOLO STX US 7,739.0 (1,491.0) 233.0
SEMTECH CORP SMTC US 1,368.0 (141.4) 317.1
SHOULDERUP TEC-A SUAC US 9.6 (17.4) (4.6)
SHOULDERUP TECHN SUACU US 9.6 (17.4) (4.6)
SIM ACQUISITI-A SIMA US 0.2 (0.0) -
SIM ACQUISITION SIMAU US 0.2 (0.0) -
SIRIUS XM HOLDIN SIRI US 11,185.0 (2,113.0) (1,458.0)
SIX FLAGS ENTERT FUN US 2,347.8 (682.1) (268.5)
SLEEP NUMBER COR SNBR US 883.6 (447.0) (723.2)
SPECTRAL CAPITAL FCCN US 0.1 (0.3) (0.3)
SPIRIT AEROSYS-A SPR US 6,858.6 (1,513.5) 870.9
SQUARESPACE IN-A SQSP US 1,000.9 (242.9) (140.4)
STARBUCKS CORP SBUX US 30,111.8 (7,937.4) (841.6)
STARDUST POWER I SDST US 1.9 (22.3) (11.4)
SYMBOTIC INC SYM US 1,558.4 379.3 323.2
TORRID HOLDINGS CURV US 487.5 (188.9) (28.4)
TOWNSQUARE MED-A TSQ US 579.6 (64.1) 26.4
TPI COMPOSITES I TPIC US 715.4 (274.3) 0.7
TRANSDIGM GROUP TDG US 21,828.0 (2,510.0) 5,210.0
TRAVEL + LEISURE TNL US 6,693.0 (884.0) 675.0
TRINSEO PLC TSE US 2,847.8 (413.8) 431.8
TRISALUS LIFE SC TLSI US 32.4 (24.1) 15.9
TRIUMPH GROUP TGI US 1,492.8 (119.6) 446.6
TUCOWS INC-A TC CN 758.2 (33.1) (15.2)
TUCOWS INC-A TCX US 758.2 (33.1) (15.2)
UNISYS CORP UIS US 1,867.8 (160.6) 315.7
UNITED PARKS & R PRKS US 2,756.9 (364.9) (92.7)
UNITI GROUP INC UNIT US 5,119.2 (2,492.4) -
VECTOR GROUP LTD VGR US 1,094.0 (713.3) 401.4
VERISIGN INC VRSN US 1,505.1 (1,816.4) (430.1)
VERITONE INC VERI US 321.8 (5.7) (39.7)
WAYFAIR INC- A W US 3,436.0 (2,760.0) (385.0)
WINGSTOP INC WING US 451.8 (437.5) 78.3
WINMARK CORP WINA US 44.7 (42.2) 21.5
WORKIVA INC WK US 1,242.7 (77.7) 426.2
WPF HOLDINGS INC WPFH US 0.0 (0.3) (0.3)
WYNN RESORTS LTD WYNN US 13,289.8 (902.0) 771.5
XPONENTIAL FIT-A XPOF US 475.2 (100.8) (6.1)
YUM! BRANDS INC YUM US 6,395.0 (7,630.0) 499.0
*********
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.
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*** End of Transmission ***