/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/241004.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, October 4, 2024, Vol. 28, No. 277 Headlines 1629 REEVES: Unsecureds to Get 100 Cents on Dollar in Plan 4011-4090 NW 34TH: Seeks to Extend Plan Filing Deadline to Nov. 12 5 SQUARE: Seeks to Hire Law Offices of Avrum J. Rosen as Counsel 502 GRACE HOLDINGS: Taps Balcom Consulting Services as Accountant 94 HUDSON PARK: Case Summary & 15 Unsecured Creditors A SUN STATE TREES: Unsecureds to Split $5K over 3 Years ACADEMY SPORTS: S&P Raises Issuer Credit Rating to 'BB+' ACCELERATED HEALTH: $875MM Bank Debt Trades at 23% Discount ACCO BRANDS: Moody's Lowers CFR to B1 & Alters Outlook to Stable ADDMI INC: Seeks Approval to Hire JAM Accounting as Accountant AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 32% Discount ALLIANCE MESA: Wins Final Approval to Use Cash Collateral AMERICORE HOLDINGS: Biggest Creditor Owner Lewitt Held in Contempt ARALIFE CASE: Unsecureds Will Get 1% to 1.5% of Claims in Plan ARCHITECTURAL GLASS: Glass & Mirror Hits Chapter 11 Bankruptcy ARRAKIS LLC: Seeks Chapter 11 Bankruptcy Protection in Ohio ASCEND PROPERTIES: Moody's Cuts CFR to 'B2', Outlook Negative ASP UNIFRAX: S&P Downgrades ICR to 'SD' on Note Exchange ATHLETICA TRAINING: Unsecureds Will Get 1.21% to 2.67% in Plan ATLAS PURCHASER: $26MM Bank Debt Trades at 91% Discount ATLAS PURCHASER: $392MM Bank Debt Trades at 56% Discount AUDACY INC: Soros Plan Approved by FCC BAMBY EXPRESS: Gets Interim Approval to Use Cash Collateral BAWT ENTERPRISES: Files for Chapter 11 With Prepack Plan BEYOND AIR: To Raise $20.6M Through Private Placement Offering BIOGREEN ENVIRONMENTAL: Taps Batista Law Group as Legal Counsel BION ENVIRONMENTAL: Incurs $11.69M Net Loss in FY Ended June 30 BLACKMARKET BAKERY: Seeks to Hire S. E. Cowen Law as Legal Counsel BROCATO’S SANDWICH: Gets Interim OK to Use Cash Collateral BUCA TEXAS: Committee Seeks to Hire Ordinary Course Professionals BURGERFI INTERNATIONAL: U.S. Trustee Appoints Creditors' Committee CAESARS ENTERTAINMENT: S&P Rates New Senior Unsecured Notes 'B-' CALIFORNIA PREMIER: Gets Interim OK to Use Cash Collateral CALIFORNIA PREMIER: Hires A.O.E. Law & Associates as Counsel CALIFORNIA PREMIER: Hires Prime Business Consulting as Bookkeeper CALUMET PAINT: Court Approves Use of Cash Collateral CARABOBO PROSPER: Gets Interim OK to Use Cash Collateral CHAMP ACQUISITION: S&P Places 'B' ICR on CreditWatch Negative CINEMOI NORTH: Hires Leech Tishman Fuscaldo as General Counsel CL CRESSLER: U.S. Trustee Unable to Appoint Committee CRC RESTAURANT: Seeks to Hire BransonLaw as Bankruptcy Counsel CYBERJIN LLC: Creditors to Get Proceeds From Liquidation CYZ PPE: Seeks 45-Day Extension of Plan Filing Deadline DECKER HOME: Case Summary & Eight Unsecured Creditors DEE FORD'S: Hires Gathings Law as Special Counsel DEGNAN SCOTTSDALE: Gets OK to Hire Joan Chipser as Legal Counsel DEL MONTE: $725MM Bank Debt Trades at 63% Discount DIOCESE OF ROCKVILLE: Reaches $323M Bankruptcy Abuse Settlement DIRECTV FINANCING: Moody's Cuts CFR to B1, On Review for Downgrade DOUBLE M RANCH: Unsecureds Will Get 100% of Claims over 5 Years DT&T LOGISTICS: Has Court Permission to Use Cash Collateral E-Z ROLL CASTERS: Case Summary & 20 Largest Unsecured Creditors ECO ROOF: Hires Wadsworth Garber Warner Conrardy as Legal Counsel ECP OWNER 1: Plan Exclusivity Period Extended to Oct. 26 EDWARDS PETROLEUM: Case Summary & 20 Largest Unsecured Creditors EMPIRE TODAY: $595MM Bank Debt Trades at 39% Discount EPIC CRUDE: S&P Upgrades ICR to 'BB-', Outlook Stable ESCALON MEDICAL: Incurs $125K Net Loss in FY Ended June 30 EYM PIZZA: Sells All Remaining Stores After Ch. 11 Filing FAIR OFFER: Seeks to Hire BuildLaw PLC as Special Counsel FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 30% Discount FIRST AMERICAN: Case Summary & Two Unsecured Creditors FLECK REAL ESTATE: Hires Gordon Law Firm PC as Counsel FOG CAP RETAIL: Court Tosses Appeal in Stratford, et al. Lawsuit FRANCISCAN FRIARS: Committee Hires Stout Risius Ross as Consultant FTX TRADING : Creditors Angry at $230M Set Aside for Shareholders GCM MANAGER: Case Summary & 18 Unsecured Creditors GCM PARKSIDE: Case Summary & Four Unsecured Creditors GCM UP: Case Summary & Six Unsecured Creditors GCM WASH: Case Summary & Seven Unsecured Creditors GOLDNER CAPITAL: Case Summary & 20 Largest Unsecured Creditors GOTO GROUP: $958.9MM Bank Debt Trades at 63% Discount GRIFFIN RESOURCES: Case Summary & 20 Largest Unsecured Creditors HEYWOOD HEALTHCARE: Emerges from Chapter 11 Bankruptcy HILCORP ENERGY: S&P Rates New $800MM Senior Unsecured Notes 'BB+' HILDING ANDERS: EUR300MM Bank Debt Trades at 74% Discount HOMETOWN LENDERS: Hires 3sixty Consulting as Accountant HOPEMAN BROTHERS: Committee Hires FTI as Financial Advisor IMPERIAL PACIFIC: Committee Hires Intrepid as Investment Banker INDIVIDUALIZED ABA: Case Summary & Nine Unsecured Creditors INFOVINE INC: Amends Plan to Resolve Ascentium Claim Issues INNOVATE LOAN: Seeks to Hire KPMG LLP as Accountant INNOVATIVE DESIGNS: Posts Net Income of $22,228 in Second Quarter INTEGRATED VENTURES: Incurs $11.52M Net Loss in FY Ended June 30 IRWIN NATURALS: Hire Marula Capital Group as Valuation Consultant IYS VENTURES: Court OKs Use of Cash Collateral Until Dec. 28 KASAI HOLDINGS: Gets Final Approval to Use Cash Collateral KERRI WILSON: Seeks to Hire Century 21 as Real Estate Broker KING'S MOVING: U.S. Trustee Unable to Appoint Committee LAREDO OIL: Incurs $2.87 Million Net Loss in FY Ended May 31 LARRY OUTLAW: Seeks to Extend Plan Filing Deadline to Oct. 19 LARRY OUTLAW: Wins Final Approval to Use of Cash Collateral LAVERTU CAPITAL: Unsecureds to Split $32.5K over 3 Years LHW MASTER: Case Summary & Three Unsecured Creditors LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 59% Discount LL FLOORING: Committee Hires Cole Schotz as Bankruptcy Counsel LL FLOORING: Committee Taps Genesis Credit as Co-Financial Advisor LL FLOORING: Panel Seeks to Tap Foresight as Co-Financial Advisor LOGIX HOLDING: $250MM Bank Debt Trades at 26% Discount LUMEN TECHNOLOGIES: S&P Lowers ICR to 'SD' on Distressed Exchange LYONS MAGNUS: $285MM Bank Debt Trades at 15% Discount MAD ENGINE: $275MM Bank Debt Trades at 17% Discount MAGENTA BUYER: $3.18BB Bank Debt Trades at 67% Discount MANNING LAND: Hires Roxborough Pomerance Nye & Adreani as Counsel MAVENIR SYSTEMS: $585MM Bank Debt Trades at 33% Discount MAVENIR SYSTEMS: Moody's Appends 'LD' Designation to 'Caa1-PD' PDR MCMULLEN BRAND: Hires Finestone Hayes LLP as Counsel MEDEX LLC: Hires Rogers Law Group P.A. as Special Counsel MIRACARE NEURO: Seeks to Tap David R. Herzog as Bankruptcy Counsel MISSOURI MT: Case Summary & Two Unsecured Creditors MOGA TRANSPORT: Hires Farsad Law Office as Bankruptcy Counsel MONTICELLO CONSTRUCTION: Plan Filing Deadline Extended NEW CONSTELLIS: S&P Downgrades ICR to 'SD' on Distressed Exchange NG PACKAGING: Moody's Downgrades CFR to 'Ba2', Outlook Stable NORTHEAST LANDSCAPING: Hires Chace Ruttenberg as Attorneys NW DEVELOPERS: Seeks to Tap Karr Tuttle Campbell as Legal Counsel ORCHID MERGER: $400MM Bank Debt Trades at 37% Discount OYO FITNESS: Plan Filing Deadline Extended to Nov. 19 PACIFIC BELLS: Moody's Affirms 'B3' CFR, Outlook Stable PALATIN TECHNOLOGIES: Incurs $29.7M Net Loss in FY Ended June 30 PATINOS CONCRETE: Get Interim OK to Use Cash Collateral PICCARD PETS: U.S. Trustee Unable to Appoint Committee PINEWOOD CONDOMINIUMS: Case Summary & 20 Top Unsecured Creditors PIONEER HEALTH: Hires Grow Rasmussen LLP as Accountant PIONEER HEALTH: Hires Provident Healthcare as Investment Banker PLAYPOWER HOLDINGS: S&P Withdraws 'CCC+' Issuer Credit Rating PORTSMOUTH SQUARE: Incurs $11.38-Mil. Net Loss in FY Ended June 30 POSEIDON BIDCO: EUR1.10BB Bank Debt Trades at 22% Discount PRESPERSE CORP: U.S. Trustee Appoints Talc Committee PRETIUM PKG: $1.25BB Bank Debt Trades at 19% Discount PULSE PHYSICIAN: Plan Filing Deadline Extended to Nov. 15 QSR STEEL: Plan Filing Deadline Extended to Oct. 16 R&W CLARK: Gets Interim OK to Use Cash Collateral Until Oct. 31 RANCHO FRESNO: Voluntary Chapter 11 Case Summary RED DOOR: Hires Chamberlain Hrdlicka White Williams as Counsel RED RIVER: Gets OK to Hire Epiq as Claims and Noticing Agent RELIANCE SECURITY: Unsecureds Will Get 100% of Claims in 2 Years RHODIUM ENCORE: Seeks to Tap Barnes & Thornburg as Legal Counsel ROMAN CATHOLIC: Committee Taps Michel Y. Horton as Special Counsel SCREENVISION LLC: $175MM Bank Debt Trades at 27% Discount SEVENTEEN00 LLC: Hires Winkler Real Estate Group as Broker SHINECO INC: Incurs $24.35 Million Net Loss in FY Ended June 30 SHORTER TRANSPORT: Hires Footman Law Firm P.A. as Attorney SINCLAIR TELEVISION: $750MM Bank Debt Trades at 26% Discount SMARTHOME VENTURES: Hires Gellert Seitz Busenkell as Counsel SMARTHOME VENTURES: Trustee Gets OK to Tap $1M Chapter 11 Loan SMARTHOME VENTURES: U.S. Trustee Unable to Appoint Committee SOD EXPRESS: Unsecureds to Split $26K in Consensual Plan SOUTHERN VETERINARY: Moody's Cuts 1st Lien Bank Loans to 'B3' STEWARD HEALTH: CEO Sues Senate Committee for Contempt Finding SUNMEADOWS LLC: Plan Exclusivity Period Extended to Nov. 18 SVB FINANCIAL: Wants 2nd Circuit to Review FDIC Fight SWF HOLDINGS I: $1.63BB Bank Debt Trades at 18% Discount TEREX CORP: Moody's Rates New $750MM 8-Yr. Unsecured Notes 'Ba3' TERVIS TUMBLER: Gets Interim OK to Use Cash Collateral TOMMY'S FORT: Trustee Hires Lain Faulkner & Co as Accountant TUPPERWARE BRANDS: U.S. Trustee Appoints Creditors' Committee U.S. CREDIT: Court OKs Interim Use of Cash Collateral Until Oct. 23 UFC HOLDINGS: Moody's Affirms 'Ba3' CFR, Outlook Stable UNIVISION COMMUNICATIONS: Add-on Notes No Impact on Moody's B1 CFR VERECORE LLC: Hires Rountree Leitman Klein & Geer as Attorney VILLAGE GATE: Chapter 11 Case Tossed, Filed in Bad Faith WELLPATH HOLDINGS: $110MM Bank Debt Trades at 53% Discount WHEEL PROS: U.S. Trustee Unable to Appoint Committee WHITTIER SEAFOOD: Committee Taps Miller Nash LLP as Attorney WIN-SC LLC: U.S. Trustee Unable to Appoint Committee WOB HOLDINGS: Public House Holdings Appointed as Committee Member WRENA LLC: Seeks Approval to Hire DWH Corp as Financial Advisor WRENA LLC: Seeks to Hire Cascade Partners as Investment Banker WRENA LLC: Seeks to Tap Wolfson Bolton Kochis as Legal Counsel YANEZ DESIGNS: Hires James S. Wilkins as Attorney YELLOW CORP: Asks Court to Reconsider Pension Debt Ruling [^] BOOK REVIEW: The Luckiest Guy in the World ********* 1629 REEVES: Unsecureds to Get 100 Cents on Dollar in Plan ---------------------------------------------------------- 1629 Reeves, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a Plan of Reorganization for Small Business dated August 28, 2024. The Debtor is a Michigan limited liability company doing business in California. The Debtor has been in the business of owning a parcel of real estate for lease. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 100 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 3 consists of Non-priority unsecured creditors. This Class shall be paid in full on the effective date. This Class is unimpaired. The allowed unsecured claims total $21,006. Class 4 consists of equity security holders of the Debtor. The Debtor's sole member, Aaron Sokol, will retain his membership interest. The secured claims of JMAC Lending, Logan Investments and Lawrence & Simi Feigen will be purchased and satisfied by a take-out lender. The secured claim of Claudine Sokol is government by a pre-existing subordination agreement. All other allowed claims will be paid by a capital contribution from Aaron Sokol. A full-text copy of the Plan of Reorganization dated August 28, 2024 is available at https://urlcurt.com/u?l=og6Y7M from PacerMonitor.com at no charge. The Debtor's Counsel: John P. Kreis, Esq. JOHN P KREIS, PC 863 S. Rimpau Blvd. Los Angeles, CA 90005 Tel: 213-369-1911 E-mail: jkreis@kreislaw.com About 1629 Reeves, LLC 1629 Reeves, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). The Debtor is the fee simple owner of a commercial real estate located at 1629 Reeves Street, Los Angeles, Calif., valued at $4.5 million. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-14283) on May 30, 2024, with $4,500,000 in assets and $4,720,907 in liabilities as of May 28, 2024. Aaron R. Sokol, managing member, signed the petition. Judge Neil W. Bason presides over the case. John P. Kreis, Esq., at John P. Kreis, PC, is the Debtor's legal counsel. 4011-4090 NW 34TH: Seeks to Extend Plan Filing Deadline to Nov. 12 ------------------------------------------------------------------ 4011-4090 NW 34th Street LLC asked the U.S. Bankruptcy Court for the Southern District of Florida to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to November 12, 2024 and January 13, 2025, respectively. The Debtor is a single asset real estate company which owns and operates an eighteen-unit commercial shopping center in Lauderdale Lakes, FL. The Debtor intends to file a plan of reorganization that will provide, inter alia, for payment to holders of allowed claims, over time, in an amount that would pay the holders of allowed claims in full. In this case, "cause" exists for extending the exclusivity and solicitation periods, as follows: * This case is moderately complex due to the number of creditors, amounts owed to creditors, and the dispute between the Debtor and disputed creditor IPG International Products Group Inc. ("IPG") regarding both IPG's entitlement to any claim against the Debtor and the amount of such a claim, should be Court find the Debtor has an obligation to IPG. * Additional time is necessary to prepare and negotiate a plan of reorganization, and prepare adequate information. The Debtor has demonstrated reasonable prospects for filing a viable plan. * The Debtor is not seeking an extension of exclusivity in order to pressure creditors to submit to the Debtor's reorganization demands. Rather, the Debtor feels that it would lead to an efficient and smooth plan confirmation process. * Unresolved contingencies exist. * On May 7, 2024, the Court entered an Order Granting Debtor's Application to Employ Juan C. Zorrilla, Esq. of Fowler White Burnett ("Zorrilla") as Special Litigation Counsel to the Debtor was entered, which allows for Zorrilla to proceed with the adversary proceeding to determine the extent, validity, and priority of lien claimed by IPG within Claim 43-1. The Debtor believes it is prudent to allow for the Scheduling Conference to occur in order to ascertain the expected length of time necessary for the matter to be ready for trial and for Court to enter a judgment on the Complaint prior to filing the Plan. 4011-4099 NW 34th Street, LLC is represented by: Christian Somodevilla, Esq. LSS LAW 2 South Biscayne Boulevard, Suite 2200 Miami, FL 33131 Telephone: (305) 894-6163 Facsimile: (305) 503-9447 Email: cs@lss.law About 4011- 4099 NW 34th Street 4011- 4099 NW 34th Street, LLC is the owner of real property located at 4011-4090 NW 34th Street, Lauderhill, Fla., valued at $2 million. 4011- 4099 NW 34th Street filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 23-19421) on Nov. 16, 2023. In the petition signed by Jose Gaspard Morell, an authorized officer, the Debtor disclosed $2,054,566 in total assets and $590,001 in total liabilities. Judge Corali Lopez-Castro oversees the case. The Debtor tapped Zach B. Shelomith, Esq., and Christian Somodevilla, Esq., at LSS Law as bankruptcy counsel and Hal Levenberg at Yip Associates as accountant. 5 SQUARE: Seeks to Hire Law Offices of Avrum J. Rosen as Counsel ---------------------------------------------------------------- 5 Square Management, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire the Law Offices of Avrum J. Rosen, PLLC, as attorneys. The firm's services include: (a) analysis of the financial situation, and rendering advice and assistance to the Debtor in determining whether to file a petition under the Bankruptcy Code; (b) preparation and filing of the petition, schedules, statement of financial affairs and other documents required by the Court; (c) representation of the Debtor at the meeting of creditors; (d) preparation of motions, documents and applications in connection with the case; and (e) provision of legal advice to the Debtor in connection with all matters pending before the Court. The firm's current billing rates are: Partners $670 per hour Associates $570 per hour Paraprofessionals $200 per hour The firm will be paid a retainer in the amount of $21,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Avrum J. Rosen, a partner at Law Offices of Avrum J. Rosen, PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Avrum J. Rosen, Esq. LAW OFFICES OF AVRUM J. ROSEN PLLC 38 New Street Huntington, NY 11743 Telephone: (631) 423-8527 Facsimile: (631) 423-4356 Email: arosen@ajrlawny.com About 5 Square Management, LLC 5 Square Management, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43444) on August 16, 2024, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. Avrum J Rosen, Esq. at the Law Offices Of Avrum J. Rosen, PLLC represents the Debtor as counsel. 502 GRACE HOLDINGS: Taps Balcom Consulting Services as Accountant ----------------------------------------------------------------- 502 Grace Holdings, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Balcom Consulting Services as accountant. The firm will render these services: (a) prepare the Monthly Operating Reports; (b) prepare all the financial information to proceed with a Plan of Reogranization and Disclosure Statement; (c) respond to all requests for financial information from creditors and the United States Trustee's Office; (d) assist the Debtor in determining its books and records whether there exist any fraudulent conveyances, avoidable preferences, or causes of action that may benefit its estate; (e) consult the Debtor with respect to any matters regarding taxation; and (f) perform such other reasonably necessary accounting services that the Debtor may require. The firm's professionals will be paid at these hourly rates: Managers $200 Staff $60 ` ` Babajide Balogun, president at Balcom Consulting Services, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Babajide Balogun Balcom Consulting Services 494 Flatbush Avenue Brooklyn, NY 11225 Telephone: (718) 469-8096 Facsimile: (718) 287-1106 About 502 Grace Holdings 502 Grace Holdings Inc. is engaged in activities related to real estate. 502 Grace Holdings Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42826) on July 8, 2024. In the petition filed by Marcia Samuel, president, secretary, and treasurer, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Judge Nancy Hershey Lord handles the case. The Debtor tapped the Law Office of Leo Fox, Esq., as counsel and Balcom Consulting Services as accountant. 94 HUDSON PARK: Case Summary & 15 Unsecured Creditors ----------------------------------------------------- Debtor: 94 Hudson Park Rd LLC 94 Hudson Park Road New Rochelle, NY 10801 Business Description: 94 Hudson Park is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). The Debtor is the fee simple owner of the real property located at 94 Hudson Park Road, New Rochelle, NY 10801 valued at $3 million (based on the Debtor's estimate). Chapter 11 Petition Date: October 3, 2024 Court: United States Bankruptcy Court Southern District of New York Case No.: 24-22851 Debtor's Counsel: H Bruce Bronson, Esq. BRONSON LAW OFFICES PC 480 Mamaroneck Ave Harrison, NY 10528 Tel: (914) 269-2530 Fax: (888) 908-6906 Email: hbbronson@bronsonlaw.net Total Assets: $3,000,000 Total Liabilities: $9,237,900 The petition was signed by Rudolph U. Southwell as chief reorganization officer. A full-text copy of the petition containing, among other items, a list of the Debtor's 15 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/BRBBSAY/94_Hudson_Park_Rd_LLC__nysbke-24-22851__0001.0.pdf?mcid=tGE4TAMA A SUN STATE TREES: Unsecureds to Split $5K over 3 Years ------------------------------------------------------- A Sun State Trees, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization dated August 28, 2024. The Debtor is an established company that provides a full range of landscaping services, including tree removal, tree trimming, pruning, land clearing/site development, waste hauling/grapple service, and storm/emergency cleanup. The Debtor is a Florida corporation created by Articles of Incorporation filed with the Florida Secretary of State on or around April 28, 2009, with an effective date of April 24, 2009. The Debtor's principal place of business is located at 3775 N Highway 17-92, Sanford, Florida. ("Premises"), which the Debtor, leases from BDI 17-92, LLC, who is not an insider. The Plan Proponent must also show that it will have enough cash over the life of the Plan to make the required Plan payments and operate the Debtor's business. The Debtor's projected Disposable Income over the life of the Plan is $49,419.74. This Plan provides for: 15 classes of secured claims; 1 class of unsecured claims; and 1 class of equity security holders. Class 16 consists of the Allowed Unsecured Claims against the Debtor. This Class is Impaired. * Consensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of $5,000.00. Payments will be made in equal quarterly payments of $416.67. Payments shall commence on the fifteenth day of the month, on the first month that begins more than ninety days after the Effective Date and shall continue quarterly for eleven additional quarters. Pursuant to Section 1191 of the Bankruptcy Code, the value to be distributed to unsecured creditors is greater than the Debtor's projected disposable income to be received in the 3-year period beginning on the date that the first payment is due under the plan. Holders of Class 16 claims shall be paid directly by the Debtor. * Nonconsensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of its projected Disposable Income, $4,955.00. If the Debtor remains in possession, plan payments shall include the Subchapter V Trustee's administrative fee which will be billed hourly at the Subchapter V Trustee's then current allowable blended rate. Plan Payments shall commence on the fifteenth day of the month, on the first month that is one year after the Effective Date and shall continue annually for two additional years. The initial estimated annual payment shall be $2,985.00. Holders of Class 16 claims shall be paid directly by the Debtor. Class 17 consists of any and all equity interests and warrants currently issued or authorized in the Debtor. This Class is Unimpaired. Holders of a Class 17 interests shall retain their full equity interest in the same amounts, percentages, manner and structure as existed on the Petition Date. The Plan contemplates that the Reorganized Debtor will continue to operate the Debtor's business. Except as explicitly set forth in this Plan, all cash in excess of operating expenses generated from operation until the Effective Date will be used for Plan Payments or Plan implementation, cash on hand as of Confirmation shall be available for Administrative Expenses. A full-text copy of the Plan of Reorganization dated August 28, 2024 is available at https://urlcurt.com/u?l=SCiCw6 from PacerMonitor.com at no charge. The Debtor's Counsel: Jeffrey S. Ainsworth, Esq. Cole Bailey Davidson Branson, Esq. BRANSONLAW, PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 E-mail: jeff@bransonlaw.com E-mail: cole@bransonlaw.com About A Sun State Trees A Sun State Trees, Inc. provides tree removal, site clearing and waste hauling services. The company is based in Sanford, Fla. A Sun State Trees filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (M.D. Fla. Case No. 24-02710) on May 30, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Randall Nellis, president, signed the petition. Judge Lori V. Vaughan presides over the case. Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC represents the Debtor as bankruptcy counsel. ACADEMY SPORTS: S&P Raises Issuer Credit Rating to 'BB+' -------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on U.S.-based retailer Academy Sports and Outdoor Inc. to 'BB+' from 'BB'. At the same time, S&P affirmed its 'BB+' issue-level rating on the company's senior secured debt. The outlook is stable, reflecting S&P's expectation for steady operating performance over the next 12 months despite softer consumer demand within its segments, leading to S&P Global Ratings-adjusted leverage in the mid-1x area. S&P said, "The rating reflects our expectation that Academy's S&P Global Ratings-adjusted leverage will remain below 2x despite softer operating performance in fiscal 2024. During the second quarter ended Aug. 3, 2024, the company's S&P Global Ratings-adjusted leverage ticked up slightly to roughly 1.4x due to lower sales volume and modestly lower-than-expected EBITDA margin. We now project Academy's S&P Global Ratings-adjusted leverage will be roughly 1.6x at year-end fiscal 2024 and 2025 as it continues to navigate a challenging operating environment. However, we expect operating income and EBITDA margins to improve modestly in fiscal 2025 as the company prioritizes strategic expense management initiatives to reduce costs and drive profitability. "We anticipate Academy will continue focusing on managing robust inventory levels, leverage and utilize its supply chain more efficiently, and drive labor costs down through enhanced labor scheduling systems. Furthermore, we expect reduced freight expenses and a normalized supply chain environment will improve margins in fiscal 2025. "We continue to apply a negative comparable rating analysis modifier to Academy due to its smaller and more geographically concentrated sales base as well as weaker online penetration relative to peers in the highly fragmented outdoor and sporting goods sector, which continues to face significant competition. "We expect Academy's sales growth to remain pressured in fiscal 2024, improving modestly in fiscal 2025. In the second quarter ended Aug. 3, 2024, Academy's total revenues decreased 2.2% year over year, with comparable same-store sales down 6.9% as discretionary spending within the sporting goods and outdoor recreation market remained pressured. We project total sales will be down roughly 4% in fiscal 2024 as Academy continues to navigate through a challenging operating environment. However, we anticipate the company will improve traffic and sales volumes in fiscal 2025 as it continues to implement ongoing promotional initiatives, open new store locations, and refresh its existing store fleet. "Furthermore, we expect customer disposable income levels will likely improve toward the second half of 2025 as inflationary pressures continue to abate, supporting sales growth of roughly 2% for the company in fiscal 2025. Academy has consistently grown its store count over the past several years, primarily through organic growth initiatives. We expect it will continue to grow its store count to 297 to 299 by the end of this year (from 285 currently), expanding its locations further toward 310 to 315 by the end of fiscal 2025. "We expect Academy's conservative financial policy and solid free operating cash flow (FOCF) generation to support the ratings. During the second quarter, Academy revised its 2024 capital spending guidance downward by roughly $50 million as it benefitted from optimizing and reducing costs around its new store openings. As such, we forecast reported FOCF of about $278 million and $289 million after roughly $225 million and $250 million of capital spending in fiscal years 2024 and 2025, respectively. We expect the bulk of expenditures will go toward new store openings, store refreshes and remodels, and new technology investments. "We believe Academy's consistent FOCF provides the company with ample room to fund its growth initiatives, maintain its dividend policy, and continue to execute on its share repurchase program. As of the end of the second quarter of 2024, Academy had $325 million of cash on hand with an undrawn balance under its $1 billion asset-based lending (ABL) facility. In addition, Academy has no near-term maturities, with its $400 million senior secured notes and $400 million term loan facility (of which $90 million is outstanding) both maturing in November 2027 and its $1 billion ABL facility maturing in March 2029. Furthermore, we do not anticipate the company will need to take on additional debt over the next 12 months given its ability to fund its growth and operations through its cash generation. "The stable outlook reflects our expectation that Academy will maintain relatively steady credit metrics over the next 12 months, leading to S&P Global Ratings-adjusted leverage in the mid-1x area and consistent FOCF generation despite a challenging operating environment." S&P could lower its ratings on Academy if S&P expects its S&P Global Ratings-adjusted leverage to rise and remain above 2x. This could occur if: -- Operating performance falls below our base case, particularly from weaker-than-expected profitability and cash flows; or -- The company's financial policy became more aggressive, potentially led by large share repurchases or debt-funded acquisitions. While unlikely over the next 12 months, S&P could raise its ratings on Academy if: -- The company's operating prospects and competitive standing improves such that S&P would compare it more closely with larger and more diversified competitors. This could occur if the company meaningfully expands its operating scale beyond its current regional scope and expands its competitive position through meaningful growth in its customer base; and -- The company maintains its conservative financial policy, supporting S&P Global Ratings-adjusted leverage sustained comfortably below 2x. S&P said, "Social factors have a negative consideration in our credit rating analysis of Academy. The company has meaningful exposure to firearms and ammunition sales, which add volatility to its sales and profitability because of the significant unpredictability and meaningful fluctuations in demand, especially before national elections. In addition, regulators and lawmakers have looked to impose increased restrictions on firearm sales. While no new legislation has been enacted, potential changes in the regulatory climate could increase future performance risks. At the same time, we believe this exposure could expose the company to unknown litigation risks." ACCELERATED HEALTH: $875MM Bank Debt Trades at 23% Discount ----------------------------------------------------------- Participations in a syndicated loan under which Accelerated Health Systems LLC is a borrower were trading in the secondary market around 77.4 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $875 million Term loan facility is scheduled to mature on February 15, 2029. The amount is fully drawn and outstanding. Accelerated Health Systems, LLC provides healthcare services. The Company offers athletic training, physical therapy, occupational therapy, and fitness services to affiliations including high schools, colleges, and many professional sports teams. ACCO BRANDS: Moody's Lowers CFR to B1 & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings downgraded ACCO Brands Corporation's ("ACCO" or "ACCO Brands") Corporate Family Rating to B1 from Ba3 and Probability of Default Rating to B1-PD from Ba3-PD. At the same time, Moody's downgraded the company's senior unsecured notes due 2029 to B2 from B1. The Speculative Grade Liquidity Rating (SGL) is unchanged at SGL-2. The outlook was changed to stable from negative. The downgrade accounts for high leverage and secular pressures that are impacting ACCO's paper based and traditional office supply products. Leverage is high following debt funded acquisitions and as a result of declines in consumer volumes due to consumers economizing spending as well as a result of secular declines in the office stationery market. ACCO's restructuring efforts are helping to reduce costs and drive recovery in the EBITDA margin in 2024, but Moody's expect the company's stationary products to continue to face lower corporate and consumer demand as digitalization and hybrid work environment reduces the overall consumption. The company will need to continue to reduce costs to mitigate further declines in revenue without affecting innovation and execution to avoid continued profitability erosion. Further, Moody's believe business risk and sensitivity to economic cycles has increased as ACCO is turning to its technology accessories businesses and new acquisitions to drive growth and offset its mature and declining product lines. Moody's expect debt-to-EBITDA (Moody's adjusted) will decline to 4.5x by year-end 2024 down from 4.8x for the 12 months ended December 30, 2023. Moody's believe this leverage level is high considering the revenue erosion and increase in operational risk. ACCO has a publicly stated leverage target of 2.0x to 2.5x net debt-to-EBITDA. The company expects net leverage to reach 3.0-3.2x by year-end (3.7x; for the 12 months ended June 30, 2024) indicating a commitment to further debt reduction. The company's good liquidity and Moody's expected free cash flow of roughly $105 to $110 million provides sufficient cash to cover annual needs and to provide excess cash to facilitate debt repayment. However, Moody's see significant risk and uncertainty that ACCO will be able to reduce leverage to its target and believe that doing so will take time. Additionally, revenue and profitability declines elevate event risk for acquisitions to drive growth and for actions that would increase equity returns. The downgrade of the senior unsecured notes to B2 reflects a one notch upward override to the B3 loss given default model outcome based on Moody's estimate that expected recovery in a default scenario is better reflected at the B2 rating level because the company only utilizes a moderate portion of its large revolving credit facility to fund its season cash requirements. RATINGS RATIONALE ACCO's B1 CFR reflects the company's high leverage and demographic and societal trends that are pressuring ACCO's revenue and weighing on its financial performance. The company's stationary products are sold into a mature office and school supply market. The pandemic-driven transition to hybrid work has accelerated the shift to digital usage and is driving a reduction in the demand for paper-based school supplies. ACCO is diversifying into new end-markets, but the strategic shift necessitates substantial capital investment and execution risk in categories where the company's competitive advantage may not be as strong as in its legacy products. Financial leverage is elevated due to revenue and earnings declines and from acquisitions as the company invests in new growth verticals to offset these maturing business lines. Additionally, the portion of ACCO's sales are tied to discretionary consumer spending, which is typically negatively impacted by contractions of the economy. The remainder of sales are driven more by business spending, which is also subject to cyclicality. ACCO's credit profile is supported by the company's good scale, well recognized brands, and solid geographic and product diversification across office, school, and consumer electronic segments. The company also has good free cash flow and liquidity. As one of the large global providers of office and school products, ACCO is a key supplier to its largest customers, solidifying its market position. The Speculative Grade Liquidity rating of SGL-2 indicates good liquidity and is supported by free cash flow of around $105 to $110 million and available capacity on the $600 million asset backed credit facility ($501.3 million available as of June 30, 2024) expiring in 2026. ACCO's $113 million of balance sheet cash and free cash flow is ample to cover cash needs on an annual basis but the company funds seasonal working capital via its revolving credit facility. ACCO has good cushion under the credit agreement covenant that allows for higher consolidated leverage in the first half of the year (4.5x in Q1 and Q2 and 4.0x in the remaining quarters), coinciding with seasonal cash needs. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's view that a continued focus on cost savings and investment into new products and bolt-on acquisitions will partially mitigate sales declines and support a stable EBTIDA margin. Moody's also anticipate the company's good liquidity and free cash flow of around $105 to $110 million will position the company to repay debt, but Moody's expect that on-going pressure to sales will keep overall leverage high. An upgrade would require continued investment that sustains profitable growth with a stable to higher EBITDA margin. ACCO would also need to generate consistent strong free cash flow and maintain a financial policy that supports debt-to-EBITDA leverage sustained below 4.0x. An upgrade would also require the company maintain good liquidity. The ratings could be downgraded if revenue and earnings continue to decline due to factors such as shifts in spending away from paper-based products, falling market share, pricing pressure on increase in costs. Debt-funded acquisitions or shareholder distributions, debt-to-EBITDA leverage sustained above 5.0x, or a deterioration in liquidity could also lead to a downgrade. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FACTORS ACCO Brands Corporation's ESG CIS-3 Credit Impact Score indicates that ESG considerations have a limited impact on the current credit rating with potential for greater negative impact over time. Social and governance risk are the primary factors affecting the rating with environmental risks having lesser impact. Social risk largely stems from adverse demographic and societal trends related to reduced office work and digitization of education that are negatively affecting demand for more traditional office products. The declines also create risk to the credit profile due to the high capital investment and acquisition event risk required to diversify the portfolio into new product categories. Environmental risks largely reflect physical climate risks, water management, use of natural capital, and waste and pollution predominately as it relates to the manufacturing of its products. Governance risks largely relate to periodic use of debt to fund acquisitions balanced partially by the company's moderate 2.0-2.5x net debt-to-EBITDA target. The principal methodology used in these ratings was Consumer Durables published in September 2021. Headquartered in Lake Zurich, Illinois, publicly-traded ACCO Brands Corporation ("ACCO") manufactures and supplies office, school, calendar products and computer and electronic accessories sold primarily in the US, Europe, Brazil, Australia, Canada and Mexico. Key brands include AT-A-GLANCE, Esselte(R), Five Star(R), GBC(R), Kensington(R), Leitz(R), Mead(R), Quartet(R), Rapid(R), Rexel(R), Swingline(R), and PowerA(R). Revenue was approximately $1.7 billion for the 12 months ended June 2024. ADDMI INC: Seeks Approval to Hire JAM Accounting as Accountant -------------------------------------------------------------- Addmi, Inc. seeks approval from the U.S. Bankruptcy Court for the District of New Mexico to employ JAM Accounting as its accountant. The firm's services include: (a) prepare financial statements as needed; (b) record all monthly activity; (c) make payroll and account payable payments; (d) report sales tax; (e) reconcile all necessary accounts monthly; (f) file all required monthly, quarterly, and annual payroll reports; (g) general ledger maintenance; and (h) report any 1099s required annually. The firm will be paid at a flat monthly fee of $250, with an additional $60 for quarterly payroll reporting, and an additional $500 at year-end. Julia Martinez, a certified public accountant and owner of JAM Accounting, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Julia Martinez, CPA JAM Accounting P.O. Box 72633 Albuquerque, NM 87195 Telephone: (505) 366-4519 About Addmi Inc. Addmi, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. D.N.M. Case No. 24-10776) on July 29, 2024. In the petition signed by Andy Lim, chief executive officer, the Debtor disclosed $2,057,012 in total assets and $1,171,244 in total liabilities. Judge Robert H. Jacobvitz oversees the case. The Debtor tapped Chris M. Gatton, Esq., at Gatton & Associates, PC as legal counsel and Julia Martinez, CPA, at JAM Accounting as accountant. AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 32% Discount --------------------------------------------------------- Participations in a syndicated loan under which Aegis Toxicology Sciences Corp is a borrower were trading in the secondary market around 68.4 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $300 million Term loan facility is scheduled to mature on May 9, 2025. About $282 million of the loan is withdrawn and outstanding. Aegis Toxicology Sciences Corporation, headquartered in Nashville, TN, is a specialty toxicology laboratory providing services to the healthcare, sports, workplace and biopharma industries. Aegis Toxicology Sciences Corporation is privately-owned by affiliates of financial sponsor ABRY Partners II, LLC (ABRY). Aegis Toxicology Sciences Corporation generated revenue of approximately $360 million in the last twelve months to March 31, 2023. ALLIANCE MESA: Wins Final Approval to Use Cash Collateral --------------------------------------------------------- Alliance Mesa Cardio, LLC received final approval from the U.S. Bankruptcy Court for the Northern District of Illinois to utilize the cash collateral of BOKF, NA. The company will use its lender's cash collateral to pay operating expenses in accordance with its budget for the upcoming months. The budget outlines various expected expenditures, including property taxes, utilities, insurance, and maintenance costs. The total projected expenses from July to December amount to approximately $146,000. To ensure its interests are safeguarded, BOKF will be granted a continuing lien on all funds in its account at JPMorgan Chase Bank, N.A. In addition, the lender will receive a superpriority claim. Alliance Mesa Cardio owed the lender $2,742,395.50 as of June 15. About Alliance Mesa Cardio Alliance Mesa Cardio, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). Alliance Mesa Cardio sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08848) on June 15, 2024, with $1 million to $10 million in both assets and liabilities. Ben Reinberg, sole member of Alliance Mesa Cardio Manager, LLC, signed the petition. Judge Janet S. Baer oversees the case. The Debtor is represented by David A. Warfield, Esq., at Thompson Coburn, LLP. AMERICORE HOLDINGS: Biggest Creditor Owner Lewitt Held in Contempt ------------------------------------------------------------------ Nicholas Vercilla of New Castle News reports that the head of Americore's former largest creditor will face a court hearing to see if he should be held in contempt of court. Federal Kentucky bankruptcy Judge Gregory R. Schaaf on Thursday ordered a hearing be held at 9 a.m. Oct. 17, 2024 for Michael E. Lewitt. Lewitt was the manager and majority owner of Third Friday, the largest creditor to Americore. Americore owned the former Ellwood City Medical Center from Sept. 22, 2017, until January 2020, when the hospital shuttered following Americore's bankruptcy on Dec. 31, 2019. The hearing Thursday was for Americore's Chapter 7 liquidating trustee Carol Fox's request to hold a deposition in October for Lewitt. Lewitt is accused in court documents of exercising increasing control of Americore's business affairs while the company was in operation. Fox then inquired into the firm's financial affairs until Americore filed for bankruptcy and requested financial statements, inventories and other tax information. Lewitt and his legal team filed an objection, stating the subpoenas were deficient based on prior records and court orders. Schaaf sustained the objection. However, in its objection, the defense council produced a letter from Lewitt suggesting he has an original collateral document from Third Friday that the court previously ordered to turn over to Fox. October's hearing will allow Lewitt to testify why he should not be held in contempt for his failure to comply with the order. In December, Lewitt and his wife Marcie agreed to pay $650,000 in a settlement after it was alleged in court papers the couple reportedly transferred more than $1 million from Americore to a personal bank account, including $207,500 from the ECMC. Lewitt was charged Sept. 29, 2023, with 12 violations of the Federal Securities Act by the U.S. Securities and Exchange Commission. In a federal court complaint, the SEC alleged that between January 2018 to November 2019 Lewitt, without notifying the Fund’s limited partners, made 45 loan advances to Americore from the Fund, totaling $19 million, or two-thirds of the fund’s assets. The complaint states Lewitt failed to disclose to investors his personal financial interest and partnership with a group of private affiliated companies that invested in distressed healthcare companies, that committed to investing $30 million in Americore. He used the fund's assets to make $1 million in bridge loans to Americore and other health care companies and failed to disclose Americore paid him more than $450,000 in broker fees. The complaint states Lewitt lied to investors about seeking funding from the Middle East to help with the Fund, misappropriated at least $4.7 million of investor funds for personal use, including $950,000 to pay an IRS lien, and took advanced management fees and performance fees on Fund assets which he had materially overvalued. It also states Lewitt did not disclose the fund's loans to investors until March 24, 2020, after Americore's bankruptcy, and claimed Americore was an "extremely profitable" investment and not in bankruptcy despite knowing the firm couldn't pay back the loans. A settlement was reached with the SEC in May barring Lewitt from being a broker or dealer for at least five years. He's also suspended from practicing before the SEC as an attorney. About Americore Holdings Americore Holdings, LLC and its affiliates, including Americore Health LLC, own and operate the Ellwood City Medical Center in Pennsylvania, Southeastern Kentucky Medical Center (formerly Pineville Community Hospital), Izard County Medical Center in Arkansas; and St. Alexius Hospital in St. Louis. Americore Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ky. Lead Case No.19-61608) on Dec. 31, 2019. At the time of the filing, Americore Holdings reported as much as $50,000 in both assets and liabilities. Judge Gregory R. Schaaf oversees the cases. Bingham Greenebaum Doll, LLP and Rose Grasch Camenisch Mains, PLLC serve as the Debtors' bankruptcy counsel and special counsel, respectively. Saul Ewing Arnstein & Lehr, LLP represents Suzanne Koeing, the patient care ombudsman appointed in the cases. On Oct. 2, 2023, the court confirmed the Debtors' joint Chapter 11 plan of liquidation. The Plan became effective as of January 1, 2024. By virtue of the confirmation of the Debtors' confirmed plan, Carol Fox serves as the liquidating trustee of the Ellwood Liquidating Trust. ARALIFE CASE: Unsecureds Will Get 1% to 1.5% of Claims in Plan -------------------------------------------------------------- Aralife Case Management Services, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida an Amended Plan of Reorganization dated August 27, 2024. The Debtor is a Florida corporation headquartered in West Palm Beach, Florida. The Debtor provides supportive services to adults with mental health incapacities. The services include assisting clients in gaining access to financial and insurance benefits, employment, medical, social, educational, and functional services. The Plan Proponent's financial projections show that the Debtor will have sufficient projected disposable income (as defined by Section 1191(d) of the Bankruptcy Code) to make all payments under the Plan. The final Plan payment is expected to be paid on or before the expiration of 36 months from the Effective Date. This Plan proposes to pay Allowed Claims no less than the value of Aralife's Net Disposable Income for a period of 36 months. The Plan provides for 4 Classes of creditor claims (including priority, secured, and unsecured) and one Class of Equity interests. Class 3 consists of Allowed General Unsecured Claims. The Reorganized Debtor will make a pro rata distribution in a sum no less than $5,000 every 6 months to holders of timely-filed Allowed Claims or claims that were scheduled by the Debtor as "liquidated, noncontingent, and undisputed" in Class 3 pursuant to the following terms: * If the Plan is confirmed as consensual pursuant to Section 1191(a) of the Bankruptcy Code, the Reorganized Debtor will pay the lesser of 100% of Allowed Class 3 Claims or $38,437.60; or * If the Plan is confirmed as nonconsensual pursuant to Section 1191(b) of the Bankruptcy Code, the Reorganized Debtor will be the lesser of 100% of Allowed Class 3 Claims or $53,485.00. As of the date of filing of this Plan, the total aggregate amount of Allowed Class 3 Claims, including the claims of governmental entities is approximately $4,552.78, excluding the claim of the Agency for Health Care Administration ("AHCA") $3,986,036.45. As such, the Debtor anticipates that Class 3 Claimants will receive a distribution of between 1% to 1.5%. Class 3 is Impaired and entitled to vote. Class 4 consists of Equity Interests of Magdalena A. Agreda in Aralife. On the Effective Date, the Equity Interests will be retained in the same amounts and character as they were held prior to the Petition. Class 4 is deemed to accept and not entitled to vote. On the Effective Date, all property of the Debtor not otherwise disposed of under the Plan, shall vest with the Reorganized Debtor. The Plan proposes to pay Allowed Claims to be paid under the Plan from Net Disposable Income. The Debtor's Net Disposable Income means all excess cash from the Debtor's income after: (i) payment in full of all Allowed Administrative Claims; (ii) payment of Allowed Secured Claims; (iii) payment of monthly ordinary course of business operating expenses; and (iv) a set aside of an operational reserve equal to 30 days of operating expenses. A full-text copy of the Amended Plan dated August 27, 2024 is available at https://urlcurt.com/u?l=PQUjo1 from PacerMonitor.com at no charge. Attorneys for the Debtor: Jacqueline Calderin, Esq. Agentis PLLC 45 Almeria Avenue Coral Gables, FL 33134 Telephone: (305) 722-2002 Email: jc@agentislaw.com About Aralife Case Management Services, Inc Aralife Case Management Services, Inc. is a Florida corporation headquartered in West Palm Beach, Florida which provides supportive services to adults with mental health incapacities. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-11520) on February 17, 2024, with up to $500,000 in assets and up to $50,000 in liabilities. Jacqueline Calderin, Esq., represents the Debtor as legal counsel. ARCHITECTURAL GLASS: Glass & Mirror Hits Chapter 11 Bankruptcy -------------------------------------------------------------- US Glass reports that according to legal documents filed in Illinois, U.S. Architectural Glass & Metal (Glass & Mirror America) has filed for bankruptcy. The Lisle, Illinois-based company submitted documents to the United States Bankruptcy Court for the North District of Illinois on Sept. 22, 2024, under Glass Management Systems Inc. U.S. Architectural Glass & Metal, founded in 2000 by Ernest Edwards, president and CEO, offers various fabrication services for aluminum, doors, metal and glass. It also provides engineering and design services. Legal documents indicate that Glass Management Systems Inc. has estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million. It currently has several projects in process totaling $440,000. A summary of its assets details $256,000 in cash, cash equivalent and financial assets, $440,000 in inventory, and $369,204 in machinery, equipment and vehicles. Its total current value of personal property is $3,029,997.72. About Glass Management Services Glass Management Services Inc., doing business as Glass & Mirror America, offers glass installation, work, and contracting services. Glass Management Services Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill.Case No. 24-14036) on September 23, 2024. In the petition filed by Ernest B. Edwards, as president, the Debtor reports total assets of $3,029,997 and total liabilities of $11,989,444. The Honorable Bankruptcy Judge Janet S. Baer handles the case. The Debtor is represented by: David P Leibowitz, ESQ Leibowitz, Hiltz & Zanzig, LLC 1945 Ohio St Lisle, IL 60532-2169 ARRAKIS LLC: Seeks Chapter 11 Bankruptcy Protection in Ohio ----------------------------------------------------------- Tim Schooley of Pittsburgh Business Times reports that a North Side investor partnership that opened a new hotel to anchor the East Ohio Street business district in the middle of the pandemic has filed for Chapter 11 bankruptcy protection. A company named Arrakis LLC made the filing in the United States Bankruptcy Court for the Western District of Pennsylvania as the ownership entity of the Comfort Inn & Suites, a 96-room hotel that made its debut in early December 2020. A representative of the hotel, which operates under the full name Comfort Inn & Suites Pittsburgh - Northshore, confirmed in a phone conversation that the property remains open and operating "as normal" and that the filing has "no effect on the day-to-day operation" of the hotel. About Arrakis LLC Arrakis, LLC owns and operates the Comfort Inn & Suites Pittsburgh-Northshore, a 96-room hotel located at 820 East Ohio Street, Pittsburgh, Pa. Arrakis filed Chapter 11 petition (Bankr. W.D. Pa. Case No. 24-22322) on Sept. 20, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C. is the Debtor's legal counsel. ASCEND PROPERTIES: Moody's Cuts CFR to 'B2', Outlook Negative ------------------------------------------------------------- Moody's Ratings has downgraded the Corporate Family Rating of Ascend Performance Materials Operations LLC ("Ascend") to B2 from B1, Probability of Default Rating to B2-PD from B1-PD. Moody's also downgraded the rating on the company's backed senior secured term loan to B2 from B1. The outlook remains negative. RATINGS RATIONALE The rating downgrade and negative outlook reflect Ascend's weak performance in 2024 and Moody's concern that the recovery of its earnings and cash flows will be slow and its financial profile may be weak for prolonged period of time. Ascend's liquidity, while still adequate at the end of June 2024, has also weakened in recent quarters. Should negative free cash flow continue over the next 12 to 18 months, the company's financial flexibility will be strained and pose challenges for its debt management strategy. Despite increasing volume from the trough level last year, Ascend's performance was below Moody's expectations in 1H2024, driven by the competitive pricing pressures from the Asian market and the operational disruptions caused by the P2K catalyst incident. While Moody's view the P2K incident's impacts as transitory and some level of financial recovery through insurance claims may be underway, the rising competition from Asia, in particular new capacity of Nylon 6,6 chain in China, will continue to increase supply for the global Nylon 6,6 market and could dampen recovery prospects for Ascend in the near term. Reflecting these challenges, Ascend's leverage, as measured by Moody's adjusted debt/EBITDA, rose to more than 12.0x in the LTM end-June 2024, up from about 10.0x in 2023. Even if adjusted for the impacts of the P2K catalyst incident, Ascend's leverage would remain elevated with limited improvements from last year. At the same time, the company reported large negative free cash flows in 1H2024 with weak earnings and working capital build amid the P2K catalyst incident. Its available liquidity fell to $169 million at end June 2024, which is adequate by Moody's estimate but low compared to its historical level. To improve performance, Ascend has taken series of actions to cut operational costs, adjust regional commercial strategy, and shore up liquidity. Moody's expect such measures in combination with recovering demand and volume increases will help Ascend to counter the competitive market pressures and increase earnings and cash flows in the next 12 to 18 months. In Moody's base case assumptions, Moody's expect Ascend to gradually lower its leverage towards 7.0x with still negative free cash flow by the end 2025. However, such improvement will be slower than Moody's original expectations and subject to high uncertainties depending on the evolving market conditions and the effects of the execution of its business plan. Ascend's B2 CFR reflects its leading market position in the Nylon 6,6 industry, its vertically integrated production particularly for ADN, the key intermediate historically with high barrier of entry for Nylon 6,6, the growth prospects of its key end markets including growing application of Nylon 6,6 in EV and electrification. Such credit strengths are counterbalanced by the company's high concentration and reliance on the cyclical Nylon 6,6 chain, the rising competitive pressures from new Nylon chain production capacities, and the weak credit metrics for its rating. Ascend's rating incorporates Moody's expectation that the company will be able to maintain adequate liquidity. As of June 30, 2024, Ascend had $169 million of liquidity, including $51 million in cash and $118 million available under its $500 million asset-based revolving credit facility with a borrowing base of $431 million, which will be due on the earlier of 91 days before the term loan maturity (August 2026) or October 2027. The revolver contains a springing fixed charge coverage ratio set at 1.00x, which will only be tested if the availability under the revolver falls below 10% of the borrowing base. Moody's expect the company to comply with the covenant. Moody's expect that Ascend's cash on hand, available revolver and operational cash flows will be sufficient to cover its cash needs including short term debts and CapEx in next 12 months. The B2 rating on the company's $1.1 billion senior secured term loan is in line with the company's B2 CFR, reflecting the preponderance of the debt in its capital structure, despite its effective subordination to the $500 million asset-based revolving credit facility. Moody's rank the revolver ahead of the term loan in Moody's Loss-Given Default framework based on its access to more liquid collateral in a default scenario compared to the Term Loan. The ABL has a first priority lien on current assets and a second priority lien on fixed assets. The Term Loan has a first priority lien on fixed assets and a second priority lien on current assets. The negative outlook reflects Ascend's weak credit metrics, the increasing competitions in its Nylon 6,6 businesses, and the uncertainties around its deleveraging. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's will downgrade the rating if its free cash flow remains negative, liquidity does not materially improve from current level, or its adjusted leverage ratio (debt/EBITDA) is sustained above 6.0x with low prospects for improvement. An upgrade of the ratings is unlikely in the near term but could occur if Ascend consistently generates positive free cash flow, sustains an adjusted leverage ratio below 5.0x, and improves and maintains a good liquidity profile. ESG CONSIDERATIONS Environmental, social, and governance factors are important factors influencing Ascend's credit quality, but not a driver of the actions. Ascend's (CIS-4) score indicates that the rating is lower than it would have been if ESG risk exposures did not exist. The score mainly reflects the risks associated with Ascend's elevated debt level, opportunistic dividends, and investments needed to improve safety and reliability as well as to reduce air emissions, waste and pollution from its energy-intensive chemical production in order to comply with environmental regulations, reduce downtime and meet customer demands. Ascend Performance Materials Operations LLC ("Ascend") is an integrated propylene based producer of Nylon 6,6. SK Titan Holdings LLC bought the company from Solutia Inc. in 2009 and a small remaining equity interest in 2011. Headquartered in Houston, Texas, Ascend generated about $2.3 billion of revenues in the trailing twelve months ended June 2024. The principal methodology used in these ratings was Chemicals published in October 2023. ASP UNIFRAX: S&P Downgrades ICR to 'SD' on Note Exchange -------------------------------------------------------- S&P Global Ratings lowered our issuer credit rating on ASP Unifrax Holdings Inc. (Alkegen) to 'SD' (selective default) from 'CCC+'. S&P also lowered its issue-level ratings on its secured and unsecured notes to 'D' (default) from 'CCC+' and 'CCC', respectively. S&P also discontinued its ratings on Alkegen's existing RCF and term loans (US$ and EUR tranches) following the full repayment of these facilities The downgrade to 'SD' follows the exchange of most of Alkegen's notes at less than the original promise. The completed note exchange transaction involved a majority of the notes, with 72% of the secured notes and 81% of the unsecured notes exchanged for a combined $792 million of new second-lien PIK toggle notes. Both notes were exchanged at a discount to par--the secured notes were exchanged at 90% of par, and the unsecured notes were exchanged at 84% of par. This transaction also resulted in a lowered ranking of existing senior secured noteholders to second lien from first lien. Alkegen has launched a tender offer to the remaining noteholders, with non-participating noteholders expected to be subordinated to third priority ranking. S&P said, "We plan to re-evaluate our rating on Alkegen after the completion of the tender offer on the remaining existing notes. We plan to reassess our ratings on Alkegen in the near term based on our view of the company's expected creditworthiness, including its new capital structure, operating prospects, strategic priorities, cash generation, and liquidity profile. We also plan to review the recovery prospects of the new debt as part of our analysis." ATHLETICA TRAINING: Unsecureds Will Get 1.21% to 2.67% in Plan -------------------------------------------------------------- Athletica Training Limited Liability Company filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania a Small Business Subchapter V Plan of Reorganization dated August 27, 2024. The Debtor operates a training and performance center based in Downtown Pittsburgh, Pennsylvania. It provides both individual and group training sessions with specialized coaches. The Debtor was organized with the Pennsylvania Department of State in 2018. The Debtors has been operating out of its primary location at 808 Liberty Ave. since opening its doors, including continuing operations through the COVID-19 pandemic. Rossmiller holds 81% of the membership interest. Riverview Advisors holds 19% of the membership interest. Before the Petition Date, Huntington National Bank confessed judgment against the Debtor and its principal, John Rossmiller, who signed a personal guaranty. The confessed judgments were filed after the Debtor defaulted on the loans. The Debtor filed this bankruptcy to restructure its finances and provide for a structured payment that will allow it to continue to operate. The Plan proposes to pay administrative and priority claims in full unless otherwise agreed. The Debtor estimates approximately 1.21% to 2.67% will be paid on account of general unsecured claims pursuant to the Plan. Class 2 consists of General Unsecured Claims. The creditors in this Class must have had a claim against the Debtor as of April 29, 2024. The total amount for this Class is approximately $559,892.67, plus any Allowed Unsecured Claim held by The Huntington National Bank that is to be determined. The Creditors in this Class will be paid by regular monthly payments made by the Debtor and distributed on a Quarterly basis. Beginning on the Plan Effective Date, the Debtor will pay the Disbursing Agent a fixed monthly payment of $250.00. Distributions to this Class will be made on a quarterly basis. Each creditor will receive a pro rata distribution of all funds distributed to the Class. This Class will not be entitled to interest on their claims. The claims in this Class are not entitled to post-petition interest, attorney's fees, or costs. This Class is impaired. The Plan will be implemented through the continued operations of the Debtor's business. The Debtor is funding this plan with its income and dedication all disposable income over a 5-year period to this Plan. Disposable income is defined by Section 1191(d) of the Bankruptcy Code as the income that is received by the debtor and that is not reasonably necessary to be expended for the payment of expenditures necessary for the continuation, preservation, or operation of the business of the debtor. A full-text copy of the Subchapter V Plan dated August 27, 2024 is available at https://urlcurt.com/u?l=W4rYLP from PacerMonitor.com at no charge. Counsel to the Debtor: David Z. Valencik, Esq. Calaiaro Valencik 938 Penn Avenue, Suite 501 Pittsburgh, PA 15222 Telephone: (412) 232-0930 Facsimile: (412) 232-3858 Email: dvalencik@c-vlaw.com About Athletica Training Athletica Training Limited Liability Company DBA Altus-HP operates a training and performance center based in Downtown Pittsburgh, Pennsylvania. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-21032) on April 29, 2024, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The petition was signed by John Rossmiller as authorized representative of the Debtor. David Z. Valencik, Esq., at Calaiaro Valencik, is the Debtor's counsel. ATLAS PURCHASER: $26MM Bank Debt Trades at 91% Discount ------------------------------------------------------- Participations in a syndicated loan under which Atlas Purchaser Inc. is a borrower were trading in the secondary market around 9.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $26 million Term loan facility is scheduled to mature on May 18, 2028. Atlas Purchaser, Inc., which does business as Alvaria, Inc., acquired the assets of Aspect Software in a leveraged buyout in 2021. Aspect is a provider of call center software and solution. ATLAS PURCHASER: $392MM Bank Debt Trades at 56% Discount -------------------------------------------------------- Participations in a syndicated loan under which Atlas Purchaser Inc is a borrower were trading in the secondary market around 44.5 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $392 million Payment in kind Term loan facility is scheduled to mature on May 18, 2028. Atlas Purchaser, Inc., which does business as Alvaria, Inc., acquired the assets of Aspect Software in a leveraged buyout in 2021. Aspect is a provider of call center software and solution. AUDACY INC: Soros Plan Approved by FCC -------------------------------------- Christopher Cole of Law360 reports that the Federal Communications Commission has given the green light to the purchase of an ownership interest in bankrupt radio station owner Audacy Inc. by a fund manager with ties to George Soros. The FCC considered the application for transfer of control and assignment of license (Application) filed by Audacy License, LLC, Debtor-in-Possession (Audacy License DIP or Applicant) an indirect, wholly owned subsidiary of Audacy, Inc., Debtor-in-Possession (Audacy DIP). The Application requests consent to the assignment of broadcast licenses in order to implement the Joint Prepackaged Plan of Reorganization (Reorganization Plan), by which Audacy DIP seeks to emerge from federal bankruptcy protection. Pursuant to the Reorganization Plan, former debt holders of Audacy DIP will receive new common stock in the reorganized company (Reorganized Audacy). Additionally, Audacy License DIP will assign its broadcast licenses to the reorganized Audacy License, LLC (Audacy License), which will be an indirect, wholly owned subsidiary of Reorganized Audacy. Consistent with the approach adopted for numerous broadcasters that recently emerged from bankruptcy, the Applicant also requests a temporary and limited waiver of section 1.5000(a)(1) of the Commission’s rules to permit it to emerge from bankruptcy before filing a petition for declaratory ruling that would seek approval for Reorganized Audacy to have aggregate foreign ownership in excess of the 25% benchmark set forth in section 310(b)(4) of the Communications Act of 1934, as amended (Act). "We find that consistent with our policy to accommodate the federal bankruptcy process where possible, and based on the particular facts presented here, the use of special warrants proposed by the Applicant and a temporary waiver of section 1.5000(a)(1) will facilitate the prompt emergence of Audacy DIP from bankruptcy, providing the benefits the Applicant describes while maintaining the required review of the proposed foreign ownership, and will thus serve the public interest," according to the Sept. 30 opinion by the FCC. Media Research Center had filed a petition to deny the Application. However, the the petition was treated as an "informal objection". The FCC ruled, "We find that MRC fails to demonstrate that it has standing in this proceeding. In particular, MRC fails to demonstrate that grant of the Application would result in, or be reasonably likely to result in, some injury to MRC of a direct, tangible, or substantial nature. Further, the filing is devoid of any specific allegations of fact alleging that MRC is a party in interest, including, potentially, that it is a competitor in the market or that its members either reside in the Stations' markets or are listeners of the Stations. Indeed, MRC does not make any assertion as to its standing to file a petition to deny in this proceeding. We therefore find that under the terms of the statute MRC is not a "party in interest" and thus lacks standing to file a petition to deny. Accordingly, we dismiss the MRC filing as a petition to deny. We will, however, treat the submission as an informal objection pursuant to section 73.3587 of the Commission's rules," the Opinion read. About Audacy Inc. Philadelphia, Pa.-based Audacy Inc., formerly Entercom Communications Corp., is a multi-platform audio content and entertainment company with a collection of local music, news and sports brands, a premium podcast creator, major event producer, and digital innovator. As of Sept. 30, 2023, the Company had $2.79 billion in total assets and $2.66 billion in total liabilities. Audacy did not make the interest payments on its senior secured first-lien revolving credit facility and term loan both due 2024 ($17 million due Oct. 31, 2023), senior secured second-lien notes due 2027 ($15 million due Nov. 1, 2023), or senior secured second-lien notes due 2029 ($18 million due Sept. 30, 2023). Audacy Inc. and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90004) on Jan. 7, 2024, with $2,788,943,000 in assets and $2,662,320,000 in liabilities. Richard J. Schmaeling, executive vice president & chief financial officer, signed the petitions. Judge Christopher M. Lopez oversees the case. LATHAM & WATKINS LLP and PORTER HEDGES LLP are the Debtors' legal counsel. BAMBY EXPRESS: Gets Interim Approval to Use Cash Collateral ----------------------------------------------------------- Bamby Express, Inc. received interim court approval to use the cash collateral of Barrington Bank and Trust Company and other lien holders. The interim order penned by Judge Timothy Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois authorized the company to use the cash collateral until Oct. 11 in accordance with its budget. Any payments must adhere to this budget and any modifications require consent from Barrington. In return for the use of its cash collateral, the lender will receive an administrative expense claim and replacement liens on substantially all of Bamby's assets. Barrington has valid liens totaling $427,100 against the company's assets. The next hearing is scheduled for Oct. 9. About Bamby Express Bamby Express, Inc. is a small transportation company that operates a single semi-truck and trailer. It primarily offers freight and logistics services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill, Case No. 24-13689), with up to $50,000 assets and up to $500,000 in liabilities. Dusan Cirkovic, president, signed the petition. Judge Timothy A. Barnes oversees the case. Richard G. Larsen Esq., at Springer Larsen, LLC represents the Debtor as legal counsel. BAWT ENTERPRISES: Files for Chapter 11 With Prepack Plan -------------------------------------------------------- BAWT Enterprises LLC, the New Hampshire-based parent company of climate data analytics firm Athenium Analytics, filed for Chapter 11 protection in hopes of quickly confirming its prepackaged plan to hand ownership of the reorganized company to its creditors. As of the Petition Date, the Debtor's capital structure is comprised of: i. Senior Secured Claims as of July 31, 2024, consisting of (a) the revolving LOC entered into between the Debtor and Hale Capital Partners, LP ("HCP") in July 2022 in the aggregate amount of $2,585,504 (b) the Royalty Agreement, consisting of a 5% royalty on billings up to a maximum royalty of $11,250,000, of which $10,999,056 remains outstanding, and (c) the HCC indebtedness assigned to HCP pursuant to a Debt and Equity Purchase Agreement in the aggregate amount of $10,000,000 in outstanding principal and interest. ii. Unsecured notes with an aggregate balance of $4,217,348 as of Aug. 1, 2024, which are contractually subordinate in right of payment and priority to all indebtedness of the Debtor for borrowed money owed to Tokio Marine (and now, by assignment to HCP). iii. General unsecured claims, presently estimated at zero. As a result of extensive negotiations, the Debtor, the HCP Parties and all but one Unsecured Noteholder have entered into the Transaction Support Agreement providing for a recapitalization which will result in an exchange of debt for equity that will greatly strengthen the Debtor's balance sheet and which will leave General Unsecured Creditors unimpaired. The restructuring transactions will be implemented pursuant to the Prepackaged Plan filed with the Court on the Petition Date. Under the Plan, on the Effective Date, holders of allowed unsecured notes will own 14.24 percent in the aggregate, and holders of Senior Secured Claims will own 64.66 in the aggregate, of the fully diluted capitalization of the Debtor, post-reorganization. An incentive pool representing approximately 21.10 percent in the aggregate of the Debtors' fully diluted capitalization will be created to provide incentive grants to certain members of management, the Board and advisors. Any other creditors will be unimpaired. All existing unit interest in the Debtor will be cancelled. The Debtor seeks confirmation of the Plan on the first business day on or after the fifteenth calendar day after the Petition Date, or as soon thereafter as the Court is available. About BAWT Enterprises BAWT Enterprises LLC is the New Hampshire-based parent company of climate data analytics firm Athenium Analytics. BAWT was originally founded as weather Analytics LLC by William Pardue and two colleagues in 2012 to create decision-support and data-retrieval tools on top of a vast collection of proprietary atmospheric, weather and topographical data. Athenium, Inc., was founded in 1997 and proudly grew its reputation as an innovative insurance software company. In 2018, Weather Analytics acquired Athenium Inc., and created Athenium Analytics LLC, now BAWT Enterprises LLC, and Athenium LLC, an operating company. BAWT Enterprises is a holding company whose two principal assets consists of (a) its ownership interests in Grass Wall Holdings, Inc., a wholly owned company which owns 17.98 percent of Athenium LLC ("ALLC"), and (b) direct ownership interests in ALLC of 82.02 percent. BAWT Enterprises LLC sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 24-12215) on Sept. 27, 2024. In the petition filed by CEO Bill Pardue, the Debtor estimated assets and liabilities between $10 million and $50 million. CULHANE PLLC (formerly known as Culhane Meadows) is the Debtor's counsel. BMC Group is the claims agent. BEYOND AIR: To Raise $20.6M Through Private Placement Offering -------------------------------------------------------------- Beyond Air, Inc. announced Sept. 27, 2024, that it has entered into a securities purchase agreement with certain institutional and accredited investors, as well as Company insiders. "We have strengthened our balance sheet, eliminated debt payments through mid-2026 and extended our cash runway, all of which allows us to continue the momentum of our recent commercial efforts for LungFit PH. We are extremely pleased to add multiple healthcare-focused institutional funds as investment partners who share our vision for the future for LungFit PH," commented Steve Lisi, Chairman and chief executive officer of Beyond Air. $20.6 million Private Placement Offering Under the terms of the securities purchase agreement, the investors have agreed to purchase in a private placement offering 40,392,155 shares of the Company's common stock (or pre-funded warrants in lieu thereof) and accompanying warrants to purchase up to 40,392,156 shares of common stock, at a purchase price of $0.51 per common share (or $0.5099 per pre-funded warrant in lieu thereof) and accompanying warrant in a private placement priced at-the-market under the rules of the Nasdaq Stock Market. The pre-funded warrants and the warrants will be exercisable upon shareholder approval. The pre-funded warrants will be exercisable at a price of $0.0001 per share until exercised in full. The warrants will have an exercise price of $0.38 per share and a term of five years commencing upon shareholder approval. The gross proceeds to the Company from this offering are expected to be approximately $20.6 million before deducting the placement agent fees and other offering expenses payable by the Company. Insiders have contributed $2 million to the offering. The Company intends to use the net proceeds from this offering for working capital purposes. The private placement offering was expected to close on or about Sept. 30, 2024, subject to the satisfaction of certain closing conditions. BTIG, LLC acted as the lead placement agent, and each of Laidlaw & Company (UK) Ltd., JonesTrading Institutional Services LLC and Brookline Capital Markets, a division of Arcadia Securities, LLC acted as co-placement agents for the offering. Retiring $17.5 Million Term Loan with Avenue Capital Beyond Air and Avenue Capital have reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85 million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from Oct. 1, 2024 through June 30, 2026 of $12 million. In addition, Avenue Capital is investing $3.35 million in Beyond Air through the private placement equity offering. $11.5 Million Loan Agreement The Company entered into a $11.5 million royalty funding agreement led by certain Beyond Air board members based on net sales of LungFit PH. This debt will carry a payment-in-kind (PIK) interest rate of 15% until July 2026. Payments for interest and principal will commence in July 2026 and be determined based on an 8% royalty rate on sales of LungFit PH. Payments will continue until principal and accrued interest are paid off. About Beyond Air Headquartered in Garden City, NY, Beyond Air, Inc. -- www.beyondair.net -- is a commercial stage medical device and biopharmaceutical company dedicated to harnessing the power of endogenous and exogenous nitric oxide (NO) to improve the lives of patients suffering from respiratory illnesses, neurological disorders, and solid tumors. The Company has received FDA approval for its first system, LungFit PH, for the treatment of term and near-term neonates with hypoxic respiratory failure. Beyond Air is currently advancing its other revolutionary LungFit systems in clinical trials for the treatment of severe lung infections such as viral community-acquired pneumonia (including COVID-19), and nontuberculous mycobacteria (NTM) among others. Also, the Company has partnered with The Hebrew University of Jerusalem to advance a pre-clinical program dedicated to the treatment of autism spectrum disorder (ASD) and other neurological disorders. Additionally, Beyond Cancer, Ltd., an affiliate of Beyond Air, is investigating ultra-high concentrations of NO with a proprietary delivery system to target certain solid tumors in the pre-clinical setting. East Hanover, New Jersey-based Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated June 24, 2024, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. BIOGREEN ENVIRONMENTAL: Taps Batista Law Group as Legal Counsel --------------------------------------------------------------- Biogreen Environmental Solutions Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ The Batista Law Group, PSC to handle its Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Jesus Batista Sanchez, Attorney $350 Associates $275 Paralegals $110 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of $8,000. Mr. Batista Sanchez, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jesus E. Batista Sanchez, Esq. The Batista Law Group, PSC Capital Center I 239 Ave Arterial de Hostos Suite 206 San Juan PR 00918 Telephone: (787) 620-2856 Facsimile: (787) 777-1589 Email: jeb@batistasanchez.com About Biogreen Environmental Solutions Biogreen Environmental Solutions Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-03950) on Sept. 19, 2024, listing under $1 million in both assets and liabilities. Jesus E. Batista Sanchez, Esq., at The Batista Law Group, PSC represents the Debtor as bankruptcy counsel. BION ENVIRONMENTAL: Incurs $11.69M Net Loss in FY Ended June 30 --------------------------------------------------------------- Bion Environmental Technologies, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $11.69 million on $0 of revenue for the year ended June 30, 2024, compared to a net loss of $3.19 million on $0 of revenue for the year ended June 30, 2023. As of June 30, 2024, the Company had $112,252 in total assets, $5.88 million in total liabilities, and a total deficit of $5.77 million. Salt Lake City, Utah-based Haynie & Company, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company has yet to generate any revenue and has suffered recurring losses from operations. These factors raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/875729/000155335024000141/bion_10k-063024.htm About Bion Environmental Headquartered in Old Bethpage, New York, Bion Environmental Technologies, Inc.'s patented Ammonia Recovery System produces organic and low-carbon nitrogen fertilizer products and clean water from animal manure waste and other organic waste streams. It supports the Gen3Tech system that will minimize environmental impacts from CAFO/livestock waste, generate Renewable Natural Gas, improve resource and production efficiencies, and produce the 'cleanest', most eco-friendly finished beef in the marketplace. Bion is focused on developing state-of-the-art indoor cattle feeding operations and providing solutions in the fast-growing clean fuels industry. See Bion's website at https://bionenviro.com. BLACKMARKET BAKERY: Seeks to Hire S. E. Cowen Law as Legal Counsel ------------------------------------------------------------------ Blackmarket Bakery, Inc. seeks approval from the U.S. Bankruptcy Court for Southern District of California to employ S. E. Cowen Law as bankruptcy counsel. The firm will represent the Debtor through all stages of the Chapter 11 Subchapter V process with an anticipated confirmation of a Plan of Reorganization within six months. The hourly rates of the firm's counsel are as follows: Steven E. Cowen, Attorney $350 Christian E. Cowen, Paraprofessional $150 In addition, the firm will seek reimbursement for expenses incurred. Mr. Cowen disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Steven E. Cowen, Esq. S. E. Cowen Law 333 H Street, 5th Floor Chula Vista, CA 91910 Telephone: (619) 202–7511 Facsimile: (619) 233–3327 Email: Cowen.steve@secowenlaw.com About Blackmarket Bakery Blackmarket Bakery Inc. is a small chain of women-owned bakeries in San Diego, Calif. Blackmarket Bakery filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-03364) on Sept. 4, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Rachel Klemek, president, signed the petition. Judge J. Barrett Marum oversees the case. The Debtor is represented by Steven E. Cowen, Esq., at S. E. Cowen Law. BROCATO’S SANDWICH: Gets Interim OK to Use Cash Collateral ------------------------------------------------------------ Brocato's Sandwich Shop, Inc. received interim approval from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral from U.S. Foods, Inc., Gordon Food Service, Inc., and the Florida Department of Revenue, retroactive to May 8. The interim order allows Brocato's Sandwich Shop to pay necessary expenses outlined in a specified budget, with a 10% variance, while prohibiting any compensation to insiders or professionals without court approval. The use of cash collateral will continue under these terms until further court order. The secured creditors will have perfected post-petition liens against the cash collateral, maintaining the same validity and priority as their pre-bankruptcy liens. In addition, Brocato's Sandwich Shop is required to maintain insurance coverage for its property in accordance with loan agreements. About Brocato's Sandwich Shop Brocato's Sandwich Shop, Inc. owns and operates a sandwich restaurant in Tampa, Fla. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02613) on May 8, 2024, with $14,595 in assets and $1,396,391 in liabilities. Michael Brocato, president, signed the petition. Judge Roberta A. Colton oversees the case. Buddy D. Ford, Esq., at Buddy D. Ford, P.A., is the Debtor's legal counsel. BUCA TEXAS: Committee Seeks to Hire Ordinary Course Professionals ----------------------------------------------------------------- The official committee of unsecured creditors of Buca Texas Restaurants, L.P. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ ordinary course professionals. The following are the said professionals: Bent Caryl & Kroll, LLP Litigation counsel 6300 Wilshire Boulevard, Suite 1415 Los Angeles, CA 90048 Attn: Jesse M. Caryl Email: jcaryl@bcklegal.com Purvis Gray Accountant 2347 SE 17th Street Ocala, FL 34471 McNees Wallace & Tax counsel Nurick LLC 100 Pine Street Harrisburg, PA 17101 Attn: Paul R. Morcom pmorcom@mcneeslaw.com Sacks Tierney Litigation counsel 4250 N. Drinkwater Blvd., Fourth Floor Scottsdale, AZ 85251 Attn: Bryan J. Gottfredson bryan.gottfredson@sackstierney.com Baker & McKenzie LLP Domestic trademark counsel 300 East Randolph Street, Suite 5000 Chicago, IL 60601 Attn: Rebecca B. Lederhouse Email: rebecca.lederhouse@bakermckenzie.com Baker & McKenzie LLP International trademark counsel 280 Bishopsgate, London, EC2M 4RB, United Kingdom Attn: Rachel Wilkinson-Duffy, Email: rachel.wilkinson-duffy@bakermckenzie.com Snell & Wilmer Litigation counsel 600 University Street, Suite 310 Seattle, WA 98101 Attn: Amit Ranade Email: aranade@swlaw.com Post & Schell, P.C. Litigation counsel Three Logan Square, 1717 Arch St., 25th Floor Philadelphia, PA 19103 Attn: Mason Avrigian, Jr. Email: MAvrigian@postschell.com Post & Schell, PC Litigation counsel One Oxford Centre, 301 Grant Street, Suite 3010 Pittsburgh, PA 15219 Attn: Phil Sbrolla Email: psbrolla@postschell.com Procopio Litigation counsel 525 B Street, Suite 2200 San Diego, CA 92101 Attn: Rebecca Reed Email: rebecca.reed@procopio.com Goodsill Litigation counsel 999 Bishop Street, Suite 1600 Honolulu, Hawaii 96813 Attn: Johnathan C. Bolton Email: jbolton@goodsill.com Gorden Rees Scully Union counsel; litigation counsel Mansukhani 300 South Fourth Street, Suite 1550 Las Vegas, NV 89101 Attn: Robert Schumacher Dione C. Wrenn Chatree M. Thongkham Email: rschumacher@grsm.com dwrenn@grsm.com cthongkham@grsm.com Gorden Rees Scully Union counsel; litigation counsel Mansukhani 1 Battery Park Plaza, 28th Floor New York, NY 10004 Attn: Mark Beckman Email: mbeckman@grsm.com Gorden Rees Scully Union counsel; litigation counsel Mansukhani 901 South Mopac Expwy, Building 1 Suite 480 Austin, TX 78746 Attn: Jared Byrd jbyrd@grsm.com Gray Robinson Litigation counsel 333 S.E. 2nd Avenue, Suite 3200 Miami, FL 33131 Attn: Anastasia Protopapadakis Emily L. Pineless Anastasia.Protopapadakis@gray-robinson.com Emily.Pineless@gray-robinson.com Flaherty & O'Hara, P.C. Liquor license counsel 317 E. Carson Street, Suite 333 Pittsburgh, PA 15219 Attn: Thomas Henry tom@flaherty-ohara.com About Buca Texas Restaurants, L.P. Founded in Minneapolis in 1993, Buca di Beppo restaurants embody the Italian traditions of food, friendship, fun, celebration, and hospitality. Dishes enjoyed for generations in villages throughout Italy inspire the menu, which features both Northern and Southern Italian favorites and delicious cocktails inspired by the region. While the food has pleased millions of palates from coast-to-coast, Buca di Beppo is equally famous for its quirky decor and upbeat atmosphere. For more information, visit bucadibeppo.com and follow along on Facebook, Instagram, TikTok or Twitter @bucadibeppo. Buca di Beppo sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-80058) on August 5, 2024. In the petition filed by William Snyder, as chief restructuring officer, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by Amber Michelle Carson, Esq. at Gray Reed & McGraw LLP. BURGERFI INTERNATIONAL: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------------ The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of BurgerFi International, Inc. and its affiliates. The committee members are: 1. Burger Guys of Dania Point, LLC Attn: Eugene Gargiulo 730 NW 7th Street Ft. Lauderdale, FL 33311 Phone: 954-764-8117 Email: gino@oilcanman.com 2. Newville Collaborative, LLC Attn: Jason Newville 3600 Orchard Way Minnetonka, MN 55305 Phone: 763-355-8503 Email: jason.newville@kosedigital.com 3. Mindstream Media Group, LLC Attn: Jeff Moyer 1717 Main St., 40th Floor Dallas, TX 75201 Phone: 815-540-5425 Email: jmoyer@mindstreammediagroup.com 4. Strativ, Inc. Attn: Mark Sue 1494 Kings Lane Palo Alto, CA 94303 Phone: 917-359-0406 Email: mark.sue@strativ.co 5. Orlando Burgers LLC Attn: Shehzaan Chunara 120 Grand Crescent Alpharetta, GA 30009 Phone: 404-936-4621 Email: shehzaan@chunaragroup.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About BurgerFi Int'l BurgerFi International, Inc. (NASDAQ:BFI) is a multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of two brands with a combined 144 locations: (i) Anthony's, a premium pizza and wing brand with 51 restaurants (50 corporate-owned casual restaurant locations and one dual brand franchise location), as of Sept. 10, 2024, and (ii) BurgerFi, among the nation's fast-casual better burger concepts with 93 BurgerFi restaurants (76 franchised and 17 corporate-owned) as of Sept. 10, 2024. BurgerFi International, Inc. and 114 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on Sept. 11, 2024 (Bankr. D. Del. Lead Case No. 24-12017). The cases are pending before the Honorable Judge Craig T Goldblatt. Raines Feldman Littrell LLP serves as the Debtors' counsel. Force Ten Partners' Jeremy Rosenthal serves as the Company's Chief Restructuring Officer. Sitrick And Company serves as strategic communications advisor to the Company. Stretto is the claims agent. CAESARS ENTERTAINMENT: S&P Rates New Senior Unsecured Notes 'B-' ---------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating and '6' recovery rating to Caesars Entertainment Inc.'s proposed $1.0 billion senior unsecured notes due 2032. The '6' recovery rating indicates its expectation for negligible (0%-10%; rounded estimate: 0%) recovery for unsecured lenders in the event of a payment default. The company plans to use proceeds from the new senior unsecured notes to repay a portion of its outstanding $1.6 billion of senior unsecured notes due 2027 and pay fees and expenses. The proposed refinancing transaction is largely debt for debt and therefore leverage neutral. As a result, it does not affect its 'B+' issuer credit rating or positive outlook on Caesars. However, the transaction will lower the company's interest costs and extend its maturity profile. Issue Ratings--Recovery Analysis Key analytical factors: -- S&P assigned its 'B-' issue-level rating and '6' recovery rating to Caesars' proposed $1.0 billion senior unsecured notes due 2032. The '6' recovery rating indicates its expectation for negligible (0%-10%; rounded estimate: 0%) recovery for unsecured lenders in the event of a payment default. This is in line with our issue-level and recovery rating on Caesars' existing unsecured debt. -- S&P's 'BB-' issue-level rating and '2' recovery rating on Caesars' senior secured debt are unchanged. The '2' recovery rating indicates its expectation for substantial (70%-90%; rounded estimate: 75%) recovery for secured lenders in the event of a payment default. Simulated default assumptions: -- S&P's simulated default scenario assumes a default by 2028, in line with its typical time to default for issuers rated 'B+', due to prolonged economic weakness or significantly greater competitive pressures in the company's various markets and in the online gaming segment, or both. -- In S&P's simulated default scenario, it does not expect Caesars to reject its leases and anticipate it will continue to pay rent to its lessors because of the importance of the leased assets to its operations. -- S&P said, "We assume a gross enterprise value at emergence of $9.6 billion, calculated by applying a 7x multiple to our estimated EBITDA at emergence. (Our emergence EBITDA is calculated after rent payments.) We use a multiple that is at the high end of our range for leisure companies to reflect the combined company's good scale and geographic diversity in the U.S. and its favorable competitive position given it has the largest player loyalty program in the country." -- Caesars Resort Collection (CRC) guarantees Caesars' debt and therefore Caesars' debt at default will be satisfied by value at both CRC and Caesars. -- S&P assumes Caesars' $2.3 billion revolver is 85% drawn at default. Simplified waterfall: -- Emergence EBITDA: About $1.4 billion -- EBITDA multiple: 7x -- Gross enterprise value: $9.6 billion -- Net enterprise value after administrative expenses (5%): $9.1 billion -- Value attributable to Caesars' secured debt claims: $9.1 billion -- Estimated Caesars' secured debt claims at default: $11.5 billion --Recovery range: 70%-90% (rounded estimate: 75%) -- Value attributable to Caesars' unsecured debt claims: $0 -- Estimated Caesars unsecured debt and pari passu secured deficiency claims: $5.3 billion --Recovery range: 0%-10% (rounded estimate: 0%) Note: All debt amounts include six months of prepetition interest. CALIFORNIA PREMIER: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California granted the motion by California Premier Office Solutions, Inc. to use cash collateral to fund its ongoing operations. The motion was approved on an interim basis, allowing the company to utilize necessary funds while preparing for a final hearing scheduled for Oct. 24. The interim order authorized the company to exceed its budget by 20%, provided that the total monthly expenditures do not exceed the original budget by more than 10%. Any unused budgeted funds may be carried over to future months. The Debtor's financial forecast indicates total cash receipts of $822,784.99 and cash disbursements of $692,204.68 over the 13-week period. To protect the secured interest of the United States Small Business Administration in the cash collateral, the order granted SBA a replacement lien on post-petition revenues. In addition, the order required the company to make adequate protection payments of $1,772 each month to SBA. About California Premier Office Solutions California Premier Office Solutions, Inc. is a business specializing in providing office solutions, which may include services such as office supplies, equipment leasing, and workspace management. The company aims to deliver comprehensive solutions to meet the diverse needs of its clients, ranging from small businesses to larger enterprises. California Premier Office Solutions filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Calif. Case No. 24-03230) with $1,503,578 in assets and $2,081,389 in liabilities. John K. Green, president signed the petition. Judge J. Barrett Marum. presides over the case. Shana Y. Stark, Esq., represents the Debtor as bankruptcy counsel. CALIFORNIA PREMIER: Hires A.O.E. Law & Associates as Counsel ------------------------------------------------------------ California Premier Office Solutions, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ A.O.E. Law & Associates, APC as general bankruptcy counsel. The firm will render the following services: (a) prepare pleadings, applications, and conduct examinations incidental to administration; (b) advise the Debtor with respect to its rights, powers, duties and obligations; (c) advise and assist the Debtor with respect to compliance with the requirements of the Office of the United States Trustee; (d) advise the Debtor regarding matters of bankruptcy law; (e) advise and assist the Debtor in connection with all applications, motions and all similar matters; and (f) advise and assist the Debtor in the formulation and presentation of a Chapter 11 plan. The hourly rates of the firm's counsel and staff are as follows: Anthony Egbase, Principal $500 Shana Stark, Associate $450 Aliyah Guidry, Associate $350 Paralegal and Law Clerk $200 In addition, the firm will seek reimbursement for expenses incurred. The firm received a $15,000 prepetition retainer deposit from the Debtor. Mr. Egbase disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Anthony O. Egbase, Esq. A.O.E. Law & Associates, A.P.C. 800 W. 1st Street, Suite 400 Los Angeles, CA 90012 Telephone: (213) 620-7070 Facsimile: (213) 620-1200 Email: info@aoelaw.com About California Premier Office Solutions California Premier Office Solutions, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-03230) on Aug. 30, 2024, listing under $1 million in both assets and liabilities. Judge J. Barrett Marum oversees the case. The Debtor tapped A.O.E. Law & Associates, APC as counsel and Prime Business Consulting Inc. as bookkeeper. CALIFORNIA PREMIER: Hires Prime Business Consulting as Bookkeeper ----------------------------------------------------------------- California Premier Office Solutions, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Prime Business Consulting Inc. as bookkeeper. The firm will render the following services: (a) provide tax, accounting and bookkeeping services to the Debtor through all stages of the Chapter 11 process; (b) accurately code transactions according to the Generally Accepted Accounting Principles guidelines so that the company management can track company performance and based on that performance, make the decisions necessary to ensure the company is profitable; and (c) prepare all aspects of the financial statements of the Debtor. The firm will be compensated at a flat rate of $1,000 per month. In addition, the firm will be reimbursed for expenses incurred. Walter Lacayo, Jr., an accountant, tax preparer and bookkeeper at Prime Business Consulting, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Walter I. Lacayo Jr. Prime Business Consulting, Inc. 2638 Main St. Chula Vista, CA 91911 Telephone: (619) 423-4639 Email: Walter.primebc@outlook.com About California Premier Office Solutions California Premier Office Solutions, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-03230) on Aug. 30, 2024, listing under $1 million in both assets and liabilities. Judge J. Barrett Marum oversees the case. The Debtor tapped A.O.E. Law & Associates, APC as counsel and Prime Business Consulting Inc. as bookkeeper. CALUMET PAINT: Court Approves Use of Cash Collateral ---------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois authorized Calumet Paint & Wallpaper, Inc., on an interim basis, to use its secured lenders' cash collateral from Oct. 1 to Dec. 31. The interim order allows the company to manage its business operations during bankruptcy while ensuring that the interests of Pratt & Lambert United, Inc. and PPG Architectural Finishes, Inc. in its assets are safeguarded through various protective measures, including access to records, insurance coverage, and maintenance of assets. The lenders will receive valid and enforceable security interests in Calumet's post-petition assets, including any proceeds generated during this period but only to the extent of any decrease in asset value since the Chapter 11 filing. Calumet will use the cash collateral in accordance with the budget it submitted to the court. The next hearing is scheduled for Dec. 18. About Calumet Paint & Wallpaper Calumet Paint & Wallpaper, Inc. is an Illinois corporation operating from leased premises at 12120 Western Avenue, Blue Island, Ill. It has been in business since 1957 and is currently an authorized Benjamin Moore retailer specializing in the sale of interior and exterior paints, stains and related supplies. Calumet Paint sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-11709 on October 13, 2021, with up to $1 million in both assets and liabilities. Mark R. Lavelle, president, signed the petition. Judge Timothy A. Barnes oversees the case. David K. Wench, Esq., at Burke, Warren, MacKay and Serritella, PC is the Debtor's legal counsel. CARABOBO PROSPER: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- Carabobo Prosper Holdings, LLC got the green light from the U.S. Bankruptcy Court for the Northern District of Texas to use cash collateral until Oct. 23. The company will use the cash collateral, including revenue collected in the ordinary course of business to fund its operations in accordance with its budget. As adequate protection, lien holders will be granted replacement liens on all post-petition cash collateral and acquired property. However, these replacement liens will not attach to any Chapter 5 causes of action or their proceeds. A final hearing is scheduled for Oct. 23. Objections are due by Oct. 18. About Carabobo Prosper Carabobo Prosper Holdings, LLC is a Texas-based distributor of oil and lubricants serving mechanics throughout the state. Carabobo Prosper Holdings sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas. Case No. 24-32882), with $500,001 to $1 million in assets and $1 million to $10 million in liabilities. Miguel Angel Chirinos Gonzalez, chief executive officer, signed the petition. Robert C. Lane Esq., at The Lane Law Firm, PLLC represents the Debtor as bankruptcy counsel. CHAMP ACQUISITION: S&P Places 'B' ICR on CreditWatch Negative ------------------------------------------------------------- S&P Global Ratings placed all of its ratings on U.S.-based Champ Acquisition Corp. (dba Jostens), including the 'B' issuer credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects the possibility of a lower rating if the company cannot refinance its term loan and revolver on satisfactory terms over the next few months. The CreditWatch placement reflects the heightened risk that Jostens will be unable to refinance its debt capital structure on satisfactory terms. That is because of high, albeit declining, interest rates and the risk of future volatility in the debt capital markets given this is an election year in the U.S. The company's $775 million senior secured first-lien term loan ($596.8 million outstanding as of June 30, 2024) matures in December 2025, becoming current in about three months. In addition, its $115 million senior secured revolving credit facility is already current and expires in September 2025. The company has been owned by financial sponsor Platinum Equity since 2018 and given the finite holding periods of sponsors. Therefore, S&P believes Platinum will eventually seek a return on its investment, either through a leveraged dividend while refinancing or a potential sale of the company, the latter of which could delay a refinancing. S&P said, "Notwithstanding the approaching maturities, we expect stable operating performance.Despite pressures on consumer discretionary income, we expect Jostens will increase its total revenue by around 6% in 2024 due to growth across all its business segments. We expect the demand in Jostens' yearbook business will remain strong and contribute to continued revenue growth, supported by improved order rate trends, price increases, and new account wins. We expect the company will expand its scholastic segment revenues by 5% year over year, reflecting increased customer retention and new account wins. "We also expect low-single-digit percent revenue growth in the company's college business as it laps strong year-over-year comparisons. We forecast the company's EBITDA margins will increase 300 basis points in 2024 relative to last year, reflecting the company's strong spring graduation season, benefits of its cost saving initiatives, easing supply chain constraints, and lower inflation, including for labor, freight, and manufacturing conversion. "Good free cash flows support steady credit measures. In addition, we expect Jostens will continue to generate good free cash flow of at least $50 million in 2024, which it can use for debt repayment, based on the excess cash flow provisions in the credit agreement. Also, in the second quarter of 2024, the company repaid $2.9 million of its first-lien term loan using the excess cash. While we do not forecast any additional debt repayment other than the regular amortization payments, we forecast Jostens' S&P Global Ratings-adjusted leverage will decline to the mid-3x area by the end of 2024 due to profitability improvements. "We expect to resolve the CreditWatch over the next 90 days before the term loan becomes current. We could lower our ratings if a tangible refinancing plan is not in place in the coming months. We could also consider a more-than-one-notch downgrade if a refinancing is further delayed into 2025. "We could affirm the ratings if Jostens successfully completes a refinancing before its term loan becomes current in a transaction that does not materially weakening leverage or debt service capacity." CINEMOI NORTH: Hires Leech Tishman Fuscaldo as General Counsel -------------------------------------------------------------- Cinemoi North America, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Leech Tishman Fuscaldo & Lampl, Inc. as general counsel. The firm will provide these services: a. advise the Debtor as to the requirements of the Bankruptcy Court, the Bankruptcy Code, FRBP, LBR, and the Office of the United States Trustee as they pertain to the Debtor; b. advise the Debtor as to certain rights and remedies of its bankruptcy estate and the rights, claims, and interests of creditors and/or other parties in interest; c. assist the Debtor with the negotiation, documentation, and any necessary Court approval of transactions disposing of property of the estate; d. represent the Debtor in any proceeding or hearing in the Bankruptcy Court involving the bankruptcy estate unless the Debtor is represented in such hearing or proceeding by special counsel; e. conduct examinations of witnesses, claimants and/or adverse parties and represent the Debtor in any adversary proceeding except to the extent that such adversary proceeding is outside of Leech Tishman's expertise or beyond Leech Tishman's staffing capabilities; f. prepare and assist the Debtor in preparation of reports, applications, and pleadings, including but not limited to, applications to employ professionals, interim statements and operating reports, initial filing requirements, schedules, statement of financial affairs, financing pleadings, and pleadings with respect to the Debtor's use, sale, or lease of property outside the ordinary course of business; g. prepare and assist the Debtor in the negotiation, formulation, preparation, and confirmation of a plan of reorganization and the preparation and approval of a disclosure statement in connection with the Plan; h. advise the Debtor as to its power and duties as a debtor-in-possession in the continued operation of its business and management of its property; i. advise the Debtor with respect to the assumption of any unexpired lease or executory contract; and j. perform any other services, which may be necessary and appropriate in the representation of the Debtor during the Bankruptcy Case. The firm will be paid at these rates: Partners $350 to $575 per hour Associates $250 to $350 per hour Paralegals $125 to $250 per hour The firm was provided a retainer in the amount of $27,500, plus filing fee of $1,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Sandford L. Frey, Esq., a partner at Leech Tishman Fuscaldo & Lampl, Inc., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Sandford L. Frey, Esq. Leech Tishman Fuscaldo & Lampl, Inc. 1100 Glendon Avenue, 15th Floor Los Angeles, CA 90024 Tel: (424) 738-4400 Fax: (424) 738-5080 Email: sfrey@leechtishman.com About Cinemoi North America, LLC Cinemoi North America is a lifestyle, fashion, and film cable network operator in Agoura Hills, Calif. Cinemoi North America sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11290) on August 6, 2024, with $10 million to $50 million in both assets and liabilities. Judge Martin R. Barash handles the case. The Debtor is represented by Sandford L. Frey, Esq., at Leech Tishman Fuscaldo & Lampl, Inc. CL CRESSLER: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of CL Cressler, Inc. About CL Cressler 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 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., at CGA Law Firm. CRC RESTAURANT: Seeks to Hire BransonLaw as Bankruptcy Counsel -------------------------------------------------------------- CRC Restaurant Group LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ BransonLaw, PLLC as legal counsel. The firm's services include: (a) prosecute and defend any causes of action on behalf of the Debtor; prepare, on behalf of the Debtor, all necessary legal papers; (b) assist in the formulation of a plan of reorganization; and (c) provide all other services of a legal nature. The hourly rates of the firm's attorneys and paralegals range from $450 to $200. In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of 13,342.50 and a filing fee of $1,738 from the Debtor. Jeffrey Ainsworth, Esq., an attorney at Branson Law, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jeffrey S. Ainsworth, Esq. BransonLaw, PLLC 1501 E. Concord St. Orlando, FL 32803 Telephone: (407) 894-6834 Facsimile: (407) 894-8559 Email: jeff@bransonlaw.com About CRC Restaurant Group CRC Restaurant Group, LLC, a company in Cocoa Beach, Fla., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04571) on August 28, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Danny Chopra, manager, signed the petition. Judge Tiffany P. Geyer presides over the case. Jeffrey S. Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor as bankruptcy counsel. CYBERJIN LLC: Creditors to Get Proceeds From Liquidation -------------------------------------------------------- Cyberjin, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Liquidation dated August 28, 2024. The Debtor provides employee recruitment and placement services to various businesses. Prior to the filing of the bankruptcy, the Debtor was developing code which would revolutionize the Debtor's business. However, the Debtor's code base was accessed by hackers who deleted critical sections. As a result, the Debtor was forced to file for protection under Chapter 11, as it no longer had the financial ability to fund the development of the code. The Plan will be funded through the liquidation of the Debtor's assets. This Plan provides for one class of priority claims; three class of secured claims; one class of general unsecured claims; and one class of equity security holders. The Debtor does not anticipate any distribution to general unsecured claims. This Plan also provides for the payment of administrative and priority claims under the terms to the extent permitted by the Code or by agreement between the Debtor and the claimant. Class 5 consists of General Unsecured Claims. Claimants in this class will be paid a pro rata distribution from any remaining funds generated from the liquidation of the Debtor on the thirtieth day after the payment of all allowed secured claims, priority claims, and administrative claims. At this time, the Debtor does not anticipate any distribution to claimants in this class. This Class is impaired. Class 6 consists of Equity Security Holders of the Debtor. Current equity will retain ownership in the Debtor post-confirmation. No distributions will be made to equity until such time as all payments in Class 5 have been made. Alexander Rolinitis will manage any remaining business operations of the Debtor post-confirmation. However, the Subchapter V trustee will be responsible for making all distributions under the Plan. The Plan will be funded by the liquidation of the Debtor's assets. A full-text copy of the Liquidating Plan dated August 28, 2024 is available at https://urlcurt.com/u?l=Tfgh5h from PacerMonitor.com at no charge. About Cyberjin LLC Cyberjin LLC is a developer of an AI recruiting software platform. Cyberjin LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03129) on May 31, 2024. In the petition filed by Alexander Rolintis, as manager, the Debtor reports total assets amounting to $120,092 and total liabilities of $1,258,248. The Honorable Bankruptcy Judge Roberta A. Colton oversees the case. The Debtor is represented by: Buddy D Ford, Esq. Buddy D. Ford, P.A. 260 1st Ave. South #200 Saint Petersburg, FL 33701 Tel: (813) 877-4669 Fax: (813) 877-5543 Email: Buddy@tampaesq.com CYZ PPE: Seeks 45-Day Extension of Plan Filing Deadline ------------------------------------------------------- CYZ PPE, LLC, asked the U.S. Bankruptcy Court for the Northern District of Illinois to extend its period to file a chapter 11 plan of reorganization for 45 days. The Debtor commenced the Chapter 11 Case to allow time for the completion of a financial transaction that would enable it to pay substantial sums to its creditors and complete the restructuring of its affairs. The Debtor's contemplated reorganization should allow each debtor to emerge from bankruptcy as a stronger and healthier enterprise, generating a meaningful recovery for creditors. The Debtor claims that its management has conferred with counsel and the Subchapter V Trustee regarding the parameters of a plan of reorganization. The Debtor has not, however, presented a proposed plan. Rather than file a placeholder plan requiring the Debtor to make substantial estimates, it seeks additional time to formulate a viable plan. The Debtor explains that the circumstances it raises regarding its business rely on a third party to consummate a financial transaction, which leaves the matter outside its control. The Debtor has initiated discussions with its creditors regarding the framework of a plan of reorganization and will continue those conversations. No creditor or party in interest has moved to dismiss or convert this case. The Debtor requests that the Court extend the deadline for 45 days to allow the Debtor to formulate a plan of reorganization that is fair and equitable to creditors. CYZ PPE, LLC is represented by: Gregory J. Jordan, Esq. Mark R. Zito, Esq. Jordan & Zito LLC 350 N. LaSalle Drive., Suite 1100 Chicago IL 60654 (312) 854-7181 Email: gjordan@jz-llc.com mzito@jz-llc.com About CYZ PPE CYZ PPE, LLC, a company in Glen Ellyn, Ill., provides advice and assistance to businesses and other organizations. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09243) on June 24, 2024, with $1 million to $10 million in both assets and liabilities. Keith Cyzen, manager, signed the petition. Gregory Jordan, Esq., represents the Debtor as legal counsel. DECKER HOME: Case Summary & Eight Unsecured Creditors ----------------------------------------------------- Debtor: Decker Home Repairs, LLC 1339 Camp Creek Road Taylors, SC 29687 Chapter 11 Petition Date: October 3, 2024 Court: United States Bankruptcy Court District of South Carolina Case No.: 24-03581 Judge: Hon. Helen E Burris Debtor's Counsel: Robert H. Cooper, Esq. THE COOPER LAW FIRM 1610 Gowdeysville Road Gaffney, SC 29340 Tel: 864-271-9911 Fax: 864-232-5236 Email: rhcooper@thecooperlawfirm.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jamie E. Decker as sole/managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's eight unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/FMD45NY/Decker_Home_Repairs_LLC__scbke-24-03581__0001.0.pdf?mcid=tGE4TAMA DEE FORD'S: Hires Gathings Law as Special Counsel ------------------------------------------------- Dee Ford's West, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Alabama to employ Lloyd W. Gathings as special counsel. The Debtor needs the firm's legal assistance in connection with a case pending in the District Court for the Northern District of Alabama, Case No. 1-24-cv-00946, captioned as Dee Ford's West, LLC v. Mesa Underwriters Specialty Insurance Co. The firm will be paid on a contingency basis or to be paid whatever fees might be awarded by the Court under any relevant fee-shifting statutes, subject to approval by the Bankruptcy Court. Lloyd W. Gathings, a partner at Gathings Law, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Lloyd W. Gathings, Esq. Gathings Law 2204 Lakeshore Drive, Suite 406 Birmingham, AL 35209 Tel: (205) 322-1201 Fax: (205) 322-1202 Email: LGathings@gathingslaw.com About Dee Ford's West, LLC Dee Ford's West, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-40320) on March 19, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Dewey Lankford Ford, owner, signed the petition. Judge James J. Robinson presides over the case. J. Gabriel Carpenter, Esq., at Alabama Consumer Law Group, LLC represents the Debtor as bankruptcy counsel. DEGNAN SCOTTSDALE: Gets OK to Hire Joan Chipser as Legal Counsel ---------------------------------------------------------------- Degnan Scottsdale, LLC received approval from the U.S. Bankruptcy Court for the Northern District of California to employ Joan Chipser, Esq., an attorney practicing in Millbrae California, to handle its Chapter 11 case. Ms. Chipser will be compensated at an hourly rate of $350 plus reimbursement for out-of-pocket expenses incurred. Ms. Chipser received a retainer of $3,800 from Steven Davis, the Debtor's sole member-manager. The attorney disclosed in a court filing that she is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Joan Marie Chipser, Esq. 1 Green Hills Ct. Millbrae, CA 94030 Telephone: (650) 697-1564 Facsimile: (650) 873-2858 Email: joanchipser@sbcglobal.net About Degnan Scottsdale Degnan Scottsdale, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-51361) on Sept. 5, 2024. In the petition signed by Steven M. Davis, sole member-manager, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Stephen L. Johnson oversees the case. Joan Marie Chipser, Esq., represents the Debtor as legal counsel. DEL MONTE: $725MM Bank Debt Trades at 63% Discount -------------------------------------------------- Participations in a syndicated loan under which Del Monte Foods Inc is a borrower were trading in the secondary market around 37.2 cents-on-the-dollar during the week ended Friday, Sept. 27, 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. DIOCESE OF ROCKVILLE: Reaches $323M Bankruptcy Abuse Settlement --------------------------------------------------------------- Gina Christian of The Tablet reports that the Diocese of Rockville Centre, N.Y., has reached a preliminary proposed settlement in what it called the "difficult ordeal" of its long-running — and at points contentious — bankruptcy case, while assuring the faithful that "no parishes are closing as a result of this process." In a September 26, 2024 statement, the diocese announced the total proposed settlement is just over $323 million, an amount that includes "insurance contributions, Diocesan assets and sale proceeds from Diocesan property, and contributions from parishes and other related entities." The diocese said that it — along with parishes and other related entities — will pay the bulk of that amount, contributing $234.8 million. Insurance companies (several of which have in recent years become increasingly reluctant to cover diocesan sex abuse lawsuits) will pay "just over $85 million" and counsel for the creditors' committee $3 million. The diocese also said that “part of the settlement plan involves all parishes entering into an abbreviated Chapter 11 with the approval of the court and the parties to the case in order to secure a release from liability for the parishes.” However, said the diocese, "It is expected that parish Chapter 11's will be resolved within 48 hours of filing and will not interfere with parish work and ministries." Marie T. Reilly, a professor at Penn State Law and expert in bankruptcy law, told OSV News that the move is "a first" in Catholic bankruptcy cases. Reilly speculated that the reason behind the abbreviated Chapter 11s is "to get around the U.S. Supreme Court's recent holding (in the Purdue Pharma case) that bankruptcy courts do not have the power to confirm a Chapter 11 bankruptcy plan that includes releases for non-debtors unless all affected creditors consent to the releases." Reilly was referencing the Supreme Court's June decision in Harrington v. Purdue Pharma, which said the Sackler family behind the opioid manufacturer could not be shielded from legal claims against them without the consent of those who wished to sue them for damages related to the nation's opioid addiction crisis. In April, the Diocese of Rockville Centre had sought to scrap its bankruptcy filing amid an impasse with abuse survivors, after a creditors' committee of survivors roundly rejected a $200 million settlement package proposed by the diocese back in February. That offer, structured over three years, would have provided initial minimum payments of $50,000 or $100,000 to claimants, according to the terms of the diocese's insurance at the time of alleged abuse. In an April 12, 2024 press release, attorneys for the claimants said the creditors' committee had "opposed the plan because it did not provide adequate compensation" and "lacked any child protection measures." In January, the attorneys had asked for a settlement of at least $450 million. The diocese filed for bankruptcy in October 2020, while then facing more than 200 lawsuits under New York State's Child Victims Act of 2019, which along with the Adult Survivors Act of 2022, opened the door to hundreds of previously time-barred claims. Currently, the number of abuse suits against the diocese totals at least 500, with some media reports indicating as many as 530 cases, including cases dating back to the 1950s. The diocese's Chapter 11 filing did not include parishes and Catholic schools, which are separate legal entities — although some parishes were named in the look-back window lawsuits. The diocese unsuccessfully petitioned the bankruptcy court to have all of those cases stayed and brought under the settlement umbrella, leaving several to be pursued in state court. In its April 26 objection to the diocese's bankruptcy dismissal request, the committee accused the diocese of doing "everything it could to delay the Unstayed Cases against its diocesan-controlled parishes," adding that some of the cases had "gained momentum," prompting the diocese's current move to halt the bankruptcy. The diocese defended its decision at the time, saying in an April 29, 2024 statement that it had "participated in a long, difficult mediation with the goal of compensating survivors while allowing the Church to carry on its charitable and religious mission." "It was hoped that a settlement would prevent a rush to the courthouse where survivors would compete in litigations, leaving many survivors with little or no compensation," said the diocese. The diocese also bit back in its statement at what it called the committee's "blind pursuit" of a "scorched-earth litigation strategy" that would "recklessly attempt to close parishes, schools, and other charitable ministries on Long Island" through crippling lawsuits. "Our goals are compensation for all survivors and carrying on the Church's mission, not endlessly feeding attorney fees," said the diocese. In its September 26, 2024 statement, the diocese said that its "goal has always been the equitable compensation of survivors of abuse while allowing the Church to continue her essential mission. We believe that this plan will achieve those goals." "For the sake of survivors and the Church's mission on Long Island, we pray that the plan is approved and completed as quickly as possible," said the diocese. About The Roman Catholic Diocese of Rockville Centre, New York The Roman Catholic Diocese of Rockville Centre, New York, is the seat of the Roman Catholic Church on Long Island. The Diocese has been under the leadership of Bishop John O. Barres since February 2017. The State of New York established the Diocese as a religious corporation in 1958. The Diocese is one of eight Catholic dioceses in New York, including the Archdiocese of New York. The Diocese's total Catholic population is approximately 1.4 million, roughly half of Long Island's total population of 3.0 million. The Diocese is the eighth largest diocese in the United States when measured by the number of baptized Catholics. To deal with sexual abuse claims, the Roman Catholic Diocese of Rockville Centre, New York, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as $500 million in both assets and liabilities. Judge Martin Glenn oversees the case. The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal North America, LLC, as restructuring advisor, and Sitrick and Company, Inc., as communications consultant. Epiq Corporate Restructuring, LLC is the claims agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the Diocese's Chapter 11 case. The committee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin Moscou Faltischek, PC as its bankruptcy counsel and special real estate counsel, respectively. Robert E. Gerber, the legal representative for future claimants of the Diocese, is represented by the law firm of Joseph Hage Aaronson, LLC. DIRECTV FINANCING: Moody's Cuts CFR to B1, On Review for Downgrade ------------------------------------------------------------------ Moody's Ratings downgraded DIRECTV Financing, LLC 's (DIRECTV) corporate family rating to B1 from Ba3 and its probability of default rating to B1-PD from Ba3-PD. The downgrade to B1 primarily reflects DIRECTV's move to a more aggressive financial policy which includes plans for a $1.625 billion debt-funded dividend and higher debt leverage. The downgrade also reflects the full private equity ownership of DIRECTV following AT&T Inc.'s (AT&T, Baa2 stable) planned sale of its 70% economic stake to TPG Capital (TPG), the private equity firm which currently has a 30% equity stake in DIRECTV. Ratings were also downgraded on DIRECTV's senior secured first lien bank credit facilities, comprised of a revolving credit facility due August 2028 and two term loans due August 2027 and August 2029, to B1 from Ba3 and senior secured notes due in August 2027 and February 2030 to B1 from Ba3. A senior secured credit facility due March 2025 at DIRECTV Receivables, LLC, an indirect subsidiary of DIRECTV, is unrated. Various unsecured notes aggregating only a nominal amount outstanding and maturing over the period from 2025-2042 held at DIRECTV's subsidiary, DIRECTV Holdings LLC, are also unrated. All of DIRECTV's ratings have also been placed on review for downgrade. Previously, DIRECTV's outlook was stable. The review follows the September 30, 2024 announcement that DIRECTV has agreed to acquire DISH DBS Corporation (DISH DBS). DISH DBS is an indirect, wholly-owned subsidiary of DISH Network Corporation (DISH), and DISH is a wholly-owned subsidiary of EchoStar Corporation (EchoStar, Caa2 negative). DIRECTV's acquisition of DISH DBS (the M&A Transaction) is contingent upon a successful debt exchange of the bulk of existing DISH DBS debt under terms requiring the capture of at least an aggregate $1.6 billion discount to par value of that outstanding DISH DBS debt. The M&A Transaction is also subject to regulatory review which is expected to take up to a year to be completed. For modeling purposes Moody's assume an M&A Transaction close on September 30, 2025. The sale of AT&T's DIRECTV stake is not contingent upon the M&A Transaction closing. If the M&A Transaction does close, the sale of AT&T's DIRECTV stake is expected to occur immediately before such M&A Transaction close. RATINGS RATIONALE DIRECTV's B1 CFR reflects the company's abrupt move to a more aggressive financial policy as specifically evidenced by its decision to pursue a $1.625 billion debt-funded dividend in the very near term, which is a negotiated component of an agreement to purchase all of AT&T's remaining 70% equity stake in DIRECTV. This debt-funded dividend is a significant change from DIRECTV's historical financial policy objectives and Moody's prior expectations and will elevate debt leverage above the company's previous modest target of around 1.25x (Moody's adjusted). If regulators approve the combination of DIRECTV and DISH DBS over an expected one year review process and assuming an M&A Transaction close of September 30, 2025, the resulting combined pro forma debt leverage (Moody's adjusted) will likely contribute to ratings downside pressure from the current B1 CFR based on an even higher level of debt leverage post that combination. Operating performance weakness at DIRECTV and DISH DBS that exceeds Moody's current expectations between now and the close of the M&A Transaction could also further impact the magnitude of any downside ratings pressure. Assuming a successful M&A Transaction close, Moody's currently expect DIRECTV's pro forma leverage (Moody's adjusted) to be around 2.8x at year-end 2025 before declining to around 2.3x by year-end 2027 assuming the achievement of significant integration synergies. This expectation could change over time with cost synergies being more readily realized and more favorable operating results being achieved under evolving business strategy changes and enhancements. Deleveraging from expected elevated debt leverage (Moody's adjusted) will be driven by cost synergies from the merger with DISH DBS despite moderately high but still steady declines in subscribers and revenue. Maintenance of steady EBITDA margins in the mid-20% area and the potential for consistent debt pay downs with all available discretionary free cash flow would also help support DIRECTV's credit profile. On an operational level, subscriber losses make continued cost cutting a critical part of ensuring that DIRECTV is able to maintain and optimize cash flow generation at levels sufficient to fund steady tax-based cash distributions to its owners given the company's legal structure as a limited liability company. Operating cost efficiency efforts have targeted and, under a combination with DISH DBS, are expected to continue to target G&A reductions, including customer service operations and especially the streamlining of customer acquisition costs. Disciplined maintenance capital investing and targeted growth capital investments are also a part of this focus on optimizing cash flow generation. DIRECTV's total subscriber base remains in steady decline at all segments except the company's small DIRECTV via internet segment. DIRECTV via satellite subscribers contracted at a 17.9% rate on a year-over-year basis through June 30, 2024, and the pace of these subscriber declines has yet to slow. These negative fundamental subscriber trends have resulted in DIRECTV's subscribers declining by over 40% since year-end 2019. The company's still sizable scale and substantial programming content distribution and spend does enable some negotiating advantage in content provider contract discussions versus some peers. The smaller scaled operation of the company's M&A target, DISH DBS, faces similar and equally negative fundamental trends to that of DIRECTV. DIRECTV's pursuit of M&A-based growth through an opportunistic acquisition of DISH DBS will aid in effecting cost efficiencies and better support margins by increasing the combined company's scale. Resulting synergies are expected to be derived from headcount reductions, elimination of duplicative fixed and other costs, operations efficiencies and streamlined marketing and back office functions. Materially reducing non-content costs could result from increased negotiating strength as a combined company over time. However, offsetting continued content cost increases currently through full or partial pass throughs to subscribers while integrating two separate corporate operations is also viewed by us as having moderately high to high execution risks. Any missteps could contribute to temporary spikes in customer churn or potentially even exacerbate current negative churn trends. DIRECTV has conceded that it cannot predict unexpected sizable falloffs of subscribers and can only operate under limited visibility and on a business as usual basis largely by extrapolating current decline trends over the near to intermediate term. Under such limited visibility, Moody's believe that integration risks and the associated higher debt leverage from the M&A Transaction could negatively impact financial flexibility if the current pace of industry subscriber trends and churn were to materially worsen. The company's go-forward business strategy after the acquisition reflects significant uncertainty, limited visibility and heightened integration risks. The combined company would need to evolve and transition its current sizable linear bundled television distribution exposure, strengthen its competitive positioning and slow the pace of revenue and subscriber contraction. The company faces secular growth pressures as revenue and profits are generated from its US linear pay television distribution business, which is facing high risk from negative social and demographical trends and negatively impacting DISH DBS as well. These negative, secularly-driven trends include consumers moving to direct-to-consumer video-on-demand services and terminating traditional linear bundled pay TV services such as those provided by DIRECTV. Moody's expect DIRECTV to have a good liquidity profile supported by solid free cash flow generation and $468 million available under its $500 million revolving credit facility due August 2028 as of June 30, 2024, given $32 million in letters of credit outstanding. The company also had cash on the balance sheet of $323 million as of June 30, 2024. Moody's expect that the company will maintain cash balances at sufficient levels to operate its business. The company has already fully retired TPG's senior preferred equity and AT&T's junior preferred equity. While the term loan maturing in August 2027 no longer amortizes 9% annually due to a voluntary prepayment funded with proceeds from a term loan maturing in August 2029, the new 2029 term loan does amortize 9% annually. Other than that, the company's two term loans have the same terms and include a 50% excess cash flow sweep with first lien net leverage-based step-downs to 25% and 0%. The excess of the company's free cash flow after tax-based cash distributions to equity holders and after any required debt repayments will likely be applied in an optimal way based on DIRECTV's amended financial policy: it could be used in full to make dividend distributions to the company's shareholder(s) or be used to reduce absolute debt balances outstanding. The revolving credit facility due 2028 includes a springing first lien net leverage ratio covenant of 2.25x which is tested when more than 35% of the revolver is drawn. The revolver also has a springing maturity to any remaining August 2027 debt maturities, if outstanding. Moody's expect the company to maintain sufficient cushion under this covenant over Moody's forward outlook period. DIRECTV's ESG Credit Impact Score of CIS-4 reflects governance risks associated with a recent move to a more aggressive financial policy which includes plans for a $1.625 billion debt-funded dividend, higher debt leverage and full private equity ownership. DIRECTV's ESG Credit Impact Score of CIS-4 also reflects social risks as revenue and profits are generated from the company's declining US linear pay television distribution business. These negative, secularly-driven social trends include consumers moving to direct-to-consumer video-on-demand services and terminating traditional linear bundled pay TV services such as those provided by DIRECTV. DIRECTV will be fully private equity owned under a negotiated equity stake sale by 70% owner AT&T. Moody's believe under AT&T's historical influence that DIRECTV's financial policies were guided toward being more meaningfully conservative in scope. The successful evolution of the company's go-forward business strategy remains unclear in terms of its linear bundled television distribution exposure. DIRECTV's management has a three-year record operating as a standalone company since its separation from AT&T in late 2021. The board of directors lacks independence because its four independent directors (out of nine total) are non-voting members only. Currently, AT&T and TPG share equal voting control despite AT&T's 70% economic stake. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the review for downgrade, an upgrade is unlikely in the near term. The review for downgrade will focus on the negative credit implications of DIRECTV's potential successful acquisition of DISH DBS, as well as the company's 100% ownership by a private equity firm regardless of whether the DISH DBS acquisition is consummated. Moody's views AT&T's sizable current economic ownership in DIRECTV as a credit positive relative to 100% private equity ownership by TPG. Moody's expect more elevated debt leverage (Moodys' adjusted) at DIRECTV on either a standalone basis or under a successful combination with DISH DBS, and views financial policy under full TPG ownership as being more aggressive going forward than it has been since the company's joint venture carveout from AT&T in 2021. While the company's efforts to blunt subscriber losses with genre-based content packaging and skinnier video bundles is viewed constructively, it also underscores the business strategy pressures and difficulties that are impacting both content providers and distributors in the linear TV industry. A viable and sustainable solution remains unclear in Moody's view. The continuing tensions between the two sides as showcased by DIRECTV's recent contract battle with The Walt Disney Company (A2 stable) suggest that the broader linear programming end market remains both highly volatile and vulnerable to continued disruption. An approach of offering better value on linear programming bundles supported by lower variable costs may indeed help slow consumer cord cutting and benefit DIRECTV's ability to better harness cash flows from a potentially longer-tailed business model. But in the interim, these evolving business and industry strategies remain unproven and operating certainty remains unclear. The principal methodology used in these ratings was Telecommunications Service Providers published in November 2023. Headquartered in El Segundo, CA, DIRECTV is a US pay TV distributor with the bulk of its subscribers accessing the company's product via DBS. DIRECTV had approximately 10.1 million subscribers and $20.3 billion in revenue for the latest 12 months period ending June 30, 2024. Currently, the company's majority economic shareholder is AT&T and its sole minority shareholder is TPG; voting control is split on a 50/50 basis. DOUBLE M RANCH: Unsecureds Will Get 100% of Claims over 5 Years --------------------------------------------------------------- Double M Ranch & Farms, LLC, filed with the U.S. Bankruptcy Court for the Western District of Texas a Modified Plan of Reorganization dated August 27, 2024. The Debtor owns approximately 417 acres in Maverick County. The Debtor has entered into a Lease Agreement with El Indio Energy, LLC, that will fund the proposed Plan payments. The Debtor is to receive $15,000 per month from the lease. The income from the lease will fund the Debtor's Modified Plan, including the cure of past due amounts under the Plan. Prior to filing this Modified Plan, the Debtor has made good faith cure payments to certain priority, secured and unsecured creditors. The Plan, as modified herein, relies on a Lease Agreement between the Debtor and El Indio Energy, LLC which will fund the Debtor's Plan going forward, providing for monthly rental payments of $15,000 per month. The Debtor has deposited $35,000.00 with the Sub V Trustee to be used for Plan purposes upon confirmation of the Modified Plan. The Debtor has also paid the priority secured claims of the taxing entities such that Class 1 has been paid, and paid the secured claims of AJ Buildings the Class 2 claimholder, such that it has or will release its claims. In addition, because claims were paid by El Indio Energy, LLC, the Plan classifies El Indio Energy, LLC as a subordinated claim to be paid after all unsecured claims are paid in full. The Debtor filed this case, including this Modified Plan, to preserve and maximize the value of its assets and provide an appropriate repayment plan for the benefit of all creditors and stakeholders. In this Modified Plan, the Debtor proposes to reorganize and pay existing debts from future income generated from operations. The main source of income is the Lease Agreement between the Debtor and El Indio Energy, LLC which generates $15,000.00/month. The Debtor may generate additional income if opportunities permit. The Debtor believes the terms of this Modified Plan will maximize distributions to the creditors of and interest holders in the Debtor and will allow the Debtor to emerge from bankruptcy with the ability to meet future ongoing obligations. The Debtor defaulted under the Plan and as a result the Sub V Trustee was authorized to sell Debtor's real property. In lieu thereof, Debtor has filed this Modified Plan, proposing to use rental income from a lease agreement of $15,000 per month between El Indio and Debtor to make Plan payments. Class 6 consists of Priority Unsecured claim of the Louisiana Department of Revenue. The priority unsecured claim of the Louisiana Department of Revenue was scheduled in the amount of $5,858.31, as a disputed, contingent and unliquidated claim. The Louisiana Department of Revenue failed to file a Proof of Claim by the deadline of September 9, 2022. As a result, the claim of the Louisiana Department of Revenue is disallowed in full as filed and will receive nothing through the Plan. There are no Class 6 creditors. Class 7 consists of Priority Unsecured claim of the Comptroller of Public Accounts. The priority unsecured claim of the Comptroller of Public Accounts. No claim was scheduled by the Debtor. On June 29, 2022, the Comptroller filed a priority unsecured claim in the amount of $1,000.00 for estimated franchise taxes for 2021. The Debtor filed its tax returns and no amounts are owed. To the extent that the Debtor is in error, any allowed claim owing to the Comptroller will be repaid through monthly payments or principal and interest based upon a 4-year term with interest at the rate of 4%. The monthly payments are to begin on the first day of the month following the Effective Date of the Modified Plan, or the date that the claim is allowed, if later. All applicable franchise tax returns have now been filed. There are no Class 7 creditors. Class 8 consists of Claims of General Unsecured Creditors. The allowed unsecured claims will be paid 100% of their claim through equal annual payments on a pro rata basis, over a 5-year term, with interest at the rate of 2%. The estimated amount of the unsecured creditors' claims is in the amount of $6,432.00. The Debtor is reviewing whether all of the unsecured claims asserted against it are allowable and will Object to certain claims if that becomes necessary. The Debtor will increase the timing of payout to Class 8 unsecured creditors if cash flow permits. The Debtor believes that the allowed Class 8 unsecured creditors will be paid much faster than proposed. Class 11 consists of Claims of Debtor's Interest Holder. Holders of interests in the Debtor will retain the same proportional interests in the Debtor as existed at the filing of the case. Michelle Hayes owns 100% of the Debtor and is active in its operations. The obligations under the Modified Plan will be funded by the operation of the Reorganized Debtor's business. Presently, the Debtor has entered into a lease with El Indio Energy, LLC, which will generate $15,000.00/month and fully fund the Debtor's Plan. The Debtor will also attempt to market and sell a portion of its real property and may explore other options to generate funds to pay Plan obligations. A full-text copy of the Modified Plan dated August 27, 2024 is available at https://urlcurt.com/u?l=0er0v5 from PacerMonitor.com at no charge. Attorneys for the Debtor: David D. Ritter, Esq. Ritter Spencer Cheng PLLC 15305 Dallas Parkway, 12th Floor Addison, TX 75001 Telephone: (214) 295-5078 Facsimile: (214) 329-4362 Email: dritter@ritterspencercheng.com About D Double M Ranch & Farms Double M Ranch & Farms LLC, a Texas-based family owned and operated cattle ranch and agricultural farm, sought Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 22-50462) on May 2, 2022. In the petition signed by Michael L. Hayes, managing member, the Debtor disclosed up to $50,000 in estimated assets and up to $100,000 in estimated liabilities. Judge Craig A. Gargotta oversees the case. David D. Ritter, Esq., at Ritter Spencer Cheng PLLC, is the Debtor's counsel. DT&T LOGISTICS: Has Court Permission to Use Cash Collateral ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois authorized DT&T Logistics Inc. to use cash collateral until Oct. 25 in accordance with its budget. The budget outlines a range of expenses that the company anticipates incurring in October, including payments for contractors, insurance, fuel, and truck leases, among others. The budget projects gross revenue of $275,000, with factoring fees of $6,187.50, resulting in a net revenue of $268,812.50. Total projected expenses for the month amount to $262,000, leaving an estimated monthly net income of $6,812.50. A status hearing regarding the cash collateral motion is set for Oct. 23. About DT&T Logistics DT&T Logistics Inc. operates in the trucking industry. DT&T Logistics filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08667) on June 12, 2024, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Robert Handler of Commercial Recovery Associates, LLC serves as Subchapter V trustee. Judge Deborah L. Thorne handles the case. The Debtor is represented by Saulius Modestas, Esq., at Modestas Law Offices, P.C. E-Z ROLL CASTERS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: E-Z Roll Casters, Inc. 11 Lancaster Lane Conway, AR 72032 Business Description: EZ Roll Casters is a manufacturer of rigid and swivel casters. The Company's distribution center is centrally located in Conway, Arkansas. The Company offers wheels, casters, hand trucks, pallet jacks, platform carts and other specialty items. Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of Arkansas Case No.: 24-13217 Judge: Hon. Bianca M Rucker Debtor's Counsel: Joel G. Hargis, Esq. CADDELL REYNOLDS LAW FIRM PO Box 184 Fort Smith, AR 72902-0184 Tel: 479-782-5297 Fax: 479-782-5284 E-mail: jhargis@caddellreynolds.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Martin Stewart Aist as owner. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/656NHXY/E-Z_Roll_Casters_Inc__arebke-24-13217__0001.0.pdf?mcid=tGE4TAMA ECO ROOF: Hires Wadsworth Garber Warner Conrardy as Legal Counsel ----------------------------------------------------------------- ECO Roof and Solar Inc. seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Wadsworth Garber Warner Conrardy, PC as legal counsel. The firm will provide these services: (a) prepare on behalf of the Debtor of all necessary legal papers required in this Chapter 11 proceeding; (b) perform all legal services for Debtor which may become necessary herein; and (c) represent the Debtor in any litigation which it determines is in the best interest of the estate whether in state or federal court(s). The firm will be paid at these hourly rates: David Wadsworth, Attorney $500 Aaron Garber, Attorney $500 David Warner, Attorney $425 Aaron Conrardy, Attorney $425 Lindasy Riley, Attorney $325 Paralegals $125 In addition, the firm will seek reimbursement for expenses incurred. The firm received $40,000 retainer plus $1,738 filing fee from the Debtor. Mr. Conrardy disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Aaron J. Conrardy, Esq. Wadsworth Garber Warner Conrardy, P.C. 2580 W. Main St., Ste. 200 Littleton, CO 80120 Telephone: (303) 296-1999 Email: aconrardy@wgwc-law.com About ECO Roof and Solar ECO Roof and Solar Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 24-15628) on Sept. 23, 2024. In the petition signed by Dylan Lucas, president, the Debtor disclosed up to $10 million in assets and up to $50 million in liabilities. Judge Joseph G. Rosania Jr. presides over the case. Wadsworth Garber Warner Conrardy, PC represents the Debtor as legal counsel. ECP OWNER 1: Plan Exclusivity Period Extended to Oct. 26 -------------------------------------------------------- Judge Elizabeth L. Gunn of the U.S. Bankruptcy Court for the District of Columbia extended ECP Owner 1 LLC, and affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 26 and December 25, 2024, respectively. As shared by Troubled Company Reporter, the Debtors are each a special purpose District of Columbia limited liability company formed on May 20, 2019, to own and operate low-income multifamily residential buildings in the District of Columbia known as "The Villages at Tillman" and "The Villages at Evergreen" (collectively, the "Properties"). Through these Chapter 11 Cases, the Debtors intend to market and sell the Properties. The Debtors have been actively marketing the Properties for sale for the past year and had active contracts on several of the Properties, as well as interest in other Properties. The Debtors intend to sell the Properties pursuant to section 363 of the Bankruptcy Code and/or to file a plan of reorganization that, upon confirmation by this Court, will provide for the sale of the Properties. Counsel to the Debtors: Kristen E. Burgers, Esq. Stephen E. Leach, Esq. Hirschler Fleischer, PC 1676 International Drive, Suite 1350 Tysons, VA 22102 Telephone: (703) 584-8900 Facsimile: (703) 584-8901 Email: kburgers@hirschlerlaw.com sleach@hirschlerlaw.com About ECP Owner 1 LLC ECP Owner 1 LLC is primarily engaged in renting and leasing real estate properties. ECP Owner 1 and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.D.C. Lead Case No. 23-00326) on Nov. 1, 2023. In the petition signed by Robert B. Margolis, manager, ECP Owner 1 disclosed up to $10 million in both assets and liabilities. Judge Elizabeth L. Gunn oversees the cases. The Debtors tapped Kristen E. Burgers, Esq., at Hirschler Fleischer, PC, as bankruptcy counsel and Arnall Golden Gregory, LLP, as special real estate counsel. EDWARDS PETROLEUM: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Edwards Petroleum Transport, LLC 2536 Seascape Drive Las Vegas, NV 89128 Business Description: The Debtor is part of the general freight trucking industry. Chapter 11 Petition Date: October 3, 2024 Court: United States Bankruptcy Court District of Nevada Case No.: 24-15170 Debtor's Counsel: Seth D Ballstaedt, Esq. FAIR FEE LEGAL SERVICES 8751 W Charleston Blvd #230 Las Vegas, NV 89117 Tel: (702) 715-0000 Fax: (702) 666-8215 E-mail: help@bkvegas.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert Egbert Edwards as managing member. 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/VLPLCEI/EDWARDS_PETROLEUM_TRANSPORT_LLC__nvbke-24-15170__0001.0.pdf?mcid=tGE4TAMA EMPIRE TODAY: $595MM Bank Debt Trades at 39% Discount ----------------------------------------------------- Participations in a syndicated loan under which Empire Today LLC is a borrower were trading in the secondary market around 61.3 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $595 million Term loan facility is scheduled to mature on April 3, 2028. The amount is fully drawn and outstanding. Headquartered in Northlake, Ill., Empire Today, LLC is a specialty retailer of carpet, hard floor, and window treatments. The company offers shop-at-home sales in the largest metropolitan markets in the U.S. EPIC CRUDE: S&P Upgrades ICR to 'BB-', Outlook Stable ----------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Epic Crude Holdings L.P. (Holdings) to 'BB-' from 'B'. S&P also upgraded its issue-level rating on EPIC Crude's existing senior secured debt to 'BB-' from 'B' which will be withdrawn after close of the proposed transaction. At the same time, S&P assigned its issue-level rating of 'BB-' to the proposed senior secured TLB. The recovery rating on the debt is '3', indicating its expectation of meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. The stable outlook reflects S&P's expectation that Epic Crude's credit metrics will continue to improve throughout its outlook period, with S&P Global Ratings-adjusted debt to EBITDA trending below 4.5x in 2025. Diamondback Energy Inc. and Kinetik Holdings L.P. acquired an additional 30% equity interest in Epic Crude Holdings L.P. (Holdings), which owns 100% of Epic Crude Services L.P. (Epic Crude), from Chevron. Epic Crude is now 27.5% owned by Diamondback and 27.5% by Kinetik. Through EPIC Midstream Holdings LP (EPIC Midstream), Ares Management Corporation (Ares) continues to own 45% equity interest in Epic Crude. In conjunction with the acquisition, Diamondback and Kinetik entered into 10-year minimum volume commitment (MVC) agreements with the company for 200 thousand barrels per day (MBpd) and 25 MBpd, respectively. Epic Crude intends to issue a $1.2 billion senior secured term loan B (TLB) due 2031 to repay its outstanding debt. The company also intends to put in place a $125 million super priority revolving credit facility (RCF) due 2029. At close, the RCF will be fully available. Year to date, Epic Crude outperformed and materially improved its contract profile while maintaining strong asset utilization. The company's business risk profile has improved, driven by a materially enhanced contract profile, increased scale, and robust asset utilization. As the takeaway capacity in the Permian basin continues tightening, the company was able to secure several contracts at more favorable rates and terms over the past several months. Combined with the new 10-year MVC agreements with Diamondback and Kinetik, S&P estimates above 85% of the company's volumes are MVCs or dedication contracted in 2025, the majority of which are underpinned by MVCs. The company has extended its overall weighted-average contract length to about six years, providing good cash flow predictability for the outer years. Year to date, the company operated at above 90% of capacity. As the takeaway capacity in the Permian continues tightening and the majority of its volumes are contracted, S&P expects Epic Crude to operate near full capacity throughout the outlook period and project its S&P Global Ratings-adjusted EBITDA will increase to above $250 million in 2025 from $170 million-$180 million in 2023. Epic Crude has a clear deleveraging path over the next several years. The proposed transaction will mitigate the company's near-term refinancing risk and bolster its liquidity. The company's TLB is subject to a 75% excess cash flow (ECF) sweep if net leverage is 5.5x, decreasing to 50% when net leverage is 5.0x-5.5x, 25% when net leverage is 4.5x-5.0x, and no cash sweep when it falls below 4.5x. S&P said, "With ECF sweeps, we forecast the company's S&P Global Ratings-adjusted debt to EBITDA will decrease from 6.5x-7.0x in 2023 to 5.0x-5.5x in 2024 and below 4.5x in 2025. In addition, we forecast the company will generate free operating cash flow (FOCF) of over $50 million in 2024 and over $120 million in 2025." The positive FOCF combined with full availability of the RCF further supports its deleveraging and provides extra financial flexibility for growth initiatives. S&P said, "The stable outlook on Epic Crude reflects our expectation that the company will maintain robust asset utilization throughout our outlook period. We also expect the company's S&P Global Ratings-adjusted debt to EBITDA will fall below 4.5x in 2025. "We could consider a negative rating action on the company if we anticipated its S&P Global Ratings-adjusted debt to EBITDA would remain above 5x." This could occur if: -- The company generated significantly lower-than-expected EBITDA due to a material decline in volumes or recontracts at lower rates than our current expectations; or -- Management pursued a more aggressive financial policy. S&P could consider a positive rating action on Epic Crude if the company maintained robust asset utilization and sustained S&P Global Ratings-adjusted leverage below 4x while preserving a prudent financial policy. S&P said, "Environmental factors are a negative consideration in our credit rating analysis of the company, which operates a crude oil pipeline from the Permian and Eagle Ford basins to Corpus Christi, Texas. Epic Crude's transportation system's volumes and utilization levels could decline due to the energy transition pressures facing the midstream industry and customers not meeting their volume obligations. Governance factors are a negative consideration, as is the case for most rated entities owned by private-equity sponsors." ESCALON MEDICAL: Incurs $125K Net Loss in FY Ended June 30 ---------------------------------------------------------- Escalon Medical Corp. filed with the Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $125,261 on $11.98 million of net revenues for the year ended June 30, 2024, compared to net income of $456,826 on $12.18 million of net revenues for the year ended June 30, 2023. As of June 30, 2024, the Company had $4.76 million in total assets, $2.95 million in total liabilities, and $1.81 million in total stockholders' equity. Marlton, New Jersey-based Marcum LLP, the Company's auditor since 2010, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company's historical recurring losses from operations and negative cash flows from operating activities raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/862668/000086266824000022/esmc-20240630.htm About Escalon Headquartered in Wayne, Pennsylvania, Escalon Medical Corp. operates in the healthcare market, specializing in the development, manufacture, marketing and distribution of medical devices for ophthalmic applications. EYM PIZZA: Sells All Remaining Stores After Ch. 11 Filing --------------------------------------------------------- Bernadette Giacomazzo of RetailWire reports that one of the largest Pizza Hut franchisees has announced that it will be selling off all of its remaining stores following a Chapter 11 bankruptcy filing. Nation's Restaurant News reports that as part of a financial reorganization process, EYM Pizza LP is selling all 127 of its locations in Illinois, Indiana, Georgia, South Carolina, and Wisconsin. To expedite the sale and provide support in the asset recovery process to optimize recovery for creditors, EYM enlisted the services of M&A consultancy and brokerage firm National Franchise Sales. In its bankruptcy filing, EYM named two creditors: Pizza Hut, to which it owes a little less than $2.25 million, and Manufacturers Bank, to which it owes over $21 million. "National Franchise Sales is dedicated to navigating this challenging period with EYM Pizza L.P. and its affiliates. Our goal is to ensure a smooth transition and maximize value for all parties impacted by this process," NFS Asset Recovery Team lead advisor Alan Gallup said in a statement to the outlet. Pizza Hut Franchisee Filed for Bankruptcy in July EYM Pizza LP and associated companies filed for bankruptcy in the Eastern District of Texas on July 22, 2024. Two creditors are listed in the bankruptcy case, along with related companies located in Wisconsin and Indiana. Despite the fact that a forbearance period that had been permitted earlier in the year had ended in February, Pizza Hut sued EYM Group in June for mismanagement and late royalty payments. This lawsuit stems from a previous legal issue that started when EYM sued Pizza Hut for many reasons, including a contract breach. Eduardo Diaz, a former president of McDonald's Mexico, established EYM in 2008. After operating Pizza Hut restaurants since 2015, the business shut down over 15 locations across Northwest Indiana before filing for bankruptcy. Regarding the closures, a Pizza Hut spokesperson said, "While some local franchisee-operated restaurants have temporarily closed, Pizza Hut remains committed to providing outstanding service and products to our valued customers. The company is working to transition these locations and expects many of them will reopen soon." However, employees from the closed locations posted on social media to say they were "let go and told to file for unemployment." They explained that the "closures affected all Indiana locations owned by EYM Group." About EYM Pizza LP EYM Pizza LP is a Pizza Hut franchisee. EYM Pizza LP and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41669) on president of EYM Group Inc., the Debtor reports estimated assets under $2.25 million and estimated liabilities more than $21 million. Howard Marc Spector, Esq. at Spector & Cox, PLLC, is the Debtors' counsel. National Franchise Sales is the Debtors' financial advisor for the sale of the assets or businesses of the Debtors. FAIR OFFER: Seeks to Hire BuildLaw PLC as Special Counsel --------------------------------------------------------- Fair Offer Cash Now, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ BuildLaw, PLC as special counsel. The Debtor requires the services of special counsel to represent the Debtor in certain ancillary and related proceedings, namely certain claims and disputes related to illegal lending practices by certain third parties, which practices are in violation of certain usury statutes that prohibit such illegal lending practices. The firm will be paid at these hourly rates: Senior Attorneys $375 to $600 Junior Attorneys $250 to $350 Paralegals $175 to $250 The terms of the contingency fee agreement are that J. Brad Scarbrough will receive as a Fee (for attorneys' fees only and not including reimbursement of expenses) the greater of any amount of fees awarded by a court, or a graduated percentage of recovery as follows: -- 20 percent fee for anything recovered prior to a lawsuit being filed. -- 30 percent if lawsuit is filed with no discovery requests. -- 33 percent once discovery is served. -- 35 percent if either a dispositive motion is filed, or the parties begin the discovery process by either party answering discovery. -- 37.5 percent if discovery is completed or the case is set for trial. -- 40 percent if trial prep is required, the attorneys are required to attend a pre-trial conference or if a trial begins. -- 47 percent if the dispute is appealed to an appellate court. All expenses are the responsibility of the client, and any expenses advanced for the client shall be reimbursed by the client from any recovery after any such earned Fee is paid. The firm can be reached through: J. Brad Scarbrough, Esq. Brandon A. Carnes, Esq. BuildLaw, PLC 4300 Sidco Dr., Ste. #200 Nashville, TN 37204 Telephone: (615) 369-9996 Facsimile: (615) 515-4491 Email: brad@build.law Email: brandon@build.law About Fair Offer Cash Now, Inc. The Debtor owns 27 properties all located in Alabama, Kentucky, Missouri, Tennessee, Georgia and Mississippi having a total current value of $4.94 million. Fair Offer Cash Now, Inc. in Murfreesboro, TN, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. M.D. Tenn. Case No. 24-03495) on Sept. 11, 2024, listing $4,942,400 in assets and $4,783,400 in liabilities. Bradley Smotherman as president, signed the petition. Judge Charles M Walker oversees the case. LEFKOVITZ & LEFKOVITZ serve as the Debtor's legal counsel. FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 30% Discount ------------------------------------------------------------ Participations in a syndicated loan under which FinThrive Software Intermediate Holdings Inc is a borrower were trading in the secondary market around 69.8 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.44 billion Term loan facility is scheduled to mature on December 18, 2028. About $1.40 billion of the loan is withdrawn and outstanding. FinThrive is a provider of revenue cycle management software solutions to the healthcare sector. FIRST AMERICAN: Case Summary & Two Unsecured Creditors ------------------------------------------------------ Debtor: First American Capital Corporation 219 Pasadena Place Orlando FL 32803 Business Description: The Debtor is primarily engaged in renting and leasing real estate properties. Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Middle District of Florida Case No.: 24-05372 Judge: Hon. Tiffany P Geyer Debtor's Counsel: Kenneth D. Herron, Jr., Esq. HERRON HILL LAW GROUP, PLLC P.O. Box 2127 Orlando FL 32802 Tel: 407-648-0058 E-mail: chip@herronhilllaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Barry Watson as president. A copy of the Debtor's list of two unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/QVAYZTQ/First_American_Capital_Corporation__flmbke-24-05372__0003.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZEQ46GA/First_American_Capital_Corporation__flmbke-24-05372__0001.0.pdf?mcid=tGE4TAMA FLECK REAL ESTATE: Hires Gordon Law Firm PC as Counsel ------------------------------------------------------ Fleck Real Estate Holding Group, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Gordon Law Firm, PC as counsel. The firm will provide these services: a. analyzing Debtor's financial situation, and rendering advice to Debtor in determining whether to file a petition in bankruptcy; b. preparing and filing of any petition, schedules, statements of affairs, disclosure statement, and plan which may be required; and c. representing the Debtor at the IDI, meeting of creditors and confirmation hearing, and any adjourned hearings thereof; d. drafting all necessary pleadings; responding to all pleadings filed by the trustee and creditors; attending all hearings; litigating at trial; and counseling Debtor. The firm will be paid at these rates: Attorneys $395 per hour Office administrator/litigation specialists $195 per hour Senior legal assistants $175 per hour Staff members $155 per hour The firm received a retainer in the amount of $7,500. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Sims W. Gordon, Jr, Esq., a partner at Gordon Law Firm, PC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Sims W. Gordon, Jr., Esq. The Gordon Law Firm, PC 400 Galleria Parkway, SE Suite 1500 Atlanta, GA 30339 Tel: (770) 955-5000 Fax: (770) 955-5010 Email: law@gordonlawpc.com About Fleck Real Estate Holding Group, LLC Fleck Real Estate Holding Group, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 24-57999) on Aug. 2, 2024. The Debtor hires Gordon Law Firm, PC as counsel. FOG CAP RETAIL: Court Tosses Appeal in Stratford, et al. Lawsuit ---------------------------------------------------------------- Judge Robert E. Blackburn of the United States District Court for the District of Colorado granted Stratford Holding, LLC and Foot Locker Retail, Inc.'s motion to dismiss an appeal filed by SBN FCCG, LLC and SBN Edge, LLC and Summit Investment Management, LLC from an order in the bankruptcy case of Fog Cap Retail Investors LLC. The bankruptcy court had denied a motion by Tom Connolly, the Chapter 7 trustee, to approve a stipulation between the Trustee and the three appellants. Stratford Holding, LLC, owns commercial real estate in Warr Acres, Oklahoma. The property was subject to a 30-year lease agreement with Kinney Shoe Corporation as the lessee. Later, Kinney changed its name to Foot Locker Retail, Inc. On September 25, 2002, Foot Locker sold and assigned all of its interests in the Foot Locker lease of the Oklahoma Property to Fog Cap. The Debtor assumed and agreed to be fully bound by all terms of the Foot Locker lease. In 2002, Fog Cap was owned by Fog Cutter Capital Group, Inc. In 2008, Fog Cutter sold 100% of the membership interests in Fog Cap to SBN FCCG, LLC, an appellant in this case. In July 2012, Stratford filed a lawsuit against Foot Locker, Fog Cap, and others in the United States District Court for the Western District of Oklahoma. The Elaine K. Hall Revocable Trust owns real property adjacent to the Oklahoma Property. In March 2015, the Hall Trust filed a lawsuit against Fog Cap, Fog Cutter, Stratford, and Foot Locker, as well as appellants SBN FCCG and Summit Investment Management, LLC. That case was also filed in the United States District Court for the Western District of Oklahoma. In that case, the Hall Trust alleges PCE from the Oklahoma Property has migrated to the groundwater under the neighboring Hall Trust Property. The cases filed by Stratford and the Hall Trust were consolidated and remain pending. As a result of the Oklahoma Litigation, Fog Cap filed its voluntary Chapter 11 petition on April 20, 2016, initiating the underlying bankruptcy case, Bankr. No. 16-13817-TBM. In January of 2017, the bankruptcy court granted relief from stay to permit Stratford, Foot Locker, the Hall Trust, and the appellants to liquidate any and all claims and counterclaims, including claims against the Fog Cap bankruptcy estate, in the Oklahoma Litigation. On April 25, 2017, the Fog Cap bankruptcy was converted from Chapter 11 to Chapter 7. Tom Connolly was appointed as the Chapter 7 Trustee. More litigation ensued. Ultimately, the Trustee reached settlements with a variety of creditors and others, which settlements were approved by the bankruptcy court. The Trustee and the Summit Parties reached a settlement agreement which: (1) effectively resolved the objection of the Summit Parties to a settlement of certain issues with the Hall Trust; (2) concluded the involvement of the Summit Parties in the bankruptcy case; and (3) resolved an appeal taken by the Summit Parties which then was pending in the district court. On March 15, 2022, the Trustee filed a motion to approve the Summit Stipulation. Stratford and Foot Locker filed objections to the motion. On March 31, 2022, the Trustee filed a notice of withdrawal of the motion to approve the Summit Stipulation. On June 7, 2023, the bankruptcy court delivered its oral ruling denying the motion of the Trustee to approve the Summit Stipulation. However, the bankruptcy court did not enter judgment based on that order. In the motion to dismiss, Stratford and Foot Locker contend the appeal must be dismissed for lack of jurisdiction. Stratford and Foot Locker contend the bankruptcy court order is not a final, appealable order and is not an appealable interlocutory order. One of those two things is a requisite for jurisdiction under 28 U.S.C. Sec. 158(a). In addition, the appellees argue the appellants lack standing to appeal an order denying approval of the stipulation. The District Court concludes the bankruptcy court order is not a final order under Sec. 158(a)(1) and is not an appealable collateral order under Sec. 158(a)(3). Thus, it cannot exercise jurisdiction over the appeal on either of those two bases. Judge Blackburn says, "The ultimate goal of every bankruptcy trustee is to file a final report and account and close the case. The underlying bankruptcy case has been pending since 2016. The vast majority of the issues in the bankruptcy case have been resolved. The fact that the Trustee sought to resolve the few remaining issues via the Summit Stipulation does not, by itself, show that the order denying approval of the stipulation is a final order. Rather, the few remaining issues remain subject to negotiation and resolution, guided by the detailed analysis of the Summit Stipulation provided by the bankruptcy judge. That is not finality." The appeal must be dismissed for lack of jurisdiction, the District Court holds. A copy of the Court's decision is available at https://urlcurt.com/u?l=pn9AEn About SBN Fog Cap & Fog Cap Retail Investors SBN Fog Cap II LLC, based in Denver, Colorado, filed a Chapter 11 petition (Bankr. D. Colo. Case No. 16-13815) on April 20, 2016. In its petition, SBN Fog Cap estimated $1 million to $10 million in assets and $100,000 to $500,000 in liabilities. Fog Cap Retail Investors LLC, also based in Denver, filed a separate Chapter 11 petition (Bankr. D. Colo. Case No. 16-13817) on April 20, 2016. It estimated $1 million to $10 million in both assets and liabilities. Both petitions were signed by Steven C. Petrie, chief executive officer. The cases were jointly administered pursuant to an Order of the bankruptcy Court dated June 2, 2016. The Hon. Thomas B. McNamara presides over the cases. James T. Markus, Esq., at Markus Williams Young & Simmermann LLC, serves as counsel to the Debtors. On May 25, 2016, the Unsecured Creditors' Committee was formed by the U.S. Trustee in the case of Fog Cap Retail Investors LLC only. On April 25, 2017, the Fog Cap bankruptcy was converted from Chapter 11 to Chapter 7. Tom Connolly was appointed as the Chapter 7 Trustee. FRANCISCAN FRIARS: Committee Hires Stout Risius Ross as Consultant ------------------------------------------------------------------ The official committee of unsecured creditors appointed in the Chapter 11 case of Franciscan Friars of California, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Stout Risius Ross, LLC as expert consultant and witness. The firm will render the following services: (a) expert consulting services and, if it becomes necessary, expert testimony regarding the estimated value of aggregate Survivor Claims in this case, and any related adversary proceedings; (b) expert consulting services, and if it becomes necessary, expert testimony, in connection with any contested matters and/or litigation arising in this case; (c) expert consulting services, and if it becomes necessary, expert witness testimony, in connection with any plan or settlement filed by any party-in-interest; (d) expert consulting services, and if it becomes necessary, expert witness testimony, in connection with the review and evaluation of reports prepared by the Debtor, its professionals, the its insurers, and their professionals; (e) as may be requested by the committee, helping prepare affidavits/declarations, depositions, and briefing in this case concerning the issues for which Stout is providing expert consulting services; (f) as may be requested by the committee, assisting with the allocation of claims to potentially available insurance coverage; (g) as may be requested by the committee, assisting with the analysis of available insurance coverage to compensate survivors; (h) if it becomes necessary, preparing for and providing both deposition and court expert testimony in this case regarding the issues for which Stout is providing expert consulting services; and (l) such other consulting and advisory services as may be requested by the committee. The firm will be compensated at these hourly rates: Managing Directors $425 - $900 Director $375 - $605 Manager/Senior Managers $300 - $475 Analysts/Associates $200 - $405 In addition, the firm will seek reimbursement for expenses incurred Katie McNally, a managing director at Stout Risius Ross, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Katie McNally Stout Risius Ross LLC 1 S. Wacker Dr. Chicago, IL 60606 Telephone: (312) 546-3426 Email: kmcnally@stout.com About Franciscan Friars of California Franciscan Friars of California, Inc. is a tax-exempt religious organization in Oakland, Calif. The Debtor was formed to provide religious, charitable, and educational acts, ministry, and service to the poor. Franciscan Friars of California, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Cal. Case No. 23-41723) on December 31, 2023, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities. David Gaa, OFM, president of the Debtor, signed the petition. Judge William J. Lafferty oversees the case. The Debtor tapped Binder Malter Harris & Rome-Banks LLP as bankruptcy counsel; Hanson Bridgett LLP, Weintraub Tobin Chediak Coleman Grodin Law Corporation, and Bledsoe, Diestel, Treppa & Crane LLP as special counsel; and GlassRatner Advisory & Capital Group LLC, doing business as B. Riley Advisory Services, as financial advisor. Donlin, Recano & Company, Inc. is the Debtor's administrative advisor. The U.S. Trustee appointed an official committee of unsecured creditors. The committee selected Lowenstein Sandler LLP and Keller Benvenutti Kim LLP as counsel and Berkeley Research Group, LLC as its financial advisor. FTX TRADING : Creditors Angry at $230M Set Aside for Shareholders ----------------------------------------------------------------- Abdelaziz Fathi of Finance Feeds reports that collapsed crypto exchange FTX revealed an agreement to allocate up to $230 million from government forfeiture actions to certain shareholders, sparking frustration among creditors. The agreement was finalized after the August 16 deadline for creditors to vote on the reorganization plan, but it was disclosed on September 27, the last legally allowed day, leaving many creditors feeling blindsided. Creditors, who are usually paid before shareholders in bankruptcy, were not involved in the agreement. Sunil Kavuri, who represents FTX's largest creditor group, shared that many creditors are unhappy, saying: "FTX customers following me have commented how they feel scammed and robbed again by the estate." The FTX estate is managed by lawyers from Sullivan & Cromwell and will contribute 18% of all forfeiture proceeds—up to $230 million—to a segregated fund for select shareholders. The agreement was officially executed on August 28 but kept under wraps for a month. The estate argued that this provision would prevent costly litigation and delays associated with the forfeiture proceeds. In a June filing, FTX’s estate estimated the value of the forfeited assets at roughly $1.19 billion. This includes $626 million seized from the Emergent entity used to purchase Robinhood shares, $379 million in assets from third-party cryptocurrency exchanges, $150 million in cash from FTX DM accounts, and two private planes purchased for $35 million. Under the agreement, 18% of these assets—around $214.2 million—would be allocated to shareholders. The plan also allows for shareholders to receive up to $250,000 each to cover legal fees, paid from the segregated fund. Creditor backlash and Bitcoin recovery concerns While the estate claims the reorganization plan had "overwhelming preliminary support," with 98% of creditors receiving at least 118% of their claim value in cash, some dispute this. Kavuri argues that the bankruptcy claims were calculated based on the value of cryptocurrencies at the time of FTX’s collapse. As a result, creditors could receive only 10-25% of their original cryptocurrency holdings. For example, a creditor who lost 1 BTC during FTX's bankruptcy would only receive $16,000, despite Bitcoin’s current value approaching $66,000, far below what they would have received if repaid in-kind. The SEC had previously warned FTX against repaying creditors in stablecoins or other crypto assets, which could expose the estate to legal action. However, other cryptocurrency companies, including Genesis and BlockFi, have allowed in-kind repayments as part of their bankruptcy proceedings. The FTX reorganization plan will face its confirmation hearing on October 7, 2024 where Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware will determine whether to approve it. The estate must report the results of the creditor vote by September 30, seven days before the hearing, and respond to any objections raised. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. GCM MANAGER: Case Summary & 18 Unsecured Creditors -------------------------------------------------- Debtor: GCM Manager LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73790 Judge: Hon. Robert E Grossman Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 Email: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner as manager. A full-text copy of the petition containing, among other items, a list of the Debtor's 18 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/K6YYDQQ/GCM_Manager_LLC__nyebke-24-73790__0001.0.pdf?mcid=tGE4TAMA GCM PARKSIDE: Case Summary & Four Unsecured Creditors ----------------------------------------------------- Debtor: GCM Parkside LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73791 Judge: Hon. Louis A Scarcella Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 E-mail: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner as manager. A full-text copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LDQLTWQ/GCM_PARKSIDE_LLC__nyebke-24-73791__0001.0.pdf?mcid=tGE4TAMA GCM UP: Case Summary & Six Unsecured Creditors ---------------------------------------------- Debtor: GCM UP LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73792 Judge: Hon. Alan S Trust Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 Email: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner as manager. 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/IV7P6WY/GCM_UP_LLC__nyebke-24-73792__0001.0.pdf?mcid=tGE4TAMA GCM WASH: Case Summary & Seven Unsecured Creditors -------------------------------------------------- Debtor: GCM Wash LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73793 Judge: Hon. Robert E Grossman Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 E-mail: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner as manager. A full-text copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/I7VUBRI/GCM_WASH_LLC__nyebke-24-73793__0001.0.pdf?mcid=tGE4TAMA GOLDNER CAPITAL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Goldner Capital Management LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73789 Judge: Hon. Alan S Trust Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 E-mail: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner as manager. 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/FMSQU2A/GOLDNER_CAPITAL_MANAGEMENT_LLC__nyebke-24-73789__0001.0.pdf?mcid=tGE4TAMA GOTO GROUP: $958.9MM Bank Debt Trades at 63% Discount ----------------------------------------------------- Participations in a syndicated loan under which GoTo Group Inc is a borrower were trading in the secondary market around 37.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $958.9 million Term loan facility is scheduled to mature on April 28, 2028. About $956.5 million of the loan is withdrawn and outstanding. GoTo, formerly LogMeIn Inc., is a flexible-work provider of software as a service and cloud-based remote work tools for collaboration and IT management. GRIFFIN RESOURCES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Griffin Resources, LLC 5021 Verdugo Way, Suite 105-413 Camarillo, CA 93012 Business Description: Griffin Resources is a manufacturer of animal foods. Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of California Case No.: 24-12873 Judge: Hon. Jennifer E Niemann Debtor's Counsel: Riley C. Walter, Esq. WANGER JONES HELSLEY 265 E. River Park Circle, Ste. 310 Fresno, CA 93720-1563 Tel: (559) 233-4800 Email: rwalter@wjhattorneys.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Stephen J. Griffin as managing member. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZIT2NCI/Griffin_Resources_LLC__caebke-24-12873__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Clifford & Brown $135,000 1430 Truxton Ave. #900 Bakersfield, CA 93301-5230 Email: DOldaker@clifford‐brownlaw.com 2. Stephen Muir, Geologist $60,000 PO Box 152 Woodbridge, CA 95258-0000 3. Dake, Braun & Monje, LLP $44,677 Attn: Steve Dake 1801 18th Street Bakersfield, CA 93301-0000 Email: sdake@dakebraunmonje.com 4. Pacific Gas & Electric $36,644 PO Box 997300 Sacramento, CA 95899-7300 5. California Department of $34,353 Conservation 715 P Street, MS18-03 Sacramento, CA 95814-0000 6. Terra Chem $30,194 Attn: Miriam Stillwell PO Box 246 Taft, CA 93268-0000 Email: mstillwell@bestchemsolutions.com 7. Randy's Trucking $20,000 Attn: Becky Ellis 1050 Wood St Taft, CA 93268-0000 Email: rebeccaruthellis@yahoo.com 8. State Controller's Office $18,222 PO Box 942850 Sacramento, CA 94250-0001 9. Enviro Tech Consultants $17,000 Attn: Julie Lawson 907 Bakersfield, CA 93308-0000 Email: jlawson@envirotechteam.com 10. Orange Courier, Inc. $15,074 Attn: Emily Ramirez 15300 Desman Rd La Mirada, CA 90638-0000 Email: emily.ramirez@mrorange.com 11. Delano Propane $11,290 201 High St Delano, CA 93215-0000 12. MMI Services, Inc. $9,396 Attn: Christina Housley 4042 Patton Way Bakersfield, CA 93308-0000 Email: christina.housley@mmi‐services.com 13. United Rentals $6,617 Branch B44 3440 Allen Rd. Bakersfield, CA 93314-0000 14. Flyers Energy $5,468 PO Box 884517 Los Angeles, CA 90088-4517 Email: chanelle.brown@flyersenergy.com 15. Hudson Welding $5,437 Attn: Travis Hudson PO Box 145 McKittrick CA 93215-0000 Email: hudsonservices118@gmail.com 16. Alpha & Omega Gardening Inc. $3,840 Attn: Gerald Koop 104 Coremark Cr Bakersfield, CA 93307-0000 17. Premier Equipment Rentals, Inc. $3,446 PO Box 21748 Bakersfield, CA 93390-0000 18. Rain for Rent $3,295 4001 State Rd. Bakersfield, CA 93308-0000 19. Veritext Legal Solutions $3,079 PO Box 71303 Chicago, IL 60694-1303 20. Nationwide $3,062 PO Box 514540 Los Angeles, CA 90051-4540 HEYWOOD HEALTHCARE: Emerges from Chapter 11 Bankruptcy ------------------------------------------------------ Sandy Meindersma of The Gardner News reports that Heywood Healthcare announced Monday, September 30, 2024, it is successfully exiting Chapter 11 bankruptcy as a standalone entity. The announcement comes almost exactly a year after the bankruptcy filing was first initiated. "We are proud to exit Chapter 11 bankruptcy as an independent community-owned and community-governed organization," President and CEO Rozanna Penney said. "Under the protection of Chapter 11 Heywood Healthcare successfully restructured our debt and out-of-market contracts while maintaining and growing critical regional services, such as behavioral health and obstetric care." Penney attributed Heywood's successful emergence from bankruptcy to the hard work and commitment of the dedicated trustees, leaders, physicians, advanced practice providers and employees. About Heywood Healthcare Heywood Healthcare, Inc., is a non-profit community-owned hospital in Gardner, Mass. Heywood Healthcare and its affiliates filed Chapter 11 petitions (Bankr. D. Mass. Lead Case No. 23-40817) on Oct. 1, 2023. In the petition signed by its chief executive officer, Thomas Sullivan, Heywood Healthcare disclosed up to $500,000 in assets and up to $50,000 in liabilities. Judge Elizabeth D. Katz oversees the cases. John M. Flick, Esq., at Flick Law Group, PC, represents the Debtors as counsel. The U.S. Trustee for Region 1 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Dentons Bingham Greenebaum, LLP and Dentons US, LLP, as its legal counsel. HILCORP ENERGY: S&P Rates New $800MM Senior Unsecured Notes 'BB+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating and '3' recovery rating to private Texas-based oil and gas exploration and production company Hilcorp Energy I L.P. (HEI) and Hilcorp Finance Co.'s proposed $800 million senior unsecured notes due 2035. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. S&P's 'BB+' issuer credit rating and stable outlook on HEI are unchanged. The notes will rank equally in right of payment with the company's current and future unsecured debt. They will also be guaranteed on an unsecured and unsubordinated basis by HEI's restricted subsidiaries. The company intends to use the net proceeds from these notes to repay the outstanding borrowings under its senior secured credit facility, as well as for general partnership purposes, including to fund a portion of its pending acquisitions. As of June 30, 2024, HEI had approximately $420 million of outstanding borrowings under its senior secured credit facility due 2028 (total committed amount of $1.75 billion). The company also announced it had received a commitment for an additional $193 million of lending capacity under its senior secured credit facility and letters from commercial bank lenders indicating their intentions to provide an aggregate of approximately $67 million in additional lending commitments. These commitments are expected to be finalized during the semi-annual borrowing base redetermination process in October, taking the total elected commitment amount to $2.01 billion. In June 2024, HEI signed an agreement to acquire producing assets on the Alaska North Slope for about $1.0 billion and paid a $200 million deposit. This acquisition will add about 19,000 barrels of oil equivalent per day (boe/d; nearly 100% oil) to the company's production in the first half of 2024 of around 360,000 boe/d, and about 140 million boe of proved reserves. Also, in September 2024, HEI signed an agreement to purchase late life producing assets in the Permian Basin in Southeast New Mexico and West Texas for $950 million, which will add about 21,000 boe/d of production (primarily oil) and 100 million-150 million boe of proved reserves. The company expects to close both transactions by year-end 2024. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario assumes a default following a period of sustained low commodity prices, which is consistent with the conditions of past defaults in this sector. -- S&P bases its valuation on a company-provided consolidated PV-10 report, using Dec. 31, 2023, proven reserves evaluated at our recovery price deck assumptions of $50 per barrel for West Texas Intermediate (WTI) crude oil and $2.50 per million Btus for Henry Hub natural gas, including an estimate for the assets to be acquired. -- S&P's recovery analysis for HEI also incorporates the anticipated increase in commitments on its senior secured reserve-based lending facility, to $2.01 billion, which we assume would be fully drawn at default. S&P said, "Our recovery analysis further considers the contingent earnout obligation at its restricted subsidiary Hilcorp North Slope (HNS), which is unsecured and--we understand--non-recourse to all other HEI subsidiaries besides HNS. We note that HNS also guarantees the unsecured notes. Under our default scenario, we estimate the PV-10 value for the earnout at about $1 billion, based on current earnout terms, assuming a $50 per barrel Alaska North Slope crude oil price, which is in line with our recovery price deck assumptions." Simulated default assumptions -- Simulated year of default: 2029 -- Jurisdiction (Rank A): The company is headquartered in the U.S. and most of its revenue and assets are located domestically. S&P adjusted its gross enterprise value (EV) to account for restructuring administrative costs (estimated at about 5% of gross value). Simplified waterfall -- Net EV (after 5% in administrative costs): $13.2 billion -- Total collateral value available to the secured reserve-based lending facility: $13.2 billion -- Secured first-lien debt: $2.1 billion --Recovery expectations: Not applicable -- Total value available to unsecured claims: $11.1 billion -- Senior unsecured claims: $7.9 billion --Recovery expectations: 50%-70% (rounded estimate: 65%) Note: All debt amounts include six months of prepetition interest. S&P generally cap its recovery ratings on the unsecured debt issued by companies that it rates in the 'BB' category at '3'(50%-70% recovery) to account for the risk that they will issue additional priority or pari passu debt on the path to default. HILDING ANDERS: EUR300MM Bank Debt Trades at 74% Discount --------------------------------------------------------- Participations in a syndicated loan under which Hilding Anders International AB is a borrower were trading in the secondary market around 26.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR300 million Payment in kind Term loan facility is scheduled to mature on February 28, 2026. The amount is fully drawn and outstanding. Hilding Anders AB offers a wide array of products that help people sleep better. HOMETOWN LENDERS: Hires 3sixty Consulting as Accountant ------------------------------------------------------- Hometown Lenders, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Alabama to employ 3sixty Consulting Group, LLC as accountant. The firm will be preparing Debtor's corporate state and federal tax returns for the years of 2022 through 2024, as well as to provide tax and accounting advice to the Debtor during this Chapter 11 case. The firm will be paid at $350 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Chris Echols, CPA, a partner at 3sixty Consulting Group, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Chris Echols, CPA 3sixty Consulting Group, LLC 4513 Allen Hollow Place Suwanee, GA 30024 Tel: (404) 398-3888 About Hometown Lenders, Inc. Hometown Lenders, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-81038) on June 3, 2024, listing up to $50 million in both assets and liabilities. Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC represents the Debtor as legal counsel. HOPEMAN BROTHERS: Committee Hires FTI as Financial Advisor ---------------------------------------------------------- The official committee of unsecured creditors of Hopeman Brothers, Inc., seeks approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to employ FTI Consulting, Inc. as financial advisor. The firm will provide these services: a. assistance in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs, reports required under Local Rule 2015-(a)-1, and Monthly Operating Reports; b. assistance with the assessment and monitoring of the Debtor's short term cash flow, liquidity, operating results and financing, if applicable; c. assistance in the evaluation, estimation, reconciliation, review of the claims estimation and administration process; d. assistance in the evaluation of insurance coverages; e. assistance with review of any tax issues associated with, but not limited to, claims trading, preservation of net operating losses, refunds due to the Debtor, plans of reorganization, and asset sales; f. assistance with the review, valuation, and, if applicable, the terms of any potential sale, settlement, disposition or liquidation of both core and non-core assets of the Debtor; g. assistance with the review of the Debtor's cost/benefit analysis with respect to the affirmation or rejection of various executory contracts and leases; h. assistance with the forensic review and financial analysis of the Debtor's historical financial condition, cost structure, settlements and overall financial activity; i. assistance in the review of other financial information prepared by the Debtor, including, but not limited to, cash flow projections and budgets, and trust funding; j. attendance at meetings and assistance to the Committee in discussions with the Debtor, potential investors, banks, other secured lenders, mediators, the U.S. Trustee, and other parties in interest and professionals hired by the same, as requested; k. assistance in the review and/or preparation of information and analysis necessary for the confirmation or opposition of a plan and related disclosure statement in this Chapter 11 Case; l. assistance in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers; m. assistance with financial analysis surrounding any mediation process and the development of economic analysis in connection with a settlement framework; n. assistance preparing materials related to discovery, depositions, negotiations, and other relevant meetings, and assisting in discussions with the Debtor, the United States Trustee, other parties in interest, and their respective professionals; o. assistance evaluating any prepetition transactions of interest to the Committee; p. assistance in the prosecution of the Committee's motions, pleadings, or adversary proceedings, and the Committee's objections or responses to the Debtor's motions (or those of other parties in interest) in this Chapter 11 Case, including attendance at depositions and provision of expert reports/testimony on case issues as required by the Committee; and q. render such other general business consulting or such assistance as the Committee, Caplin & Drysdale, or Morgan Lewis deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in this Chapter 11 Case. The firm will be paid at these rates: Senior Managing Directors $1,095 to 1,495 per hour Directors/Senior Directors/ Managing Directors $825 to 1,110 per hour Consultants/Senior Consultants $450 to 790 per hour Administrative/Paraprofessionals $185 to $370 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Conor P. Tully, a Senior Managing Director at FTI Consulting, Inc., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Conor P. Tully FTI Consulting Inc. 1166 Avenue of the Americas, 15th Floor New York, NY 10036 Telephone: (212) 247-1010 Email: conor.tully@fticonsulting.com About Hopeman Brothers, Inc., During the 1980s, Hopeman Brothers, Inc. transitioned its business away from ship joining and into manufacturing check-out counters used in commercial retail stores such as Walmart. In 2002, Hopeman spun off its cabinet-making business into Cinnabar Solutions, Inc. In 2003, Hopeman sold substantially all of its remaining shipbuilding-related assets to an unrelated party, US Joiner LLC, pursuant to an asset purchase agreement, dated as of December 23, 2003. Since the asset sale in 2003, Hopeman has had no business operations and exists solely to defend and, when appropriate, settle asbestos-related claims. Hopeman Brothers filed Chapter 11 petition (Bankr. E.D. Va. Case No. 24-32428) on June 30, 2024, with $50 million to $100 million in both assets and liabilities. The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel; Blank Rome, LLP as special insurance counsel; Courington, Kiefer, Sommers, Marullo & Matherne, LLC as special asbestos counsel; and Stout Risius Ross, LLC as financial advisor. Kurtzman Carson Consultants, LLC is the claims and noticing agent. IMPERIAL PACIFIC: Committee Hires Intrepid as Investment Banker --------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 case of Imperial Pacific International (CNMI), LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Mariana Islands to employ Intrepid Investment Bankers LLC as investment banker. The firm's services include: (a) assist the committee in analyzing the Debtor's business, properties, financial conditions, and prospects in connection with a sale; (b) prepare and distribute due diligence information in connection with a sale (as supplemented or amended from time to time; (c) identify and solicit potential acquirors, financing sources or partners for a Sale; (d) assist in the determination of the form, structure, terms, and pricing of a Sale, including the development of bid procedures; (e) assist the committee on tactics and strategies for negotiating with potential counterparties and stakeholders, and if requested by the committee, participate in such negotiations; (f) advise the committee on the timing, nature and terms of new securities, other consideration, or other inducements to be offered pursuant to a sale; (g) render financial advice to the committee and participate in meetings or negotiations with stakeholders and/or outside agencies or appropriate parties in connection with a sale; (h) attend meetings of the committee's professionals and its members with respect to matters on which Intrepid has been engaged to advise the committee; (i) provide oral and written testimony, as necessary, with respect to matters on which Intrepid has been engaged to advise the committee in any proceedings before the Bankruptcy Court; and (j) provide other investment banking services as may be mutually agreed by Intrepid and the committee. The firm will be paid at these following fees: (a) initial fee of $50,000; (b) hourly rates of its professionals; and (c) a sale fee payable upon the consummation of any sale; (d) reimbursement for expenses incurred. Lorie Beers, a managing director at Intrepid Investment Bankers, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Lorie R. Beers Intrepid Investment Bankers, LLC 11755 Wilshire Blvd., 22nd Fl. Los Angeles, CA 90025 Telephone: (310) 478-9000 About Imperial Pacific International (CNMI) Imperial Pacific is engaged in the gaming and resort business. Imperial Pacific International (CNMI), LLC filed its voluntary petition for relief under Chapter 11 of the Bankrutpcy Code (Bankr. D. N.M.I. Case No. 24-00002) on April 19, 2024. At the time of filing, the Debtor estimated $10 million to $50 million in assets and $100 million to $500 million in liabilities. The petition was signed by Howyo Chi as manager. Judge Ramona V. Manglona presides over the case. The Debtor tapped Charles H. McDonald, II, Esq. at McDonald Law Office, LLC as counsel and Verita Global as claims and noticing agent. On May 14, 2024, the Office of the United States Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Intrepid Investment Bankers LLC as investment banker. INDIVIDUALIZED ABA: Case Summary & Nine Unsecured Creditors ----------------------------------------------------------- Debtor: Individualized ABA Services for Families LLC IABAS For Families LLC 21682 Shadyspring Road Castro Valley, CA 94546 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Northern District of California Case No.: 24-41559 Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 Email: michael.berger@bankruptcypower.com Total Assets: $193,244 Total Liabilities: $1,635,914 The petition was signed by Raajna Naidu as CEO. A full-text copy of the petition containing, among other items, a list of the Debtor's nine unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PTJIMRQ/Individualized_ABA_Services_for__canbke-24-41559__0001.0.pdf?mcid=tGE4TAMA INFOVINE INC: Amends Plan to Resolve Ascentium Claim Issues ----------------------------------------------------------- InfoVine, Inc., submitted a Sixth Amended Plan of Reorganization for Small Business under Subchapter V dated August 28, 2024. This amended plan addresses the objection of Ascentium. In order to confirm a plan, the Debtor must show that it will have enough cash over the life of the plan to make the required plan payments and operate the Debtor's business. The projections demonstrate that the Debtor will have sufficient funds to operate its business going forward. The Debtor made the payments as ordered by the Bankruptcy Court for May and June of 2024. This Plan of Reorganization proposes to pay Debtor's creditors from the cash flow generated in the ordinary course of the Debtor's business after confirmation. Class 12 consists of the allowed claim of Ascentium Capital LLC. The claim is secured by Kyocera copiers. The claim was filed in the amount of $132,351.48. InfoVine previously surrendered the collateral. The creditor failed to retrieve its collateral. The Debtor disposed of the collateral with no liability for the disposition to the creditor. The claim of Class 12 shall be treated as an unsecured claim in Class 23. This Class is impaired. Like in the prior iteration of the Plan, InfoVine will pay the projected disposable income for 54 months following the Effective Date of this Modified Plan to creditors in Class 23 non-priority unsecured creditors with allowed claims. InfoVine may pay such amounts calendar quarterly starting with the first full calendar quarter after the Effective Date. Payments will be made on the last day of the calendar quarter after the Effective Date (March 31, June 30, September 30, and December 31). The monthly accrual amounts are set forth on the Projections attached hereto and must be paid at the end of each calendar quarter. The Debtor will retain the property of the bankruptcy estate. The Debtor will continue to operate the business and make payments as set forth in this plan and for operating expenses of the Debtor. The Debtor will be able to operate its business after approval of this modified plan with no restrictions except as set forth herein or under any applicable bankruptcy laws. A full-text copy of the Sixth Amended Plan dated August 28, 2024 is available at https://urlcurt.com/u?l=DiPrys from PacerMonitor.com at no charge. Attorney for the Debtor: Reese W. Baker, Esq. Baker & Associates 950 Echo Lane, Ste. 300 Houston, TX 770024 Telephone: (713) 869-9200 Facsimile: (713) 869-9100 Email: courtdocs@bakerassociates.net About InfoVine Founded in 1999, InfoVine provides direct mail operations for both for-profit and non-profit organizations. InfoVine filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33393) on Nov. 15, 2022. In the petition filed by Lorena Igesias, as president and CEO, the Debtor reported assets and liabilities between $1 million and $10 million. Judge Jeffrey P. Norman oversees the case. Brendon D Singh has been appointed as Subchapter V trustee. The Debtor is represented by Reese W Baker, Esq., at Baker & Associates. INNOVATE LOAN: Seeks to Hire KPMG LLP as Accountant --------------------------------------------------- Innovate Loan Servicing Corporation d/b/a Innovate Auto Finance seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ KPMG LLP as accountant. The firm will provide tax compliance for the Debtor, including preparing the Debtor's federal, state, and local income tax returns and supporting schedules for the 2023 tax year, for which the Debtor have filed extensions. The firm will be paid a flat fee of $38,500. Michael Loiacono, a Managing Director at KPMG LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael Loiacono KPMG LLP 345 Park Avenue New York, NY 10154-0102 Tel: (212) 758 9700 Fax: (212 )758 9819 About Innovate Loan Servicing Corporation d/b/a Innovate Auto Finance Innovate Loan Servicing Corporation specializes in managing auto loan receivables across the U.S. from its corporate offices located in North Texas. The Company offers customers several ways to make payments, including 24/7 online account access, automated phone pay and live customer care specialists. Innovate Loan Servicing sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-42243) on June 28, 2024, with up to $1 million in assets and up to $10 million in liabilities. Preston Miller, president, signed the petition. Richard G. Grant, Esq., at Culhane, PLLC serves as the Debtor's legal counsel. INNOVATIVE DESIGNS: Posts Net Income of $22,228 in Second Quarter ----------------------------------------------------------------- Innovative Designs, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting net income of $22,228 on $300,331 of revenues for the three months ended April 30, 2024, compared to a net loss of $112,591 on $27,249 of revenues for the three months ended April 30, 2023. For the six months ended April 30, 2024, the Company reported a net loss of $41,164 on $366,217 of revenues, compared to a net loss of $171,686 on $98,896 of revenues for the six months ended April 30, 2023. As of April 30, 2024, the Company had $1.58 million in total assets, $274,172 in total liabilities, and $1.30 million in total stockholders' equity. Innovative Designs said, "The Company had a net loss of ($41,165) and a negative cash flow of ($143,218) from operation activities for the six-month period ending April 30, 2024. In addition, the Company has an accumulated deficit of ($10,678,120). Management's plans include cash receipts through sales, sales of Company stock, and borrowings from private parties. These factors raise substantial doubt regarding the Company's ability to continue as a going concern for a period of one year from the issuance of these condensed financial statements. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1190370/000173112224001521/e5922_10q.htm About Innovative Designs Headquartered in Pittsburgh, Pennsylvania, Innovative Designs, Inc. operates in two separate business segments: a house wrap for the building construction industry and cold weather clothing. Both of the Company's segment lines use products made from Insultex, which is a low-density polyethylene semi-crystalline, closed cell foam in which the cells are totally evacuated, with buoyancy, scent block, and thermal resistant properties. Kennett Square, PA-based RW Group, LLC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Feb. 22, 2024, citing that the Company had net losses and negative cash flows from operations for the years ended Oct. 31, 2023 and 2022 and an accumulated deficit at Oct. 31, 2023 and 2022. These factors raise substantial doubt about the Company's ability to continue as a going concern for one year from the issuance date of these financial statements. INTEGRATED VENTURES: Incurs $11.52M Net Loss in FY Ended June 30 ---------------------------------------------------------------- Integrated Ventures, Inc., filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $11.52 million on $5.86 million of total revenue for the year ended June 30, 2024, compared to a net loss of $25.46 million on $3.86 million of total revenue for the year ended June 30, 2023. As of June 30, 2024, the Company had $3.94 million in total assets, $3.68 million in total current liabilities, $1.13 million in series C preferred stock, $3 million in series D preferred stock, and a total stockholders' deficit of $3.86 million. The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the company has incurred recurring losses from operations and had not yet achieved profitable operations as of June 30, 2024 which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1520118/000147793224006034/intv_10k.htm About Integrated Ventures Headquartered in Tioga, PA, Integrated Ventures Inc. -- integratedventuresinc.com -- is a diversified holdings company that develops, acquires, operates, and invests in unique and profitable businesses. The Company's business focus is acquiring, launching, and operating companies in the digital asset sector, mainly in digital asset mining and sales of branded mining rigs. Subsequent to June 30, 2024, the Company strategically entered into the rapidly growing health and wellness sector. IRWIN NATURALS: Hire Marula Capital Group as Valuation Consultant ----------------------------------------------------------------- Irwin Naturals seek approval from the U.S. Bankruptcy Court for the Central District of California to employ Marula Capital Group LLC as valuation consultant. The firm will provide these services: a. discuss the historical performance and prospective outlook of the company and the pertinent industry with Company management; b. review and analyze historical and prospective operating and financial information provided by company management to understand performance expectations of the Company; c. analyze and compare multiples of publicly traded and/or private guideline companies; and d. render additional analyses that we deem appropriate. The firm will be paid at these rates: Managing Directors $750 per hour Other Professionals $325 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Wayne Platt, CEO and Founding Partner at Marula Capital Group LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Wayne Platt Marula Capital Group LLC 1901 Avenue of the Stars Suite 200 Los Angeles, CA 90067 Tel: (424) 222-5330 About Irwin Naturals Irwin Naturals Inc. is a provider of business support services. Irwin Naturals Inc. sought relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11324) on Aug. 9, 2024. In the petition filed by Klee Irwin, as chief executive officer, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Honorable Bankruptcy Judge Victoria S. Kaufman oversees the case. The Debtor is represented by Joseph Axelrod, Esq. IYS VENTURES: Court OKs Use of Cash Collateral Until Dec. 28 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois authorized IYS Ventures, LLC to use cash collateral until Dec. 28. Access to cash collateral will allow the company to fund its business operations, pay necessary expenses and maintain liquidity while navigating the bankruptcy process. IYS Ventures will use its cash collateral in accordance with the budget it submitted to the court. As protection, lien claimants will receive replacement liens on the company's equipment, inventory and other assets. The next hearing on the continued use of cash collateral is scheduled for Dec. 18. Objections are due by Dec. 16. About IYS Ventures IYS Ventures, LLC leases, owns and operates gas stations in Illinois, Minnesota, Michigan, Indiana, Ohio, South Dakota, Virginia, Wisconsin, and Louisiana. The Debtor filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-06782) on May 23, 2023, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Muwafak Rizek, manager and member, signed the petition. Judge David D. Cleary oversees the case. Gregory K. Stern, P.C. is the Debtor's legal counsel. KASAI HOLDINGS: Gets Final Approval to Use Cash Collateral ---------------------------------------------------------- Kasai Holdings Three, LLC received final approval from the U.S. Bankruptcy Court for the District of Arizona to use the cash collateral of Cutchall Management Corp. The final order allows the company to use cash, including potential cash collateral, for expenses outlined in its interim budget, with a permissible variance of 10%. To protect the interest of Cutchall, the bankruptcy court approved the weekly payments of $4,000 to the secured creditor, which started on Sept. 6. These payments will be applied toward Cutchall's allowed secured claims as of the petition date. In addition, Cutchall will receive replacement liens on Kasai's post-petition assets, such as cash and receivables. Any cash collateral used by the company will be subject to a surcharge for administrative expenses incurred by Michael Carmel, the appointed Subchapter V trustee. However, the company's legal counsel will not be entitled to a surcharge for administrative expenses. Kasai is prohibited from making loans or transfers to any non-debtor affiliate without obtaining further court approval or a written agreement from Cutchall. About Kasai Holdings Three Kasai Holdings Three, LLC owns and operates a restaurant in Scottsdale, Ariz. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06967) on August 22, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Michael F. Russel, manager through Dinnertainment, LLC, signed the petition. Judge Brenda K. Martin presides over the case. Chris D. Barski, Esq., at Barski Law Firm, PLC represents the Debtor as bankruptcy counsel. KERRI WILSON: Seeks to Hire Century 21 as Real Estate Broker ------------------------------------------------------------ The Kerri Wilson Foundation LLC seeks approval from the U.S. Bankruptcy Court for the Western District of New York to employ Century 21 as Real Estate Broker. The firm will market and sell the Debtor's real property located at 4716 McKinley Parkway, Hamburg, New York. The firm will be paid a commission of 6 percent of the purchase price. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Gabriella Kiraly Century 21 64 Quaker Road East Aurora, NY 14052 Phone: (716) 803-9113 About The Kerri Wilson Foundation LLC The Kerri Wilson Foundation LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.Y. Case No. 24-10395) on April 15, 2024, with $100,001 to $500,000 in assets and liabilities. Timothy R. Collins at Collins Law, PLLC represents the Debtor as legal counsel. KING'S MOVING: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- The U.S. Trustee for Region 20 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of King's Moving & Storage, Inc. About King's Moving & Storage King's Moving & Storage is primarily engaged in providing local or long-distance specialized freight trucking. It conducts business in Wichita, Kansas. King's Moving & Storage filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No. 24-10850) on August 30, 2024, listing up to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Britt D. King as president. Judge Mitchell L Herren presides over the case. Nicholas R. Grillot, Esq., at Hinkle Law Firm, LLC represents the Debtor as counsel. LAREDO OIL: Incurs $2.87 Million Net Loss in FY Ended May 31 ------------------------------------------------------------ Laredo Oil, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $2.87 million on $36,482 of revenue for the year ended May 31, 2024, compared to a net loss of $7.89 million on $0 of revenue for the year ended May 31, 2023. As of May 31, 2024, the Company had $2.80 million in total assets, $13.99 million in total liabilities, and a total stockholders' deficit of $11.19 million. The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company has yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations all of which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/Archives/edgar/data/1442492/000119983524000423/lrdc-10k.htm About Laredo Oil Inc. Austin, TX-based Laredo Oil, Inc. is an oil exploration and production company primarily engaged in acquisition and exploration efforts for mineral properties. In addition to pursuing conventional oil recovery methods in selected oil fields, Laredo Oil plans to locate and acquire mature oil fields, with the intention of recovering "stranded" oil using enhanced recovery methods. LARRY OUTLAW: Seeks to Extend Plan Filing Deadline to Oct. 19 ------------------------------------------------------------- Larry Outlaw and Sons Trucking LLC asked the U.S. Bankruptcy Court for the Eastern District of North Carolina to extend its period to file a chapter 11 plan of reorganization and disclosure statement to October 19, 2024. The Debtor filed a Chapter 11 bankruptcy petition on June 21, 2024. The Debtor explains that a short extension of time to file the Plan and Disclosure Statement is warranted in order to file a Plan that provides proper treatment for the creditors, and in order to prepare proper projections. About Larry Outlaw and Sons Larry Outlaw and Sons Trucking LLC is an active interstate freight carrier based out of Colerain, North Carolina. Larry Outlaw and Sons Trucking LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-02051) on June 21, 2024. The Honorable Bankruptcy Judge Pamela W. Mcafee oversees the case. The Debtor is represented by: John G. Rhyne, Esq. JOHN G. RHYNE, ATTORNEY AT LAW P.O. Box 8327 Wilson, NC 27893 Tel: 552-234-9933 Email: johnrhyne@johnrhynelaw.com LARRY OUTLAW: Wins Final Approval to Use of Cash Collateral ----------------------------------------------------------- Larry Outlaw and Sons Trucking, LLC received final approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use the cash collateral of its secured creditors. The company will use the cash collateral in accordance with the budget it submitted to the court. The budget indicates projected income of $149,000, with total expenses estimated at $125,128, covering items such as insurance, wages, fuel, maintenance, and lease payments, among others. Larry Outlaw will grant replacement liens to secured creditors on post-petition cash and inventory, equivalent to pre-bankruptcy liens. About Larry Outlaw and Sons Trucking Larry Outlaw and Sons Trucking, LLC is an active interstate freight carrier based out of Colerain, N.C. Larry Outlaw and Sons Trucking sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-02051) on June 21, 2024, with $1 million to $10 million in both assets and liabilities. Judge Pamela W. Mcafee oversees the case. John G. Rhyne, Esq., at John G. Rhyne, Attorney at Law is the Debtor's bankruptcy counsel. LAVERTU CAPITAL: Unsecureds to Split $32.5K over 3 Years -------------------------------------------------------- Lavertu Capital Holdings LLC d/b/a A1 Stoneworld, submitted a First Amended Plan of Reorganization dated August 28, 2024. This Plan provides for: 1 class of secured claims; 1 class of unsecured claims; and 1 class of equity security holders. The Plan Proponent must also show that it will have enough cash over the life of the Plan to make the required Plan payments and operate the Debtor's business. The Debtor's projected Disposable Income over the life of the Plan is $32,464.00. Class 1 consists of the Secured Claim of Live Oak. This Claim is secured by a lien on the Live Oak Collateral. The amount of the Class 1 Secured Claim is approximately $400,000.00. This Class is Impaired. To the extent that this Claim is allowed as a secured claim, then the holder will: (i) retain the liens securing the Claim to the extent of the allowed amount of the secured claim; and (ii) receive on account of such Claim deferred cash payments totaling at least the allowed amount of the Claim, of a value, as of the Effective Date of the claimant's interest in the estate's interest in the property securing the claim. Accordingly, the Reorganized Debtor shall make 60 equal monthly payments of principal and interest in the amount of $8,303.34, which payment amount is calculated based upon amortizing the amount of the Allowed Secured Claim over a five-year period with interest at the Secured Rate. This claim shall be paid directly by the Debtor. Class 2 consists of the Allowed Unsecured Claims against the Debtor. This Class is Impaired. * Consensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of $32,500.00. Payments will be made in equal quarterly payments of $2708.33. Payments shall commence on the fifteenth day of the month, on the first month that begins after the Effective Date and shall continue quarterly for eleven additional quarters. Pursuant to §1191, the value to be distributed to unsecured creditors is greater than the Debtor's projected disposable income to be received in the 3-year period beginning on the date that the first payment is due under the plan. Holders of Class 2 claims shall be paid directly by the Debtor. * Nonconsensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of its projected Disposable Income, $32,464.00. If the Debtor remains in possession, plan payments shall include the Subchapter V Trustee's administrative fee which will be billed hourly at the Subchapter V Trustee's then current allowable blended rate. Plan Payments shall commence on the fifteenth day of the month, on the first month that is one year after the Effective Date and shall continue annually for two additional years. The initial annual payment shall be $16,952.00. Holders of Class 2 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 28, 2024 is available at https://urlcurt.com/u?l=N0ooBf from PacerMonitor.com at no charge. Attorneys for the Debtor: Jeffrey S. Ainsworth, Esq. Cole B. Branson, Esq. BransonLaw, PLLC 1501 E. Concord Street Orlando, Florida 32803 Telephone (407) 894-6834 Fax (407) 894-8559 E-mail: jeff@bransonlaw.com E-mail: cole@bransonlaw.com About Lavertu Capital Holdings Founded in 2006, Lavertu Capital Holdings LLC, doing business as A1 Stoneworld, started as a countertop fabricator in Green Cove Springs, FL. The Company offers a wide range of products including granite, marble, quartz, quartzite, and soapstone from some of the most respected brands. The products the Company offers come from quarries around the world in locations such as Brazil, Spain, Italy, and India. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01043) on April 13, 2024, with $288,699 in assets and $4,272,277 in liabilities. Kenneth Lavertu, Jr., owner and chief executive officer, signed the petition. Judge Jason A. Burgess presides over the case. Jeffrey S. Ainsworth, Esq. at Bransonlaw, PLLC represents the Debtor as bankruptcy counsel. LHW MASTER: Case Summary & Three Unsecured Creditors ---------------------------------------------------- Debtor: LHW Master Tenant LLC 20 East Sunrise Highway Valley Stream, NY 11581 Business Description: LWH Master is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73794 Judge: Hon. Robert E Grossman Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 Email: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner, Manager of GCM MANAGER LLC, as Manager. A full-text copy of the petition containing, among other items, a list of the Debtor's three unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JEYH3EA/LHW_MASTER_TENANT_LLC__nyebke-24-73794__0001.0.pdf?mcid=tGE4TAMA LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 59% Discount --------------------------------------------------------- Participations in a syndicated loan under which LifeScan Global Corp is a borrower were trading in the secondary market around 41.3 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.01 billion Term loan facility is scheduled to mature on December 31, 2026. About $864.1 million of the loan is withdrawn and outstanding. LifeScan Global Corporation is a provider of blood glucose monitoring systems for home and hospital use. LL FLOORING: Committee Hires Cole Schotz as Bankruptcy Counsel -------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of LL Flooring Holdings, Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Cole Schotz, PC as legal counsel. The firm will render these services: (a) serve as counsel to the committee; (b) provide legal advice with respect to the committee's powers, rights, duties and obligations in the Chapter 11 cases; (c) assist and advise the committee in its consultations with the Debtors regarding the administration of the Chapter 11 cases; (d) assist the committee in reviewing and negotiating terms for unsecured creditors; (e) investigate the liens asserted by the Debtors' lenders and any potential causes of action; (f) advise the committee on the corporate aspects of the Chapter 11 cases and any plan(s) or other means to effect the Debtors' restructuring that may be proposed in connection therewith and participation in the formulation of any such plan(s) or means of implementing the restructuring, as necessary; (g) take all necessary actions to protect and preserve the estates of the Debtors for the benefit of unsecured creditors; (h) prepare on behalf of the committee all necessary legal papers in connection with its duties in the Chapter 11 cases; (i) advise and represent the committee in hearings and other judicial proceedings in connection with all necessary motions, applications, objections and other pleadings and otherwise protect the interests of those represented by it; and (j) perform all other necessary legal services as may be required and authorized by the committee that are in the best interests of unsecured creditors. The hourly rates of the firm's counsel and staff are as follows: Justin R. Alberto, Member $925 Patrick J. Reilley, Member $900 Stacy L. Newman, Member $800 Jack M. Dougherty, Associate $575 Michael E. Fitzpatrick, Associate $575 Melissa M. Hartlipp, Associate $430 Larry Morton, Paralegal $400 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. Justin Alberto, Esq., an attorney at Cole Schotz, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. Cole Schotz professionals working on this matter will bill at their standard hourly rates. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: Cole Schotz did not represent the committee during the 12 months preceding the filing of the Chapter 11 cases. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Answer: Cole Schotz expects to develop a prospective budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, as to which Cole Schotz reserves all rights. Mr. Alberto disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Justin R. Alberto, Esq. Cole Schotz, P.C. 500 Delaware Avenue, Suite 1410 Wilmington, Delaware 19801 Telephone: (302) 652-3131 Facsimile: (302) 652-3117 Email: jalberto@coleschotz.com About LL Flooring Holdings LL Flooring Holdings, Inc. is a specialty retailer of flooring. The company carries a wide range of hard-surface floors and carpets in a range of styles and designs, and primarily sells to consumers or flooring-focused professionals. LL Flooring and four of its affiliates sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11680) on August 11, 2024. In the petitions signed by Holly Etlin as chief restructuring officer, LL Flooring disclosed total assets of $501,117,025 and total debt of $416,298,035 as of July 31, 2024. Judge Brendan Linehan Shannon oversees the cases. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Houlihan Lokey Capital Inc. as investment banker; and AlixPartners LLP as financial advisor. Stretto, Inc. is the Debtors' claims and noticing agent. On Aug. 21, 2024, the Office of the United States Trustee for Region 3 appointed an official committee of unsecured creditors appointed in these Chapter 11 cases. The committee tapped Cole Schotz, PC as legal counsel and Genesis Credit Partners LLC and Foresight Restructuring LLC as co-financial advisors. LL FLOORING: Committee Taps Genesis Credit as Co-Financial Advisor ------------------------------------------------------------------ The official committee of unsecured creditors appointed in the Chapter 11 case of LL Flooring Holdings, Inc., and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Genesis Credit Partners LLC as co-financial advisor. The firm will render these services: (a) review and analyze financial-related disclosures but excluding the Schedules of Assets and Liabilities and the Statement of Financial Affairs; (b) assess and monitor the Debtors' short-term cash flow, liquidity and operating results; (c) review any proposed key employee retention or other employee benefit programs; (d) analyze the Debtors' core business assets and operations; (e) evaluate the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; (f) monitor any asset sale process or going concern sale process and conferring with Foresight as necessary with respect to comments from the Asian creditor body and the concessions campaign; (g) monitor and analyze GOB sales and asset liquidations; (h) analyze any claims reconciliation and estimation processes; (i) review financial information prepared by the Debtors; (j) review historical financial and operational information provided by the Debtors or other third parties in coordination with counsel; (k) attend meetings and assist in discussions with the Debtors, potential investors, secured lenders, the committee and/or any other official committees organized in the Chapter 11 cases, the U.S. Trustee, other parties in interest and professionals hired by the same, as requested; (l) review and/or prepare information and analysis necessary for the confirmation of a plan and related disclosure statement in the Chapter 11 cases; (m) investigate, evaluate and analyze avoidance actions and/or preferential transfers for specific creditors as requested by Foresight; (n) assist with the prosecution of committee responses/objections to the Debtors' motions; (o) render such other general business consulting or provide such other assistance as the committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in these proceedings; and (p) coordinate with Foresight and counsel on the above workstreams, strategy and work product. The hourly rates of the firm's professionals are as follows: Partners $750 - $1,000 Directors/Managing Directors $600 - $700 Associates/Vice-Presidents $450 - $550 Analysts $300 - $400 Edward Kim, a partner at Genesis Credit Partners, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Edward Kim Genesis Credit Partners LLC 701 Brickell Avenue, Suite 1480 Miami, FL 33131 Email: contact@gencp.com About LL Flooring Holdings LL Flooring Holdings, Inc. is a specialty retailer of flooring. The company carries a wide range of hard-surface floors and carpets in a range of styles and designs, and primarily sells to consumers or flooring-focused professionals. LL Flooring and four of its affiliates sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11680) on August 11, 2024. In the petitions signed by Holly Etlin as chief restructuring officer, LL Flooring disclosed total assets of $501,117,025 and total debt of $416,298,035 as of July 31, 2024. Judge Brendan Linehan Shannon oversees the cases. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Houlihan Lokey Capital Inc. as investment banker; and AlixPartners LLP as financial advisor. Stretto, Inc. is the Debtors' claims and noticing agent. On Aug. 21, 2024, the Office of the United States Trustee for Region 3 appointed an official committee of unsecured creditors appointed in these Chapter 11 cases. The committee tapped Cole Schotz, PC as legal counsel and Genesis Credit Partners LLC and Foresight Restructuring LLC as co-financial advisors. LL FLOORING: Panel Seeks to Tap Foresight as Co-Financial Advisor ----------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 case of LL Flooring Holdings, Inc., and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Foresight Restructuring LLC as co-financial advisor. The firm will render these services: (a) assist the committee in evaluating and analyzing avoidance actions, including fraudulent conveyances and preferential transfers; (b) assist the committee in identifying, valuing, and pursuing estate causes of action arising out of historical acts and omissions; (c) assist the committee in reviewing the Debtors' statements of financial affairs, schedules of assets and liabilities. (d) assist the committee in reviewing the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; (e) monitor and confer with Genesis Credit Partners LLC with respect to the sale process and any liquidation or going concern pivot and impacts on the creditor body; (f) assist the committee members based in Asia in understanding the Chapter 11 process and solicit feedback and action from the Asian creditors with respect to the concessions campaign and other matters; (g) develop a complete understanding of the Debtors' businesses and their valuations for the purpose of communication with Asian creditors with respect to plan and disclosure statement related issues and considerations; and (h) coordinate with Genesis and counsel on the above workstreams, strategy and work product. The firm will be paid at these hourly rates: Partner $650 Associate $350 In addition, the firm will seek reimbursement for expenses incurred. Yi Zhu, a partner at Foresight Restructuring, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Yi Zhu Foresight Restructuring LLC 151 Mount Grove Road Califon, NJ 07830 Telephone: (646) 881-4087 Email: infoforesightrestructuring.com About LL Flooring Holdings LL Flooring Holdings, Inc. is a specialty retailer of flooring. The company carries a wide range of hard-surface floors and carpets in a range of styles and designs, and primarily sells to consumers or flooring-focused professionals. LL Flooring and four of its affiliates sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11680) on August 11, 2024. In the petitions signed by Holly Etlin as chief restructuring officer, LL Flooring disclosed total assets of $501,117,025 and total debt of $416,298,035 as of July 31, 2024. Judge Brendan Linehan Shannon oversees the cases. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Houlihan Lokey Capital Inc. as investment banker; and AlixPartners LLP as financial advisor. Stretto, Inc. is the Debtors' claims and noticing agent. On Aug. 21, 2024, the Office of the United States Trustee for Region 3 appointed an official committee of unsecured creditors appointed in these Chapter 11 cases. The committee tapped Cole Schotz, PC as legal counsel and Genesis Credit Partners LLC and Foresight Restructuring LLC as co-financial advisors. LOGIX HOLDING: $250MM Bank Debt Trades at 26% Discount ------------------------------------------------------ Participations in a syndicated loan under which Logix Holding Co LLC is a borrower were trading in the secondary market around 74.4 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $250 million Term loan facility is scheduled to mature on December 23, 2024. About $178.8 million of the loan is withdrawn and outstanding. Logix Holding Company, LLC operates as a holding company. The Company, through its subsidiaries, provides wireline telecom services. Logix Holding serves customers in the United States. LUMEN TECHNOLOGIES: S&P Lowers ICR to 'SD' on Distressed Exchange ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based telecommunications service provider Lumen Technologies Inc. to 'SD' (selective default) from 'CC'. At the same time, S&P lowered the issue-level ratings on the affected issues to 'D'. S&P said, "The downgrade follows the completion of the debt restructuring, which we view as tantamount to default. Lumen exchanged a series of senior unsecured notes at wholly-owned subsidiary Level 3 Financing Inc. for new 10% senior secured second-lien notes due 2032. It also exchanged a series of senior unsecured notes at Lumen for new 10% super-priority second-out notes due 2032. We view Lumen's capital structure as unsustainable and believe the up-tiering to a more senior position and new higher interest rate are not sufficient to offset an extension of maturities and a discount to par on the new notes. "We plan to reassess our ratings on Lumen in the near term. We will most likely raise our issuer credit rating on Lumen to 'CCC+', reflecting our view that the company's capital structure is still unsustainable despite the recent contract wins with hyperscalers, including its partnership with Microsoft, to provide connectivity associated with AI data demand. While we view these deals as credit positive, we still expect Lumen's EBITDA will decline sharply in 2025 as it accelerates investment in network and IT systems. Further, we forecast Lumen's capital expenditure will rise as the company works to increase network capacity over the next five years. "While these cash outflows are more than offset by the upfront cash payments, we still expect its leverage will increase to the high-5x area by 2025, which is elevated for a business in secular decline. Execution missteps from its network and IT systems integration and fiber footprint expansion could cause leverage to drift higher longer-term." LYONS MAGNUS: $285MM Bank Debt Trades at 15% Discount ----------------------------------------------------- Participations in a syndicated loan under which Lyons Magnus Inc is a borrower were trading in the secondary market around 85.0 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $285 million Term loan facility is scheduled to mature on November 14, 2024. The amount is fully drawn and outstanding. Lyons Magnus Inc produces and markets food products. MAD ENGINE: $275MM Bank Debt Trades at 17% Discount --------------------------------------------------- Participations in a syndicated loan under which Mad Engine Global LLC is a borrower were trading in the secondary market around 82.6 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $275 million Term loan facility is scheduled to mature on July 16, 2027. About $256.1 million of the loan is withdrawn and outstanding. Mad Engine is engaged in the design, manufacture and wholesale distribution of licensed and branded apparel to retailers throughout the United States. MAGENTA BUYER: $3.18BB Bank Debt Trades at 67% Discount ------------------------------------------------------- Participations in a syndicated loan under which Magenta Buyer LLC is a borrower were trading in the secondary market around 32.8 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $3.18 billion Term loan facility is scheduled to mature on July 27, 2028. The amount is fully drawn and outstanding. Magenta Buyer, LLC (McAfee) is a provider of cybersecurity software that derives revenue from the sale of security products, subscriptions, SaaS, support and maintenance, and professional services. MANNING LAND: Hires Roxborough Pomerance Nye & Adreani as Counsel ----------------------------------------------------------------- Manning Land Company LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Central District of California to employ Roxborough Pomerance Nye & Adreani, LLP as special litigation counsel. The professional services to be rendered are as follows: (a) prepare the documents and pleadings necessary to continue to prosecute the actions; (b) analyze the possibility for settlement of the actions and conduct possible settlement negotiations; (c) if a judgment is obtained in favor of the estates in the actions, oppose any motion for new trial by any opposing party; (d) perform any and all other legal services incident and necessary herein to preserve the estates' interests in the claims that are the subject of the actions; and (e) perform any and all other legal services incident and necessary herein as the Debtors may require of the firm as special counsel. The firm's counsel and staff will be paid at these hourly rates: Nicholas Roxborough, Attorney $850 Vince Gannuscio, Attorney $450 Joseph Gjonola, Attorney $450 Paralegals $195 In addition, the firm will seek reimbursement for expenses incurred Mr. Roxborough disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached through: Nicholas Roxborough, Esq. Roxborough Pomerance Nye & Adreani, LLP 5820 Canoga Ave. Los Angeles, CA 91367 Telephone: (818) 992-9999 About Manning Land Company Manning Land Company and its affiliates operate a meat product manufacturing business. Manning Land Company, LLC and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 24-16757) on August 22, 2024. The petitions were signed by Salvatore Anthony DiMaria as managing member. At the time of filing, Manning Land listed $10 million to $50 million in both assets and liabilities. Judge Vincent P. Zurzolo oversees the cases. The Debtors tapped Leonard M. Shulman, Esq. at Shulman Bastian Friedman & Bui LLP as bankruptcy counsel and Roxborough Pomerance Nye & Adreani, LLP as special litigation counsel. MAVENIR SYSTEMS: $585MM Bank Debt Trades at 33% Discount -------------------------------------------------------- Participations in a syndicated loan under which Mavenir Systems Inc is a borrower were trading in the secondary market around 67.4 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $585 million Term loan facility is scheduled to mature on August 18, 2028. About $568.9 million of the loan is withdrawn and outstanding. Mavenir Systems, Inc. provides software-based networking solutions. The Company offers internet protocol based voice, videos, communication, and messaging services, as well as multimedia subsystem, evolved packet core, and session border controller. MAVENIR SYSTEMS: Moody's Appends 'LD' Designation to 'Caa1-PD' PDR ------------------------------------------------------------------ Moody's Ratings appended a Limited Default (LD) designation to the Caa1-PD Probability of Default Rating of Mavenir Systems, Inc., changing it to Caa1-PD/LD from Caa1-PD. The company missed an interest payment on its credit facility in September after a 5-day grace period (extended through October) which is considered a limited default under Moody's definition. Moody's will remove the LD designation in a few days. Mavenir's Caa1 Corporate Family Rating and stable outlook remain unaffected by the default. Moody's believe the company may continue to raise capital to support the solvency of the business in the form of debt and or equity from new investors despite continuing and material declines in operating performance. Revenue and EBITDA fell sharply in the most recent fiscal year, by approximately 16% and 114% respectively. Free cash flow was nearly $150 million negative, due primarily to an aggressive growth strategy with very high research and development costs (over 50% of revenue, Moody's adjusted including capitalized and non-cash costs), funded with capital contributions from financial sponsors. Liquidity is weak with limited cash and little if any revolver capacity. Any additional debt raised would further burden an already unsustainable capital structure and increase leverage even higher (on negative EBITDA). This potential creates a high risk of uncertainty about the viability of the business. Mavenir Systems, Inc. sells core network infrastructure software solutions for 4G/5G, to mobile network operators. The Company is a combination of the former mobile division of Mitel Networks Corporation and Xura, Inc., excluding Xura's enterprise messaging business. Mavenir is majority owned and controlled by the private equity (PE) firm, Siris Capital. Koch Strategic Platforms ("KSP"), a subsidiary of Koch Investments Group, owns a minority interest. The Company generated approximately $431 million in revenue during the last 12 months ended April 30, 2024. MCMULLEN BRAND: Hires Finestone Hayes LLP as Counsel ---------------------------------------------------- The Mcmullen Brand, Inc., fka Mcmullen Management II, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Finestone Hayes LLP as counsel. The firm will provide these services: a. advise and represent the Debtor as to all matters and proceedings within this Chapter 11 case, other than those particular areas that may be assigned to special counsel; b. assist, advise and represent the Debtor in any manner relevant to a review of its debts, obligations, maximization of its assets and where appropriate, disposition thereof; c. assist, advise and represent the Debtor in the operation of its business; d. assist, advise, and represent the Debtor in the performance of all its duties and powers under the Bankruptcy Code and Bankruptcy Rules, and in the performance of such other services as are in the interests of the estate; and e. assist, advise, and represent the Debtor in dealing with its creditors and other constituencies, analyzing the claims in this case, and formulating and seeking approval of a plan of reorganization. The firm will be paid at $420 to $640 per hour. The firm received a pre-petition retainer in the amount of $57,500. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ryan A. Witthans, Esq. a partner at Finestone Hayes LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Ryan A. Witthans Stephen D. Finestone Finestone Hayes LLP 456 Montgomery Street, Suite 1300 San Francisco, CA 94104 Tel: (415) 481-5481 Fax: (415) 398-2820 Email: rwitthans@fhlawllp.com sfinestone@fhlawllp.com About The McMullen Brand The McMullen Brand, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41259) on August 20, 2024, with $500,001 to $1 million in assets and $1 million to $10 million in liabilities. Judge Charles Novack presides over the case. Ryan A. Witthans, Esq., at Finestone Hayes, LLP represents the Debtor as legal counsel. MEDEX LLC: Hires Rogers Law Group P.A. as Special Counsel --------------------------------------------------------- Medex LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Mississippi to employ Rogers Law Group, P.A. as special counsel. The Debtor needs the firm's legal assistance in connection with a case (Case No. CV24-056(MM)L) filed in the Lee County Circuit Court, captioned as Leggitt Holdings, LLC v. John R. Logan, Samantha M. Logan and MedEx. The firm will be paid at the rate of $300 per hour, plus costs and expenses, including a $5,000 general retainer. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. .N. Chandler Rogers, Esq., a partner at Rogers Law Group, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: L.N. Chandler Rogers, Esq. Rogers Law Group, P.A. 201 East Bankhead Street New Albany, MS 38652 Tel: (662) 538-5990 Fax: (662) 538-5997 Email: rlg@rogerslawgroup.com About Medex LLC MedEx, LLC, a company in Saltillo, Miss., filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Miss. Case No. 24-11781) on June 21, 2024, listing as much as $1 million to $10 million in both assets and liabilities. John Logan, managing member, signed the petition. The Law Offices of Craig M. GenoENO, PLLC serve as the Debtor's bankruptcy counsel. MIRACARE NEURO: Seeks to Tap David R. Herzog as Bankruptcy Counsel ------------------------------------------------------------------ Miracare Neuro Behavioral Health, PC, doing business as Palos Behavioral Health Professionals and doing business as Mira Care Outpatient Behavioral Health Professionals, seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ the Law Office of David R. Herzog, LLC as legal counsel. The firm's services include: (a) advise the Debtor with respect to its duties, powers and responsibilities; (b) assist the Debtor in the negotiation, formulation and drafting of a plan of reorganization; (c) appear for, prosecute, defend and represent the Debtor's interests in matters arising in or related to this case; (d) prepare all necessary legal papers as may be necessary in connection with this case; and (e) perform such other legal services as may be required. The firm will be compensated at its standard hourly rates plus out-of-pocket expenses incurred. David Herzog, Esq., an attorney at Law Office of David R. Herzog, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: David R. Herzog, Esq. Law Office of David R. Herzog, LLC 53 W. Jackson Blvd., Suite 1442 Chicago, IL 60604 Telephone: (312) 977-1600 Email: drh@dherzoglaw.com About Miracare Neuro Behavioral Health Miracare Neuro Behavioral Health P.C. is a comprehensive behavioral health services delivery system offering outpatient services at various levels of care. It offers a comprehensive, multi-interventional mental health treatment for children, adolescents, adults and their families. Miracare Neuro Behavioral Health P.C. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-13266) on September 9, 2024. In the petition filed by Christopher Higgins, as president, the Debtor reports estimated assets by estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Donald R. Cassling handles the case. The Law Office of David R. Herzog, LLC serves as the Debtor's counsel. MISSOURI MT: Case Summary & Two Unsecured Creditors --------------------------------------------------- Debtor: Missouri MT Holdings LLC 20 East Sunrise Highway Valley Stream, NY 11581 Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-73795 Judge: Hon. Louis A Scarcella Debtor's Counsel: Gary F. Herbst, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: 516-826-6500 Email: gfh@lhmlawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Samuel Goldner, Manager of GCM Manager LLC, as Manager. A full-text copy of the petition containing, among other items, a list of the Debtor's two unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/OC6R2RA/MISSOURI_MT_HOLDINGS_LLC__nyebke-24-73795__0001.0.pdf?mcid=tGE4TAMA MOGA TRANSPORT: Hires Farsad Law Office as Bankruptcy Counsel ------------------------------------------------------------- Moga Transport, Inc., seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Farsad Law Office, P.C. as general bankruptcy counsel. The firm's services include: a. advising the Debtor with respect to the powers and duties as Debtor-in - possession in the continued operation of the business and management of the Debtor's property; b. taking necessary action to avoid any liens against the Debtor's property, if needed; c. assisting, advising and representing the Debtor in consultations with creditors regarding the administration of this case, including the creditors holding liens on the property; d. advising and taking any action to stay foreclosure proceedings against any of Debtor's property, specifically the Property discussed above; e. preparing on behalf of the applicants as Debtor-in-possession necessary applications, answers, orders, reports and other legal papers; f. preparing on behalf of the applicants as Debtor-in-possession a disclosure statement, a plan of reorganization, and representing the Debtor at any hearing to approve the disclosure statement and to confirm the plan of reorganization; g. assisting, advising and representing the Debtor in any manner relevant to a review of any contractual obligations, and asset collection and dispositions; h. preparing documents relating to the disposition of assets; i. advising the Debtor on finance and finance-related matters and transactions and matters relating to the sale of the Debtor's assets; j. assisting, advising and representing the Debtor in any issues associated with the acts, conduct, assets, liabilities and financial condition of the Debtor, and any other matters relevant to this case or to the formulation of plan(s) of reorganization; k. assisting, advising and representing the Debtor in the negotiation, formulation, preparation and submission of any plan(s) or reorganization and disclosure statement(s); l. providing other necessary advice and services as the Debtor may require in connection with this case, including advising and assisting the Debtor with respect to resolving disputes with any creditor that may arise; m. preparing status conference statements, and appearing at all court hearings as necessary, including status conference hearings before the court; and n. obtaining the necessary approval from the Court for Approval of Disclosure Statement and soliciting ballots as necessary for plan confirmation. The firm will be paid at these rates: Arasto Farsad $350 per hour Nancy Weng $350 per hour Paralegals $100 per hour The firm will be paid a retainer in the amount of $45,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Arasto Farsad, Esq., a partner at Farsad Law Office, P.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Arasto Farsad, Esq. Nancy Weng (CA SBN 251215) Farsad Law Office, P.C. 1625 The Alameda, Suite 525 San Jose CA 95126 Tel: (408) 641-9966 Fax: (408) 866-7334 Email: farsadlaw1@gmail.com About Moga Transport, Inc. Moga Transport Inc. is part of the general freight trucking industry. Moga Transport Inc. sought relief under Chapter 11 of the U.S. Bankruptcy (Bankr. N.D. Cal. Case No. 24-10478) on September 9, 2024. In the petition filed by Prabhjeet Gil, as VP HR and legal, the Debtor reports estimated assets between $500,000 and $1 million and $1 million and $10 million. The Honorable Bankruptcy Judge William J .Lafferty handles the case. The Debtor is represented by: Arasto Farsad, Esq. FARSAD LAW OFFICE, P.C. 1625 The Alameda, Suite 525 San Jose, CA 95126 Tel: (408) 641-9966 E-mail: Farsadlaw1@gmail.com MONTICELLO CONSTRUCTION: Plan Filing Deadline Extended ------------------------------------------------------ Judge Jamie A. Wilson of the U.S. Bankruptcy Court for the Southern District of Mississippi extended Monticello Construction & Real Estate, LLC's exclusive period to file disclosure statement and plan for an additional sixty days. In a court filing, the Debtor was required to file its disclosure statement and plan of reorganization on or before August 8, 2024. The Debtor and its counsel diligently attempted to gather the information necessary to complete these documents and file them in a timely manner. However, because of the extent of the information involved, they have not been able to do so. In addition, the only remaining steps needed to "finish" this case is to sell the remaining lots. The Debtor and its broker are working on those sales. A disclosure statement and plan are not needed, and the costs of preparation of them can be avoided. Monticello Construction & Real Estate, LLC is represented by: Craig M. Geno, Esq. Law Offices of Craig M. Geno, PLLC 587 Highland Colony Parkway Ridgeland, MS 39157 Telephone: (607) 427-0048 Facsimile: (607) 427-0050 Email: cmgeno@cmgenolaw.com About Monticello Construction & Real Estate Monticello Construction & Real Estate, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No. 24-00872) on April 10, 2024, with up to $10 million in both assets and liabilities. Moe Chowdhury, managing member, signed the petition. Judge Jamie A. Wilson oversees the case. The Law Offices of Craig M. Geno, PLLC, is the Debtor's legal counsel. NEW CONSTELLIS: S&P Downgrades ICR to 'SD' on Distressed Exchange ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on New Constellis Borrower LLC to 'SD' from 'CCC+'. S&P also lowered its issue-level ratings on the company's second-lien term loans to 'D' from 'CCC-'. The 'CCC+' issue-level rating on the first-lien term loan is unchanged. S&P said, "We view the transaction as a selective default. The company completed the refinancing of its existing first-lien and second-lien term loans. Second-lien term loan holders had the option to exit and receive cash representing 50% of par or to receive a new second-lien term loan at 50% of par and exchange 50% of their position for new preferred equity. As a result, the amount of the second-lien term loan declined to $76.1 million from $155.1 million. In our view, the exchange offers lenders less than the original promise, and we consider it a selective default. First-lien loan holders had the option to receive cash representing par value and exit or exchange into a new first-lien term loan at par. The new first-lien amount of $118.8 million incorporates accrued fees and interest. Exchanging lenders also committed to $35 million incremental first-lien debt that can be drawn over the next 12 months. Remaining lenders in the first-lien loan also hold equity in the company, which we factor into our view that the transaction did not constitute a distressed exchange. For both term loan facilities, lenders will allow for up to two quarters of interest to be paid in kind. We view the transaction as a necessary action toward the company improving its liquidity and cash flow position." The transaction will provide some immediate cash flow improvement by lowering the company's debt service burden while also adding meaningful liquidity that can be utilized for working capital needs upon the company securing new contracts. Other amendments within the agreements include the extension of the first- and second-lien maturity dates to December 2027 and December 2028, respectively, while also replacing the fixed charge coverage financial covenant with a progressive liquidity covenant. S&P said, "We intend to review our ratings on the company, including the issuer credit rating and issue-level ratings, shortly. We expect to incorporate the new capital structure, recent events, and our forward-looking opinion of its creditworthiness." NG PACKAGING: Moody's Downgrades CFR to 'Ba2', Outlook Stable ------------------------------------------------------------- Moody's Ratings downgraded NG Packaging & Recycling Corporation Holdings ("SMI Group" or "SMI")'s Corporate Family Ratings, and NG PET R&P Latin America, S.A. ("NG Latin America")'s rating on its $380 million guaranteed senior unsecured notes to Ba2 from Ba1. This concludes the review started on May 17, 2024. The outlook for both issuers is stable. RATINGS RATIONALE The downgrade of SMI Group's rating to Ba2 reflects the expected credit profile following significant investment made over the past year and a half in the expansion of its recycling platform to capture growing demand. SMI Group strategy will begin yielding results within the next 18 months, a period in which Moody's also expect the company to implement a more conservative financial policy and remain focused in reducing its leverage. In 2023, SMI Group reported revenues of $932 million and a total gross volume of 35.8 billion units, already 11.9% higher than the prior year. Reported EBITDA reached $154 million. However, since executed capex for the year was high at $161 million, debt/EBITDA peaked at 4.3x. Capex for 2023 was primarily related to the recycling expansion project. As most of the investments concluded and some 90% of 2025's recycled resin production is already committed under long term contracts, capex will decline to around $61 million in 2024 and debt / EBITDA will decline to 3.8x in 2024, likely falling below 3.0x in 2026. In 2024, cash generation will still be affected by non-recurrent expenses and capital needs such as those related to the ramp up of the new operations and the bottle collection network build up required to source the new recycling facilities. Going forward, as this effect normalizes operating results should improve. The company expects revenues to grow at 5.6% - 5.7% in 2025 – 2026 and EBITDA margins to improve towards 19.3% - 19.5% from current 17%. As of June 2024, the group had $20 million in cash and equivalents. Considering the fully available committed revolving credit facility totaling $135 million, the company is able to cover its $39.2 million short-term debt. SMI Group's main sources of liquidity are short-term bank lines and revolving uncommitted credit bank facilities. The current availability under uncommitted lines is close to $800 million. Moreover, Moody's project that the group's leverage will continue to be high relative to peers rated at the same level. The company faces foreign exchange risk as the bulk of its debt is denominated in dollars but it has a natural hedge considering more than 80% of its cash is generated in dollars. The stable outlook reflects Moody's consideration that through the recent expansions, SMI will gradually improve its cash generation and overall credit metrics. Despite the expected improvements, SMI credit profile will remain comensurated within the Ba2 rating category through 2025. Although the company has some liquidity cushion given recent liability management and availability under committed lines, SMI will require additional refinancing efforts in the short term to address 2026 debt maturities. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is dependent upon a sustainable improvement in the size and scale, cash position resulting in good liquidity, credit metrics and continued stability in the competitive environment. Quantitatively, the ratings could be upgraded if adjusted debt to LTM EBITDA is below 3.0x, adjusted EBITDA margin is above 20.0%, and free cash flow to debt is above 10.0% on a sustained basis. Additionally, a rating upgrade would require very good liquidity with SMI being capable to meet obligations over the coming 12 months through internal resources without relying on external sources of committed financing. A rating downgrade could be triggered if the company's credit metrics were to deteriorate materially because of liquidity pressure, operating difficulties or a deterioration in its leading market positions. Specifically, the ratings could be downgraded if adjusted debt to LTM EBITDA remains close to 4.0x, adjusted EBITDA margin is below 17.0%, and free cash flow to debt remains negative. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass and Plastic Containers published in December 2021. NORTHEAST LANDSCAPING: Hires Chace Ruttenberg as Attorneys ---------------------------------------------------------- Northeast Landscaping & Tree Services, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Rhode Island to employ Chace Ruttenberg & Freedman, LLP as attorneys. The firm will provide these services: a. take all necessary action to protect and preserve the value of the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; b. prepare on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and other papers in connection with the administration of the Debtor's estate; c. take all appropriate actions in connection with the sale of any or all of the Debtor's assets pursuant to section 363 of the Bankruptcy Code, or otherwise; d. take all necessary actions in connection with any chapter 11 plan and related disclosure statement and all related documents, and such further actions as may be required in connection with the administration of the Debtor's estate; and e. perform all other necessary legal services in connection with the prosecution of the chapter 11 cases. The firm will charge the Debtor for its legal services on flat fee basis in accordance with its ordinary and customary rates. The firm received a fee an advance retainer in the amount of $30,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Andre S. Digou, Esq., a partner at Chace Ruttenberg & Freedman, LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Andre S. Digou, Esq. Chace Ruttenberg & Freedman, LLP One Park Row, Suite 300 Providence, RI 02903 Tel: (401) 453-6400 Email: rland@crfllp.com 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 NW DEVELOPERS: Seeks to Tap Karr Tuttle Campbell as Legal Counsel ----------------------------------------------------------------- NW Developers, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to employ Karr Tuttle Campbell as its legal counsel. The firm's services include: (a) assist the Debtor in the investigation of the financial affairs of the estate; (b) provide legal advice and assistance to the Debtor with respect to matters relating to this case and creditor distribution; (c) prepare all pleadings necessary for proceedings arising under this case; and (d) perform all necessary legal services for the estate in relation to this case. The firm will be paid at these hourly rates: Bruce Leaverton, Attorney $795 Steven Palmer, Attorney $500 Associates $265 - $325 Paalegals $260 In addition, the firm will seek reimbursement for expenses incurred. Manmohan Dhaliwal, a managing member of the Debtor, paid the firm an amount of $40,000. Mr. Palmer disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Steven M. Palmer, Esq. Karr Tuttle Campbell 701 Fifth Ave., Suite 3300 Seattle, WA 98109 Telephone: (206) 223-1313 Email: spalmer@karrtuttle.com About NW Developers NW Developers, LLC is the fee simple owner of 14 properties located in Kent, Washington having a total current value of $2.1 million. NW Developers filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Wash. Case No. 24-12355) on Sept. 19, 2024. In the petition signed by Manmohan Dhaliwal, member, the Debtor disclosed $2,100,833 in total assets and $2,965,547 in total liabilities. Steven M. Palmer, Esq., at Karr Tuttle Campbell serves as the Debtor's counsel. ORCHID MERGER: $400MM Bank Debt Trades at 37% Discount ------------------------------------------------------ Participations in a syndicated loan under which Orchid Merger Sub II LLC is a borrower were trading in the secondary market around 63.5 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $400 million Term loan facility is scheduled to mature on July 27, 2027. About $279.6 million of the loan is withdrawn and outstanding. Orchid Merger Sub II LLC provides information technology services. OYO FITNESS: Plan Filing Deadline Extended to Nov. 19 ----------------------------------------------------- Judge Robert D. Berger of the U.S. Bankruptcy Court for the District of Kansas extended OYO Fitness, Inc.'s period to file a Subchapter V Plan of Liquidation to November 19, 2024. As shared by Troubled Company Reporter, the Debtor filed its petition under Chapter 11, Subchapter V of the Bankruptcy Code on June 21, 2024. The Debtor filed its Motion to Sell Assets of the Debtor located at Smart Warehouse, Lenexa, Kansas on July 3, 2024. This Court entered its Order Granting Motion To Sell on August 29, 2024. The Debtor explains that the company and the liquidator are working to sell the inventory located at Smart Warehouse but need additional time to complete. The Debtor is also working to determine if a Motion to Sell inventory located at other warehouses should be filed. OYO Fitness, Inc. is represented by: Colin N. Gotham, Esq. Evans & Mullinix P.A. 7225 Renner Road, Suite 200 Shawnee, KS 66217 Telephone: (813) 962-8700 Facsimile: (913) 962-8701 Email: cgotham@emlawkc.com About OYO Fitness Inc. OYO Fitness is an online marketplace that offers sporting goods fitness equipment. OYO Fitness, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. CAse No. 24-20781) on June 21, 2024, listing $1 million to $10 million in both assets and liabilities. The petition was signed by Barbara Salvaggio, administrator of the Estate of Paul Francis. Judge Robert D Berger presides over the case. Colin Gotham, Esq. at EVANS & MULLINIX, P.A., is the Debtor's counsel. PACIFIC BELLS: Moody's Affirms 'B3' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings affirmed the ratings of Pacific Bells, LLC including its B3 corporate family rating, B3-PD probability of default rating and B3 senior secured credit facility rating. The rating outlook is stable. The affirmation of the ratings reflects Pacific Bells' brand strength as a Taco Bell franchisee and Moody's expectation that earnings will continue to grow both organically and through new restaurant developments. Moody's adjusted debt to EBITDA was 6.7x and EBITA to interest at 1.2x for the twelve-month period ending June 11, 2024. Moody's expect leverage to improve to approximately 6.1x and EBITA to interest to 1.5x over the next twelve months as labor and commodity costs moderate and store traffic improves. Moody's expect Pacific Bells to maintain overall good liquidity. RATINGS RATIONALE The B3 corporate family rating reflects Pacific Bells' modest scale in terms of revenue and restaurant count, high leverage, and lingering tail risk from a higher labor and commodity cost environment. As of June 11, 2024, the company had 281 restaurants about $537 million in annual revenue. Moody's estimate that Pacific Bells' leverage will improve over the next 12 months to 6.1x and EBITA to interest will improve to 1.5x. Earnings benefit from the company's improved traffic patterns and measured menu price increases, as well as margin improvement from investments in operational efficiencies and labor productivity. Positive credit consideration is given to the company's strong brand awareness as a franchisee of Taco Bell brand, its good liquidity and the company's history of good comparable restaurant sales. Taco Bell restaurants, owned by Yum! Brands Inc. (Ba2 stable), enjoy a high level of brand awareness throughout the US, as reflected in the brand's track record of positive operating trends driven by both positive traffic and average check. Pacific Bells has good liquidity supported by $35 million of unrestricted cash, good free cash flow of about $15-$30 million per annum and about $26 million available under its $70 million revolving credit facility expiring in November 2026. The stable outlook reflects Moody's expectations that the company will maintain good liquidity and will fund its growth capital expenditures through cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded should the company experience sustained improvement in credit metrics, and increased size, scale, and geographic diversification. An upgrade would also require financial policies that support credit protection measures that support a higher rating. Quantitatively, an upgrade would require debt/EBITDA sustained under 5.5x and EBIT/interest expense near 1.75x. Ratings could be downgraded if operating performance sustainably weakens or if financial strategies become more aggressive, such as debt financed dividends, were instituted. Quantitatively, a downgrade could occur if debt/EBITDA is sustained above 6.75x or EBIT/interest falls below 1.25x. Headquartered in Vancouver, WA, Worldwide Bells Holdings and its subsidiaries, including Pacific Bells, LLC, operate 281 Taco Bell restaurants in nine states. The company is owned by management and Orangewood Partners. The principal methodology used in these ratings was Restaurants published in August 2021. PALATIN TECHNOLOGIES: Incurs $29.7M Net Loss in FY Ended June 30 ---------------------------------------------------------------- Palatin Technologies, Inc., filed with the Securities and Exchange Commission its Annual Report on Form 10-Q disclosing a net loss of $29.74 million on $4.49 million of total revenues for the year ended June 30, 2024, compared to a net loss of $24.04 million on $4.85 million of total revenues for the year ended June 30, 2023. As of June 30, 2024, the Company had $10.74 million in total assets, $10.85 million in total liabilities, and a total stockholders' deficiency of $111,497. Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor since 2002, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company has incurred operating losses and negative cash flows from operations since inception and will need additional funding to complete planned product development efforts that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/911216/000165495424012498/ptn_10k.htm About Palatin Headquartered in New Jersey, Palatin -- www.Palatin.com -- is a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor systems, with targeted, receptor-specific product candidates for the treatment of diseases with significant unmet medical need and commercial potential. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders to maximize their commercial potential. PATINOS CONCRETE: Get Interim OK to Use Cash Collateral ------------------------------------------------------- Patinos Concrete and Masonry, Inc. received interim court approval to use the cash collateral of its secured creditor. The interim order penned by Judge Roberta Colton of the U.S. Bankruptcy Court for the Middle District of Florida authorized the company to use the cash collateral of Citizens Bank and Trust in accordance with the budget it filed with the court. Patinos is prohibited from using cash collateral for legal, accounting or insider salary expenses unless otherwise authorized. Patinos is required to continue making monthly payments of $1,124.29 to Citizens Bank as outlined in the budget and comply with all obligations required. The company is also required to maintain insurance coverage in accordance with its obligations to Citizens Bank. Creditors with a security interest in the cash collateral will have a post-petition lien with the same validity and priority as pre-bankruptcy liens. About Patinos Concrete and Masonry Patinos Concrete and Masonry, Inc., a Tampa-based company, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02190) on April 19, 2024, with $1,546,666 in assets and $1,213,016 in liabilities. Michael Markham, Esq., serves as Subchapter V trustee. Judge Roberta A. Colton presides over the case. Jake C. Blanchard, Esq., at Blanchard Law, P.A. represents the Debtor as legal counsel. PICCARD PETS: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ The U.S. Trustee for Region 21, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of Piccard Pets Supplies, Corp, according to court dockets. About Piccard Pets Supplies Piccard Pets Supplies Corp., a company in Jacksonville, Fla., offers pet supplies and medications. Piccard Pets Supplies sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02434) on Aug. 15, 2024, with total assets of $927,465 and total liabilities of $5,323,839. Marlon Martinez, chief executive officer, signed the petition. Judge Henry W. Van Eck oversees the case. The Debtor is represented by Thomas Adam, Esq., at Adam Law Group, PA. PINEWOOD CONDOMINIUMS: Case Summary & 20 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: Pinewood Condominiums, LP 6359 Auburn Blvd., Suite B Citrus Heights, CA 95621 Business Description: The Debtor is engaged in activities related to real estate. Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Northern District of California Case No.: 24-10598 Judge: Hon. Charles Novack Debtor's Counsel: Thomas B. Rupp, Esq. KELLER BENVENUTTI KIM LLP 425 Market Street, 26th Floor San Francisco CA 94105 Tel: (415) 496-6723 Email: trupp@kbkllp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Timothy LeFever as chief executive officer. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZQLGTYQ/Pinewood_Condominiums_LP__canbke-24-10598__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JHJMZEA/Pinewood_Condominiums_LP__canbke-24-10598__0001.0.pdf?mcid=tGE4TAMA PIONEER HEALTH: Hires Grow Rasmussen LLP as Accountant ------------------------------------------------------ Pioneer Health Systems LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Grow Rasmussen LLP as accountant. The firm will provide these services: a. auditing and reporting financial statements of the DOC LLC 401k Plan for the year ending December 31, 2023; b. preparing the federal and state partnership income tax returns with supporting schedules for the year ending December 31, 2023; c. preparing any bookkeeping entries that Grow Rasmussen finds necessary in connection with preparation of the income tax returns; and d. preparing and proposing any adjusting entries. The firm will be paid at these rates: Partners $300 to $380 Staff Accountants $160 to $300 The firm will be paid a retainer in the amount of $21,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Matthew Grow, CPA, a partner at Grow Rasmussen LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew Grow, CPA Grow Rasmussen LLP 12550 West Explorer Drive, Suite 200 Boise, ID 83713 Tel: (208) 375-1771 About Pioneer Health Systems LLC Pioneer Health Systems, LLC, is the parent company for the following brands: Surgical Hospital of Oklahoma, L.L.C. (SHO), Direct Orthopedic Care (DOC), and Integrated Care Technologies (ICT). Combined, this model allows Pioneer to offer a complete vertical orthopedic healthcare system. The Debtor filed a Chapter 11 petition (Bankr. D. Del. Case No. 24-10279) on Feb. 21, 2024, with $1 million to $10 million in both assets and liabilities. Colin Chenault, chief financial officer, signed the petition. Judge J. Kate Stickles oversees the case. Alessandra Glorioso, Esq., at Dorsey & Whitney (Delaware), LLP, is the Debtor's legal counsel. PIONEER HEALTH: Hires Provident Healthcare as Investment Banker --------------------------------------------------------------- Pioneer Health Systems LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Provident Healthcare Partners, LLC as investment banker. The firm will provide these services: a. prepare corporate descriptive materials and presentations; b. identify and evaluate a refined and targeted list of potential buyers and/or investors ("Prospective Partners"); c. initiate contact and arrange introductions with Prospective Partners; d. participate in or attend telephonic or in-person management meetings and discussions; e. coordinate the receipt and comparison of any offers or proposals forthcoming from Prospective Partners; f. advise the Company in assessing and negotiating appropriate valuation, transaction structure and related terms and conditions; and g. analyze, structure, negotiate, and consummate definitive agreements, including where appropriate, responding to the Company's inquiries and requests for assistance and coordinating the due diligence and transaction closing processes. The firm will be paid as follows: a. Transaction Fee. As compensation for services rendered under the Engagement Letter Debtors agree to pay Provident, subject to approval by the Bankruptcy Court, a fee in an amount equal to the greater of five hundred thousand dollars ($500,000) or five percent (5%) of the Aggregate Transaction Value (as defined in Section 4 of the Engagement Letter) immediately upon the completion of a Transaction (the "Transaction Fee"), regardless of whether or not the Prospective Partner (as defined in the Engagement Letter) was introduced to the Debtors by Provident or otherwise. b. Alternative Transaction Fee. Notwithstanding subsection (a) above, in the event a Transaction is consummated with Texas Surgical Hospital, Eminent Medical Center, or NorthPoint Partners, the Debtors agree to pay Provident an alternative fee in an amount equal to the Alternative Transaction Fee immediately upon the completion of such Transaction (the "Alternative Transaction Fee") in lieu of the Transaction Fee otherwise applicable thereto. The "Alternative Transaction Fee" shall mean an amount equal to the greater of five hundred thousand dollars ($500,000) or the following percentage(s) (each, the "Alternative Transaction Fee Percentage") of the Aggregate Transaction Value: c. In no event shall the Transaction Fee or Alternative Transaction Fee in a closed transaction be less than five hundred thousand dollars ($500,000), unless otherwise ordered by the Bankruptcy Court under sections 328 or 330 of the Bankruptcy Code. Craig Sager, a partner at Provident Healthcare Partners, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Craig Sager Provident Healthcare Partners, LLC 260 Franklin Street Boston, MA 02110 Tel: (617) 742-9800 About Pioneer Health Systems LLC Pioneer Health Systems, LLC, is the parent company for the following brands: Surgical Hospital of Oklahoma, L.L.C. (SHO), Direct Orthopedic Care (DOC), and Integrated Care Technologies (ICT). Combined, this model allows Pioneer to offer a complete vertical orthopedic healthcare system. The Debtor filed a Chapter 11 petition (Bankr. D. Del. Case No. 24-10279) on Feb. 21, 2024, with $1 million to $10 million in both assets and liabilities. Colin Chenault, chief financial officer, signed the petition. Judge J. Kate Stickles oversees the case. Alessandra Glorioso, Esq., at Dorsey & Whitney (Delaware), LLP, is the Debtor's legal counsel. PLAYPOWER HOLDINGS: S&P Withdraws 'CCC+' Issuer Credit Rating ------------------------------------------------------------- S&P Global Ratings withdrew all its ratings on PlayPower Holdings Inc., including its 'CCC+' issuer credit rating. The company requested the withdrawal following the completion of its refinancing and the full repayment of its rated debt. At the time of the withdrawal, our outlook on PlayPower was stable. PORTSMOUTH SQUARE: Incurs $11.38-Mil. Net Loss in FY Ended June 30 ------------------------------------------------------------------ Portsmouth Square, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $11.38 million on $41.89 million of hotel revenue for the year ended June 30, 2024, compared to a net loss of $13.20 million on $42.03 million of hotel revenue for the year ended June 30, 2023. As of June 30, 2024, the Company had $41.40 million in total assets, $156.41 million in total liabilities, and a total shareholders' deficit of $115.01 million. East Brunswick, NJ-based WithumSmith+Brown, PC, the Company's auditor since 2022, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the outstanding balance as of June 30, 2024 of the hotel's mortgage notes payable consists of a senior mortgage loan and mezzanine loan totaling $100,783,000, net of debt issuance costs amounting to $679,000. Both loans matured on Jan. 1, 2024, and were subsequently extended to Jan. 1, 2025 through forbearance agreements. In addition, the Company has recurring losses and has an accumulated deficit of $117,102,000. These factors and the Company's ability to successfully refinance the debt on favorable terms in the current lending environment raise substantial doubt about the Company's ability to continue as a going concern for one year after the financial statement issuance date. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/79661/000149315224038779/form10-k.htm About Portsmouth Headquartered in Los Angeles, California, Portsmouth Square, Inc., is a California corporation, incorporated on July 6, 1967, for the purpose of acquiring a hotel property in San Francisco, California through a California limited partnership, Justice Investors Limited Partnership. As of June 30, 2024, approximately 75.7% of the outstanding common stock of Portsmouth was owned by The InterGroup Corporation, a public company (NASDAQ: INTG). As of June 30, 2024, the Company's Chairman of the Board and Chief Executive Officer, John V. Winfield, owns approximately 2.5% of the outstanding common shares of the Company. Mr. Winfield also serves as the President, Chairman of the Board and Chief Executive Officer of InterGroup and owns approximately 69.4% of the outstanding common shares of InterGroup as of June 30, 2024. POSEIDON BIDCO: EUR1.10BB Bank Debt Trades at 22% Discount ---------------------------------------------------------- Participations in a syndicated loan under which Poseidon Bidco SASU is a borrower were trading in the secondary market around 77.6 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR1.10 billion Term loan facility is scheduled to mature on March 1, 2030. The amount is fully drawn and outstanding. Poseidon Bidco provides financial transaction services. The Company's country of domicile is France. PRESPERSE CORP: U.S. Trustee Appoints Talc Committee ---------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent talc claimants in the Chapter 11 case of Presperse Corporation. The committee members are: 1. Wendi Higgins Counsel: Marcus Raichle, Esq. Maune Raichle Hartley French & Mudd, LLC 1015 Locust St., Suite 1200 St. Louis, MO 63101 Tel: (800) 358-5922 Email: mraichle@mrhfmlaw.com 2. Susan Anderson on behalf of the Estate of Vanessa L. Hoffman Counsel: Justine Delaney, Esq. Weitz & Luxenberg, P.C. 700 Broadway New York, NY 10003 Tel: (212) 558-5500 Email: jdelaney@weitzlux.com 3. Glenda Giroir Counsel: J. Bradley Smith, Esq. Dean Omar Branham Shirley, LLP 302 N. Market St., Suite 300 Dallas, TX 75202 Tel: (214) 722-5990 Email: bsmith@dobslegal.com 4. Jeannie A. Sliz Counsel: Lisa Nathanson Busch, Esq. Simmons Hanley Conroy, LLP 112 Madison Avenue, 7th Floor New York, NY 10016 Tel: (212) 257-8482 Email: lbusch@simmonsfirm.com 5. Catherine Nolan Counsel: Joseph Belluck, Esq. Belluck & Fox, LLP 546 Fifth Avenue, 5th Floor New York, NY 10036 Tel: (212) 681-1575 Email: jbelluck@belluckfox.com 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.N.J. Case No. 24-18921) on Sept. 9, 2024. In the petition filed by CFO Mehul Shah, Presperse 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. The Talc Claimants' Committee retained Robinson & Cole as legal counsel and GlassRatner (doing business as B. Riley) as financial advisor, and Legal Analysis Systems to provide advice. Value Extraction Services is the prepetition future claimants' representative, and hired Young Conaway as counsel, Ankura Consulting Group as consultant, and jointly retained, together with the Talc Claimants' Committee, B. Riley as financial advisor. Presperse's parent, Sumitomo Corporation of Americas, is providing post-petition financing and is represented by lawyers at Lowenstein Sandler. PRETIUM PKG: $1.25BB Bank Debt Trades at 19% Discount ----------------------------------------------------- Participations in a syndicated loan under which Pretium PKG Holdings Inc is a borrower were trading in the secondary market around 81.2 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.25 billion Term loan facility is scheduled to mature on October 2, 2028. The amount is fully drawn and outstanding. Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic containers for variety of end markets, including food and beverage, chemicals, healthcare, wellness and personal care. Pretium PKG Holdings, Inc. is a portfolio company of Clearlake since January 2020. PULSE PHYSICIAN: Plan Filing Deadline Extended to Nov. 15 --------------------------------------------------------- Judge Jeffrey P. Norman of the U.S. Bankruptcy Court for the Southern District of Texas extended Pulse Physician Organization, PLLC and affiliates' period to file a chapter 11 plan of reorganization to November 15, 2024. As shared by Troubled Company Reporter, the Debtors continue to operate and manages their businesses as debtors in possession under Section 1182(2) of the Bankruptcy Court. On September 6, 2024, the Lane Law Firm, P.L.L.C. ("LLF") reached out to Jones Murray LLP that they would no longer be able to serve as counsel to the Debtors and inquired if Jones Murray would substitute. The Debtors' principal was made aware of this and consented to the substitution. The Debtors estimate that an extension of sixty days is needed for them to propose a feasible plan. The circumstances by which LLF determined it necessary to withdraw as counsel are not attributable to circumstances for which the Debtors would be fairly responsible. The Debtors claim that Jones Murray has endeavored to work with all counsel who has made an appearance and the PCO to keep the cases moving in a forward direction since being engaged by them. This includes reaching out to parties in interest to determine whether they would be opposed to this Motion. Ensuring Debtors' counsel has ample time to propose a plan will ensure that the Debtors are not prejudiced by the counsel change which occurred due to circumstances out of their control. Counsel for the Debtors: Matthew W. Bourda, Esq. Christopher R. Murray, Esq. Jones Murray LLP 602 Sawyer Street, Suite 400 Houston, TX 77007 Tel: (832) 529-1582 Fax: (832) 529-3393 Email: chris@jonesmurray.com matthew@jonesmurray.com About Pulse Physician Organization Pulse Physician Organization, PLLC is a medical group that specializes in medical weight loss, pain management, interventional cardiology, internal medicine, family medicine, and podiatry. Pulse Physician Organization and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-32860) on June 20, 2024. At the time of the filing, Pulse Physician Organization disclosed $2,556,518 in total assets and $3,395,617 in total liabilities. Judge Jeffrey P. Norman oversees the case. The Debtors tapped Robert C. Lane, Esq., at the Lane Law Firm as counsel, Saleem Lakhani CPA, LLC as accountant, and Viking Advisory Group, LLC as bookkeeper. QSR STEEL: Plan Filing Deadline Extended to Oct. 16 --------------------------------------------------- Judge James J. Tancredi of the U.S. Bankruptcy Court for the District of Connecticut extended QSR Steel Corporation, LLC's period to file a chapter 11 plan of reorganization to October 16, 2024. As shared by Troubled Company Reporter, the Debtor commenced the instant bankruptcy filing after suffering a substantial adverse arbitration award in the amount of $2,291,133.19 in favor of Haynes Construction Company, which award was confirmed by the Connecticut Superior Court on April 30, 2024, but which is presently on appeal to the Appellate Court. The Debtor is seeking protection under Subchapter V of Chapter 11 of the Bankruptcy Code to preserve its assets, which would otherwise be dismembered by the collection efforts of Haynes, with the objective of maintaining its operations and the employment of dozens of workers in the State and ultimately, of successfully reorganizing. As part of the plan formulation process, the Debtor is working with counsel and its financial advisor Marcum to pursue a consensual plan with its creditors. This will require obtaining the consent of the Debtor's largest unsecured creditor, Haynes. Haynes requested a substantial amount of documentation from the Debtor in order to engage in the plan formulation process. Moreover, the Debtor's counsel has been distracted with the Carnicelli Matter that has involved heavy discovery and deposition practice and a six-day evidentiary hearing in the middle of the plan formulation period. These items are not attributable to the Debtor. QSR Steel Corporation, LLC is represented by: Irve Goldman, Esq. Pullman & Comley, LLC 850 Main Street, P.O. Box 7006 Bridgeport, CT 06601-7006 Tel: (203) 330 2000 Fax: (203) 576 8888 Email: igoldman@pullcom.com kmayhew@pullcom.com jkaplan@pullcom.com About QSR Steel Corporation QSR Steel Corporation, LLC, is a one-stop, full service structural steel company based in Hartford, Conn., offering everything from steel buildings to stairs and railings. The Debtor filed a Chapter 11 petition (Bankr. D. Conn. Case No. 24-20562) on June 18, 2024, with $2,838,179 in assets as of March 31, 2024 and $2,124,057 in liabilities as of March 31, 2024. Glenn Salamone, member, signed the petition. Irve J. Goldman, Esq., at Pullman & Comley, LLC, is the Debtor's legal counsel. R&W CLARK: Gets Interim OK to Use Cash Collateral Until Oct. 31 --------------------------------------------------------------- R&W Clark Construction, Inc. received interim court approval to use cash collateral to pay its operating expenses. The interim order penned by Judge Timothy Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois authorized the company to use the cash collateral until Oct. 31 in accordance with a budget that allows for a 10% variance. To provide adequate protection to lien claimants, including the Internal Revenue Service and the Illinois Department of Employment Security, the court granted the lien claimants post-petition replacement liens. These liens will hold the same priority as the claimants had pre-bankruptcy and will apply to the cash collateral and all post-petition property of a similar kind. The next hearing is scheduled for Oct. 30. About R&W Clark Construction R&W Clark Construction, Inc., a company in Frankfort, Ill., filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 23-03279) on March 11, 2023, with up to $50,000 in assets and up to $10 million in liabilities. Richard Clark, president and sole shareholder, signed the petition. Judge Timothy A. Barnes oversees the case. The Debtor tapped Gregory K. Stern, PC as legal counsel and Ziegler & Associates, Ltd. as accountant. RANCHO FRESNO: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Rancho Fresco Modesto Inc. 1008 J Street Modesto, CA 95354 Business Description: Rancho Fresco is a Mexican restaurant. Chapter 11 Petition Date: October 2, 2024 Court: United States Bankruptcy Court Eastern District of California Case No.: 24-90580 Judge: Hon. Ronald H Sargis Debtor's Counsel: David J. Johnston, Esq. DAVID J. JOHNSTON 1600 G Street, Suite 102 Modesto, CA 95354 Tel: (209) 579-1150 E-mail: david@johnstonbusinesslaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ismael Covarrubias, Jr., as president. 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/7MJS6VY/Rancho_Fresco_Modesto_Inc__caebke-24-90580__0001.0.pdf?mcid=tGE4TAMA RED DOOR: Hires Chamberlain Hrdlicka White Williams as Counsel -------------------------------------------------------------- Red Door Management, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Chamberlain, Hrdlicka, White, Williams & Aughtry, PC as its bankruptcy counsel. The firm will render these services: (a) analyze the financial situation and render advice and assistance to the Debtor; (b) advise the Debtor with respect to its rights, duties, and powers; (c) represent the Debtor at all hearings and other proceedings; (d) represent the Debtor in all proceedings before the bankruptcy court and in any other judicial or administrative proceeding where the rights of it may be litigated or otherwise affected; (e) prepare and file of a Subchapter V Plan of Reorganization, to the extent necessary; (f) assist the Debtor in analyzing the claims of creditors; and (g) assist the Debtor in any matters relating to or arising from the case. The Debtor agreed to pay the firm a retainer in the amount of $10,000 plus reimbursement for out-of-pocket expenses incurred. Jarrod Martin, Esq., an attorney at Chamberlain, Hrdlicka, White, Williams & Aughtry, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jarrod B. Martin, Esq. Chamberlain, Hrdlicka, White, Williams & Aughtry, P.C. 1200 Smith Street, Suite 1400 Houston, TX 77002 Telephone: (713) 356-1280 Facsimile: (713) 658-2553 Email: jarrod.martin@chamberlainlaw.com About Red Door Management Red Door Management, Inc., manages and operates a home remodeling business. Red Door Management sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31750) on April 19, 2024. In the petition signed by Mark C. Brown, president, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Jeffrey P. Norman oversees the case. Chamberlain, Hrdlicka, White, Williams & Aughtry, PC represents the Debtor as legal counsel. RED RIVER: Gets OK to Hire Epiq as Claims and Noticing Agent ------------------------------------------------------------ Red River Talc LLC received approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Epiq Corporate Restructuring, LLC as claims, noticing and solicitation agent. The firm will oversee the distribution of notices and will assist in the maintenance, processing and docketing of proofs of claim filed in the Chapter 11 case of the Debtor. The firm will be paid at these hourly rates: IT/Programming $65 - $90 Case Managers $85 - $165 Consultants/ Directors/Vice Presidents $170 - $190 Solicitation Consultant $190 Executive Vice President, Solicitation $195 Executives No Charge The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtors provided Epiq an advance in the amount of $25,000. Kathryn Tran, a consulting director at Epiq Corporate Restructuring, disclosed in a court filing that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Kathryn Tran Epiq Corporate Restructuring, LLC 777 Third Avenue, 12th Floor New York, NY 10017 Tel: (646) 282-2532 About Red River Talc LLC Red River Talc LLC is a wholly owned subsidiary of Johnson & Johnson, a New Jersey company incorporated in 1887, which first began selling JOHNSON'S Baby Powder in 1894, launching its baby care line of products. Red River Talc LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90505) on September 20, 2024, listing $1 billion to $10 billion in both assets and liabilities. The petition was signed by John K. Kim as chief legal officer. Judge Christopher M. Lopez presides over the case. John F Higgins, IV, Esq. at Porter Hedges LLP represents the Debtor as counsel. RELIANCE SECURITY: Unsecureds Will Get 100% of Claims in 2 Years ---------------------------------------------------------------- Reliance Security Inc. filed with the U.S. Bankruptcy Court for the District of Nevada a Plan of Reorganization for Small Business dated August 27, 2024. The Debtor has been a relatively successful security business. The Debtor is owned by Joel Logan (90% ownership interest) and Leilani Avecilla (10% ownership interest). Prior to filing, Reliance was made aware of various potential liabilities that may have been owed to current and former employees in the form of payroll discrepancies to an error with Reliance's time clock software. In an effort to limit this liability and address any outstanding claims in a single forum, Reliance decided that filing a bankruptcy case under Chapter 11, Subchapter V would be the most efficient means to address this issue. As such, upon filing, Reliance sent notice to all of it's previous employees over the past 2 years inviting them to file claims. Class 3 consists of all non-priority unsecured claims. All unsecured claims non-disputed claims shall be paid in full within 2 years of effective date of plan. This Plan proposes to pay these claims at 100%. The means for implementation shall come from business operations and capital contributions from Mr. Logan as needed. A full-text copy of the Plan of Reorganization dated August 27, 2024 is available at https://urlcurt.com/u?l=3MvMRv from PacerMonitor.com at no charge. Attorney for the Debtor: James T. Leavitt, Esq. LEAVITT LEGAL SERVICES, P.C. 601 South 6th Street Las Vegas, NV 89101 Tel: (702) 385-7444 Fax: (702) 385-1178 Email: Jamestleavittesq@gmail.com About Reliance Security Reliance Security Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 24-12701) on May 30, 2024. The petition was signed by Joel Logan as owner. At the time of filing, the Debtor estimated $340,908 in assets and $1,272,747 in liabilities. James T. Leavitt, Esq., at Leavitt Legal Services, P.C., is the Debtor's counsel. RHODIUM ENCORE: Seeks to Tap Barnes & Thornburg as Legal Counsel ---------------------------------------------------------------- Rhodium Encore, LLC and affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Barnes & Thornburg LLP as counsel to the special committee of the board of directors of Rhodium Enterprises, Inc. The firm's services include: (a) explore and make any and all decisions respecting all or part of any transaction to the extent it constitutes a conflict matter; (b) investigate, resolve, settle, or take other action with respect to any past or current matter or transaction that may involve a conflict matter; (c) investigate, resolve, settle, or take other action with respect to any potential claims or causes of action of Rhodium Enterprises or its subsidiaries, if any, against any of the related parties, to the extent such claims or causes of action constitute a conflict matter; (d) make any decisions or take any actions respecting any other matter involving Rhodium Enterprises or its subsidiaries in which a related party has an interest; (e) interview and solicit information and views from management, representatives, consultants, advisors, or any other party in connection with any past or current matter or transaction which may involve a conflict matter that the special committee deems necessary and appropriate; and (f) request documentation and information regarding Rhodium Enterprises' business, assets, properties, liabilities, and business dealings with respect to any past or current matter or transaction which may involve a conflict matter that the special committee deems necessary and appropriate to review. The firm's standard hourly rates are: Partners $520 - $1,575 Associates and Of Counsel $345 - $1,015 Paralegals $225 - $450 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. Trace Schmeltz, Esq., a partner at Barnes & Thornburg, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did the firm agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement? Answer: No. Question: Do any of the firm's professionals in this engagement vary their rate based on the geographic location of the Debtors' Chapter 11 cases? Answer: No. Question: If the firm represented the Debtors or the special committee in the 12 months prepetition, disclose its billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: The firm has represented the Board of Directors of Rhodium Enterprises, Inc. since February 7, 2024. The billing rates and material financial terms applicable to that engagement are identical in all material respects to those contained in the Engagement Letter applicable to the proposed engagement of the firm described in the Application and in this Declaration. Question: Have the Debtors approved the firm's budget and staffing plan, and, if so for what budget period? Answer: No. Mr. Schmeltz disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Trace Schmeltz, Esq. Barnes & Thornburg LLP One N. Wacker Drive Suite 4400 Chicago, IL 60606 Telephone: (312) 357-1313 About Rhodium Encore Rhodium Encore LLC is a founder-led, Texas based, digital asset technology company utilizing proprietary tech to self-mine bitcoin. The Company creates innovative technologies with the goal of being the most sustainable and cost-efficient producer of bitcoin in the industry. Rhodium Encore and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug. 24, 2024. In the petitions filed by Michael Robinson, as co-CRO, Rhodium Encore disclosed estimated assets between $100 million and $500 million and estimated liabilities between $50 million and $100 million. The Honorable Bankruptcy Judge Alfredo R. Perez oversees the cases. The Debtors tapped Quinn Emanuel Urquhart & Sullivan, LLP as counsel and Province as restructuring advisor. ROMAN CATHOLIC: Committee Taps Michel Y. Horton as Special Counsel ------------------------------------------------------------------ The official committee of unsecured creditors of The Roman Catholic Bishop of San Diego seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Law Offices of Michel Y. Horton as special insurance counsel. The firm's services include: a. advising the Committee on steps to preserve and maximize claimants' ability to access the Diocese's responsive insurance coverage; b. attending meetings, mediation sessions and negotiating with representatives of the Debtor, its insurance carriers, the future claimants' representative (if one is appointed), and other parties in interest in this case to preserve insurance coverage and resolve disputed insurance issues; c. assisting the Committee with insurance-related matters in connection with formulating a chapter 11 plan and funding any trust established under the plan for payment of sexual abuse claims; d. analyzing and assisting the Committee in evaluating any settlement motions related to the Debtor's insurance policies; and e. providing additional advice or actions related to the Debtor's insurance coverage as needed by the Committee. The firm will be paid at $700 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following information is provided in response to the request for additional details as set forth in ¶ D.1 of the Appendix B Guidelines: Question (a): Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question (b): Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question (c): If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference? Response: Not applicable. I did not represent the Committee during the prepetition period given that the Committee did not exist until appointed on July 1, 2024. Question (d): Has your client approved your prospective budget and staffing plan and, if so, for what budget period? Response: The Committee has reviewed my proposed hourly billing rate and staffing plan for the first three months of the case. Michel Y. Horton, Esq. a partner at Law Offices of Michel Y. Horton, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michel Y. Horton, Esq. Law Offices of Michel Y. Horton 115 W California Blvd., Ste 254 Pasadena, CA 91105 Tel: (213) 399-9890 About The Roman Catholic Bishop of San Diego The Roman Catholic Bishop of San Diego sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 24-02202) on June 17, 2024. In the petition signed by Rodrigo Valdivia, vice moderator of the Curia, the Debtor disclosed up to $500 million in both assets and liabilities. Judge Christopher B. Latham oversees the case. The Debtor tapped Gordon Rees Scully Mansukhani, LLP as counsel and GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, as financial advisor. Donlin, Recano & Company, Inc., as administrative advisor. SCREENVISION LLC: $175MM Bank Debt Trades at 27% Discount --------------------------------------------------------- Participations in a syndicated loan under which Screenvision LLC is a borrower were trading in the secondary market around 73.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $175 million Term loan facility is scheduled to mature on July 3, 2025. About $143.7 million of the loan is withdrawn and outstanding. Screenvision, LLC provides publishing and broadcasting services. SEVENTEEN00 LLC: Hires Winkler Real Estate Group as Broker ---------------------------------------------------------- Seventeen00, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Winkler Real Estate Group as real estate broker. The firm will market and sell the Debtor's real property located at and commonly known as 1700 Barlow Lane Sebastopol, CA 95472. The firm will be paid a commission of 2.5 percent of the final purchase price, plus an additional 1.5 percent of the price in the event there is no buyer's broker. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Daniel Winkler, a partner at Winkler Real Estate Group, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Daniel Winkler Winkler Real Estate Group 1215 Solano Avenue Albany, CA 94706 Tel: (510) 528-2200 Fax: (510) 528-2100 About Seventeen00 LLC Seventeen00, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-10240) on May 1, 2024, with $1 million to $10 million in both assets and liabilities. John Loe, managing member, signed the petition. Judge William J. Lafferty presides over the case. E. Vincent Wood, Esq., at Shepherd & Wood, LLP represents the Debtor as legal counsel. SHINECO INC: Incurs $24.35 Million Net Loss in FY Ended June 30 --------------------------------------------------------------- Shineco, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $24.35 million on $9.80 million of revenue for the year ended June 30, 2024, compared to a net loss of $13.96 million on $550,476 of revenue for the year ended June 30, 2023. As of June 30, 2024, the Company had $84.18 million in total assets, $47.60 million in total liabilities, and $36.58 million in total equity. Singapore-based AssentSure PAC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company had net losses of approximately US$$24.3 million and US$14.0 million, and cash outflow of US$3.9 million and US$5.4 million from operating activities for the years ended June 30, 2024 and 2023, respectively. As of June 30, 2024 and 2023, the Company had accumulated deficit of US$54.3 million and US$31.7 million, respectively, and as of June 30, 2024 and 2023, the Company had negative working capital of US$6.7 million and US28.9 million, respectively. These conditions raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1300734/000149315224038830/form10-k.htm About Shineco Headquartered in Beijing, People's Republic of China, Shineco, Inc. is a holding company incorporated in Delaware. As a holding company with no material operations of its own, the Company conducts its operations through its subsidiaries and in the two years ended June 30, 2023 and 2024, through the VIEs and subsidiaries. The Company's shares of common stock currently listed on the Nasdaq Capital Markets are shares of its Delaware holding company. SHORTER TRANSPORT: Hires Footman Law Firm P.A. as Attorney ---------------------------------------------------------- Shorter Transport LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Florida to employ Footman Law Firm, P.A. as counsel to handle its Chapter 11 case. The firm will be paid at 250 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. India Footman, Esq., a partner at Footman Law Firm, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: India Footman, Esq. Footman Law Firm, P.A. 1345 Cross Creek Circle Tallahasse, FL 32301 Tel: (850) 597-7396 Fax: (850) 888-8819 About Shorter Transport Shorter Transport, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-40373) on September 5, 2024, with $50,001 to $100,000 in both assets and liabilities. India Footman, Esq., at Footman Law Firm, P.A. represents the Debtor as bankruptcy counsel. SINCLAIR TELEVISION: $750MM Bank Debt Trades at 26% Discount ------------------------------------------------------------ Participations in a syndicated loan under which Sinclair Television Group Inc is a borrower were trading in the secondary market around 73.7 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $750 million Term loan facility is scheduled to mature on April 23, 2029. About $735 million of the loan is withdrawn and outstanding. Sinclair Television Group, Inc. provides media broadcasting services. The Company offers television broadcasting and programming services. SMARTHOME VENTURES: Hires Gellert Seitz Busenkell as Counsel ------------------------------------------------------------ Smarthome Ventures, LLC d/b/a Pepper, seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Gellert Seitz Busenkell & Brown, LLC as counsel. The firm's services include: a. assisting in preparing all petitions, motions, applications, orders, reports, and papers necessary or desirable to commence the Debtor's chapter 11 case; b. advising the Debtor of its rights, powers, and duties as debtor under chapter 11 of the Bankruptcy Code; c. taking action to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor in the chapter 11 case, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor; d. assisting in preparing on behalf of the Debtor all motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtor's estate; e. assisting in preparing the Debtor's plan; f. assisting in preparing the Debtor's disclosure statement and any related documents and pleadings necessary to solicit votes on the Debtors' plan of reorganization; g. prosecuting on behalf of the Debtor the proposed plan and seeking approval of all transactions contemplated therein and in any amendments thereto; and h. performing other necessary or desirable legal services in connection with any such cases under the Bankruptcy Code The firm will be paid at these rates: Charles J. Brown, III $500 per hour Ashley Gollmann $180 per hour Maria Whalen $200 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Charles J. Brown, III, a partner at Gellert Seitz Busenkell & Brown, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Charles J. Brown, III, Esq. Gellert Seitz Busenkell & Brown, LLC 1201 North Orange Street, Suite 300 Wilmington, DE 19801 Tel: (302) 425-5813 Fax: (302) 425-5814 Email: cbrown@gsbblaw.com About Smarthome Ventures, LLC d/b/a Pepper Merkury Innovations LLC, Chapford Credit Opportunities Fund, LP and Comsource Consulting filed involuntary Chapter 11 petition (Bankr. D. Del. Case No. 24-11640) against SmartHome Ventures, LLC (doing business as Pepper) on August 1, 2024. The petitioning creditors are represented by the law firms of Bayard, P.A., Moritt Hock & Hamroff, LLP, Cross & Simon, LLC, and Kramer Levin Naftalis & Frankel, LLP. Judge Thomas M. Horan presides over the case. The Debtor tapped Warson Capital Partners, LLC as investment banker. Albert Altro was appointed as trustee in this Chapter 11 case. He tapped Sullivan Hazeltine Allinson, LLC as bankruptcy counsel and Traverse LLC as financial advisor. SMARTHOME VENTURES: Trustee Gets OK to Tap $1M Chapter 11 Loan -------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that a Delaware bankruptcy judge on Monday, Sept. 30, 2024, gave the trustee overseeing the Chapter 11 case of SmartHome Ventures permission to take out a $1 million loan and tap into its remaining cash as the company heads for an auction in two weeks. About SmartHome Ventures Merkury Innovations LLC, Chapford Credit Opportunities Fund, LP and Comsource Consulting filed involuntary Chapter 11 petition (Bankr. D. Del. Case No. 24-11640) against SmartHome Ventures, LLC (doing business as Pepper) on August 1, 2024. The petitioning creditors are represented by the law firms of Bayard, P.A., Moritt Hock & Hamroff, LLP, Cross & Simon, LLC, and Kramer Levin Naftalis & Frankel, LLP. Judge Thomas M. Horan presides over the case. The Debtor tapped Warson Capital Partners, LLC as investment banker. Albert Altro was appointed as trustee in this Chapter 11 case. He tapped Sullivan Hazeltine Allinson, LLC as bankruptcy counsel and Traverse LLC as financial advisor. SMARTHOME VENTURES: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------ The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of SmartHome Ventures, LLC. About SmartHome Ventures Merkury Innovations LLC, Chapford Credit Opportunities Fund, LP and Comsource Consulting filed involuntary Chapter 11 petition (Bankr. D. Del. Case No. 24-11640) against SmartHome Ventures, LLC (doing business as Pepper) on August 1, 2024. The petitioning creditors are represented by the law firms of Bayard, P.A., Moritt Hock & Hamroff, LLP, Cross & Simon, LLC, and Kramer Levin Naftalis & Frankel, LLP. Judge Thomas M. Horan presides over the case. Albert Altro, the Chapter 11 trustee appointed in the case, is represented by the law firm of Sullivan Hazeltine Allison, LLC. SOD EXPRESS: Unsecureds to Split $26K in Consensual Plan -------------------------------------------------------- Sod Express Nursery, Inc. filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization dated August 27, 2024. The Debtor provides a full range of landscaping products and services, including lawn maintenance and a fully stocked plant nursery with rocks, gravel, mulch, and soil, located in Sanford, Florida. The Debtor is a Florida corporation created by Articles of Incorporation filed with the Florida Secretary of State on or around December 14, 2011, with an effective date of January 1, 2012. The Debtor's principal place of business is located at 3775 N Highway 17-92, Sanford, Florida. ("Premises"), which the Debtor, leases from BDI 17-92, LLC, who is not an insider. The Debtor's projected Disposable Income over the life of the Plan is $25,283.44. This Plan provides for: 8 classes of secured claims; 1 class of unsecured claims; and 1 class of equity security holders. Class 9 consists of the Allowed Unsecured Claims against the Debtor. This Class is Impaired. * Consensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of $26,100.00. Payments will be made in equal quarterly payments of $2,175.00. 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. Holders of Class 9 claims shall be paid directly by the Debtor. * Nonconsensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of its projected Disposable Income, $25,283.44. 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 estimated annual payment shall be $7,847.00. Holders of Class 9 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 Plan of Reorganization dated August 27, 2024 is available at https://urlcurt.com/u?l=k1lT2F from PacerMonitor.com at no charge. The Debtor's Counsel: Jeffrey S. Ainsworth, Esq. Cole Bailey Davidson Branson, Esq. BRANSONLAW, PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 E-mail: jeff@bransonlaw.com E-mail: cole@bransonlaw.com About Sod Express Nursery Sod Express Nursery, Inc., provides a full range of landscaping products and services, including lawn maintenance and a fully stocked plant nursery with rocks, gravel, mulch, and soil, located in Sanford, Florida. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02676) on May 29, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Randall A. Nellis, president, signed the petition. Judge Lori V. Vaughan presides over the case. Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC, is serving as the Debtor's bankruptcy counsel. SOUTHERN VETERINARY: Moody's Cuts 1st Lien Bank Loans to 'B3' ------------------------------------------------------------- Moody's Ratings downgraded the ratings on Southern Veterinary Partners, LLC's ("SVP") 1st lien senior secured bank credit facilities to B3 from B2. At the same time, Moody's assigned a B3 rating to SVP's new 1st lien backed senior secured delayed draw term loan due 2027. There are no changes to SVP's other ratings, including the B3 Corporate Family Rating, B3-PD Probability of Default Rating, and Caa2 rating on the 2nd lien debt. The outlook is unchanged at stable. On September 27, 2024 SVP raised a $70 million first lien senior secured delayed draw term loan to be used for tuck-in acquisitions. The downgrade of the ratings on the 1st lien senior secured credit facilities reflects the increased proportion of 1st lien debt, and relatively lower loss absorption capacity of the 2nd lien debt, now in the capital structure. RATINGS RATIONALE SVP's B3 CFR broadly reflects its high financial leverage, with Moody's-adjusted debt-to-EBITDA above 7 times as of June 30, 2024. Moody's expect SVP's high leverage to persist as the company continues to use incremental debt to fund acquisitions. In addition, the rating reflects risks to the company's rapid growth strategy under private equity ownership, including an inability to integrate and manage growth, and a high level of recurring expenses which can limit cash flow generation. SVP's rating benefits from favorable long term trends in the pet care sector that underpin Moody's expectation for healthy same-store sales growth in the mid-single-digits. The rating is also supported by the company's good track record of integrating acquisitions, as well as its successful pricing and cost management initiatives that have allowed the company to successfully manage through a challenging labor environment. Liquidity is good, supported by approximately $119 million of cash as of June 30, 2024, though Moody's expect the majority of the cash balance to be used towards future acquisitions and growth investments. SVP's liquidity is also supported by Moody's expectation of positive free cash flow over the next 12-18 months. SVP's $30 million revolving credit facility expiring October 6, 2025 was undrawn as of June 30, 2024. SVP's CIS-4 indicates the rating is lower than it would have been if ESG risk exposures did not exist. The score reflects governance considerations (G-4) driven by SVP's aggressive financial policies under private equity ownership, including its historical rapid pace of debt-funded acquisitions. That said, governance risk is partially mitigated by SVP's consistent management credibility and track record of generating positive free cash flow through periods of high acquisition activity. The score also reflects SVP's exposure to social risks (S-4), primarily due to human capital, as SVP is reliant upon a highly specialized workforce that exposes the company to elevated risks from labor supply and/or inflationary pressures. The stable outlook reflects Moody's expectation that leverage will remain high as SVP continues to use debt to fund acquisitions, but that the company's stable business profile will result in sustained mid-single digit top line growth, along with positive free cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company delivers sustained revenue and earnings growth and is successful in integrating acquisitions. Moderation of financial policies, partially evidenced by debt/EBITDA sustained below 6.5 times, along with good liquidity supported by sustained positive free cash flow could also support an upgrade. The ratings could be downgraded if operational performance deteriorates or liquidity weakens, or the company fails to generate positive free cash flow. Inability to manage its rapid growth, or if EBITA-to-interest falls below one times, could also put downward pressure on the company's ratings. Headquartered in Birmingham, Alabama, Southern Veterinary Partners, LLC ("SVP") is a national veterinary hospital consolidator, offering a full range of medical products and services, and operating 420 general practice locations across 26 states. The company generated revenues of approximately $1.3 billion for the twelve months ended June 30, 2024. SVP is a portfolio company of private equity firm Shore Capital Partners. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. STEWARD HEALTH: CEO Sues Senate Committee for Contempt Finding -------------------------------------------------------------- Sri Taylor of Bloomberg Law reports that Ralph de la Torre, the embattled chief executive officer of bankrupt Steward Health Care System, sued a US Senate committee that subpoenaed him to testify about his role in the hospital chain's financial collapse. De la Torre alleges that the Senate has violated his Fifth Amendment constitutional protections against government overreach and self-incrimination. The lawsuit names the Committee on Health, Education, Labor and Pensions as a defendant, as well as 20 senators on the panel. The Senate voted in late September to hold de la Torre in criminal contempt for declining to testify. The bipartisan vote means his failure to comply with the committee's first subpoena since 1981 will be referred for criminal prosecution to the US Attorney for the District of Columbia. The senators are "undertaking a concerted effort to punish Dr. de la Torre for invoking his Fifth Amendment right not to be compelled to be a witness against himself," according to the lawsuit, filed Monday in federal court in Washington. In the suit, de la Torre asks the court to declare the subpoena invalid and the contempt finding unconstitutional. Holding de la Torre in contempt is "an abuse of power and a flagrant constitutional violation," Bill Burck, a lawyer at Quinn Emanuel Urquhart & Sullivan LLP who is representing de la Torre, said in a statement. "Democrats and Republicans on the HELP Committee came together and unanimously voted to hold Dr. de la Torre in contempt of Congress, as did the entire U.S. Senate. His suit has no merit," Anna Bahr, director of communications for Senator Bernie Sanders, the committee chair, said in an emailed statement. De la Torre told senators he wouldn't participate in the hearing into the hospital operator's failure until after its bankruptcy had concluded. Being forced to testify now could jeopardize a settlement with the company's landlord, Medical Properties Trust Inc., intended to keep most of Steward's hospitals open under new managers, de la Torre's lawyers said in a letter this month to Sanders. His lawyers say his refusal to honor the subpoena is different from other high-profile cases, such as those of former Trump White House adviser Peter Navarro and chief strategist Steve Bannon. Both Bannon and Navarro were convicted on contempt charges for defying congressional subpoenas in the investigation of the Jan. 6, 2021, insurrection at the US Capitol. "It's a completely different scenario," Burck said in an interview. While Bannon and Navarro claimed they were relying on Donald Trump's assertion of executive privilege, de la Torre is asserting his own Fifth Amendment right, "which is not subject to executive authority or congressional authority or even judicial authority," Burck said. The lawsuit comes shortly after Steward announced that company founder de la Torre will no longer serve as the hospital operator's CEO and chairman. He will officially step down on Tuesday, October 1, 2024. The case is De la Torre v. Sanders, 24-cv-02776, US District Court, District of Columbia (Washington). About Steward Health Care Steward Health Care System, LLC, owns and operates the largest private physician-owned for-profit healthcare network in the U.S. Headquartered in Dallas, Texas, Steward's operations include 31 hospitals in eight states, approximately 400 facility locations, 4,500 primary and specialty care physicians, 3,600 staffed beds, and nearly 30,000 employees. Steward Health Care provides care to more than two million patients annually. Steward and 166 affiliated debtors filed Chapter 11 petitions (Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge Christopher M. Lopez oversees the proceeding. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; McDermott Will & Emery as special corporate and regulatory counsel; AlixPartners, LLP as financial advisor and John Castellano of AlixPartners as chief restructuring officer. Lazard Freres & Co. LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc Capital Markets Inc., provide investment banking services to the Debtors. Kroll is the claims agent. Susan N. Goodman has been appointed as patient care ombudsman in the Debtors' Chapter 11 cases. SUNMEADOWS LLC: Plan Exclusivity Period Extended to Nov. 18 ----------------------------------------------------------- Judge Theodor C. Albert of the U.S. Bankruptcy Court for the Central District of California extended Sunmeadows, LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to November 18, 2024 and January 17, 2025, respectively. As shared by Troubled Company Reporter, the Debtor claims that its chapter 11 case has a couple of material contingencies which must be resolved prior to the development of a feasible plan of reorganization. First, Debtor must be in a position to be able to convey title to the Subject Property in order to enter into a sale transaction or refinancing of the Subject Property in order to propose a feasible plan. Debtor's interest in the Subject Property is its primary asset and the means by which it will be able to fund a plan of reorganization. However, uncertainty regarding Debtor's ownership of the Subject Property impairs Debtor's ability to negotiate with RR1050 or propose concrete and feasible plan structures. It wouldn't be efficient or even make sense for Debtor to propose a "dual track" plan (with different outcomes depending upon the result of litigation of the Complaint against RR1050) because Debtor would be forced to incur the expense of expert witnesses for a cramdown fight over interest rates and feasibility, without knowing the outcome of the litigation or Debtor's ability to convey title to the Subject Property in a sale transaction or refinancing. The Debtor believes, however, that the resolution of the pending motion to dismiss by RR1050, which should result in the case being at issue, will facilitate discussions and negotiations with RR1050 (RR1050 has indicated an unwillingness to engage in negotiations while the motion to dismiss is unresolved). Debtor believes that once the litigation with RR1050 is at issue, negotiations will take place and a plan can be proposed, within the requested extension of the exclusivity periods. Sunmeadows, LLC is represented by: Robert P. Goe, Esq. GOE FORSYTHE & HODGES, LLP 17701 Cowan, Suite 210 Irvine, CA 92614 Tel: (949) 798-2460 Fax: (949) 955-9437 E-mail: rgoe@goeforlaw.com About Sunmeadows LLC Sunmeadows, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11012) on April 22, 2024. In the petition signed by William Lo, manager, the Debtor disclosed $50 million to $100 million in assets and $10 million to $50 million in liabilities. The Debtor tapped Robert P. Goe, Esq., at Goe Forsythe & Hodges LLP as counsel and James Wong at Armory Consulting Co. as financial advisor. SVB FINANCIAL: Wants 2nd Circuit to Review FDIC Fight ----------------------------------------------------- James Nani of Bloomberg Law reports that SVB Financial Group won a judge's approval to appeal directly to the Second Circuit a bankruptcy court's decision allowing the Federal Deposit Insurance Corp. to assert defensive setoff rights over roughly $1.93 billion in deposits. The former Silicon Valley Bank parent company's challenge to the FDIC "raises unsettled questions of law that warrant direct appeal," ruled Judge Jessica G.L. Clarke of the US District Court for the Southern District of New York on Monday, September 30, 2024. About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. SWF HOLDINGS I: $1.63BB Bank Debt Trades at 18% Discount -------------------------------------------------------- Participations in a syndicated loan under which SWF Holdings I Corp is a borrower were trading in the secondary market around 82.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 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. TEREX CORP: Moody's Rates New $750MM 8-Yr. Unsecured Notes 'Ba3' ---------------------------------------------------------------- Moody's Ratings assigned a Ba3 rating to Terex Corporation's planned $750 million 8-year senior unsecured notes. The company's other ratings, including its Ba2 corporate family rating, Ba2-PD probability of default rating and the Baa3 ratings on the company's senior secured revolving credit facility and senior secured term loan are unchanged. The outlook is stable. The company's speculative grade liquidity rating is unchanged at SGL-1. Proceeds from the $750 million notes offering will be used to help fund the $2 billion acquisition of the Environmental Solutions Group (ESG) of Dover Corporation (Baa1 stable), along with a $1.25 billion senior secured term loan and cash. RATINGS RATIONALE Terex's ratings reflect the company's good scale, healthy customer and geographic diversification and well established brands. Debt-to-EBITDA is low but will increase materially as a result of the acquisition. In addition, demand has softened in both the Materials Processing (MP) and Aerial Work Platforms (AWP) segments because of customer and dealer fleet realignment in response to economic uncertainty and regional construction volatility. Moody's expect the acquisition of ESG will help reduce Terex's exposure to cyclicality because it sells into the stable waste collection market. The stable outlook reflects Moody's expectation that Terex will integrate the acquisition of ESG with minimal operational disruption. Moody's also expect revenue will decline in 2025, but the addition of the higher margin ESG business will enable Terex to generate over $350 million of free cash flow over the next year. The SGL-1 speculative grade liquidity rating reflects Moody's expectation that Terex will have very good liquidity over the next 12 to 18 months. The company's $800 million revolving credit facility will expire in 2029. The revolver has springing covenants that are tested when borrowings exceed 30% of the facility amount requiring maximum senior secured net leverage of 3 times. Moody's do not expect the covenants will be tested over the next twelve months. However, if the covenants were tested Moody's would expect the company to be in compliance. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings could be upgraded if Terex integrates ESG with minimal operational disruption and EBITA margin is sustained around 14%. The company would also need to demonstrate its commitment to reducing debt while maintaining very good liquidity and conservative financial policies. The ratings could be downgraded if the company experiences integration challenges with ESG or debt-to-EBITDA does not decline to below 3.0 times. Also, if liquidity weakens significantly or if the company implements a more aggressive financial policy with an increased focus on additional acquisitions or shareholder returns the ratings could be downgraded. The principal methodology used in this rating was Manufacturing published in September 2021. Headquartered in Norwalk, CT, Terex Corporation (NYSE: TEX) is a global manufacturer of material processing machinery and aerial work platforms. Terex designs, builds and supports products used in maintenance, manufacturing, energy, recycling, minerals and materials management, and construction applications. Terex engages with customers through all stages of the product life cycle, from initial specification to parts and service support. Following the close of the ESG acquisition, Terex will report in three business segments: Environmental Solutions, Materials Processing and Aerials. TERVIS TUMBLER: Gets Interim OK to Use Cash Collateral ------------------------------------------------------ Tervis Tumbler Company received interim court approval to use the cash collateral of United Community Bank (UCBI). The interim order penned by Judge Roberta Colton of the U.S. Bankruptcy Court for the Middle District of Florida allowed the company to use its secured creditor's cash collateral for necessary business expenses as outlined in a budget during the bankruptcy process. These expenses include payments to the U.S. Trustee and operational costs, with flexibility to exceed line items by 10%. Any use beyond the budget is subject to UCBI's approval. Creditors with valid and perfected liens on cash collateral will maintain their liens with the same priority and validity post-petition. Tervis is required to maintain insurance coverage on its assets as stipulated in its loan agreements with the secured creditor. Failure to comply could result in further legal action or penalties. The next hearing is scheduled for Oct. 10. About Tervis Tumbler Co. Tervis Tumbler Co. -- https://www.tervis.com -- is a third-generation American-owned and operated company, renowned for the durable construction of its drinkware, the timelessness of its decorations and designs, and the insulation qualities. Tervis sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05274) on September 5, 2024, with $10 million to $50 million in both assets and liabilities. Hosana Fieber, president and chief executive officer, signed the petition. Judge Roberta A. Colton oversees the case. The Debtor is represented by Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP. TOMMY'S FORT: Trustee Hires Lain Faulkner & Co as Accountant ------------------------------------------------------------ Mark Andrews, the trustee appointed in the Chapter 11 cases of Tommy's Fort Worth, LLC and its affiliates, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Lain, Faulkner & Co., PC as his accountant. The firm will render these services: (a) prepare and analyze sales & use tax compliance matters; (b) prepare and analyze federal and state income tax compliance matters; (c) assist with such other matters as may be requested to the extent that they fall within the firm's expertise; and (d) render Bankruptcy Court testimony as appropriate in connection with the foregoing, as required, on behalf of the Debtors. The firm's professionals will be paid at these hourly rates: Directors $440 - $560 Accounting Professionals $235 - $325 IT Professionals $300 Staff Accountants $195 - $275 Supporting Personnel $95 - $135 Jason Rae, a managing director at Lain, Faulkner & Co., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jason A. Rae Lain, Faulkner & Co. P.C. 400 N St. Paul, Ste. 600 Dallas, TX Telephone: (214) 720-1929 About Tommy's Fort Worth Tommy's is a premium boat dealer with 16 locations across the United States. Tommy's Fort Worth, LLC and its affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-90000) on May 20, 2024. The petitions were signed by Monica S. Blacker as chief restructuring officer. At the time of filing, the Lead Debtor estimated $1 million to $10 million in assets and $100 million to $500 million in liabilities. Judge Edward L. Morris presides over the cases. Liz Boydston, Esq., at Gutnicki LLP represents the Debtors as counsel. On June 14, 2024, Mark E. Andrews was appointed as trustee in these Chapter 11 cases. He tapped Lain, Faulkner & Co., PC as his accountant. On June 24, 2024, the Office of the United States Trustee for the Northern District of Texas appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Reed Smith LLP as its legal counsel. TUPPERWARE BRANDS: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------- The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Tupperware Brands Corporation. The committee members are: 1. All Blue Solutions Inc. Attn: Sandra Cayouette 5473 Blair Road, Suite 100 PMB 68779 Dallas, TX 75231 Phone: (682) 403-7957 Email: sandra@allbluesolutions.com 2. Pension Benefit Guaranty Corporation Attn: David Sofocleous Cassandra C. Burton 445 12 Street, SW Washington, DC 20024 Phone: (202) 229-6778 Email: burton.cassandra@pbgc.gov 3. Cesco Linguistic Services, Inc. Attn: Stephen Lank 1355 S Colorado Blvd, C-901 Denver, CO 80222 Phone: (303) 274-2634 Fax: (720) 293-9086 Email: slank@cescols.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Tupperware Brands Tupperware Brands Corporation (NYSE: TUP) -- https://www.tupperwarebrands.com/ -- is a global consumer products company that designs innovative, functional, and environmentally responsible products. Founded in 1946, Tupperware's signature container created the modern food storage category that revolutionized the way the world stores, serves, and prepares food. Today, this iconic brand has more than 8,500 functional design and utility patents for solution-oriented kitchen and home products. The company distributes its products into nearly 70 countries, primarily through independent representatives around the world. Tupperware Brands sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12166) on Sept. 17, 2024. In the bankruptcy petition, Tupperware reported more than $1.2 billion in total debts and $679.5 million in total assets. Kirkland & Ellis LLP is serving as legal advisor to Tupperware, Moelis & Company LLC is serving as the Company's investment banker, and Alvarez & Marsal is serving as the Company's financial and restructuring advisor. Epiq is the claims agent and has put up the page https://dm.epiq11.com/Tupperware U.S. CREDIT: Court OKs Interim Use of Cash Collateral Until Oct. 23 ------------------------------------------------------------------- Stephen Darr, the Chapter 11 trustee for U.S. Credit, Inc., received interim court approval to use the cash collateral of Clear Haven Capital Management, LLC. The interim order penned by Judge Janet Bostwick of the U.S. Bankruptcy Court for the District of Massachusetts authorized the trustee to use the cash collateral until Oct. 23 to pay the company's expenses as outlined in its September and October budgets, with a 10% variance allowed. Clear Haven Capital Management, LLC, a secured lender, receives replacement liens on post-petition assets as protection while Connexus Credit Union retains prior rights granted in a previous order. Judge Bostwick clarified that replacement liens do not apply to any claims or causes of action held by the estate under bankruptcy law. Parties may still object to the use of cash collateral or challenge the validity of pre-bankruptcy security interests before the final hearing but such objections won't affect liens on collateral already used. The next hearing is scheduled for Oct. 22. Before then, the trustee must file a reconciliation of actual expenses and income by Oct. 18, and provide Clear Haven with weekly variance reports related to the budget and the home improvement loan portfolio. About U.S. Credit U.S. Credit, Inc. develops and administers custom lending programs for large retailers, point-of-sale platforms and educational institutions. It conducts business in Hyannis, Mass. U.S. Credit filed its Chapter 11 petition (Bankr. D. Mass. Case No. 24-10058) on Jan. 12, 2024, with $10 million to $50 million in both assets and liabilities. Stephen Galvin, chief executive officer, signed the petition. Judge Janet E. Bostwick presides over the case. The Debtor tapped Charles R. Bennett, Jr., Esq., at Murphy & King, PC as legal counsel and Mid-Market Management Group as financial advisor. The U.S. Trustee for Region 1 appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Dentons Bingham Greenebaum, LLP as its legal counsel. Stephen Darr, the court-appointed Chapter 11 trustee, is represented by Douglas R. Gooding, Esq., at Choate Hall & Stewart, LLP. UFC HOLDINGS: Moody's Affirms 'Ba3' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings affirmed UFC Holdings, LLC's (UFC) Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, and Ba3 rating on the senior secured first lien bank credit facility. The company's speculative grade liquidity rating (SGL) was upgraded to SGL-1 from SGL-2 reflecting very good liquidity. The outlook is stable. The affirmation and stable outlook reflect Moody's expectation that UFC will continue to deliver strong revenue growth, increase profitability and generate meaningful free cash flow while maintaining moderate leverage. The lack of clarity regarding the company's financial policy, including shareholder returns and M&A appetite, constrain the ratings. RATINGS RATIONALE UFC's Ba3 CFR reflects the company's scale, solid profitability, moderate leverage, and attractive assets. The business combination with WWE to create TKO Group Holdings, Inc. completed on September 12, 2023, provides operating leverage, creates greater revenue diversification, and better positions the company to monetize its content across multiple platforms as Moody's have seen with recently signed contracts with Netflix, Inc. and NBCUniversal. Live sports and entertainment continue to draw significant interest from large tech companies, cable networks, and traditional broadcasters as they deliver steady and predictable ratings and attract large live audiences. At the same time, Moody's ratings take into consideration the competitive nature of the industry UFC operates in, the integration risk with WWE, the uncertainty surrounding upcoming contracts set to expire in 2026 with The Walt Disney Company and lack of clarity into prospective financial policies given M&A risks and the going private transaction of Endeavor Group Holdings, Inc. (EDR), 53.6% owner of TKO (the parent of UFC). On April 2, 2024, EDR entered into a definitive agreement to be acquired by Silver Lake, a private equity firm based in California. While the consummation of the transaction is not subject to any financing conditions, it is uncertain whether the transaction could pressure UFC's credit profile. Moody's expect UFC to maintain very good liquidity over the next 12-18 months. This is supported by around (i) $294.7 million in cash (as of June 30, 2024), (ii) Moody's expectation for meaningful free cash flow generation of more than $500 million in 2024, and (iii) a $205 million fully undrawn revolving credit facility that expires in October 29, 2025, which Moody's expect the company to refinance in the next few months. The term loan is covenant lite and the revolving credit facility has a springing maximum leverage covenant of first lien debt-to EBITDA of 6.5x, if borrowing under the revolver exceeds thirty-five percent of capacity. Moody's do not expect the revolver will be drawn over the next year, and if drawn, the cushion of covenant compliance should be ample. The stable outlook reflects Moody's expectations that UFC will grow revenue and EBITDA organically, successfully integrate WWE, generate material free cash flow, and maintain moderate leverage over the next 12 to 18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating could be upgraded if the company demonstrates a commitment to maintaining a conservative approach to balance sheet management, improves liquidity and free cash flow, grows revenue organically and debt-to-EBITDA (inclusive of Moody's adjustments) is sustained around 3.0x. The rating could be downgraded if the company's liquidity and operating performance deteriorates, debt-to-EBITDA (inclusive of Moody's adjustments) is sustained above 4.0x, or free cash flow materially weakens. TKO Groups Holdings, Inc. is a leading premium sports and entertainment company comprising of UFC and WWE. Together, the company reaches more than one billion household in approximately 210 countries and territories, and produces more than 300 live events year-round. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. UNIVISION COMMUNICATIONS: Add-on Notes No Impact on Moody's B1 CFR ------------------------------------------------------------------ Moody's Ratings said Univision Communications Inc.'s (d/b/a "TelevisaUnivision", "TU" or the "company") B1 corporate family rating, B1 ratings on the senior secured debt obligations (consisting of bank credit facilities and notes) and stable outlook are not impacted by the company's announcement that it plans to issue an additional $755 million principal amount to its existing $500 million 8.5% senior secured notes due 2031 (the "initial 2031 Notes"). Net proceeds from the fungible add-on plus cash-on-hand will be used to fully repay the existing $906 million outstanding senior secured term loan due 2026. The additional 2031 notes will be issued under the same indenture governing the initial 2031 Notes, contain the same terms and conditions, and treated as a single series with the same CUSIP number. Moody's view TelevisaUnivision's refinancing transaction as credit neutral because pro forma total debt to EBITDA will remain unchanged at 6.4x as of LTM June 30, 2024 (Moody's adjusted on a two-year average EBITDA basis). Moody's continue to expect leverage will decrease to 5x over the next 18-24 months (no later than 2026) via a combination of EBITDA growth and debt reduction. The transaction helps to extend the company's debt maturity profile, enhancing financial flexibility. TelevisaUnivision's credit profile reflects the company's elevated leverage offset by its material scale, strong audience shares and position as the leading Spanish-language content and diversified media company. TU's diversification across multiple media platforms (i.e., broadcast, cable, digital, streaming and audio), each with dissimilar demand drivers, offers a unique value proposition, enabling the company to capitalize on its reach throughout Spanish-speaking populations in both Mexico and the US, and align its programming to its audience and advertisers. In 2022, TU launched ViX, its streaming platform, which offers free ad-supported video-on-demand (AVOD), subscription video-on-demand (SVOD) and limited ad-supported tiers. Moody's expect ViX to produce positive EBITDA in H2 2024, only two years after launch. Liquidity is good with TU reverting to positive free cash flow (FCF) in 2024 and beyond as capital expenditures associated with streaming investments normalize. The credit profile is constrained by TelevisaUnivision's exposure to advertising revenue (roughly 60% of revenue), which is inherently cyclical, as well as the ongoing structural decline in US linear TV core advertising as non-political TV ad budgets continue to erode in favor of digital media. Additionally, TU's US retransmission revenue growth will be challenged over the next several years because the rate of traditional subscriber losses is expected to outpace annual escalators in non-contract renewal years, offsetting the material fee increases occurring in years when contracts renew. However, TU's exposure to the Hispanic population's demographic trends is an offsetting factor that supports the credit profile. Though the Latinx market is one of the fastest growing populations in the US, historically it has not received its proportionate share of advertising spend. With access to the US, the number one Spanish speaking population by GDP, and Mexico, the number one Spanish speaking country by population, Moody's believe TU can capitalize on its strong audience share, which favorably positions the company to continue growing its ad market share and mitigate current weakness in US linear TV core ad demand. This has allowed the company to outperform general TV advertising market trends. Headquartered in N.Y., New York, Univision Communications Inc., is a leading Spanish-language multimedia conglomerate with operations in the US (roughly 63% of total revenue) and Mexico (37%) serving a global audience offering original in-house content production, the largest owned Spanish-language content library, entertainment, news and sports. Revenue totaled approximately $5 billion for the twelve months ended June 30, 2024. VERECORE LLC: Hires Rountree Leitman Klein & Geer as Attorney ------------------------------------------------------------- Verecore LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Rountree, Leitman, Klein & Geer, LLC as attorney. The firm's services include: a. giving the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the management of its property; b. preparing on behalf of the Debtor as Debtor-in-Possession necessary schedules, applications, motions, answers, orders, reports and other legal matters; c. assisting in examination of the claims of creditors; d. assisting with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and e. performing all other legal services for the Debtor as Debtor-in-Possession that may be necessary herein. The firm will be paid at these rates: William A. Rountree $595 per hour Will B. Geer $595 per hour Michael Bargar $535 per hour Hal Leitman $425 per hour William Matthews $425 per hour David S. Klein $495 per hour Alexandra Dishun $425 per hour Elizabeth Childers $395 per hour Ceci Christy $425 per hour Caitlyn Powers $375 per hour Shawn Eisenberg $300 per hour Tarsha Daniel $225 per hour Elizabeth Miller $250 per hour Megan Winokur $175 per hour Catherine Smith $150 per hour Law Clerk The firm received a pre-petition retainer in the amount of $21,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. William A. Rountree, Esq., a partner at Rountree, Leitman, Klein & Geer, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: William A. Rountree, Esq. Rountree, Leitman, Klein & Geer, LLC Century I Plaza 2987 Clairmont Road, Suite 350 Atlanta, GA 30329 Tel: (404) 584-1238 Email: wrountree@rlkglaw.com About Verecore LLC Verecore, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 24-21041) on Aug. 27, 2024, disclosing under $1 million in both assets and liabilities. The Debtor is represented by ROUNTREE, LEITMAN, KLEIN & GEER, LLC. VILLAGE GATE: Chapter 11 Case Tossed, Filed in Bad Faith -------------------------------------------------------- Judge Beth A. Buchanan of the United States Bankruptcy Court for the Southern District of Ohio granted the motions filed by the United States Trustee and creditor Pioneer Automotive, LLC to dismiss Village Gate, LLC's bankruptcy case. UST and Pioneer seek to dismiss Village Gate's bankruptcy case "for cause" pursuant to 11 U.S.C. Sec. 1112(b). They assert that Village Gate filed its bankruptcy petition in bad faith after engaging in prepetition misconduct, including the destruction of evidence, in an attempt to thwart payment of Pioneer's judgment award. An evidentiary hearing was held on April 23, 2024 to consider evidence regarding the motions to dismiss as well as the UST and Pioneer's objections to the Debtor's election to proceed under subchapter V of chapter 11. Debtor Village Gate owns an outdoor mall commonly referred to as the Greenhills Shopping Center located in Cincinnati, Ohio. Village Gate filed a chapter 11 bankruptcy petition on January 30, 2024 through its manager and designated representative, Shlomo (Steve) Rasabi. Mr. Rasabi testified that Village Gate was formed by Yehuda Chelminsky in March of 2016 to purchase the real property comprising the Greenhills Shopping Center. Village Gate purchased the property for $1,150,000 in March of 2016. The funding for the purchase was provided by Funding Realty, LLC which loaned Village Gate $1,150,000 secured by a first mortgage although the initial $100,000 was put down by another company, BMI Management, a company owned by Mr. Rasabi. At the heart of the allegations in the motions to dismiss, is the pre-petition protracted litigation between Village Gate and Pioneer, one of the former tenants in the shopping center. In July of 2020, Pioneer filed a complaint against Village Gate and Mr. Rasabi upon which Pioneer obtained a default judgment against Village Gate on October 23, 2020 in the amount of $370,767. The default judgement was based on claims of breach of contract with respect to a broker-agent agreement that Village Gate entered with Pioneer for the selling of Pioneer's business and breach of fiduciary duty with respect to allegations that Village Gate misrepresented the existence of prospective buyers for the business and that Village Gate locked Pioneer out of its premises with substantial business property locked inside. The Court concludes Village Gate's bankruptcy petition was filed in bad faith. Furthermore, the Court concludes that dismissal is in the best interests of creditors and the estate. Accordingly, the motions to dismiss are granted. Judge Buchanan says, "Accordingly, on the record currently before this Court, the appointment of a chapter 11 trustee seems neither feasible nor in the best interest of creditors and the estate." She explains, "Dismissal, on the other hand, will return all parties to their prepetition status. Village Gate may continue to operate the Greenhills Shopping Center for the benefit of its creditors and tenants. Village Gate, Funding Realty, and Pioneer may litigate to conclusion their respective disputes in state court. And the bankruptcy estate will be relieved of the costs of administration for what appears to be of little to no benefit to creditors as a whole. Accordingly, this Court concludes that dismissal of this chapter 11 case is in the best interest of creditors and the estate." A copy of the Court's decision is available at https://urlcurt.com/u?l=dSlwRb About Village Gate, LLC Village Gate, LLC primarily engaged in renting and leasing real estate properties. Village Gate, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-10180) on Jan. 30, 2024, listing $1,425,500 in assets and $2,456,073 in liabilities. The petition was signed by Shlomo (Steve) Rasabi as LLC manager. Judge Beth A Buchanan presides over the case. David A Kruer, Esq. at DAVID KRUER & COMPANY, LLC, represents the Debtor as counsel. WELLPATH HOLDINGS: $110MM Bank Debt Trades at 53% Discount ---------------------------------------------------------- Participations in a syndicated loan under which Wellpath Holdings Inc is a borrower were trading in the secondary market around 47.1 cents-on-the-dollar during the week ended Friday, Sept. 27, 2024, according to Bloomberg's Evaluated Pricing service data. The $110 million Term loan facility is scheduled to mature on October 1, 2026. The amount is fully drawn and outstanding. Wellpath Holdings, headquartered in Nashville, Tennessee, provides medical, dental, and behavioral health services to patients in local detention facilities, federal and state prisons and behavioral healthcare facilities. Wellpath is privately owned by H.I.G. Capital. WHEEL PROS: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Wheel Pros, LLC. About Wheel Pros Wheel Pros, LLC (d/b/a Hoonigan) -- http://www.hoonigan.com/-- serves the automotive enthusiast industry with entertaining content and a wide selection of vehicle enhancements from its portfolio of lifestyle brands, including Fuel Off-Road, American Racing, KMC, Morimoto, TeraFlex, Rotiform, and Black Rhino. Utilizing its expanding global network of distribution centers spanning North America, Australia, and Europe, Hoonigan serves over 30,000 retailers. It has a growing e-commerce presence to provide enthusiast consumers with access to a variety of aftermarket enhancements including wheels, suspension, lighting, and accessories. 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. Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP are serving as legal counsel, 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. WHITTIER SEAFOOD: Committee Taps Miller Nash LLP as Attorney ------------------------------------------------------------ The official unsecured creditors' committee of Whittier Seafood, LLC seeks approval from the U.S. Bankruptcy Court for the District of Alaska to retain Miller Nash, LLP as its attorneys. The professional services which Miller Nash will render include the following: a. assist the Committee in the investigation of the financial affairs of Whittier and related debtors; b. assist the Committee in the negotiation, formulation and confirmation of a plan of reorganization; c. prepare necessary pleadings in these proceedings; and d. perform all other legal services for the Committee which may be necessary. Miller Nash will be paid at these hourly rates: David C. Neu $695 Jesus Palomares $535 Edgar Rosales (paralegal) $240 David C. Neu, partner of Miller Nash, 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 Debtors and their estates. Miller Nash can be reached at: David C. Neu, Esq. MILLER NASH GRAHAM & DUNN LLP 2801 Alaskan Way, Suite 300 Seattle, WA 98121 Tel: (206) 624-8300 Fax: (206) 340-9599 E-mail: david.neu@millernash.com About Whittier Seafood Whittier Seafood, LLC owns and operates a fish processing plant in Whittier, Alaska. Whittier Seafood filed Chapter 11 petition (Bankr. D. Alaska Case No. 24-00139) on Aug. 19, 2024, with $10 million to $50 million in both assets and liabilities. Judge Gary Spraker oversees the case. Thomas A. Buford, Esq., at Bush Kornfeld, LLP is the Debtor's legal counsel. Gregory Garvin, Acting U.S. Trustee for Region 18, appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. WIN-SC LLC: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Win-SC, LLC. About Win-SC LLC Win-SC LLC owns real property located at 1890 - 1900 North Atherton Street, State College, Centre County, Pennsylvania comprised of two parcels having a current value of $5.27 million. Win-SC LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02012) on April 15, 2024. In the petition filed by Robert E. Schmidt, Jr., Managing Member of Schmidt Investments of South Florida, LLC, the Debtor reports total assets of $5,286,776 and total liabilities of $8,222,411. The Honorable Bankruptcy Judge Henry W. Van Eck handles the case. The Debtor is represented by Lawrence V. Young, Esq., at CGA Law Firm. WOB HOLDINGS: Public House Holdings Appointed as Committee Member ----------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Public House Holdings, LLC, as a new member of the official committee of unsecured creditors in the Chapter 11 cases of WOB Holdings, LLC and its affiliates. As of Oct. 2, the members of the committee are: 1. Houston Beer Ventures, I, LLC c/o Earl Michaels 13976 Clubhouse Drive Tampa, FL 33618 2. Edward Don & Company, LLC c/o John Fahey 9801 Adam Don Parkway Woodridge, IL 60517 3. Public House Holdings, LLC c/o Michael Zembillas 485 Riverside Drive Tarpon Springs, FL 34689 About WOB Holdings WOB Holdings, LLC owns and operates craft beer restaurants in Tampa, Fla. WOB Holdings filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-04538) on August 2, 2024, with $10 million to $50 million in both assets and liabilities. Paul Avery, president, signed the petition. Judge Catherine Peek Mcewen handles the case. The Debtor is represented by Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP. WRENA LLC: Seeks Approval to Hire DWH Corp as Financial Advisor --------------------------------------------------------------- Wrena, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ DWH Corp. as financial advisor and to appoint Scott Eisenberg, its member, as chief restructuring officer. The firm's services include: (a) implement DWH's rolling 13-week cash flow forecast to project the Debtor's performance as well as to fulfill requirements of the bankruptcy filing; (b) develop projections as needed to support the bankruptcy filing and bankruptcy exit plan; (c) meet with the Debtor's finance team on a weekly basis to roll and update the 13-week cash flow forecast; (d) provide monthly reports for the court; (e) participate in conversations with the lender as applicable; (f) development of a liquidation analysis of the business; and (g) perform all other financial advisory services for the Debtor in connection with this Chapter 11 case and other services in its interests. Scott Eisenberg, chief restructuring officer, will be paid at his hourly rate of $550 plus out-of-pocket expenses incurred. The firm received a retainer fee of $40,000 from the Debtor. Heather Gardner, a partner at DWH, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Heather Gardner DWH Corp. 180 Monroe Avenue NW, Suite 2R Grand Rapids, MI 49503 Telephone: (616) 233-0020 About Wrena LLC Wrena, LLC is a Tier 1 and Tier 2 automotive supplier in Tipp City, Ohio. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-49047) on September 23, 2024, with $1 million to $10 million in both assets and liabilities. Scott Eisenberg, chief restructuring officer, signed the petition. Judge Maria L. Oxholm oversees the case. Wolfson Bolton Kochis PLL, Cascade Partners LLC and DWH Corp. serve as the Debtor's legal counsel, investment banker and financial advisor, respectively. Scott Eisenberg of DWH is the chief restructuring officer. WRENA LLC: Seeks to Hire Cascade Partners as Investment Banker -------------------------------------------------------------- Wrena, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Cascade Partners LLC as investment banker. The firm's services include: (a) advise the Debtor concerning a potential transaction; (b) review and familiarize itself with the business, operations, and financial condition of the Debtor, as well as other matters and/or analyses it deems relevant; (c) assist the Debtor in the preparation of a comprehensive confidential information presentation describing it and in the negotiation of any confidentiality agreements to be entered into by third parties potentially interested in participating in a transaction, all of which shall be subject to the approval; (d) assist in the identification and screening of potential buyers; (e) contact potential buyers on the Debtor's behalf and, as appropriate, arrange for and orchestrate meetings between potential buyers and/or investors and the Debtor; (f) present to the Debtor all proposals from potential buyers and make recommendations as to its appropriate negotiating strategy and course of conduct; (g) assist in all negotiations and in all document review as reasonably requested and directed by the Debtor; and (h) provide such other financial advisory and investment banking services as are customary for similar transactions and as may be mutually agreed upon in advance in writing by the Debtor and Cascade. The firm will be paid as follows: (a) engagement fee of $25,000 monthly; (b) transaction fee equal to $300,000 plus five percent of the Transaction Value in excess of $6,000,000; and (c) reimbursement of certain fees and expenses. Before the petition date, engagement fees in the total amount of $50,000 were paid to the firm by the Debtor. Shareef Simaika, a managing director at Cascade Partners, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Shareef Simaika 1000 Town Center, St. 1100 Southfield, MI 48075 Telephone: (248) 430-6266 About Wrena LLC Wrena, LLC is a Tier 1 and Tier 2 automotive supplier in Tipp City, Ohio. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-49047) on September 23, 2024, with $1 million to $10 million in both assets and liabilities. Scott Eisenberg, chief restructuring officer, signed the petition. Judge Maria L. Oxholm oversees the case. Wolfson Bolton Kochis PLL, Cascade Partners LLC and DWH Corp. serve as the Debtor's legal counsel, investment banker and financial advisor, respectively. Scott Eisenberg of DWH is the chief restructuring officer. WRENA LLC: Seeks to Tap Wolfson Bolton Kochis as Legal Counsel -------------------------------------------------------------- Wrena, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Wolfson Bolton Kochis PLLC as counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties; (b) administer the bankruptcy case and exercise oversight with respect to the Debtor's affairs; (c) prepare necessary legal papers; (d) prepare adversary proceedings to determine the validity, extent, and priority of asserted security interests and liens on the Debtor's assets and prosecute Chapter 5 causes of action; (e) appear in court and at meetings to represent the interests of the Debtor; (f) negotiate with individual creditors and any creditors’ committee should one be appointed; (g) advise the Debtor regarding the sale of its assets under 11 U.S.C. section 363 and guide it through the sale process; (h) prepare and prosecute a Chapter 11 plan of reorganization and disclosure statement; (i) communicate with creditors; and (x) perform all other legal services for the Debtor in connection with this Chapter 11 case. The firm's hourly rates are as follows: Scott A. Wolfson, Member $745 Peter C. Bolton, Member $695 Thomas J. Howlett, Member $640 Eric A. Zacks, Of Counsel $615 Lara F. Philips, Of Counsel $595 Anthony J. Kochis, Member $580 Amy H. Smith, Member $525 Michelle H. Bass, Member $475 Kelsey A. Postema, Associate $325 Logan A. Grizzell, Associate $325 Stephanie K. Travis, Paralegal $260 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $50,000 from the Debtor. Mr. Wolfson disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Scott A. Wolfson, Esq. 3150 Livernois, Suite 275 Troy, MI 48083 Telephone: (248) 247-7103 Facsimile: (248) 247-7099 Email: swolfson@wolfsonbolton.com About Wrena LLC Wrena, LLC is a Tier 1 and Tier 2 automotive supplier in Tipp City, Ohio. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-49047) on September 23, 2024, with $1 million to $10 million in both assets and liabilities. Scott Eisenberg, chief restructuring officer, signed the petition. Judge Maria L. Oxholm oversees the case. Wolfson Bolton Kochis PLL, Cascade Partners LLC and DWH Corp. serve as the Debtor's legal counsel, investment banker and financial advisor, respectively. Scott Eisenberg of DWH is the chief restructuring officer. YANEZ DESIGNS: Hires James S. Wilkins as Attorney ------------------------------------------------- Yanez Designs LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ James S. Wilkins as attorney. The firm will provide these services: a. give Debtor legal advice with respect to its powers and duties as Debtor –in-possession in the continued operation of its personal management of its property; b. take necessary action to collect property of the estate and file suits to recover the same; c. represent your applicant as Debtor-in-possession in connection with the formulation and implementation of a Plan of Reorganization and all matters incident thereto; d. prepare on behalf of your applicant as Debtor-in-possession necessary applications, answers, orders, reports and other legal papers; e. object to disputed claims; f. perform all other legal services for the Debtor as Debtor-in-Possession which may be necessary herein; and it is necessary for Debtor as Debtor-in-Possession to employ an attorney for such professional services. The firm will be paid at $475 per hour. The firm will be paid a retainer in the amount of $5,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. James S. Wilkins, Esq., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: James S. Wilkins, Esq. 1100 NW Loop 410, Suite 700 San Antonio, TX 78213 Tel: (210) 271-9212 Email: jwilkins@stic.net About Yanez Designs LLC Yanez Designs LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51475) on April 3, 2024. In the petition filed by Sandor Gonzalez, as sole member, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by: James S. Wilkins, Esq. JAMES S. WILKINS P.C. 1100 NW Loop 410, Ste. 700 San Antonio, TX 78213 Tel: (210) 271-9212 Email: jwilkins@stic.net YELLOW CORP: Asks Court to Reconsider Pension Debt Ruling --------------------------------------------------------- Alex Wolf of Bloomberg Law reports that Yellow Corp. and the defunct trucking company's shareholders urged a Delaware bankruptcy court to reconsider a key ruling that kept the company on the hook for $6.5 billion in pension liability claims. Judge Craig T. Goldblatt's Sept. 13, 2024 decision over calculating Yellow's liability to multiemployer pension plans ought to be revisited due to a lack of clarity and failure to explain how the company defaulted on its pension liabilities, the less-than-truckload carrier said in a Sept. 27 filing with the US Bankruptcy Court for the District of Delaware. "Unless the Court was referring simply to the Debtors' chapter 11 filings as a "default," it is unclear on what basis the Court concluded that there was any default. The summary judgment record is bereft of any evidence of pre-petition default (none is cited in the Memorandum Opinion). As set forth in more detail below, the factual record demonstrates just the opposite: prior to the Petition Date, not one of the SFA MEPPs assessed or demanded payment of Debtors' withdrawal liability, let alone determined under plan rules that there existed a substantial likelihood that the Debtors would be unable to pay the yet-to-be-assessed withdrawal liability (an "Insecurity Default"), meaning that Debtors could not have "defaulted" on any such payments before seeking the protections of chapter 11. Simply put, the Debtors could not have defaulted on an obligation that did not yet exist. Because Debtors believe this finding to be in error, and because that finding could have wide ranging implications for proper calculation of both the SFA MEPPs' Proofs of Claim and numerous proofs of claim filed by other MEPPs -- specifically, whether such claims must be discounted to their net present value -- the Debtors respectfully request that the Court reconsider these findings, as set forth herein," according to the Debtors' Motion filed Sept. 27, 2024. 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. [^] BOOK REVIEW: The Luckiest Guy in the World ---------------------------------------------- Author: Boone Pickens Publisher: Beard Books Paperback: US$34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at: http://www.beardbooks.com/beardbooks/the_luckiest_guy_in_the_world.html "This is the story of a man who turned a $2,500 investment into America's largest independent oil company in thirty years and along the way discovered that something is terribly wrong with corporate America. Mesa Petroleum is the company, and I'm the man." Thus begins the autobiography of Boone Pickens, who prefers to be referred to without his first initial, "T." Mr. Pickens' autobiography was originally published in 1987, at the end of the rollercoaster years when he was one of the most famous (or infamous, depending on your point of view) and most-feared corporate raiders during a decade known for corporate raiding. For the 2000 Beard Books edition, Pickens wrote an additional five chapters about the subsequent, equally tumultuous, 13 years, during which time he suffered corporate raiders of his own, recapitalized, and retired, only to see his beloved company merge with Pioneer. One of his few laments is being remembered mainly for the high-profile years, rather than for the company he built from virtually nothing. Of the takeover attempts, he says: "I saw undervalued assets in the public marketplace. My game plan with Gul, Phillips, and Unocal wasn't to take on Big Oil. Hell, that wasn't my role. My role was to make money for the stockholders of Mesa. I just saw that Big Oil's management had done a lousy job for their stockholders." He would prefer to be known as a champion of the shareholder rights movement, which prompted big corporations to become more responsive to the needs and demands of their stockholders. He founded the United Shareholders Association, a group that successfully lobbied for changes in corporate governance. In a memorable interview in the May/June 1986 Harvard Business Review, Pickens said, "Chief executives, who themselves own few shares of their companies, have no more feeling for the average stockholder than they do for baboons in Africa." Boone Pickens was born in 1928 in Holdenville, Oklahoma. His grandfather was Methodist missionary to the Indians there; his father was a lawyer and small player in the oil business. People in Holdenville worked hard and used such expressions as "Root hog or die," meaning "Get in and compete or fail." The family later moved to Amarillo, Texas, where Pickens went to Texas A&M for one year, but graduated from Oklahoma State University in 1951 with a degree in geology. He worked at Phillips Petroleum for three years, and then, despite growing family obligations, struck out on his own. His wife's uncle told him, "Boone, you don't have a chance. You don't know anything." This book is a wonderful read. Pickens pulls no punches, and is as hard on himself as anyone else. He talks about proxy fights, Texas-Oklahoma football games, his three marriages, poker, takeover strategies, and unfair duck hunting practices, all in the same easy tone. You feel like he's sitting right there in the room with you. Pickens ends the introduction to this story with this: "How I got from a little town in Eastern Oklahoma to the towers of Wall Street is an exciting, unlikely, sometimes painful story. And, if you're young and restless, I'm hoping you'll make a journey similar to mine." Root hog or die! Thomas Boone Pickens Jr. -- https://boonepickens.com/ -- was an American business magnate and financier. Among his lengthy accolades, Time magazine has identified him one of it 100 most influential people, Financial World named him CEO of the Decade in 1989 and Oil and Gas Investor identified him as one of the "100 Most Influential People of the Petroleum Century." He was born in May 1928. He died September 11, 2019. ********* 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. 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The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***