/raid1/www/Hosts/bankrupt/TCR_Public/241007.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, October 7, 2024, Vol. 28, No. 280
Headlines
150 LEFFERTS: Hires A.Y. Strauss LLC as Legal Counsel
174 SKILLMAN: Hires Solomon Rosengarten as Attorney
288 4TH LLC: Seeks to Hire A.Y. Strauss LLC as Counsel
31-41 44TH ST: Case Summary & Six Unsecured Creditors
373 ROUTE 22: Voluntary Chapter 11 Case Summary
47 BROOKLYN LOFTS: Voluntary Chapter 11 Case Summary
55 EAST 21ST: Seeks to Hire A.Y. Strauss LLC as Counsel
8501 FORT HAMILTON: Voluntary Chapter 11 Case Summary
AINOS INC: All Two Proposals Approved at Annual Meeting
AMERICAN ACRYLICS: Unsecureds to Get $50K Dividend over 60 Months
APPLIED SYSTEMS: Unsecureds Will Get 16.43% of Claims in Plan
AQUAGRILLE LLC: Hearing Tomorrow on Sale to Swedish Restaurant
ARRAKIS LLC: Hires Pittsburgh Commercial Real as Broker
ATI PHYSICAL: Issues New $10.5 Million Second Lien PIK Notes
BASIC FOOD: Fraud Claim v. Former Owner Tossed
BERKSHIRE INVESTMENTS: Hires UB Greensfelder as Special Counsel
BEYOND AIR: Signs Term Sheet for $11.5 Million Loan
BIG LOTS: Ollie’s Bargain Wins Auction for Seven Former Stores
BIOLASE INC: Files for Chapter 11, Plans $14M Asset Sale to Sonendo
BLACK WOLF HOLDINGS: Seeks to Sell Property for $307,840
BLUEBIRD BIO: Restructures to Reach Cash Flow Break-Even by H2 2025
BODY DETAILS: Gets Interim OK to Use Cash Collateral Until Nov 26
BOTW HOLDINGS: Hires Saltzman LLC as Financial Advisor
BRINKS HOME: Credit Lenders in Refinancing Discussions
CAFE CHINOIS: Case Summary & 20 Largest Unsecured Creditors
CANTON & COMPANY: Secures Cash Collateral Use Until Nov. 22
CAPSTONE GREEN: Swings to $7.4-Mil. Net Income in FY Ended March 31
CARMELL CORP: Falls Short of Nasdaq's Minimum Bid Price Requirement
CARROTHERS INSPECTION: Hires Hester Baker Krebs LLC as Attorney
COCOCHINE OF NC: Case Summary & 16 Unsecured Creditors
CONCORDIA ANESTHESIOLOGY: U.S. Trustee Appoints Creditors' Panel
CONNORSVILLE COMMONS: Voluntary Chapter 11 Case Summary
COUSIN ENTERPRISES: Gets OK to Use Cash Collateral Until Nov. 18
CXOSYNC LLC: Gets Interim OK to Use Cash Collateral Until Nov. 29
DENALI CONSTRUCTION: Voluntary Chapter 11 Case Summary
DHW WELL: Seeks to Sell Excess Tractors and Trailers
DIAMOND SPORTS: To Drop Baseball Broadcasts Without New Deals
DISH DBS: Creditors in Talks With Advisers on Debt Deal Extension
DISTRIBUIDORA MI: Case Summary & 20 Largest Unsecured Creditors
DLD3 CARTS: May Use Cash Collateral Thru Nov. 5
DONELSON CORPORATE: Unsecureds Will Get 100% of Claims in Plan
DR. ERNIE F SOTO: Authorized to Use Cash Collateral Until Dec 31
DRF LOGISTICS: Committee Hires Ordinary Course Professionals
EARLY YEARS: Gets Final Approval to Use Cash Collateral
ECHOSTAR CORP: DIRECTV to Acquire DISH, Assume $9.75B Debt
EDGIO INC: Receives Go Signal for November Chapter 11 Sale
ELETSON HOLDINGS: UST Says Reed Smith Did Not Disclose Ties
EMERGENCY HOSPITAL: Case Summary & 20 Largest Unsecured Creditors
ENTECCO FILTER: May Use Cash Collateral Thru Oct. 18
ESCAMBIA OPERATING: Trustee Cuts Myron Purchase Price to $225,000
FARGO BREWING: Court Approves Use of Cash Collateral
FAYESON INC: Joli Lofstedt Named Subchapter V Trustee
FCA CONSTRUCTION: Gets Interim OK to Use Cash Collateral
FIREFLY STORE: Seeks to Hire Cushman & Wakefield as Sales Agent
FORGE FLIGHTWORKS: Case Summary & 20 Largest Unsecured Creditors
FRONTIER DEVELOPMENT: Dawn Maguire Named Subchapter V Trustee
FTX TRADING: CEO Skips Deposition Prior to Plan Hearing
FUNDIMENSION LLC: Case Summary & 11 Unsecured Creditors
GANDY'S TRANSPORT: Oct. 10 Final Hearing on Cash Collateral Access
GC PROPERTIES: Amy Denton Mayer Named Subchapter V Trustee
GFH LTD: Unsecureds Will Get 25% of Claims over 60 Months
GOLDEN WEST: S&P Downgrades ICR to 'CCC-' on Weak Performance
GRYPHON ONLINE: Posts $659,868 Net Loss in H1 2024
HAZ MAT: Hires Bennett Thrasher LLP as Financial Advisor
HAZ MAT: Hires Tittle Law Group PLLC as Legal Counsel
HIGHLAND CAPITAL: Ruling in Intercompany Loans Dispute Affirmed
HIJOLE FOODS: Seeks to Sell All Assets to IBH Corp.
HOG FATHER'S: Court Approves Sale of Liquor License for $75,000
HOLLYWOOD FOR CHILDREN: Creditors to Get Proceeds From Liquidation
INDOCHINE EXPRESS LELAND: Case Summary & 13 Unsecured Creditors
INDOCHINE EXPRESS OLEANDER: Case Summary & 19 Unsecured Creditors
INDOCHINE EXPRESS SOUTHPORT: Case Summary & Unsecured Creditors
INDOCHINE RESTAURANT: Case Summary & 20 Top Unsecured Creditors
INTELGENX TECHNOLOGIES: Completes Sale to atai Life in Quebec
IRWIN NATURALS: Committee Hires Golden Goodrich as Counsel
IRWIN NATURALS: Gets Interim OK to Use Cash Collateral
ISPECIMEN INC: Regains Compliance With Nasdaq's Bid Price Rule
J&A TRUCKING: Joseph Kershaw Spong Named Subchapter V Trustee
JAMIESON CAPEX: Taps Dakota Bankruptcy Firm as Legal Counsel
JAVELIN BUYER: S&P Assigns 'B-' Long-Term ICR, Outlook Stable
JJJ CONTRACTING: Gets OK to Use Cash Collateral Until Dec. 29
JP MORGAN 2018-PTC: S&P Lowers Class A Certs Rating to 'CCC(sf)'
K & P COMMERCIAL: Case Summary & 10 Unsecured Creditors
KNS HOLDCO: S&P Downgrades ICR to 'CCC', Outlook Negative
LAVIE CARE: Gets Okay on Updated Plan Creditor Votes
LEFEVER MATTSON: Oct. 15 Final Hearing on Cash Collateral Access
LEGACY ENTERPRISES: Case Summary & 14 Unsecured Creditors
LEVEL UP: Hires Johnson Pope Bokor Ruppel & Burns as Counsel
LEXARIA BIOSCIENCE: Appoints Michael Shankman as CFO
LL FLOORINGS: Completes Property, Asset Sale to F9 Investments
LUMIO HOLDINGS: Resolves Creditor Dispute, Clears Liquidation
MARINUS PHARMACEUTICALS: PTAB Denies Ovid's IPR Request
MEGA BROADBAND: S&P Alters Outlook to Positive, Affirms 'B+' ICR
MFT RESOURCES: Hires John Bernard Realty as Real Estate Broker
MILLENKAMP CATTLE: Taps Vertex Companies as Expert Witness
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until Oct 23
MISTY MOON: Court Approves Use of Cash Collateral Thru Oct 9
MOORE MEDICAL: Seeks to Tap David Jennis P.A. as Attorney
NCD HOLDINGS: Hires Coldwell Banker Apex as Real Estate Broker
NEW FORTRESS ENERGY: Strikes Agreement to Delay Debt Deadline
NIKOPAT & ASSOCIATES: Hires Iweanoges' Firm PC as Attorney
NOSTRUM LABORATORIES: Hits Chapter 11 Bankruptcy
OPEN RANGE: Gets Final Approval to Use Cash Collateral
ORION ADVISOR: S&P Rates First-Lien Senior Secured Term Loan 'B'
PALMER SQUARE 2022-5: S&P Assigns BB- (sf) Rating on Cl. E-R Notes
PERASO INC: Extends Expiration of Series B Warrants to Nov. 8
PERSPECTIVES INC: Court OKs Sale of Property to VVRM
PUERTO RICO: Cobra Acquisitions Receives $150M Initial Settlement
PUERTO RICO: Cobra Acquisitions Secures $150M Payment from PREPA
R&W CLARK: Updates Unsecureds & Secured Claims Pay Details
RED CAT: OKs Issuance of 2.16M Shares to FlighWave Stockholders
RED RIVER: Court Orders Parties to Meet Prior to Venue Hearing
REGAL PRESS: Amends Flagstar Secured Claims Details
REID'S EDUCATIONAL: Aaron Cohen Named Subchapter V Trustee
RENO CITY CENTER: Amends Plan to Include Delphi & Insider Claims
RHODIUM ENCORE: Court Tosses Landlord's Live Mining Inspection Bid
RHODIUM ENCORE: Hires Stris & Maher as Special Litigation Counsel
RHODIUM ENCORE: Seeks to Hire Province LLC as Financial Advisor
RHODIUM ENCORE: Taps Lehotsky Keller as Special Litigation Counsel
RHODIUM ENCORE: Taps Quinn Emanuel Urquhart & Sullivan as Attorney
ROBERTSHAW US: Emerges From Chapter 11, Eliminates $650M Debt
ROYSTONE ON QUEEN: All Classes to be Paid in Full in Plan
RYLEE & COMPANY: May Use Cash Collateral Thru Dec. 31
SC-GA OPERATOR: Case Summary & One Unsecured Creditor
SIX RIVERS: Hires BCM Advisory Group LLC as Financial Advisor
SKY MEDIA PAY: Court OKs Sale of Epic West Condominium Property
SMITH MICRO: Completes Concurrent Equity Offerings Raising $6.9M
SMOKIN' DUTCHMAN: Scott Chernich Named Subchapter V Trustee
SONOMA CELLAR: Hires Mcnamee Hosea P.A. as Counsel
SOUTH COAST EQUIPMENT: Oct 16 Final Hearing on Cash Collateral Use
SPRING HILL COLLEGE: Reaches Agreement with Nuveen to Stop Default
STEWARD HEALTH: Cannot Be Compelled to Reassign Contract
TIRES RIMS: Case Summary & 15 Unsecured Creditors
TNT CYBER: Elizabeth Lally Named Subchapter V Trustee
TRAN URGENT: Hires Neeleman Law Group as Legal Counsel
TWO RIVERS: Gets Interim OK to Use Cash Collateral Until Nov. 5
U.S. NEUROSURGICAL: Changes Name to 'Elite Health Systems, Inc.'
URBAN CHESTNUT: Committee Hires Lewis Rice LLC as Counsel
VIRTUSA HOLDCO: S&P Upgrades ICR to 'B+', Outlook Stable
WALNUT HILLS-GREENVILLE: Trustee Hires Ross Smith as Counsel
WESTERN URANIUM: Buys Property to Advance Milling Strategy
WNK FOODS: Case Summary & 20 Largest Unsecured Creditors
YUNHONG GREEN: Posts $414,000 Net Loss in Fiscal Q2
[*] Bankruptcy Cases in Texas Decreased 65% After Judge Jones Exit
[*] Epiq Renews Partnership With Global 50 Law Firm
[*] Jones Walker Welcomes Four New Partners to Litigation Group
[*] Mandolfo Joins Cahill's D.C. Office as White Collar Counsel
[*] Mega Bankruptcies Continue to Rise, Cornerstone Reports
[^] BOND PRICING: For the Week from Sept. 30 to Oct. 4, 2024
*********
150 LEFFERTS: Hires A.Y. Strauss LLC as Legal Counsel
-----------------------------------------------------
150 Lefferts Avenue Company LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
A.Y. Strauss LLC as counsel.
The firm's services include:
a. providing the Debtor with advice and preparing all
necessary documents regarding debt restructuring, bankruptcy and
asset dispositions;
b. taking all necessary actions to protect and preserve the
Debtor's estate during the pendency of this Chapter 11 Case;
c. preparing on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports and
papers in connection with the administration of this Chapter 11
Case;
d. counseling the Debtor with regard to its rights and
obligations as debtor-in-possession;
e. appearing in Court to protect the interests of the Debtor;
and
f. performing all other legal services for the Debtor which
may be necessary and proper in these proceedings and in furtherance
of the Debtor's operations.
The firm will be paid at these rates:
Partners $500 to $650 per hour
Counsel $475 per hour
Associates $425 to $450 per hour
Paralegals $200 per hour
The firm will be paid a retainer in the amount of $19,238.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Eric H. Horn, Esq., a partner at A.Y. Strauss 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:
Eric H. Horn, Esq.
A.Y. STRAUSS LLC
290 West Mount Pleasant Avenue, Suite 3260
Livingston, NJ 07039
Tel (973) 287-5006
Fax: (973) 533-0127
About 150 Lefferts Avenue Company LLC
150 Lefferts Avenue Company LLC in Brooklyn, NY, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No.
24-43509) on Aug. 22, 2024, listing as much as $10 million to $50
million in both assets and liabilities. Jonathan Bombart as
managing member, signed the petition.
Judge Jil Mazer-Marino oversees the case.
A.Y. STRAUSS LLC serve as the Debtor's legal counsel.
174 SKILLMAN: Hires Solomon Rosengarten as Attorney
---------------------------------------------------
174 Skillman Avenue LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Solomon
Rosengarten as attorney.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as a Debtor-in-possession in the continued management of its
property;
b. negotiate with the creditors of the Debtor in working out a
plan of reorganization, and to take necessary legal steps in order
to confirm said plan of reorganization;
c. prepare on behalf of Applicant, as Debtor-in-possession,
necessary legal papers and operating reports;
d. appear before the bankruptcy judge and to protect the
interest of the Debtor-in-possession before the bankruptcy judge,
and to represent the Debtor in all matters pending in the Chapter
11 proceeding; and
e. perform all other legal services for Applicant, as
Debtor-in-possession, which may be necessary herein.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
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:
Solomon Rosengarten, Esq.
2329 Nostrand Avenue
Brooklyn, NY 11210
Telephone: (718) 627-4460
Email: vokma@aol.com
About 174 Skillman Avenue LLC
174 Skillman Avenue LLC in Brooklyn, NY, sought relief under
Chapter 11 of the Bankruptcy Code filed its voluntary petition for
Chapter 11 protection (Bankr. E.D.N.Y. Case No. 18-45094) on Sept.
5, 2018, listing as much as $1 million to $10 million in both
assets and liabilities. Abraham E. Sofer, member, signed the
petition.
Judge Elizabeth S. Stong oversees the case.
Solomon Rosengarten, Esq. serve as the Debtor's legal counsel.
288 4TH LLC: Seeks to Hire A.Y. Strauss LLC as Counsel
------------------------------------------------------
288 4th, LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of New York to employ A.Y. Strauss LLC as
counsel.
The firm's services include:
a. providing the Debtor with advice and preparing all
necessary documents regarding debt restructuring, bankruptcy and
asset dispositions;
b. taking all necessary actions to protect and preserve the
Debtor's estate during the pendency of this Chapter 11 Case;
c. preparing on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports and
papers in connection with the administration of this Chapter 11
Case;
d. counseling the Debtor with regard to its rights and
obligations as debtor-in-possession;
e. appearing in Court to protect the interests of the Debtor;
and
f. performing all other legal services for the Debtor which
may be necessary and proper in these proceedings and in furtherance
of the Debtor's operations.
The firm will be paid at these rates:
Partners $500 to $650 per hour
Counsel $475 per hour
Associates $425 to $450 per hour
Paralegals $200 per hour
The firm received a retainer in the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Eric H. Horn, Esq., a partner at A.Y. Strauss 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:
Eric H. Horn, Esq.
A.Y. Strauss LLC
290 West Mount Pleasant Avenue, Suite 3260
Livingston, NJ 07039
Tel: (973) 287-5006
Fax: (973) 533-0127
About 288 4th, LLC
288 4th LLC in Brooklyn, NY, sought relief under Chapter 11 of the
Bankruptcy Code filed its voluntary petition for Chapter 11
protection (Bankr. E.D.N.Y. Case No. 24-43626) on Sept. 2, 2024,
listing $1,600,000 in assets and $80,000 in liabilities. David
Goldwasser as VP of restructuring, signed the petition.
Judge Elizabeth S Stong oversees the case.
A.Y. STRAUS LLC serve as the Debtor's legal counsel.
31-41 44TH ST: Case Summary & Six Unsecured Creditors
-----------------------------------------------------
Debtor: 31-41 44th St Realty LLC
a/k/a 31-41 44th Street Realty LLC
31-41 44th St.
Astoria, NY 11103
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-44145
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Julio E. Portilla, Esq.
JULIO E. PORTILLA
380 Lexington Ave. 4th Floor
New York, NY 10168
Tel: (212) 365-0292
Fax: (212) 365-4417
E-mail: jp@julioportillalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anthony Koutsidis as authorized
representative of the Debtor.
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/AV3HNGA/31-41_44th_St_Realty_LLC__nyebke-24-44145__0001.0.pdf?mcid=tGE4TAMA
373 ROUTE 22: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: 373 Route 22 East Realty LLC
8589 67th Avenue
Rego Park, NY 11374
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-44149
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Leo Jacobs, Esq.
JACOBS P.C.
595 Madison Avenu FL 39
New York, NY 10022
Tel: (718) 772-8704
E-mail: leo@jacobspc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Yuriy Mirgorodskiy as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/BON5GKY/373_Route_22_East_Realty_LLC__nyebke-24-44149__0001.0.pdf?mcid=tGE4TAMA
47 BROOKLYN LOFTS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: 47 Brooklyn Lofts LLC
411 Hemptead Tpke
West Hempstead, NY 11552
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-44146
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
87 Walker Street, Second Floor
New York, NY 10013
E-mail: lmorrison@m-t-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Daniel McCrossin as authorized
signatory.
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/AYZ5MYY/47_Brooklyn_Lofts_LLC__nyebke-24-44146__0001.0.pdf?mcid=tGE4TAMA
55 EAST 21ST: Seeks to Hire A.Y. Strauss LLC as Counsel
-------------------------------------------------------
55 East 21st Co., LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ A.Y. Strauss LLC as
counsel.
The firm's services include:
a. providing the Debtor with advice and preparing all
necessary documents regarding debt restructuring, bankruptcy and
asset dispositions;
b. taking all necessary actions to protect and preserve the
Debtor's estate during the pendency of this Chapter 11 Case;
c. preparing on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports and
papers in connection with the administration of this Chapter 11
Case;
d. counseling the Debtor with regard to its rights and
obligations as debtor-in-possession;
e. appearing in Court to protect the interests of the Debtor;
and
f. performing all other legal services for the Debtor which
may be necessary and proper in these proceedings and in furtherance
of the Debtor's operations.
The firm will be paid at these rates:
Partners $500 to $650 per hour
Counsel $475 per hour
Associates $425 to $450 per hour
Paralegals $200 per hour
The firm received a retainer in the amount of $19,238.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Eric H. Horn, Esq., a partner at A.Y. Strauss 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:
Eric H. Horn, Esq.
A.Y. Strauss LLC
290 West Mount
Pleasant Avenue, Suite 3260,
Livingston, NJ 07039
Tel: (973) 287-5006
Email: ehorn@aystrauss.com
About 55 East 21st Co., LLC
55 East 21st Co., LLC in Brooklyn, NY, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. E.D.N.Y. Case No. 24-43507) on Aug. 22, 2024,
listing as much as $10 million to $50 million in both assets and
liabilities. Jonathan Bombart as managing member, signed the
petition.
Judge Elizabeth S Stong oversees the case.
A.Y. STRAUSS LLC serve as the Debtor's legal counsel.
8501 FORT HAMILTON: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 8501 Fort Hamilton Parkway Ltd.
40 Jenna Lane
Staten Island, NY 10304
Business Description: The Debtor is the owner of certain
residential property acquired in 1995
located at 8501 Fort Hamilton Parkway,
Brooklyn, NY. The Property is improved by a
four-story residential apartment building
with 19 rooms per floor.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-44150
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Kevin Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLSTEIN LLP
125 Park Ave
New York, NY 10017-5690
E-mail: knash@gwfglaw.com
Total Assets: $8,060,000
Total Liabilities: $5,371,964
The petition was signed by Muhamet Nikezi 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/AV7QUUQ/8501_Fort_Hamilton_Parkway_Ltd__nyebke-24-44150__0001.0.pdf?mcid=tGE4TAMA
AINOS INC: All Two Proposals Approved at Annual Meeting
-------------------------------------------------------
Ainos, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Sept. 27, 2024, it held an annual
meeting of stockholders at 10F-2, No. 66, Shengyi 5th Rd., Zhubei
City, Hsinchu County 302, Taiwan (R.O.C.) at which the
stockholders:
(1) ratified the appointment of KCCW Accountancy Corp. as the
Company's independent registered public accounting firm for the
fiscal year ending Dec. 31, 2024; and
(2) approved the proposal to reserve up to 2 million shares of
common stock as special stock awards, which are not issued under
the Ainos, Inc. 2023 Stock Incentive Plan.
About Ainos
Ainos, Inc. -- https://www.ainos.com/ -- formerly known as Amarillo
Biosciences, Inc., is a diversified healthcare company focused on
the development of novel point-of-care testing (the "POCT"),
therapeutics based on very low-dose interferon alpha (the
"VELDONA"), and synthetic RNA-driven preventative medicine. The
Company's product pipeline includes commercial-stage VELDONA Pet
cytoprotein supplements, clinical-stage VELDONA human therapeutics,
and telehealth-friendly POCTs powered by the AI Nose technology
platform.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 8, 2024, citing that the Company has incurred
recurring losses and recurring negative cash flow from operating
activities, and has an accumulated deficit which raises substantial
doubt about its ability to continue as a going concern.
AMERICAN ACRYLICS: Unsecureds to Get $50K Dividend over 60 Months
-----------------------------------------------------------------
American Acrylic, LLC filed with the U.S. Bankruptcy Court for the
Northern District of Illinois a Plan of Reorganization for Small
Business dated August 29, 2024.
The Debtor is a manufacturer and fabricator providing custom
acrylic laser cutting and engraving services. The member interests
of the Debtor are owned by Natalia DeGreef (51%) and Gregory
DeGreef (49%).
The Debtor is a manager managed Limited Liability Company organized
and operating under the laws of the State of Illinois since 2023 at
its principal office and business located at 8124 Central Park
Avenue, Skokie, Illinois.
In the Chapter 11 Case the Debtor seeks to reorganize and pay
administrative claimants, priority creditors and secured creditors,
in full, and a dividend to general unsecured non priority creditors
over a term of 60 months. During the Chapter 11 case and as part of
its restructuring the Debtor relocated its manufacturing and
business operations to Lake Zurich, Illinois to take advantage of
significant reduced rent expenses.
Sources of Plan Funding include the Estate's available cash, cash
equivalents, proceeds generated from Debtor's business operations,
Net Proceeds of Litigation Claims including Avoidance Actions, the
Escrow Deposit if determined to belong to the Debtor and the
contribution from the Managing Members of an amount not to exceed
$30,000.00 if needed to fund payment of Administrative Claims.
The Plan provides for payment of 2 classes of secured claims, and 1
class of general unsecured non-priority claims. General unsecured
non-priority creditors holding allowed claims will receive payment
through periodic cash distributions disbursed by the Debtor. The
Plan also provides for the payment of administrative and priority
claims including priority tax claims.
Class 3 consists of General Unsecured Non-Priority Claims. Allowed
Class 3 claims shall be paid a dividend in the amount of $50,000.00
(the "Unsecured Creditors Fund") through pro rata distributions of
deferred cash payments to holders of allowed Class 3 Claims in
annual installments of $10,000.00 each over the period of 60
months. The installments shall be distributed to allowed Class 3
Claims, pro rata, by the Debtor. Class 3 claimants may be prepaid
without penalty or discount. Class 3 claims are impaired under the
Plan.
This Plan is self-executing. The Debtor shall not be required to
execute any newly created documents to evidence the claims, liens,
or terms of repayment to the holder of an Allowed Claim.
The Plan shall be funded by proceeds from the Estate's available
cash, cash equivalents, proceeds generated from Debtor's business
operations, Net Proceeds of Litigation Claims including Avoidance
Actions, the Escrow Deposit if determined to belong to the Debtor
and the contribution from the Managing Members of an amount not to
exceed $30,000.00 if needed to fund payment of Administrative
Claims. The Debtor projects that its cash flow will be sufficient
to make the Plan payments.
A full-text copy of the Plan of Reorganization dated August 29,
2024 is available at https://urlcurt.com/u?l=qJJhXC from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Gregory K. Stern, Esq.
Dennis E. Quaid, Esq.
Monica C. O'Brien, Esq.
Rachel S. Sandler, Esq.
GREGORY K. STERN, P.C.
53 West Jackson Boulevard, Suite 1442
Chicago, IL 60604
Phone: (312) 427-1558
Email: greg@gregstern.com
dquaid3@gmail.com
monica@gregstern.com
rachel@gregstern.com
About American Acrylic
American Acrylics LLC -- https://www.AmericanAcrylics.com --
established in 1973, American Acrylics offers terrific services in
producing quality machined parts. We cut acrylic, acrylic mirror,
Plexiglass, Lucite both cast & extruded plastics as well as
styrene, styrene mirror & polypropylene.
American Acrylics LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08049)
on May 31, 2024. In the petition filed by Gregory DeGreef, as
manager, the Debtor reports estimated assets between $100,000 and
$500,000 and estimated liabilities between $500,000 and $1
million.
The Debtor is represented by Gregory K Stern, Esq. at Gregory K.
Stern, P.C.
APPLIED SYSTEMS: Unsecureds Will Get 16.43% of Claims in Plan
-------------------------------------------------------------
Applied Systems Marketing, L.L.C., submitted an Amended Combined
Disclosure Statement and Plan of Liquidation dated August 29,
2024.
The Debtor's business is the ownership of real property located at
and known as 41-49 Forest Avenue, Glen Cove, New York 11542 (the
"Property").
By Motion filed June 7, 2024 (the "Sale Motion"), the Debtor
sought, among other things, (i) approval of a stalking horse
contract of sale for $4,600,000.00, to Bruce Waller, or his
assignee, subject to higher or better offers (the "Stalking Horse
Contract"); (ii) auction and notice procedures; (iii) scheduling of
an auction of the Property with the Stalking Horse Contract as the
opening bid; and (iv) scheduling a hearing to confirm the sale. By
order entered July 18, 2024 (the "Sale Procedures Order"), the
Court, among other things, established procedures governing the
Debtor's sale process, including scheduling an auction for August
1, 2024, at 11:00 a.m. and a final hearing to confirm the sale of
the Property.
The Debtor did not receive any offers sufficient to establish a
Qualified Bid, as that term is defined in the sale procedures
approved by the Sale Procedures Order. Accordingly, no auction was
conducted. The Court held a final hearing on the proposed sale to
sell the Property under the Stalking Horse Contract, with the
Debtor intending to close on that transaction as soon after an
order confirming the sale is entered by the Court.
After arms-length negotiations, the Debtor and Rising Tide have,
subject to this Court's approval, reached a resolution of any and
all issues between the parties which will, if approved, avoid
further incurrence of legal fees for litigation and the risks that
accompany such litigation(s) for both parties. The parties have
entered into a proposed settlement agreement (the "Rising Tide
Settlement"). The Debtor exercised its best business judgment in
entering into the Rising Tide Settlement and submits that the
Rising Tide Settlement is in the best interest of the Debtor's
estate, falls above the lowest point in the range of reasonableness
and recommends approval of the Rising Tide Settlement.
Class 5 consists of the Allowed General Unsecured Claims against
the Debtor. Upon the Effective Date of the Plan, in full
satisfaction of its Allowed General Unsecured Claim, (i) on the
Effective Date, or as soon as possible after the closing on the
Sale of the Property, the Debtor shall make a Pro Rata Distribution
to holders of Allowed Class 5 Claims from cash on hand, if any, and
the net proceeds of the Sale remaining after all administrative
expense claims and claims of higher priority than Allowed Class 5
Claims have been paid or reserved for (the "Initial Payment") and
(ii) on or within 15 days after the recovery of any other monies by
the Debtor, the Debtor shall make one or more further Pro Rata
Distributions from such recovered monies until such time as the
holders of Allowed Class 5 Claims are paid in full.
Assuming (i) the Debtor received gross proceeds of $4.6 million for
the sale of the Property; (ii) no other monies are recovered by the
Debtor; and (iii) the current amount of claims asserted against the
Debtor are not ultimately reduced or disallowed, the Pro-Rata
Distribution under (i) above is projected to be approximately
16.43%. Class 5 Claims are impaired, and therefore holders of Class
5 Claims are entitled to vote to accept or reject the Plan.
Class 6 consists of Member Interests in Debtor. The holders of the
membership interests in the Debtor shall retain their interests,
but shall not receive any distributions on account of same unless
and until all holders of Allowed Claims against the Debtor have
been paid in full. Class 6 is unimpaired, and therefore holders of
Class 6 Interests are not entitled to vote to accept or reject the
Plan and are deemed to accept it.
The distributions to the creditors holding Allowed Claims against
the Debtor that are to be made on and after the Effective Date
under this plan shall be funded from cash on hand, the net proceeds
of the Sale of the Property, after all closing costs, transfer
taxes, if any, and capital gains taxes, if any, are calculated and
paid, and the recovery of any additional monies from pending or
future litigations.
The Debtor reserves its rights to prosecute all Causes of Action it
may have, if any, including, but not limited to, the claims
anticipated to be settled under the Rising Tide Settlement, with
such rights vesting in the Reorganized Debtor upon the Effective
Date. In the event that the Rising Tide Settlement is approved, the
Debtor does not anticipate asserting any Causes of Action.
A full-text copy of the Amended Combined Disclosure Statement and
Plan of Liquidation dated August 29, 2024 is available at
https://urlcurt.com/u?l=GK1IaB from PacerMonitor.com at no charge.
Counsel to the Debtor:
Richard J. McCord, Esq.
CERTILMAN BALIN ADLER & HYMAN, LLP
90 Merrick Avenue
East Meadow, NY 11554
Tel: (516) 296-7000
Email: rmccord@certilmanbalin.com
About Applied Systems Marketing
Applied Systems Marketing, LLC, is engaged in activities related to
real estate. The Debtor owns three properties in Forest Avenue,
Glen Cove, NY valued at $8.35 million.
Applied Systems Marketing L.L.C. in Glen Cove, NY, filed its
voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case
No. 24-70422) on February 1, 2024, listing $8,762,520 in assets and
$7,783,424 in liabilities. James R. Fitzgerald as chief executive
officer, signed the petition.
Judge Louis A Scarcella oversees the case.
CERTILMAN BALIN ADLER & HYMAN, LLP serve as the Debtor's legal
counsel.
AQUAGRILLE LLC: Hearing Tomorrow on Sale to Swedish Restaurant
--------------------------------------------------------------
At the behest of AquaGrille LLC, the U.S. Bankruptcy Court Southern
District of Florida, West Palm Beach Division, continued to October
8, 2024, at 1:30 p.m. the hearing to consider approval of the
Debtor's request to sell asset to Swedish Restaurant Mafia Inc.,
free and clear of all liens, claims, encumbrances, and interests.
The hearing was originally scheduled for October 1.
AquaGrille will sell all of its right, titles, and interest
including its transferable licenses, leasehold interest, leasehold
improvements, goodwill, existing signs, telephone numbers, trade
name, inventory, furniture, franchise rights, fixtures and
equipment located at the premises.
The Debtor requested to continue the hearing to the week of October
8 for the buyer, guarantors Frank Cid and Elsa Investments Inc.,
and a possible new investor to discuss the motion and make a
resolution.
Elsa Investments is a Class B Member of the Debtor and Frank Cid,
the owner of Elsa Investments, is the guarantor of the lease for
the premises where the Debtor operations. The Debtor, Swedish
Restaurant Mafia, Frank Cid and Elsa Investments attended a
Judicial Settlement Conference, which resulted in an impasse.
Swedish Restaurant Mafia is providing up to $450,000 in DIP
financing to the Debtor.
The Debtor has agreed to cooperate to allow Elsa Investments to
conduct discovery concerning the Debtor's financial affairs.
The Court will conduct the hearing in person and interested party
may also chose to attend remotely using Zoom Video Communications
Inc. by registering in advance no later than 3:00 p.m., one
business day before the date of the hearing.
In an event that parties fail to register online, they need to
communicate with Maria Romaguera, Courtroom Deputy, at 561-514-4109
or email Maria_Romaguera@flsb.uscourts.gov.
All participants, whether attending in person or remotely, are
advised to observe formalities of the courtroom, exercise civility,
and wear appropriate courtroom including those participants
appearing in person or by video.
The deadline for Frank Cid and Elsa Investments to file a response
to the motion to sell is October 7.
About AquaGrille LLC
AquaGrille, LLC, owns and operates a restaurant in Juno Beach,
Fla., offering contemporary, coastal American dining set in a warm,
modern beach house-inspired decor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-20253) on December
12, 2023. In the petition signed by Stephen Asprinio of SA
Hospitality Ventures, LLC, the manager of the Debtor, AquaGrille
disclosed $84,305 in total assets and $2,820,727 in total
liabilities.
Judge Mindy A. Mora oversees the case.
Craig I. Kelley, Esq., at Kelley Kaplan & Eller, PLLC, is the
Debtor's legal counsel.
In April 2024, AquaGrille filed with the Court its Plan of
Reorganization and Disclosure Statement, proposing to pay Class 10
General Unsecured Claims, totaling $3.9 million, over a five-year
term at the rate of $500 per month on a pro-rata basis. A
full-text copy of the Disclosure Statement dated April 8, 2024 is
available at https://urlcurt.com/u?l=a6zODB from PacerMonitor.com
at no charge.
ARRAKIS LLC: Hires Pittsburgh Commercial Real as Broker
-------------------------------------------------------
Arrakis LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Pennsylvania to employ Pittsburgh Commercial
Real Estate, Inc. d/b/a "Colliers" as broker.
The firm will market and sell the Debtor's real property a 96-room
hotel that currently operates as the Comfort Inn & Suites
Pittsburgh-Northshore located at 820 East Ohio Street, Pittsburgh,
Pennsylvania 15212, and includes a banquet room with rooftop deck
and caterer's kitchen, small gift shop, swimming pool, conference
room, business center, gym, guest laundry and shuttle service.
The firm will be paid at $200,000 commission, for a sale price of
$8,500,000, plus 3 percent of the excess of the sales 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:
Bryan J. McCann
Pittsburgh Commercial Real Estate, Inc.
d/b/a "Colliers"
525 William Penn Place, Suite 3510
Pittsburgh, PA 15219
Tel: (412) 515-8537
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.
ATI PHYSICAL: Issues New $10.5 Million Second Lien PIK Notes
------------------------------------------------------------
ATI Physical Therapy, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Oct. 2, 2024, the
Company, Wilco Holdco, Inc., Wilco Intermediate Holdings, Inc., ATI
Holdings Acquisition, Inc. ("Opco"), the subsidiary guarantors
party thereto, the Purchasers party thereto and the Purchaser
Representative, entered into the Second Amendment to Note Purchase
Agreement, pursuant to which the Company issued the Second
Amendment Purchasers new second lien PIK notes in aggregate
principal amount of $10.5 million.
The Second Amendment Delayed Draw Notes were funded on the Closing
Date. The Second Amendment Delayed Draw Notes will mature on Aug.
24, 2028 and will bear interest at a rate of 17% per annum, payable
quarterly in-kind in the form of additional Second Amendment
Delayed Draw Notes by capitalizing the amount of such interest on
the outstanding principal balance of the Second Amendment Delayed
Draw Notes in arrears on each interest payment date. The Second
Amendment Delayed Draw Notes are not convertible into stock of the
Company.
On April 17, 2023, ATI Physical entered into a Second Lien Note
Purchase Agreement, by and among the Company, Wilco Holdco, Inc.,
Wilco Intermediate Holdings, Inc., ATI Holdings Acquisition, Inc.,
the purchasers from time to time party thereto and Wilmington
Savings Fund Society, FSB, as purchaser representative (as amended
by that certain First Amendment to Note Purchase Agreement, dated
as of June 15, 2023), pursuant to which the Company issued to
certain Purchasers second lien PIK convertible notes in an initial
aggregate principal amount of $103.3 million.
About ATI Physical Therapy
Headquartered in Bolingbrook, Ill., ATI Physical Therapy, Inc.,
together with its subsidiaries, is a nationally recognized
healthcare company specializing in outpatient rehabilitation and
adjacent healthcare services. The Company provides outpatient
physical therapy services under the name ATI Physical Therapy and,
as of Dec. 31, 2023, had 896 clinics located in 24 states (as well
as 18 clinics under management service agreements).
Chicago, Ill.-based Deloitte and Touche LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated Feb. 27, 2024, citing that the Company has experienced
recurring losses from operations and negative cash flows from
operations and requires operational improvement in order to meet
its obligations as they become due over the next 12 months and
maintain compliance with debt covenants, which raises substantial
doubt about its ability to continue as a going concern.
BASIC FOOD: Fraud Claim v. Former Owner Tossed
----------------------------------------------
Judge John P. Mastando III of the United States Bankruptcy Court
for the Southern District of New York dismissed the "fraud in the
inducement" claim filed by Basic Food Groups, LLC, Jae Ho Lee and
Soyoun Park against Cheol Min Kim.
The Debtor was originally owned by Mr. Kim, who operated the Debtor
as a deli and cafe business in midtown Manhattan. Mr. Kim owned a
similar business in Hoboken, New Jersey. After operating the Debtor
for roughly two-and-a-half years -- from 2009 to 2012 -- Mr. Kim
decided to sell the Debtor, ostensibly to dedicate more time
towards his Hoboken business.
Mr. Kim began searching for a buyer for the Debtor in the fall of
2012. Mr. Lee, a years-long friend of Mr. Kim, agreed to purchase
the Debtor sometime in late 2012, and the parties closed the deal
that December. The sale was financed primarily by a loan from Noah
Bank and facilitated by loan documents prepared by Samuel Ahne, Mr.
Lee's former attorney.
Following the closing, the Debtor's business performed poorly.
Three years after the sale, Mr. Lee and the Debtor defaulted on the
Noah Bank loan, and the Debtor thereafter filed a voluntary
petition for chapter 11 relief on April 10, 2015.
Plaintiffs' Second Amended Complaint asserts a number of claims
precipitated by Mr. Lee's purchase of the Debtor, including:
(i) claims arising under the Racketeer Influenced and Corrupt
Organizations Act, 18 U.S.C. Sec. 1962, et seq., against various
defendants, including Mr. Kim;
(ii) claims against Mr. Ahne and his firm for breach of
fiduciary duty relating to Mr. Ahne's representation of Mr. Lee
during the December 2012 closing; and
(iii) the instant claim against Mr. Kim for fraud in the
inducement.
Other than Plaintiffs' claim against Mr. Ahne and the present claim
against Mr. Kim, all of the claims asserted in Plaintiffs' Second
Amended Complaint have been dismissed.
Plaintiffs argue that Mr. Kim committed two distinct (albeit
related) acts of fraud. Plaintiffs first assert that, prior to the
December 2012 sale, Mr. Kim "us[ed] a phony set of business records
and financial statements . . . [that] intentionally omitted [an]
almost $1 million shortfall" and thereby deceived Mr. Lee as to the
Debtor's profitability.
Mr. Lee, however, testified at his deposition that he "did [] not
review [] one single piece of document regarding th[e] [Debtor]"
prior to the closing. Mr. Lee's testimony thus indicates that he
did not base his decision to purchase the Debtor upon a "phony set
of business records and financial statements," and instead relied
solely upon the alleged verbal representations made by Mr. Kim
regarding the Debtor's profitability.
Curiously, the narrative provided by Mr. Lee is contradicted by Mr.
Kim, who testified both in his deposition and at trial that he did
in fact provide Mr. Lee with the Debtor's tax returns prior to the
closing.
In any event, considering the conflicting testimony provided by Mr.
Lee and Mr. Kim, the Court finds that Plaintiffs have not carried
their high burden of establishing by clear and convincing evidence
Mr. Lee's actual reliance on a "phony set of business records and
financial statements . . . ."
The Court finds that Plaintiffs have not provided clear and
convincing evidence of Mr. Lee's actual reliance upon operational
documents prepared by Mr. Kim. The Court further finds that
Plaintiffs have not provided clear and convincing evidence of Mr.
Lee's reasonable reliance on any misrepresentations made by Mr.
Kim. Finally, the Court finds that the Release bars any claims
Plaintiffs have against Mr. Kim arising from the sale of the
Debtor. For these reasons, the Court grants judgment on the fraud
in the inducement claim in favor of Mr. Kim, and that claim is
dismissed accordingly.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=SXdGc7
About Basic Food
Basic Food Group, LLC, dba Zeytinz, is a deli/cafe headquartered in
New York, New York.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 15-10892) on April 10, 2015, listing $3.29
million in total assets and $1.5 million in total liabilities. The
petition was signed by Jaeho Lee, president.
Judge James L. Garrity Jr. presides over the case.
Rosemarie E. Matera, Esq., at Kurtzman Matera, PC, serves as the
Debtor's bankruptcy counsel.
BERKSHIRE INVESTMENTS: Hires UB Greensfelder as Special Counsel
---------------------------------------------------------------
Berkshire Investments LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ UB
Greensfelder LLP as special environmental counsel.
The firm will represent the Debtor in connection with environmental
law and permit compliance issues.
The firm will be paid at these rates:
William J. Anaya, Attorney $600 per hour
Thadford A. Felton, Attorney $600 per hour
Estavaliz Wuollett, Legal Assistant $300 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
William J. Anaya, a partner at UB Greensfelder 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:
William J. Anaya, Esq.
Thadford A. Felton, Esq.
UB Greensfelder LLP
200 West Madison Street, Suite 3300
Chicago, IL 60606-3607
Tel: (312) 658-6500
Fax: (312) 419-1930
About Berkshire Investments LLC
Berkshire Investments, LLC, a company in Cicero, Ill., filed
Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-11552) on August
8, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge David D. Cleary oversees the case.
Steven R. Jakubowski, Esq., at Robbins Dimonte, Ltd. is the
Debtor's legal counsel.
BEYOND AIR: Signs Term Sheet for $11.5 Million Loan
---------------------------------------------------
Beyond Air, Inc. disclosed in a Form 8-K filed with the Securities
and Exchange Commission that on Sept. 27, 2024, it entered into a
binding term sheet for a secured loan with certain lenders
including its Chief Executive Officer Steven Lisi and director
Robert Carey. The Term Sheet was approved by each of the Company's
independent and disinterested directors, following the receipt of a
recommendation from an independent investment bank. The Term Sheet
provides for the following expected terms: (i) principal amount of
$11,500,00; (ii) ten-year term; (iii) interest of 15% per annum
which shall be payable in kind through July 2026; (iv) a royalty
interest of 8% of the Company's net sales on a quarterly basis from
July 2026 until the facility is repaid in full; (v) the Company's
obligations will be secured by substantially all of the Company's
assets and (vi) the Company shall issue the Lenders warrants to
purchase shares of the Company's common stock at an exercise price
of $0.3793 per share. The Company expects to enter into a loan and
security agreement and issue the warrants on or prior to Oct. 31,
2024.
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
("NO") generators and delivery systems (the "LungFit platform")
capable of generating NO from ambient air. The Company's first
device, LungFit PH, received premarket approval from the FDA in
June 2022. The NO generated by the LungFit PH system is indicated
to improve oxygenation and reduce the need for extracorporeal
membrane oxygenation in term and near-term (>34 weeks gestation)
neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
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.
BIG LOTS: Ollie’s Bargain Wins Auction for Seven Former Stores
----------------------------------------------------------------
Ollie's Bargain Outlet Holdings, Inc. announced on October 1, 2024,
that it was the winning bidder in a bankruptcy sale process to
acquire seven former Big Lots, Inc. store leases. The seven stores
were part of a bankruptcy auction for the first wave of Big Lots
store closures, which included 143 stores. Six of the seven stores
have already completed the sale hearing process and received final
approval from the United States Bankruptcy Court for the District
of Delaware. The remaining one store is subject to final bankruptcy
court approval and customary closing conditions.
John Swygert, Chief Executive Officer of Ollie's stated, "We are
very pleased to be the winning bidder for these store locations in
the initial wave of Big Lots store closures. These stores are the
right size, located in good trade areas, and have served
value-oriented customers for years. In addition, the majority of
these stores are located in the Midwest, an area where we have
tremendous growth potential and a brand-new distribution center."
Mr. Swygert continued, "Similar to the 99 Cents Only stores that we
acquired recently through a separate bankruptcy process earlier
this year, we will prioritize the opening of the acquired Big Lots
stores and reshuffle other planned new store openings in our
existing pipeline to maximize new store productivity and minimize
pre-opening expenses. We continue to plan to open 50 new stores,
less two planned closures, in fiscal 2024 and are evaluating the
impact of these stores on our future store openings and cadence."
About Ollie's
Ollie's Bargain Outlet Holdings, Inc. is America's largest retailer
of closeout merchandise and excess inventory, offering Real Brands
and Real Bargain prices(R)! It offers extreme value on brand name
products in a variety of departments, including housewares, food,
books and stationery, bed and bath, floor coverings, toys, health
and beauty aids, and more. It currently operates 541 stores in 31
states and growing! For more information, visit
http://www.ollies.us
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the
Honorable J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIOLASE INC: Files for Chapter 11, Plans $14M Asset Sale to Sonendo
-------------------------------------------------------------------
BIOLASE, Inc., a global leader in dental lasers, announced on
October 1, 2024, that the Company and its direct domestic
subsidiaries have voluntarily initiated Chapter 11 proceedings in
the United States Bankruptcy Court for the District of Delaware.
BIOLASE will seek Court approval to continue operating during the
proceedings and remains focused on providing its customers with its
award-winning dental lasers and customer service.
The Company also announced that it is pursuing a sale process under
Section 363 of the Bankruptcy Code in conjunction with the filing.
To this end, BIOLASE has entered into an asset purchase agreement
with Sonendo Inc., a Delaware corporation, which it intends to
submit to the Court. Under the agreement, Sonendo will acquire
substantially all of the assets of BIOLASE through a
Court-supervised auction process, subject to Bankruptcy Court
approval and certain other conditions, for (a) $14 million in cash
paid at closing, subject to a working capital adjustment; plus (b)
assumption of certain Assumed Liabilities; plus (c) the Delaware
Litigation Settlement Value. This bid will serve as a starting
point for the Company's sale process, which may include other
bidders. Sonendo is a leading dental technology company.
BIOLASE CEO John Beaver commented, "After carefully considering a
range of alternatives, we are confident that pursuing Chapter 11
provides the most viable long-term path for BIOLASE to address its
liquidity challenges. Our portfolio includes some of the most
renowned dental laser products in the industry, and we are eager to
partner with Sonendo, leveraging their extensive expertise in the
dental sector to continue advancing our mission. We deeply
appreciate the ongoing support from our customers and suppliers
throughout this process, and we also want to recognize the
dedication of our talented employees."
Additional Information
The Company also announced that it has received a commitment from
SWK Funding LLC for no less than $2.5 million in
Debtor-in-Possession (DIP) financing, including a $1.43 million
interim advance. The new facility, subject to court approval, will
enable the Company to operate business uninterrupted and continue
to meet its financial obligations, including the timely payment of
employee wages and benefits, continued servicing of customer orders
and shipments, and other obligations.
The Company has engaged SSG Capital Advisors, LLC, to advise on its
strategic options, including a potential sale of all or some of the
Company's assets in connection with the Bankruptcy Petitions. Any
sale would be subject to review and approval by the Bankruptcy
Court and compliance with court-approved bidding procedures. The
Company cannot be certain that the Company's securityholders will
receive any payment or other distribution on account of their
shares following such sales.
Additional information about the Bankruptcy Petitions, including
access to Bankruptcy Court documents, is available online at
https://dm.epiq11.com/Biolase, a website administered by Epiq
Corporate Restructuring, LLC, a third-party bankruptcy claims and
noticing agent.
About Biolase Inc.
BIOLASE -- http://www.biolase.com-- is a provider of advance laser
systems for the dental industry. The Company develops,
manufactures, markets, and sells laser systems that provide
significant benefits for dental practitioners and their patients.
The Company's proprietary systems allow dentists, periodontists,
endodontists, pediatric dentists, oral surgeons, and other dental
specialists to perform a broad range of minimally invasive dental
procedures, including cosmetic, restorative, and complex surgical
applications. The Company's laser systems are designed to provide
clinically superior results for many types of dental procedures
compared to those achieved with drills, scalpels, and other
conventional instruments.
BLACK WOLF HOLDINGS: Seeks to Sell Property for $307,840
--------------------------------------------------------
Black Wolf Holdings LLC will ask the U.S. Bankruptcy Court for the
Middle District of Florida, Ft. Myers Division, for permission to
sell its property located at 10893 SW CR 761, Arcadia, Florida
34269. The Debtor asks the Court to set a hearing on the request
on Oct. 17.
The Debtor will sell its property to Timothy Edward Kessler for
$307,840.25, free and clear of all liens, claims, interests, and
encumbrances.
The Debtor tells the Court it entered into a Purchase and Sale
Agreement with Mr. Kessler in November 2022. Black Wolf says Mr.
Kessler is a disinterested third party and is not in any way
related to the Debtor, its principal or any of its relatives, and
that the Agreement was negotiated in good faith and at
arm's-length. The Debtor believes that the purchase price for this
Property is at market value.
Black Wolf also notes that Triad Financial Services, Inc. may
assert a lien on the Property, however, Debtor has already received
Triad's consent. Accordingly, the Debtor says it can sell the
Property free and clear of Triad's lien pursuant to Section
363(f)(2) of the Bankruptcy Code.
The Debtor proposes that the net proceeds of the sale will be put
in its DIP account or its counsel's Trust Account. The Debtor says
the liens of the Desoto County Tax Collector and Triad will attach
to the Net Sale Proceeds in the same order, priority, validity and
extent as existed in the Property as of the Petition Date.
About Black Wolf Holdings
Black Wolf Holdings, LLC sells modular, and manufactured homes and
home sites to customers in South Florida and owns various lots and
home sites across Southwest part of the state as well as in
Mississippi.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01313) on August 30,
2024, with $1 million to $10 million in both assets and
liabilities. Steven Game, managing member, signed the petition.
Judge Caryl E. Delano presides over the case.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
The U.S. Trustee for Region 21 appointed Amy Denton Mayer of
Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee.
BLUEBIRD BIO: Restructures to Reach Cash Flow Break-Even by H2 2025
-------------------------------------------------------------------
bluebird bio, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on September 24, 2024,
the Company announced that it is implementing a restructuring plan
designed to support its commercial focus and reduce its cash
operating expenses by approximately 20% when fully realized in the
third quarter of 2025, compared to the prior reporting period. The
Company's board of directors approved the Restructuring on
September 23, 2024, following a comprehensive review of the
Company's operations. The Restructuring includes a reduction of the
Company's workforce by approximately 25% of its headcount.
As a result of the Restructuring, the Company estimates that it
will incur aggregate charges of approximately $3.7 million in cash
expenditures for severance and employee termination-related costs
to be paid out over multiple weeks through the end of the fiscal
year ending December 31, 2024, as well as approximately $0.3
million - $0.5 million in stock-based compensation expense. The
Company expects to record a significant portion of these charges in
the third quarter of 2024. The Restructuring is expected to be
substantially complete in the first quarter of 2025, with savings
expected to be fully realized in the third quarter of 2025. The
estimates of costs that the Company expects to incur, and the
timing thereof are subject to a number of assumptions and actual
results may differ. The Company may also incur other charges or
cash expenditures not currently contemplated in connection with the
Restructuring.
CEO Andrew Obenshain stated, "bluebird has set the standard for
gene therapy for more than a decade, and we continue to lead the
field in the commercial setting with three potentially
transformative FDA-approved therapies. We are taking decisive
action designed to optimize our cost structure and position the
company to attract the additional capital required to unlock the
significant commercial opportunity before us. The decision to
reduce our workforce in support of a more focused set of priorities
was made following a detailed review of the needs and capabilities
of our organization, and we are grateful to every bluebird who has
helped realize our founding vision of making gene therapy a reality
for patients and families impacted by severe genetic diseases."
As part of the restructuring, bluebird plans to further sharpen its
focus on the ongoing commercial launches of LYFGENIA, ZYNTEGLO and
SKYSONA to enable continued launch acceleration while the Company
evaluates opportunities to increase its cash resources.
Year-to-date, there have been 41 patient starts across bluebird's
portfolio, up from 27 reported in mid-August. bluebird anticipates
approximately 40 patient starts in Q4 2024.
About bluebird bio, Inc.
bluebird bio, Inc. was incorporated in Delaware on April 16, 1992,
and is headquartered in Somerville, Massachusetts. The Company is a
biotechnology firm dedicated to researching, developing, and
commercializing potentially curative gene therapies for severe
genetic diseases based on its proprietary lentiviral vector gene
addition platform. Since its inception, bluebird bio has focused
nearly all its resources on research and development efforts
related to its product candidates and the commercialization of its
approved products, including activities to manufacture product
candidates, conduct clinical studies, perform preclinical research,
provide administrative support, and market and commercially
manufacture its approved products.
Boston, Massachusetts-based Ernst & Young LLP, the Company's
auditor since 2012, issued a "going concern" qualification in its
report dated September 13, 2024, citing that the Company has
suffered recurring operating losses and negative operating cash
flows, raising substantial doubt about its ability to continue as a
going concern.
bluebird bio had a net loss of $211.9 million for the year ended
December 31, 2023, and an accumulated deficit of $4.3 billion as of
December 31, 2023.\
BODY DETAILS: Gets Interim OK to Use Cash Collateral Until Nov 26
-----------------------------------------------------------------
Body Details, LLC received court approval to continue to use the
cash collateral of its secured creditors to pay its operating
expenses.
The order penned by Judge Mindy Mora of the U.S. Bankruptcy Court
for the Southern District of Florida authorized the company on an
interim basis to use the cash collateral until Nov. 26.
Cash collateral use is limited to the court-approved budget, with a
10% variance allowance. The company expects total expenses of
$335,946 in October and $321,330 in November, as shown in the
budget.
Body Details will make monthly interest-only payments of $1,355 and
$1,762 to Truist Bank and Balboa Capital, respectively. Dominion
Aesthetic Technologies, Inc., TCP Body Care, LLC and the U.S. Small
Business Administration will receive no payments during this
period.
The next hearing is scheduled for Nov. 26, at 1:30 p.m., in the
West Palm Beach courthouse, with optional remote participation via
Zoom.
About Body Details
Body Details, LLC, formerly known as Body Details LLLP, is a laser
treatment provider in Boca Raton, Fla., offering hair removal,
tattoo removal and skin rejuvenation services.
Body Details sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-17571) on July 26, 2024, with
total assets of $8,755,768 and total liabilities of $3,916,734.
Claudio Sorrentino, chief executive officer, signed the petition.
Judge Mindy A. Mora oversees the case.
The Debtor is represented by Chad Van Horn, Esq., at Van Horn Law
Group, P.A.
BOTW HOLDINGS: Hires Saltzman LLC as Financial Advisor
------------------------------------------------------
Botw Holdings, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Wyoming to employ Saltzman LLC
as financial advisor.
The firm will provide these services:
a. assist in financial projections to support feasibility of
the Amended Plans;
b. assist in valuing Holdings' and its subsidiaries'
businesses, including Huskemaw and Productions and non-debtor
subsidiaries, in support of the Amended Plans3
;
c. provide forensic accounting services, if required, related
to possible intercompany transfers between subsidiaries of
Holdings;
d. provide expert testimony, if necessary, related to the
same; and
e. provide other financial advisory and valuation services for
Holdings as necessary and appropriate for the administration of the
estate and Holdings' successful reorganization.
The firm will be paid at $425 per hour.
The firm will be paid a retainer in the amount of $50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Scott R. Saltzman, Esq., managing member at Saltzman 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:
Scott Saltzman, Esq.
Saltzman LLC
5655 S. Yosemite St., Suite 205
Greenwood Village, CO 80211
Tel: (303) 333-3554
E-mail: scott@saltzmanllc.com
About BOTW Holdings, LLC
BOTW Holdings, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Wyo. Case No.
24-20138) on April 19, 2024. The petition was signed by Jeff
Edwards, manager of Stryk Group Holdings, LLC. At the time of
filing, the Debtor estimated $1 million to $10 million in both
assets and liabilities.
Judge Cathleen D. Parker presides over the case.
Bradley T Hunsicker, Esq. at Markus Williams Young & Hunsicker LLC
represents the Debtor as counsel.
BRINKS HOME: Credit Lenders in Refinancing Discussions
------------------------------------------------------
Ellen Schneider and Gillian Tan of BNN Bloomberg report that
private credit firms have held discussions to provide a new loan to
Brinks Home, which would refinance the company's debt, according to
people with knowledge of the matter.
The home security system company, formerly known as Monitronics
International Inc., exited chapter 11 bankruptcy proceedings last
year. It's seeking a $725 million debt facility from direct
lenders, including a $625 million term loan and a $100 million
revolver, the people said, asking not to be identified discussing a
private transaction.
Morgan Stanley is arranging the deal, the people added. More banks
have been trying to get in on the private credit boom, through
tie-ups and matchmaking efforts with direct lending firms.
Pricing on the deal is being discussed at between 5.5 and 6
percentage points over the Secured Overnight Financing Rate, and
98.5 original issue discount, the people also said.
Representatives for Morgan Stanley and Brinks Home declined to
comment, as did those for Invesco Ltd., who became one of the
principal equity owners of Monitronics in its bankruptcy. Monarch
Alternative Capital, another principal equity owner, did not
respond to requests for comment.
The deal would refinance some of the company's existing debt.
Brinks Home emerged from bankruptcy in July of last year, after
eliminating around $500 million of debt.
Some more complex credit seekers have opted for the private credit
route in recent months, as the broadly syndicated market continues
to be risk averse.
About Brinks Home
Brinks Home, formerly known as Monitronics International Inc.,
provides residential and commercial customers with monitored home
and business security systems, as well as interactive and home
automation services.
Monitronics International and its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Texas Lead Case No. 23-90332) on May 15, 2023. In the
petitions signed by its chief executive officer, William E. Niles,
Monitronics International disclosed $1 billion to $10 billion in
both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Hunton Andrews Kurth, LLP and Latham & Watkins,
LLP as legal counsels; Alvarez & Marsal North America, LLC as
financial advisor; PJT Partners, LP as investment banker; and KPMG,
LLP as tax consultant. Kroll Restructuring Administration, LLC is
the claims, noticing, and solicitation agent.
CAFE CHINOIS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Cafe Chinois, LLC
FDBA Phoenix Rising of NC, LLC
3710 South College Rd, STE 123
Wilmington, NC 28412
Business Description: The Debtor is a French-inspired Asian
Cuisine restaurant featuring Thai,
Vietnamese, Korean, and Chinese foods.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03484
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson 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/P2ADQWA/Cafe_Chinois_LLC__ncebke-24-03484__0001.0.pdf?mcid=tGE4TAMA
CANTON & COMPANY: Secures Cash Collateral Use Until Nov. 22
-----------------------------------------------------------
Canton & Company, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Maryland to use its lender's
cash collateral until Nov. 22.
The interim order authorized the company to utilize the cash
collateral of 2111 SW 31st Street, LLC for ordinary operating
expenses as outlined in its court-approved budget.
Operating expenses include $10,800 for 401K catch-up and payroll
taxes, $16,933 for wages, $10,000 for guaranteed payments to
owners, and various other operational costs. The total operating
expenses are projected at $140,000 during the interim period. Any
changes exceeding 10% of the budget require prior approval from the
lender.
Canton & Company granted the lender replacement liens on both
pre-bankruptcy and post-petition collateral. This measure serves as
adequate protection for the use of cash collateral, ensuring the
lender retains security interests similar to those held before the
bankruptcy filing.
The interim order specifies conditions that would constitute an
event of default. These include failure to comply with the budget,
delays in filing required reports and non-payment of adequate
protection payments. In such cases, the lender is entitled to
notify the company, allowing a four-business-day window for the
company to remedy the default. Failure to cure the default after
two occurrences will lead to the lender's right to declare an event
of default without further opportunity for the company to rectify
the situation.
A financial forecast attached to the order outlines the projected
cash flow and operating activities for the period from Sept. 27 to
Nov. 22. It shows beginning cash of $5,800, with revenue estimated
at $320,000 and total operating expenses expected to reach
$140,000.
About Canton & Company
Canton & Company, LLC is a healthcare growth and strategic services
firm in Baltimore, Md. Its comprehensive suite of growth services
includes strategy and insights, integrated marketing solutions, and
performance solutions.
The Debtor filed Chapter 11 petition (Bankr. D. Md. Case No.
23-19054) on Dec. 12, 2023, with up to $500,000 in assets and up to
$10 million in liabilities. Richard McDaniel, Jr., manager, signed
the petition.
Judge David E. Rice oversees the case.
Daniel Staeven, Esq., at Frost Law, is the Debtor's bankruptcy
counsel.
CAPSTONE GREEN: Swings to $7.4-Mil. Net Income in FY Ended March 31
-------------------------------------------------------------------
Capstone Green Energy Holdings, Inc. filed with the U.S. Securities
and Exchange Commission its Annual Report on Form 10-K reporting a
net income of $7.4 million on $91.2 million of total net revenue
for the year ended March 31, 2024, compared to a $24.5 million net
loss on $73.9 million in total net revenue for the year ended March
31, 2023.
Los Angeles, Calif.-based Marcum LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
September 26, 2024, citing that the Company has a significant
working capital deficiency, has incurred significant operating
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
As of March 31, 2024, Capstone had cash of $2.1 million and a
working capital deficit of $38.5 million. Capstone incurred a loss
from operations of $20.4 million and used cash from operating
activities of $27.7 million during the Fiscal 2024.
Depending on the timing of the Company's future sales and
collection of related receivables, managing inventory costs and the
timing of inventory purchases and deliveries required to fulfill
the backlog, its future working capital requirements may vary
materially from those now planned. The amount of capital that the
Company will need in the future to fund its operations will require
the Company to achieve significantly increased sales volume, which
is dependent on many factors, including:
* the market acceptance of products and services;
* business, product and capital expenditure plans;
* capital improvements to new and existing facilities;
* competitors' response to its products and services;
* relationships with customers, distributors, dealers and
project resellers;
* customers' ability to afford and/or finance its products;
and
* reliability of the supply chain, including availability of
raw materials.
"Management evaluated these conditions in relation to our ability
to meet our obligations as they become due. Our ability to continue
current operations and to execute on management's plan is dependent
on our ability to generate cash flows," Capstone said.
The Company has assessed its position and hired a new CEO, is
refocusing its marketing efforts, and is expanding the professional
staff to focus on market development for its products. The success
of these efforts is uncertain and may not result in improvement in
the liquidity position.
On September 28, 2023, Capstone filed for a prepackaged financial
restructuring with its Senior Lender, Goldman Sachs under the U.S.
Chapter 11 Bankruptcy laws. Capstone emerged from Bankruptcy on
December 7, 2023, and effected a financial and organizational
restructuring."
"In spite of these efforts and given our current cash position,
lack of liquidity, limits to accessing capital and debt funding
options, and current economic and market risks, there is
substantial doubt regarding our ability to continue as a going
concern and our ability to meet our financial obligations as they
become due over the next 12 months from the date of issuance of our
financial statements as of, and for the period ended March 31,
2024," Capstone said.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/4c3wr2f8
About Capstone Green Energy Corporation
Capstone Green Energy Corporation builds microturbine energy
systems and battery storage systems that allow customers to produce
power on-site in parallel with the electric grid or stand-alone
when no utility grid is available. Capstone Green offers
microturbines designed for commercial, oil and gas, and other
industrial applications.
As of March 31, 2024, the Company had $8.36 million in total
assets, $6.83 million in total liabilities, and $1.53 million in
total stockholders' equity.
CARMELL CORP: Falls Short of Nasdaq's Minimum Bid Price Requirement
-------------------------------------------------------------------
Carmell Corporation disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Sept. 30, 2024, it
received a letter from the Listing Qualifications Department of The
Nasdaq Stock Market LLC, notifying the Company that, based upon the
closing bid price of the Company's common stock for the 31
consecutive business days from Aug. 15, 2024 to Sept. 27, 2024, the
Company no longer meets the requirement to maintain a minimum bid
price of $1 per share, as set forth in Nasdaq Listing Rule
5550(a)(2).
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq has
provided the Company with 180 calendar days, or until March 31,
2025, to regain compliance with the Minimum Bid Price Requirement.
To regain compliance, the closing bid price of the Company's common
stock must be at least $1 per share for a minimum of ten
consecutive business days at any time during this 180-day period,
after which Nasdaq will provide written confirmation of compliance
to the Company and the matter will be closed. If the Company does
not regain compliance with the Minimum Bid Price Requirement by the
Compliance Date, Nasdaq may grant the Company an additional
compliance period of 180 calendar days to regain compliance with
the Minimum Bid Price Requirement if the Company meets the
continued listing requirement for market value of publicly held
shares and all other initial listing standards for The Nasdaq
Capital Market, with the exception of the Minimum Bid Price
Requirement, and provides written notice to Nasdaq of its intent to
cure the deficiency during this second compliance period. However,
if it appears to the Nasdaq staff that the Company will not be able
to cure the deficiency or if the Company does not qualify for the
second compliance period or fails to regain compliance during the
second 180-day compliance period, Nasdaq will provide notice to the
Company that its common stock will be subject to delisting. At
that time, the Company may appeal any such delisting determination
to a Nasdaq hearings panel.
The Notice has no immediate effect on the listing of the Company's
common stock or redeemable warrants, which will continue to trade
on The Nasdaq Capital Market under the symbols "CTCX" and "CTCXW",
respectively, subject to the Company's compliance with the other
continued listing requirements of The Nasdaq Capital Market.
The Company is considering available options to regain compliance
with the Minimum Bid Price Requirement. However, there can be no
assurance that the Company will be able to regain compliance with
the Minimum Bid Price Requirement.
About Carmell Corp
Headquartered in Pittsburgh, Pennsylvania, Carmell --
www.carmellcorp.com -- is a bio-aesthetics company that utilizes
the Carmell Secretome to support skin and hair health. The Carmell
Secretome consists of a potent cocktail of growth factors and
proteins extracted from allogeneic human platelets sourced from
U.S. Food and Drug Administration-approved tissue banks. Over the
past seven years, Carmell has extensively tested the technology
underpinning the Carmell Secretome. In addition, the Company has
developed a novel microemulsion formulation that enables delivery
of lipophilic and hydrophilic ingredients without relying on the
Foul Fourteen, which are 14 potentially harmful excipients that are
commonly used by other companies to impart texture, stability, and
other desirable physicochemical attributes to cosmetic products.
Additionally, Carmell's microemulsion formulations do not utilize
mineral or vegetable oils across its entire product line and are
designed to be non-comedogenic. The Company is also developing a
line of men's products and a line of topical haircare products.
All of its cosmetic skincare and haircare products are tailored to
meet the demanding technical requirements of professional care
providers and discerning retail consumers. The Company's product
pipeline also includes innovative regenerative bone and tissue
healing products that are under development.
Ocean, New Jersey-based Adeptus Partners, LLC, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 1, 2024, citing that the Company has a net loss
from operations, negative cash flows from operations, and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
CARROTHERS INSPECTION: Hires Hester Baker Krebs LLC as Attorney
---------------------------------------------------------------
Carrothers Inspection Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Indiana to employ
Hester Baker Krebs LLC as attorney.
The firm will provide these services:
a. give the Debtor legal advice with respect to its powers and
duties as debtor-in-possession and management of its property;
b. take necessary action to avoid the attachment of any lien
against the Debtor's property threatened by secured creditors
holding liens;
c. prepare on behalf of the Debtor as debtor-in-possession
necessary petitions, answers, orders, reports, and other legal
papers;
d. perform all other legal services for the Debtor as
debtor-in-possession which may be necessary herein, inclusive of
the preparation of petitions and orders respecting the sale or
release of equipment not found to be necessary in the management of
its property, to file petitions and orders for the borrowing of
funds; and it is necessary for the Debtor as debtor-in-possession
to employ counsel for such professional services.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received an initial retainer in the amount of $13,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David R. Krebs, Esq., a partner at Hester Baker Krebs LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
David R. Krebs, Esq.
Hester Baker Krebs LLC
One Indiana Square, Suite 1330
Indianapolis, IN 46204
Tel: (317) 833-3030;
Fax: (317) 833-3031
Email: dkrebs@hbkfirm.com
About Carrothers Inspection Services, LLC
Carrothers Inspection Services, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Ind. Case No. 24-05110-JMC-11) on Dec. 19,
2023. The Debtor hires Hester Baker Krebs LLC as counsel.
COCOCHINE OF NC: Case Summary & 16 Unsecured Creditors
------------------------------------------------------
Debtor: Cocochine of NC, LLC
d/b/a Indochine Express
5120 South College Road, Ste 108
Wilmington, NC 28412
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03485
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 16 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/MM4CRRY/Cocochine_of_NC_LLC__ncebke-24-03485__0001.0.pdf?mcid=tGE4TAMA
CONCORDIA ANESTHESIOLOGY: U.S. Trustee Appoints Creditors' Panel
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Concordia
Anesthesiology, Inc.
The committee members are:
1. BMS Health Resources, LLC d/b/a Medtalent Group
c/o Todd J. Poole
3562 Habersham at Northlake
Building J, Suite 200
Tucker, GA 30084
todd@poolehuffman.com
(404) 373-4008
2. Mark Axness
c/o Marx Axness
164 Vaughn Road
Newnan, GA 30265
axness@gmail.com
(918) 899-9761
3. SCI Operations, LLC d/b/a SCI Anesthesia
c/o Jason Hodge
P.O. Box 1745
Athens, GA 30603
jason@scirecruiting.com
(706) 255-2156
4. Coletta C. Barrett IRA, LLC
c/o Coletta C. Barrett
5329 Dijon Drive, Suite 106
Baton Rouge, LA 70808
buddybarrett@aol.com
(225) 266-6539
5. Edward J. Wren III IRA, LLC
c/o Edward J. Wren III
7956 Wrenwood Boulevard
Unit C
Baton Rouge, LA 70809
edwardjwren111@gmail.com
(985) 445-7578
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 Concordia Anesthesiology
Gainesville-based Concordia Anesthesiology, Inc. filed its
voluntary Chapter 11 petition (Bankr. N.D. Ga. Case No. 24-21106)
on September 10, 2024, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
Jarrod D. Huey, M.D. as chief executive officer and president.
Angelyn M. Wright, Esq., at The Wright Law Alliance, P.C.
represents the Debtor as bankruptcy counsel.
CONNORSVILLE COMMONS: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Connorsville Commons, LLC
600 Travis Street
Ste 5050
Houston TX 77002
Business Description: Connorsville is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-34691
Debtor's Counsel: Bennett G. Fisher, Esq.
LEWIS BRISBOIS BISGAARD & SMITH
24 Greenway Plaza
Suite 1400
Houston TX 77040
Tel: (346) 241-4095
Email: bennett.fisher@lewisbrisbois.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas Noons as managing partner.
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/3QVMHLA/Connorsville_Commons_LLC__txsbke-24-34691__0001.0.pdf?mcid=tGE4TAMA
COUSIN ENTERPRISES: Gets OK to Use Cash Collateral Until Nov. 18
----------------------------------------------------------------
Cousin Enterprises, LLC received interim court approval to use the
cash collateral of New Silver Lending, LLC.
The interim order penned by Judge Nicholas Whittenburg of the U.S.
Bankruptcy Court for the Eastern District of Tennessee authorized
the company to use NSL's cash collateral until Nov. 18 in
accordance with a court-approved budget.
Any disbursements for expenses must not exceed 125% of the amount
set forth in the budget, according to the interim order.
NSL has a lien on nearly all of the company's assets, including its
real property in Bell Buckle, Tenn. Its lien is adequately
protected through the substantial equity cushion in the real
property and sufficient insurance coverage on its assets.
Cousin Enterprises must also provide monthly operating reports to
both the U.S. Trustee and NSL.
The final hearing is scheduled for Nov. 18.
About Cousin Enterprises
Cousin Enterprises, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-11426) on June
12, 2024. In the petition signed by Randall Scott Cousin, member,
the Debtor disclosed up to $1 million in assets and up to $500,000
in liabilities.
Judge Nicholas W. Whittenburg oversees the case.
W. Thomas Bible, Jr., Esq., at Tom Bible Law, represents the Debtor
as bankruptcy counsel.
CXOSYNC LLC: Gets Interim OK to Use Cash Collateral Until Nov. 29
-----------------------------------------------------------------
CXOsync, LLC received interim approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to use the cash
collateral of the Internal Revenue Service and the Small Business
Administration until Nov. 29.
In exchange for the use of cash collateral, the IRS and SBA are
provided adequate protection for their secured interests in CXO's
assets such as cash, accounts receivable and other collateral held
before the company's bankruptcy filing.
Adequate protection measures include allowing the IRS and SBA to
inspect the company's books and records, maintaining insurance on
the collateral, and keeping the collateral in good repair.
In addition, the IRS and SBA will receive replacement liens on all
of CXO's existing and future property. These replacement liens will
hold the same priority and validity as the pre-bankruptcy liens.
The next hearing is scheduled for Nov. 26.
About CXOsync LLC
CXOsync, LLC is a corporate event planner which presents events and
workshops geared toward CIOs, CISOs, CMOs, and CFOs of businesses.
It hosts live and virtual events to gather CXOs from the world's
largest corporations and brands.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Banker. N.D. Ill. Case No. 24-08351) on June 5,
2024, with $128,315 in assets and $6,030,532 in liabilities. Rupen
Patel, managing member, signed the petition.
Judge Janet S. Baer presides over the case.
Ben Schneider, Esq., at The Law Offices of Schneider and Stone,
represents the Debtor as bankruptcy counsel.
DENALI CONSTRUCTION: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Denali Construction Services, LLC
f/k/a Denali Construction Services, LP
f/d/b/a Thermal Dynamix
f/d/b/a Denali Comfort Solutions
f/d/b/a Thermal Dynamix Insulation
f/d/b/a Denali C
1645 Wallace Drive, Suite 100
Carrollton, TX 75006
Business Description: Denali provides mechanical solutions for
commercial, government, and industrial
projects ranging from preventive
maintenance, renovation, remodel, and
retrofit to new construction ventures. The
Company's specialty areas are
municipalities, airports, schools, colleges,
hospitals, secured-government facilities,
correctional facilities, and manufacturers.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-33155
Debtor's Counsel: Thomas D. Berghman, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
E-mail: tberghman@munsch.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michelle L. Thrailkill as president and
managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KBK3QTI/Denali_Construction_Services_LLC__txnbke-24-33155__0001.0.pdf?mcid=tGE4TAMA
DHW WELL: Seeks to Sell Excess Tractors and Trailers
----------------------------------------------------
DHW Well Service asks Chief Judge Craig A. Gargotta of the U.S.
Bankruptcy Court for the Western District of Texas in San Antonio
to approve the sale of its personal property, free and clear of all
liens, claims and encumbrances.
The Company operates a vacuum trucking business in the South Texas
oil field and is looking for buyers of its excess tractors and
trailers as part of its decision to downsize in the hope of
decreasing its insurance costs. The company also owns some
scrapped trailers and equipment.
The Debtor is in talks with interested parties who are expressing
interest in purchasing the assets immediately and cannot wait.
The Debtor explains the minimum sales price will be used to pay the
secured claims of any lender on the respective tractors and the
proceeds from the sale of the trailers and equipment will be placed
in the Debtor's bank account.
A list of the trucks, trailers and other equipment for sale and the
proposed minimum price is available at
https://urlcurt.com/u?l=6i4fp9
About DHW Well Service
DHW Well Service, Inc., a company in Carrizo Springs, Texas,
operates a vacuum trucking business in the South Texas oil field.
DHW Well Service sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51484) on August 5,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Keith Martin, president, signed the petition.
Judge Craig A. Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc., represents
the Debtor as legal counsel.
The U.S. Trustee for Region 7 appointed Michael Colvard as
Subchapter V trustee.
DIAMOND SPORTS: To Drop Baseball Broadcasts Without New Deals
-------------------------------------------------------------
Steven Church and Jonathan Randles of Bloomberg News report that
Diamond Sports Group will stop televising games from all but one
Major League Baseball team next year unless club owners cut new
rights deals with the bankrupt broadcaster, lawyers said in court
Wednesday, October 2, 2024.
Diamond has a new proposal to avoid going out of business that
should allow the company to exit bankruptcy and continue
broadcasting professional basketball and hockey games, lawyers told
the judge overseeing the company's insolvency case. So far, the
only baseball games the company has committed to televise are those
of the Atlanta Braves.
About Diamond Sports Group
Diamond Sports Group, LLC, and its affiliates own and/or operate
the Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally
Sports RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG
also holds joint venture interests in Marquee, the home of the
Chicago Cubs, and the YES Network, the local destination for the
New York Yankees and Brooklyn Nets. The RSNs produce about 4,500
live local professional telecasts each year in addition to a wide
variety of locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90116) on March 14, 2023. In the petition signed by David
F. DeVoe, Jr., as chief financial officer and chief operating
officer, Diamond Sports Group listed $1 billion to $10 billion in
both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsel; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsel; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP, as tax advisor; Deloitte Financial
Advisory Services, LLP, as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer& Feld LLP as counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc., as investment banker.
DISH DBS: Creditors in Talks With Advisers on Debt Deal Extension
-----------------------------------------------------------------
Reshmi Basu and Jill R. Shah of Bloomberg News report that
disgruntled creditors to US satellite television firm Dish Network
have discussed extending a debt pact, a move designed to strengthen
their negotiations with the company over an exchange offer tied to
the merger with DirecTV, according to people familiar with the
matter.
A co-operation agreement extension would seek to prevent single
lenders from striking restructuring deals to the disadvantage of
others, said the people, asking not to be identified because the
discussions are private.
About DISH DBS Corporation
Englewood, Colo.-based DISH DBS Corporation is a holding company
and was organized in 1996 as a corporation under the laws of the
State of Colorado. DISH DBS is an indirect, wholly-owned subsidiary
of DISH Network, which is a wholly-owned subsidiary of EchoStar
Corporation, a publicly traded company listed on the NASDAQ Global
Select Market under the symbol "SATS." DISH DBS currently operates
one business segment, Pay-TV. Its Pay-TV business strategy is to be
the best provider of video services in the United States by
providing products with the best technology, outstanding customer
service, and great value.
Denver, Colo.-based KPMG LLP, the Company's auditor since 2002,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has debt maturing in 2024 that raises
substantial doubt about its ability to continue as a going concern.
DISTRIBUIDORA MI: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Distribuidora Mi Honduras, LLC
4451 Georgia Pacific Blvd., Ste. A
Frederick MD 21704
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
District of Maryland
Case No.: 24-18364
Debtor's Counsel: David Cahn, Esq.
LAW OFFICE OF DAVID CAHN, LLC
129-10 West Patrick St. 2nd Floor
Frederick, MD 21701
Tel: (301) 799-8072
E-mail: david@cahnlawoffice.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Omar Rubinstein 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/EVI4YUQ/Distribuidora_Mi_Honduras_LLC__mdbke-24-18364__0001.0.pdf?mcid=tGE4TAMA
DLD3 CARTS: May Use Cash Collateral Thru Nov. 5
-----------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona granted DLD3
Carts, LLC permission to use cash collateral for the period from
September 23, 2024, to November 5, 2024, to pay for ordinary and
necessary operating expenses as specified in an attached budget,
allowing for a variance of up to 15% on monthly expenses.
Trust Bank/SBA and Capstone, the Debtors' senior lenders, are
granted valid and perfected replacement liens on all existing and
future property and assets of the Debtors, including the Cash
Collateral. These liens are effective without the need for
additional filings or recordings.
The order provides that the Debtors must pay Fox Capital Group
$3,000 by September 27, 2024, and another $3,000 by October 24,
2024. Both the Debtors and Fox reserve the right to seek a
determination regarding the nature of Fox's pre-petition agreement
with the Debtors.
The authority for the Debtors to use Cash Collateral will terminate
upon the occurrence of certain events, including the conversion or
dismissal of any bankruptcy case, the expiration date of November
5, 2024, or the issuance of a court order terminating the use of
Cash Collateral.
A continued hearing regarding the Debtors request for further use
of Cash Collateral is scheduled for November 5 at 11:00 a.m.
The Debtor's counsel can be reached through:
Warren J. Stapleton, Esq.
OSBORN MALEDON, PA
2929 North Central Avenue, 20th floor
Phoenix, AZ 85012
Telephone: (602) 640-9000
Email: wstapleton@omlaw.com
About DLD3 Carts LLC
DLD3 Carts LLC is in the business of new and pre-owned golf carts
sales and service.
DLD3 Carts LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-04998) on June 21, 2024, listing $1,534,708 in assets and
$818,246 in liabilities. The petition was signed by Donald R.
Cooley, III as manager-member.
Judge Paul Sala presides over the case.
Warren J. Stapleton, Esq., at OSBORN MALEDON, P.A., represents the
Debtor as counsel.
DONELSON CORPORATE: Unsecureds Will Get 100% of Claims in Plan
--------------------------------------------------------------
Donelson Corporate Centre, Limited Partnership, filed with the U.S.
Bankruptcy Court for the Middle District of Tennessee a Combined
Disclosure Statement and Plan of Reorganization dated August 29,
2024.
DCC was formed in 1998 and is the owner of a 3-building 233,393 SF
office park situated on two parcels totalling 21.77 acres located
at 3055 Lebanon Pike, Nashville, Tennessee (the "Office Park").
Building I (53,834 RSF) is occupied by one tenant that recently
leased two full floors (29,956 RSF) under a ten-year lease, and two
floors remaining to be leased (23,878 RSF). Building II (43,517
RSF) is 100% leased with all remaining lease terms exceeding 4
years. Building III is vacant.
On November 10, 2023, Wells Fargo sent a Notice of Foreclosure to
DCC setting a Foreclosure Sale for December 11, 2023 at 11:00 AM.
DCC filed this Chapter 11 case on December 8, 2023 to protect the
substantial equity in the Office Park and to maximize the return to
all creditors, including Wells Fargo.
According to the Debtor's financial projections, along with the
loan, the Debtor's rental income will generate enough cash flow to
satisfy the obligations herein.
The Debtor has engaged the Nashville office of CBRE, Inc. to market
and sell at least the two occupied buildings over a period not to
extend beyond June 30, 2026. The Debtor anticipates selling, at
minimum, the two occupied buildings (before June 30, 2026) at a
sales price sufficient to pay the majority of the Wells Fargo Class
3 Claim. If sold separately, the remainder of the property will be
sold within 30 months of the Effective Date in order fully satisfy
Wells Fargo, all other claims and then to distribute any remaining
funds to the Debtor's limited partners. The Debtor will also
continue to analyze the cost/benefit and maximization of return in
selling the property in one transaction and without the demolition
and HVAC/mechanical separation associated with building 3.
Class 5 consists of Unsecured Other Claims. Each Holder of an
Allowed Class 5 Claim shall be paid its Allowed Claim in full
without interest within 90 days of full payment to Wells Fargo and
of the post confirmation loan described herein but in event later
than 39 months after the Effective Date. This Class will receive a
distribution of 100% of their allowed claims. This Class is
impaired.
Class 6 consists of all equity and ownership interests in the
Debtor. This Combined Disclosure Statement and Plan leaves
unaltered the legal, equitable, and contractual rights of Holders
of Interests in the Debtor.
The Debtor shall use proceeds from operations and the sale of its
real property and as necessary the new loan discussed herein to pay
all required payments on the Effective Date and all payments due
under the Plan on an ongoing basis.
A full-text copy of the Combined Disclosure Statement and Plan
dated August 29, 2024 is available at
https://urlcurt.com/u?l=0rkL18 from PacerMonitor.com at no charge.
Counsel to the Debtor:
Paul G. Jennings, Esq.
Gene L. Humphreys, Esq.
BASS, BERRY & SIMS PLC
150 Third Avenue South, Suite 2800
Nashville, TN 37201
Tel: (615) 742-6200
Fax: (615) 742-6293
Email: pjennings@bassberry.com
ghumphreys@bassberry.com
About Donelson Corporate Centre,
Limited Partnership
Donelson Corporate Centre, Limited Partnership, owns real property
located at 3055 Lebanon Pike, Nashville, TN 37214 having an
appraised value of $36 million.
Donelson Corporate Centre, Limited Partnership, filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Tenn. Case No. 23-04512) on Dec. 8, 2023. The petition was
signed by Floyd Shechter as chief manager of JS Development, LLC
(General Partner). At the time of filing, the Debtor estimated
$42,311,296 in assets and $16,472,593 in liabilities.
Judge Marian F. Harrison presides over the case.
Robert J. Gonzales, Esq., at EMERGELAW, PLC, is the Debtor's
counsel.
DR. ERNIE F SOTO: Authorized to Use Cash Collateral Until Dec 31
----------------------------------------------------------------
Dr. Ernie F Soto, P.A. received approval from the U.S. Bankruptcy
Court for the Southern District of Florida, Ft. Lauderdale
division, authorization to use cash collateral, an essential step
to maintain the operations of its dental practice during the
bankruptcy process. The final hearing on this matter is scheduled
for December 10, 2024. The creditors asserting a security interest
in the cash collateral include BankUnited, N.A., CHTD
Company/Paypal Business/Swift Bank, Open Bank, and the U.S. Small
Business Administration.
The Court authorized the Debtor's use of cash collateral from the
petition date through December 31, 2024. The Debtor has submitted
budget for the 7.5-month period from June 17 to December 31, a copy
of which is available at https://urlcurt.com/u?l=GmqsJV The Debtor
projects $1,526,943.53 in patient revenues and total expenses of
$530,907.68 during this period.
The Debtor's initial balance of $153,121 is projected to grow
through net disposable income, with a final anticipated balance of
$406,903 by the end of 2024. The average monthly patient revenue is
projected at $203,592, while operating costs such as dental
supplies, payroll, and legal fees will be deducted during this
period. Total cost of sales, including dental supplies, lab fees,
and patient-related refunds, are expected to reach $609,960 by the
end of the year.
The Court imposed a strict cap on expenditure increases, limiting
them to no more than 10% over the budget. Any breach of this
threshold would allow creditors to seek emergency relief to stop
the Debtor's use of cash collateral.
During the interim period, the Debtor is required to provide
monthly reports to its creditors, detailing its operations, revenue
collections, and expenses. Additionally, creditors are granted
replacement liens on any cash collateral acquired after the
petition date to protect their interests. However, the Court made
no ruling on the validity or priority of these liens, allowing the
Debtor or a creditor's committee to challenge them later.
About Dr. Ernie F Soto
Dr. Ernie F Soto, P.A. is a family and cosmetic dental clinic in
Plantation, Fla.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-15979) on June 17,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Dr. Ernie F. Soto, D.D.S., president and
director, signed the petition.
Judge Scott M. Grossman presides over the case.
Kathleen L. DiSanto, Esq., at Buss Ross, P.A. represents the Debtor
as legal counsel.
The Subchapter V trustee can be reached at:
Tarek Kiem, Esq.
Kiem Law, PLLC
8461 Lake Worth Road, Suite 114
Lake Worth, FL 33467
Tel: (561) 600-0406
Email: tarek@kiemlaw.com
DRF LOGISTICS: Committee Hires Ordinary Course Professionals
------------------------------------------------------------
The official committee of unsecured creditors of DRF Logistics, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Texas to employ ordinary course professionals.
The following are the ordinary course professionals:
Professionals Services
Littler Mendelson P.C. Legal - Litigation
321 N Clark St, Suite 1100
Chicago, IL 60654
Bond, Schoeneck and Legal - Litigation
King, PLLC
One Lincoln Center
Syracuse, NY 13202
Gordon Rees Scully Legal - Litigation
Mansukhani
101 W. Broadway, Suite 2000
San Diego, CA 92101
S Horowitz & Co Legal - Litigation
31 Ahad Ha'am Street
Tel Aviv, Israel, 6520204
Baker McKenzie Legal - Employment
(China)
Unit 1601, Jin Mao Tower,
88 Century Avenue, Pudong,
Shanghai 200121
Baker McKenzie Legal - Litigation
(Netherlands)
Claude Debussylaan 54
1082 MD Amsterdam
P.O. Box 2720 1000 CS
Amsterdam
The Netherlands
About DRF Logistics, LLC
Headquartered in Austin, Texas, DRF Logistics, LLC and DRF, LLC are
providers of domestic ecommerce parcel services, as well as
cross-border logistics services, operating approximately $35
billion in total addressable market and working with over 350
customer brands, including leading retailers and marketplaces. The
Debtors' domestic parcel services include delivery, returns,
underlying client and consumer-facing software. The Debtors'
cross-border services include modular delivery solutions to over
200 destinations.
DRF Logistics, LLC and DRF, LLC filed their voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Lead Case No. 24-90447) in August 8, 2024, listing $100 million to
$500 million in both assets and liabilities. The petitions were
signed by Eric Kaup as chief restructuring officer.
Judge Christopher M Lopez presides over the case.
Gabriel Adam Morgan, Esq. at Weil, Gotshal & Manges LLP represents
the Debtors as counsel.
EARLY YEARS: Gets Final Approval to Use Cash Collateral
-------------------------------------------------------
Early Years Academy, Inc. received final approval from the U.S.
Bankruptcy Court for the District of Minnesota to use the cash
collateral of its secured creditors through March 28, 2025.
Early Years Academy can use the cash collateral of On-Deck Capital
and The Entrepreneur Fund to fund its operations while under
bankruptcy protection in accordance with its 26-week budget,
according to the final order penned by Judge Katherine
Constantine.
The final order required Early Years Academy to provide adequate
protection to its secured creditors by granting them replacement
liens that have the same priority and effects as their
pre-bankruptcy interests.
With regard to the claimed interest of the U.S. Small Business
Association in the cash collateral, the federal agency and Early
Years Academy entered into a stipulation, which the court approved
and incorporated into the final order.
About Early Years Academy
Early Years Academy, Inc., is a child care center licensed by the
state of Minnesota operating in two locations: Cambridge and Pine
City.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-41601) on June 19,
2024, with $50,001 to $100,000 in assets and $500,001 to $1 million
in liabilities.
Judge Katherine A. Constantine oversees the case.
Kenneth C. Edstrom, Esq., at Sapientia Law Group, is the Debtor's
legal counsel.
ECHOSTAR CORP: DIRECTV to Acquire DISH, Assume $9.75B Debt
----------------------------------------------------------
EchoStar Corporation and DIRECTV Holdings, LLC, a Delaware limited
liability company, entered into an Equity Purchase Agreement.
Pursuant to the terms and subject to the conditions set forth in
the Purchase Agreement, DIRECTV as Purchaser agreed to acquire from
EchoStar all of the issued and outstanding equity interests of DISH
DBS Corporation, a Colorado corporation, which operates the
Company's Pay-TV business.
DIRECTV will acquire EchoStar's video distribution businesses, DISH
and Sling TV, in exchange for the assumption of DBS debt and
certain other consideration, including the release of all DISH
Network intercompany obligations to DISH DBS. DBS has commenced
exchange offers and consent solicitations for five different series
of DBS notes with a total face value of approximately $9.75
billion, including seeking certain consents from the holders of
such notes to facilitate the acquisition, including to convert such
notes, upon closing of the acquisition, into DIRECTV debt which
will have terms that mirror DIRECTV's existing secured debt.
EchoStar says the combination of DIRECTV and DISH will benefit U.S.
video consumers by creating a more robust competitive force in a
video industry dominated by streaming services owned by large tech
companies and programmers. The transaction will provide consumers
with compelling video options while separately improving EchoStar's
financial profile as it continues to enhance and further deploy its
nationwide 5G Open RAN wireless network.
Bill Morrow, Chief Executive Officer of DIRECTV, commented on the
agreement saying, "DIRECTV operates in a highly competitive video
distribution industry. With greater scale, we expect a combined
DIRECTV and DISH will be better able to work with programmers to
realize our vision for the future of TV, which is to aggregate,
curate, and distribute content tailored to customers' interests,
and to be better positioned to realize operating efficiencies while
creating value for customers through additional investment."
"This agreement is in the best interests of EchoStar's customers,
shareholders, bondholders, employees, and partners," said Hamid
Akhavan, President and Chief Executive Officer, EchoStar. "With an
improved financial profile, we will be better positioned to
continue enhancing and deploying our nationwide 5G Open RAN
wireless network. This will provide U.S. wireless consumers with
more choices and help to drive innovation at a faster pace. We
expect DISH and EchoStar bondholders to benefit from two companies
with stronger financial profiles and more sustainable capital
structures."
"DIRECTV was founded 30 years ago to give consumers greater choices
than incumbent cable companies for video content, and the Company's
acquisition of DISH TV and Sling TV positions it to again provide
more choices and better value in an industry currently dominated by
large streaming platforms," said David Trujillo and John Flynn,
Partners at TPG. "Our ability to execute these transactions,
alongside our proposed acquisition of AT&T's 70% stake in DIRECTV
announced earlier today, exemplifies the unique capabilities of the
TPG platform and our experienced sector-focused investment approach
as we support DIRECTV's continued investment in innovating the next
generation of video services that benefit consumers."
EchoStar's Akhavan stated, "T[he] strategic actions will advance
our ability to aggressively compete in the U.S. wireless market.
Customers of legacy incumbents will be waking up and paying
attention to our state-of-the-art network," said "With an improved
financial profile and a unique approach, we expect to gain share,
drive shareholder value, and provide more options for U.S. wireless
consumers. Our collaboration with our existing stakeholders to
achieve this holistic recapitalization solution at EchoStar is a
testament to their continued support of our vision, and we greatly
appreciate their partnership and continued investment in our
mission."
At the closing of the DIRECTV Transaction, a subsidiary of the
Company will sell and transfer to Purchaser all of the issued and
outstanding equity interests of DBS in exchange for a total cash
purchase price of $1.00 plus the assumption of net debt of DBS and
its subsidiaries that is outstanding as of the DIRECTV Closing.
Upon the completion of such transactions, DBS will become a direct
and wholly-owned subsidiary of Purchaser.
Prior to the DIRECTV Closing, Purchaser intends to:
(i) consummate a pre-closing reorganization following which,
among other things, DBS will hold all of the properties, rights
assets and liabilities primarily related to the Business, except
for certain excluded assets and excluded liabilities, and
(ii) undertake a series of transactions pursuant to which
certain subsidiaries of the Company will undergo internal
reorganizations.
During the period between signing and the DIRECTV Closing, DBS and
its subsidiaries are not permitted to declare or pay dividends or
otherwise cause or permit any leakage (which includes, among other
things, cash payments and certain other value transfers by DBS and
its subsidiaries, on the one hand, to the Company or certain other
related persons, on the other hand), other than:
(i) certain permitted cash transfers prior to September 30,
2025 in an aggregate amount not to exceed the permitted cash
transfer cap set forth in the Purchase Agreement, and
(ii) certain permitted tax sharing payments, in each case, on
terms and conditions as set forth in the Purchase Agreement. The
permitted cash transfer cap is initially equal to $1,520 million
and is subject to certain adjustments set forth in the Purchase
Agreement, including transaction expenses and certain accrued
interest adjustments and adjustments tied to certain key
performance indicators.
The Purchase Agreement contains a minimum closing cash condition in
favor of Purchaser that requires that at the DIRECTV Closing, DBS
together with its subsidiaries have an aggregate amount of at least
$400 million of cash, subject to certain upward adjustments of such
$400 million amount, including:
* an adjustment equal to the sum of various KPI adjustments
provided for in the Purchase Agreement (to the extent such sum is
greater than zero), including adjustments relating to:
(a) days sales outstanding
(b) trade accounts payable and other accrued expenses days
payable outstanding,
(c) accrued programming days payable outstanding
(d) deferred revenue,
(e) satellite video subscribers,
(f) new subscriber acquisition marketing spend,
(g) capital expenditures,
(h) call center services spend,
(i) new customer gift cards and
(j) existing customer retention credits (in each case
determined in accordance with the principles and definitions set
forth in the Purchase Agreement);
* an adjustment for transaction expenses and customary costs
of the Company and its subsidiaries; and
* an adjustment arising from any breach of certain interim
operating covenants.
Additionally, DBS together with its subsidiaries must maintain 1/3
of the Minimum Cash Amount as of January 31, 2025, 2/3 of the
Minimum Cash Amount as of February 28, 2025, and the full Minimum
Cash Amount from and after March 31, 2025.
If, at the DIRECTV Closing, EchoStar has not caused DBS and its
subsidiaries to make permitted cash transfers in an aggregate
amount equal to the Permitted Cash Transfer Cap, then Purchaser is
required to pay the amount of the resulting shortfall to the
Company in installments over a 90-day period as set forth in the
Purchase Agreement, unless the Permitted Cash Transfer Shortfall is
$100 million or less, in which case the entire amount shall be paid
within 30 days of the DIRECTV Closing; provided that if the DIRECTV
Closing occurs prior to September 30, 2025 then the amount of the
Permitted Cash Transfer Shortfall will be reduced by certain tax
sharing payments.
The closing cash of DBS and its subsidiaries will be allocated in
the following order and priority:
* first, an amount equal to the Minimum Cash Amount will
remain with DBS and its subsidiaries;
* second, an amount equal to (i) the Permitted Cash Transfer
Cap less (ii) the aggregate amount of permitted cash transfers that
have occurred from signing to (and including) September 30, 2025 in
accordance with the terms and conditions of the Purchase Agreement
(not including cash generated by DBS and its subsidiaries after
September 30, 2025 ("Post-9/30/25 Closing Cash")) will be paid by
DBS to the Company at DIRECTV Closing;
* third, to the extent available, the next $200 million will
remain with DBS and its subsidiaries; and
* fourth, to the extent available, (i) of any remaining
closing cash (not including any Post-9/30/25 Cash) 50% will remain
with DBS and its subsidiaries and 50% will be paid by DBS to the
Company at the DIRECTV Closing and (ii) all Post-9/30/25 Closing
Cash will remain with DBS and its subsidiaries.
The Purchase Agreement provides that completion of the DIRECTV
Transaction is subject to the satisfaction or waiver of customary
closing conditions, including:
(a) no applicable law, judgment or injunction enacted,
enforced or issued by any governmental entity with competent
jurisdiction over the Company and Purchaser with respect to the
DIRECTV Transaction will be in effect that enjoins or otherwise
makes illegal the consummation of the DIRECTV Transaction,
(b) filings and clearances under the Hart-Scott-Rodino
Antitrust Improvements Act and
(c) the receipt of any required consents or approvals from the
Federal Communications Commission.
The Purchase Agreement also provides that completion of the DIRECTV
Transaction is subject to the satisfaction or waiver of closing
conditions solely in favor of Purchaser, including:
(a) evidence reasonably satisfactory to Purchaser that the
aggregate amount of closing cash of DBS and its subsidiaries at the
DIRECTV Closing will be at least equal to the Minimum Cash Amount,
(b) the Pre-Closing Reorganization and the Pre-Closing
Restructuring will each have been completed in accordance with the
reorganization plan and restructuring steps set forth in the
Purchase Agreement, in all but de minimis respects, and
(c) the Exchange Offer will have been completed no later than
an agreed upon date in accordance with the exchange offer
memorandum and conditions of the exchange offer (including the
satisfaction of the acquisition consent threshold conditions set
forth therein).
The Purchase Agreement:
* contains a post-closing adjustment mechanism with respect
to the calculation of closing cash, closing transaction expenses
and the components of the Minimum Cash Amount.
* provides for specified termination rights. Among other
customary termination rights, Purchaser or the Company have the
right to terminate the Purchase Agreement if the DIRECTV
Transaction is not consummated within 15 months of the date of the
Purchase Agreement, subject to up to two three-month extensions if
necessary to allow the completion of obtaining the required
regulatory approvals. The first three-month extension may be at
either Purchaser's or the Company's election and the second
three-month extension would be at Purchaser's sole discretion and
election.
* contains customary representations, warranties and
covenants related to the Business and the DIRECTV Transaction.
Between the date of the Purchase Agreement and the completion of
the DIRECTV Transaction, subject to certain exceptions, the Company
has agreed to use commercially reasonable efforts to (a) operate
the Business in the ordinary course consistent with the obligations
of the Company and DBS to use commercially reasonable efforts to
meet certain key performance metrics targets, and (b) preserve
substantially intact the business organizations, operations and
goodwill of the Business and maintain the present relationships of
the Business with government entities and third parties.
* provides for Purchaser and the Company to indemnify one
another in certain circumstances, subject to the terms and
conditions set forth in the Purchase Agreement, including (i)
indemnification by Purchaser of the Company for losses resulting
from the Business or liabilities assumed by Purchaser with the
Business, (ii) indemnification by the Company of Purchaser for
losses related to the Company's retained business or liabilities
retained by the Company.
The Company and Purchaser are expected to enter into a transitional
services agreement at the DIRECTV Closing pursuant to which (a) the
Company will provide DBS with certain transitional services in
support of the Business, and (b) DBS will provide the Company with
certain reverse transitional services in support of the Company's
retained business.
At the DIRECTV Closing:
* DBS and the Company will enter into a Transitional
Trademark License Agreement whereby DBS will grant the Company a
limited transitional license to use the DISH trademarks and beacon
logo solely in connection with the Company's retained business as
of the DIRECTV Closing for a limited wind-down period of 12 months.
Following such term, the Company will no longer have the right to
use the DISH and beacon trademarks (subject to non-trademark use
exceptions, such as archival or internal records purposes).
* DBS and the Company will enter into an Intellectual
Property License Agreement whereby DBS will grant the Company a
license to certain patents and certain know-how included in the
transferred assets for use in connection with the Company and its
Affiliates' continued business, and the Company will grant DBS and
its Affiliates a license to certain patents and know-how included
in the excluded assets, including certain patents directed to
adaptive bit rate technology for use in connection with DBS and its
Affiliates' continued business. The licenses granted under the
Intellectual Property License Agreement are non-exclusive and
perpetual. Additionally, pursuant to the Intellectual Property
License Agreement, the Company will pay 15% of all net profits
received by the Company from any settlements, court orders or
awards in respect of the ABR Patents, and 15% of gross profits
received by the Company from proceeds from a sale of the ABR
Patents following the signing of the Purchase Agreement. Finally,
at the DIRECTV Closing, DIRECTV and the Company will enter into a
Blockbuster License Agreement whereby the Company will grant
DIRECTV a three-year license to certain Blockbuster trademarks and
domain names in connection with the streaming business and
DIRECTV's video content distribution platforms.
DBS Exchange Offers and
TPG Angelo Gordon Financing
The transaction, which the boards of directors of both companies
have unanimously approved, is expected to close in the fourth
quarter of 2025. The transaction is subject to various closing
conditions, including, but not limited to, a requisite amount of
the outstanding DBS notes being tendered into the Exchange Offer,
completion of a pre-closing reorganization, and receipt of required
regulatory approvals.
In addition, TPG Angelo Gordon and certain co-investors have
provided $2.5 billion of financing to DBS to fully refinance DBS'
November 2024 debt maturity and provide interim liquidity.
Furthermore, the release of intercompany obligations in connection
with the closing of the transaction creates the ability for
EchoStar to fully unencumber the 3.45-3.55 GHz spectrum unlocking
incremental strategic and operating flexibility.
Comprehensive EchoStar Financing Solution
and Balance Sheet Optimization
Under the terms of a Transaction Support Agreement between EchoStar
and the DISH Supporting Investors collectively representing over
85% of the aggregate principal amount outstanding of the DISH
Convertible Notes, all holders of DISH Convertible Notes will have
the opportunity to exchange their DISH Convertible Notes for new
secured notes and secured convertible notes of EchoStar maturing in
2030. The DISH Supporting Investors have committed to participate
with all of their DISH Convertible Notes in the exchange. In
addition, certain members of the DISH Supporting Investors and a
related party of Charles W. Ergen, the Company's chairman, have
entered into a Commitment Agreement pursuant to which EchoStar will
issue $5.1 billion of new senior secured notes maturing in 2029 for
cash. These new notes will be secured by EchoStar's AWS-3 and AWS-4
spectrum assets. The commitment of the Ergen related party is for
$100 million of such notes and was unanimously approved by the
Audit Committee of the Company's Board of Directors.
The $5.1 billion new money financing from the Supporting Investors
will provide EchoStar with significant capital for the buildout of
its Boost Mobile nationwide 5G Open RAN network. The commitment
from the DISH Convertible Notes will significantly improve
EchoStar's debt maturity profile through the extension of debt
maturities from 2025 and 2026 to 2029.
Finally, the Company entered into subscription agreements with
certain accredited investors and CONX Corp., a Nevada corporation
indirectly controlled by Charles W. Ergen, pursuant to which the
PIPE Investors have agreed, subject to the terms and conditions set
forth therein, to purchase from the Company an aggregate of 14.265
million shares of the Company's Class A common stock, par value
$0.01 per share, at a purchase price of $28.04 per share, the
closing price for the Company's Class A common stock on September
27, 2024, for an aggregate cash purchase price of approximately
$400 million. The portion of the PIPE Investment represented by the
CONX Subscription Agreement represents an agreement to purchase
from the Company an aggregate of 1.551 million shares of the
Company's Class A common stock for an aggregate cash purchase price
of approximately $43.5 million. The CONX Subscription Agreement was
unanimously approved by the Audit Committee of the Company's Board
of Directors. The PIPE Investment is conditioned on and expected to
close concurrently with the closing of the DISH Convertible Notes
exchange offers and new senior secured notes, subject to the terms
and conditions set forth in the Subscription Agreements.
Advisors
J.P. Morgan acted as financial advisor to EchoStar for the DIRECTV
and TPG Angelo Gordon transactions. Houlihan Lokey, Inc. served as
financial advisor for the transactions with the DISH Supporting
Investors. White & Case LLP served as legal advisor to EchoStar for
both transactions.
Centerview Partners served as exclusive financial advisor and Paul,
Weiss, Rifkind, Wharton & Garrison LLP served as exclusive legal
advisor to the ad hoc group of holders of 2025 DISH Convertible
Notes, and Perella Weinberg Partners served as exclusive financial
advisor and Akin Gump Strauss Hauer & Feld LLP served as exclusive
legal counsel to the ad hoc group of holders of 2026 DISH
Convertible Notes.
A full-text copy of the Company's report with further information
is available at:
https://tinyurl.com/3bjbxbjd
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) -- www.echostar.com -- is a
provider of technology, networking services, television
entertainment, and connectivity, offering consumer, enterprise,
operator, and government solutions worldwide under its EchoStar,
Boost Mobile, Boost Infinite, Sling TV, DISH TV, Hughes, HughesNet,
HughesON, and JUPITER brands. In Europe, EchoStar operates under
its EchoStar Mobile Limited subsidiary, and in Australia, the
Company operates as EchoStar Global Australia.
EchoStar reported a net loss of $1.63 billion for the year ended
Dec. 31, 2023, compared to net income of $2.53 billion for the year
ended Dec. 31, 2022. As of March 31, 2024, the Company had $55.55
billion in total assets, $35.71 billion in total liabilities, and
$19.84 billion in total stockholders' equity.
Denver, Colorado-based KPMG LLP, the Company's auditor since 2002,
issued a "going concern" qualification in its report dated Feb. 29,
2024, citing that the Company has debt maturing in 2024 and expects
to use a substantial amount of cash in the next twelve months. This
raises substantial doubt about the Company's ability to continue as
a going concern.
EDGIO INC: Receives Go Signal for November Chapter 11 Sale
----------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge has given digital content delivery
platform Edgio Inc. the go-ahead for a November 2024 asset auction
with a $110 million stalking-horse credit bid.
Oct. 22, 2024, at 5:00 p.m., is the deadline by which bids for the
assets must be actually received pursuant to the Bidding
Procedures. Nov. 13,
2024, at 10:00 a.m., is the date of the auction, which will be held
(i) via a virtual meeting, (ii) at the offices of Milbank, 55
Hudson Yards, New York, NY 10001, or (iii) at such later date,
time, and location as designated by the Debtors. The sale hearing
is scheduled for Nov. 25.
About Edgio Inc.
Edgio Inc. (NASDAQ: EGIO) Edgio, Inc., and its subsidiaries provide
technology services that support the delivery of video and other
content through the Internet. Among a broad suite of services,
Edgio runs global computer networks that support high-speed
delivery of websites, recorded video, and live-streaming for a
diverse and sophisticated base of blue-chip business and media
customers. Through its software applications, Edgio helps many of
those same customers enhance the security and performance of their
websites and e-commerce platforms.
Edgio and its affiliates sought Chapter 11 protection (Bankr. D.
Del. Lead Case No. 24-11985) on Sept. 9, 2024, with a deal to sell
their assets to lender Lynrock Lake Master Fund LP for a credit bid
of $110 million, absent higher and better offers.
Edgio disclosed $379,013,042 in total assets against $368,613,842
in total liabilities as of June 30, 2024.
Judge Karen B. Owens presides over the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Richards, Layton & Finger, P.A., as local counsel; TD Securities
(USA) LLC (doing business as TD Cowen) as financial restructuring
advisor; and Riveron Consulting LLC as business advisor. C Street
Advisory Group serves as strategic communications advisor to the
Debtors. Omni Agent Solutions, Inc. is the claims agent.
ELETSON HOLDINGS: UST Says Reed Smith Did Not Disclose Ties
-----------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that the U.S.
Trustee's Office is asking a New York bankruptcy judge to claw back
the fees and expenses law firm Reed Smith LLP has earned
representing shipping firm Eletson Holdings in its Chapter 11 case,
saying it failed to disclose ties with Eletson directors.
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,
L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors. The committee tapped Dechert, LLP as its
legal counsel.
EMERGENCY HOSPITAL: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Emergency Hospital Systems, LLC
a/k/a Cleveland Emergency Hospital
d/b/a Cleveland Emergency Hospital
8901 FM 1960 Bypass Road
Humble, TX 77338
Business Description: Emergency Hospital is a system of regional
hospitals serving the communities of The
Woodlands, Porter, and Deerbrook, Cleveland.
These facilities support each other with
respect to the services they provide and are
united under a common objective to provide
quality healthcare professionally and
compassionately.
Chapter 11 Petition Date: October 3, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-34683
Judge: Hon. Eduardo V Rodriguez
Debtor's Counsel: Kenna Seiler, Esq.
SEILER RAPP & GUERRA, PLLC
2700 Research Forest Drive Suite 100
The Woodlands, TX 77381
Tel: (281) 419-7770x8020
Email: kseiler@srg-law.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Rafael Delaflor as operating officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7EEA3YA/Emergency_Hospital_Systems_LLC__txsbke-24-34683__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Abbott Laboratories Inc. $46,157
22400 Network Place
Chicago IL.
60673-1224
2. AFCO Insurance $127,434
Premium Finance
150 North Field Drive,
Suite 190
Lake Forest, IL 60045
3. Ascendant Medical PLLC $445,000
7975 Southbrook,
Fort worth, TX 76134
4. Avail Anesthesia Associates $30,000
5300 N. Braeswood
Blvd. #127 Houston,
Tx. 77096
5. Beckman Coulter, Inc. $30,411
Dept. CH 10164
Palatine Il.
60055-0164
6. Brian Orsak (O-2 $631,925
Holdings LLC)
12743 Capricorn
Suite 400
Stafford, TX 77477
7. Cardinal Health $46,071
Cardinal Health
Medical Products and Services
PO Box 730112
Dallas, TX 75373
8. Central Bank (LOC) $6,775,000
4605 Post Oak Place
Drive, Suite 130
Houston, TX 77027
9. Christopher Matthew Light $30,000
Light CT Solutions
PO Box 9897 Spring
TX 77387
10. City Ambulance Service $30,551
City Ambulance
Service PO Box
691067 Houston, TX 77269
11. Culinary Concessions LLC $60,675
Luby's Culinary
Services 13939
Northwest Fwy
Houston, Tx. 77040
12. Hunter Pharmacy Service $45,830
3420 Executive
Center Dr. #100,
Austin, TX 78731
13. JAY21Enterprises $68,006
14019 SW Freeway
Ste#301-421, Sugar
Land, Tx. 77478
14. Johnson & Johnson $110,931
Health Care System Inc
PO Box 406663
Atlanta, GA.
30384-6663
15. M - Systems Inc $37,130
3900
Stonebridge Dr
#903, McKinney,
Texas 75070
16. McKesson Corporation DC $28,288
3301 Pollok Dr.,
Conroe, Tx 77327
17. McKesson Medical $54,177
Surgical INC
PO BOX 660266,
Dallas, Texas
75266-0266
18. Roshal Imaging $30,520
Services, LLC
PO Box 201319,
Dallas, Tx.
75320-1319
19. Synchroncity Health $47,404
Technology, INC
PO Box 7972, Carol
Stream, IL
60197-7972
20. The Oracle Legal Group, LLC $51,480
24727 Songlark Bend
Dr., Tomball, TX
77375
ENTECCO FILTER: May Use Cash Collateral Thru Oct. 18
----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston-Salem Division, granted Entecco Filter
Technology, Inc., authorization to use cash collateral on an
interim basis, allowing the company to use its cash reserves to
sustain operations and continue working on its ongoing projects.
Without this access to funds, Entecco would have faced immediate
and irreparable harm to its business.
At the time of filing for Chapter 11 bankruptcy on September 19,
2024, the debtor's available cash collateral included $348,564 in
its bank account and $376,818 in accounts receivable. PNC Bank,
National Association, has a lien on these assets, based on a
$125,000 loan extended under a revolving line of credit issued on
July 20, 2023. The bank holds a valid and perfected security
interest in the debtor's pre-petition collateral.
The court authorized Entecco to use the cash collateral through
October 18, 2024, or until a further order, based on the company's
four-week budget projection. The budget outlines anticipated income
from accounts receivable collections and down payments, along with
expenses related to operations and ongoing projects. A copy of the
court's order, including the debtor's budget, is available at
https://urlcurt.com/u?l=Q3ejZ4
During this interim period, Entecco is permitted to use up to 110%
of any line item in the budget to cover necessary expenditures. The
budget includes expenses like payroll and payments toward the
secured debt to PNC Bank. Notably, the cash flow projection shows
the company starting with $362,000 and ending with an anticipated
balance of $683,401 after four weeks.
As adequate protection for PNC's interest in the cash collateral,
the court granted the bank a continuing security interest in the
company's post-petition assets. This security interest mirrors the
pre-petition collateral and ensures that PNC's position remains
protected throughout the bankruptcy process. In case of any default
or unauthorized use of funds, PNC can request immediate relief,
including termination of the debtor's ability to use cash
collateral.
The court scheduled a further interim hearing on the motion for
October 17, 2024, where the company's continued use of cash
collateral will be reviewed.
About Entecco Filter Technology
Entecco Filter Technology, Inc., is a Delaware-based environmental
technology company, specializing in air purification systems and
filter products used in various industries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50707) with $1 million
to $10 million in estimated assets and $1 million to $10 million in
estimated liabilities. The petition was signed by James David
Edgerton as president and chief executive officer.
James C. Lanik, Esq., at WALDREP WALL BABCOCK & BAILEY PLLC, serves
as the Debtor's legal counsel
ESCAMBIA OPERATING: Trustee Cuts Myron Purchase Price to $225,000
-----------------------------------------------------------------
Drew McManigle, the Chapter 11 trustee for Escambia Operating
Company, LLC, asks the U.S. Bankruptcy Court for the Southern
District of Mississippi to set aside a prior sale order and to
enter a revised order authorizing and approving the sale of
equipment/vehicles, free and clear of all liens, claims, and
encumbrances to Myron Bowling Auctioneers, Inc.
The Court appointed McManigle as Chapter 11 Trustee to oversee the
bankruptcy cases and estates of Escambia Operating, Escambia Asset
Company, LLC, and Blue Diamond Energy, Inc.
The Chapter 11 Trustee seeks to revise the terms of the approved
sale to Myron. The Trustee explains he has encountered impediments
in the closing of the sale on the terms agreed upon with Myron, and
has reached an agreement to proceed with the sale on modified
terms.
The Debtors own a variety of equipment and vehicles at the Big
Escambia Creek Plant, located in Atmore, Alabama, which are not
needed for operations and detract from the overall value of the
plant.
The Chapter 11 Trustee proposes that the purchase price of the
assets be reduced from $325,000 to $225,000, after a thorough
analysis of the equipment/vehicles, and to account for the
estimated value of the crane and the administrative costs that
Myron will incur in obtaining replacement or new certifications of
the purchased vehicles.
The Chapter 11 Trustee also asks the Court to require state or
local agencies responsible for issuing certificates of title to
accept bills of sale in favor of World Aircraft, affidavits and/or
other documents executed by the El Dorado Trustee in her capacity
as Independent Director and Manager of World Aircraft and to issue
replacement or new certificates of title in the name of Myron for
certain vehicles.
About Escambia Operating Company
Escambia Operating Company, LLC and its affiliates, Escambia Asset
Company, LLC and Blue Diamond Energy, Inc., filed Chapter 11
petitions (Bankr. S.D. Miss. Lead Case No.23-50491) on April 2,
2023, with $10 million to $50 million in both assets and
liabilities.
Judge Jamie A. Wilson oversees the cases.
The Debtors tapped Patrick A. Sheehan, Esq., and Steve Wright
Mullins, Esq., as bankruptcy attorneys.
Drew McManigle, the Chapter 11 trustee appointed in the Debtors'
cases, tapped Jones Walker, LLP as bankruptcy counsel; MACCO
Restructuring Group, LLC as financial advisor; M P Boots Petroleum
Engineering Services, LLC as valuation advisor; and Matthews,
Cutrer and Lindsay, PA as accountant.
FARGO BREWING: Court Approves Use of Cash Collateral
----------------------------------------------------
The U.S. Bankruptcy Court for the District of North Dakota granted
The Fargo Brewing Company, LLC authorization to use cash
collateral, including postpetition cash generated from operations,
and to provide adequate protection to its prepetition secured
creditors. After a preliminary hearing held on April 18, 2024, the
court granted interim relief, allowing the Debtor to use cash
collateral, based on evidence that immediate use was necessary to
avoid irreparable harm to its business.
Two objections were filed by First Western Bank & Trust and the
United States Small Business Administration. Both requested that
any final order maintain the replacement liens established in the
interim order. In response, Fargo Brewing filed a supplemental
declaration, ensuring continued insurance coverage and agreeing to
provide replacement liens as requested.
On May 16, 2024, the Debtor sought an extension of the cash
collateral order, presenting an updated budget through July 31,
2024. The court granted the extension, as all interested parties
consented. Similar extensions were granted for periods ending
September 30, 2024, and October 31, 2024, with no objections from
interested parties, including First Western Bank and the SBA.
The court's order authorizes Fargo Brewing to use cash collateral
and postpetition cash generated from its business operations,
provided it stays within the specified budget, allowing up to 120%
variance for individual categories. Any excess spending in one
category must be balanced by reductions in others. The Debtor is
required to maintain insurance on its assets as additional
protection.
As part of the order, the SBA and First Western Bank were granted
relief from the automatic stay to perfect their liens.
Additionally, the Debtor is not authorized to grant replacement
liens in Chapter 5 causes of action. The court also waived the
14-day stay under Rule 6004(h) of the Federal Rules of Bankruptcy
Procedure, making the order effective immediately.
The Debtor's counsel may be reached at:
Caren W. Stanley, Esq.
Drew J. Hushka, Esq.
218 NP Avenue
PO Box 1389
Fargo, ND 58107-1389
Telephone: (701) 237-6983
E-mail: cstanley@vogellaw.com
dhushka@vogellaw.com
About The Fargo Brewing Company
The Fargo Brewing Company, LLC, is a craft brewery company.
The Debtor sought protection under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. N.D. Case No. 24-30152) on
April 15, 2024. In the petition signed by Jared Hardy, president,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Caren Stanley, Esq., at Vogel Law Firm, is the Debtor's legal
counsel.
FAYESON INC: Joli Lofstedt Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 11 appointed Joli Lofstedt, Esq., as
Subchapter V trustee for Fayeson Inc.
Ms. Lofstedt, a practicing attorney in Louisville, Colo., will be
paid an hourly fee of $375 for her services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Ms. Lofstedt declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joli A. Lofstedt, Esq.
P.O. Box 270561
Louisville, CO 80027
Phone: (303) 476-6915
Fax: (303) 604-2964
Email: joli@jaltrustee.com
About Fayeson Inc.
Fayeson Inc., doing business as Richey Inc., is a full-service shop
for trucks and trailers in Commerce City, Colo.
Fayeson filed Chapter 11 petition (Bankr. D. Colo. Case No.
24-15305) on September 9, 2024, with up to $1 million in assets and
up to $10 million in liabilities. Fayeson President Dion M. Swenson
signed the petition.
Judge Kimberley H. Tyson presides over the case.
The Debtor hired Fennemore Craig, P.C. as legal counsel.
FCA CONSTRUCTION: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
FCA Construction, LLC received interim court approval to use the
cash collateral of the U.S. Small Business Administration.
The interim order penned by Judge Meredith Grabill of the U.S.
Bankruptcy Court for the Eastern District of Louisiana authorized
the company to use SBA's cash collateral to fund its operations in
accordance with the 13-week budget it submitted to the court.
The company may exceed each line item in the budget by a 20%
variance as long as the overall budget is not exceeded by more than
20% monthly. A copy of FCA's 13-week budget is available for free
at:
https://www.pacermonitor.com/view/5PC65MY/FCA_Construction_LLC__laebke-24-10702__0191.0.pdf
To protect SBA's interests, Judge Grabill directed FCA to grant SBA
replacement security interests in all post-petition property.
The final hearing is scheduled for Oct. 30.
About FCA Construction
FCA Construction LLC is a general contractor specializing in
residential construction and roofing, commercial construction and
roofing, disaster recovery, disaster roof replacement, and
electrical and mechanical services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. La. Case No. 24-10702) on April 11,
2024, with $3,417,686 in assets as of March 31, 2024 and $7,768,774
in liabilities as of March 31, 2024. Greta Brouphy, Esq., at Heller
Draper & Horn, LLC serves as Subchapter V trustee.
Judge Meredith S. Grabill presides over the case.
Tristan Manthey, Esq. at Fishman Haygood, L.L.P. represents the
Debtor as legal counsel.
FIREFLY STORE: Seeks to Hire Cushman & Wakefield as Sales Agent
---------------------------------------------------------------
Firefly Store Solutions, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of North Carolina to
employ Cushman & Wakefield U.S. as sales agent.
The firm will market and sell the Debtor's real property located at
4500 S. Holden Road, Greensbro, NC.
The firm will be paid a commission of 4 percent of the sales price
if no outside broker is involved, and 6 percent if an outside
broker is involved.
Ryan Conboy, a partner at Cushman & Wakefield U.S., 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 Conboy
Cushman & Wakefield U.S.
628 Green Valley Road Suite 202
Greensboro, NC 27408
Tel: (336) 821-3832
About Firefly Store Solutions, Inc.
Firefly Store has been providing America's retailers with store
solutions, retail store fixtures, and store displays since 1954.
Firefly Store Solutions, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C.
Case No. 24-10591) on September 20, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Adria Arias as chief executive officer.
Judge Benjamin A Kahn presides over the case.
Dirk W. Siegmund, Esq. at Ivey, Mcclellan, Siegmund, Brumbaugh &
Mcdonough, LLP represents the Debtor as counsel.
FORGE FLIGHTWORKS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Forge Flightworks, Inc.
f/d/b/a Carpenter Avionics, Inc.
624B Fitzhugh Blvd
Smyrna, TN 37167
Business Description: Forge Flightworks is an award-winning FAA
Authorized Repair Station that sells,
installs, maintains and repairs avionics,
aircraft interiors, engines and airframe
systems for business jets, turboprops,
piston engine airplanes and helicopters of
all ages.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 24-03831
Judge: Hon. Nancy B King
Debtor's Counsel: Henry E. ("Ned") Hildebrand, IV, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Suite 316
Brentwood, TN 37027
Tel: 615-933-5851
Fax: 615-777-3765
E-mail: ned@dhnashville.com
Total Assets: $803,196
Total Liabilities: $2,748,132
The petition was signed by Van Mark Lee as CEO.
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/OZB7OPY/Forge_Flightworks_Inc__tnmbke-24-03831__0001.0.pdf?mcid=tGE4TAMA
FRONTIER DEVELOPMENT: Dawn Maguire Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at
Guttilla Murphy Anderson, as Subchapter V trustee for Frontier
Development, LLC.
Ms. Maguire will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Maguire declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dawn Maguire, Esq.
Guttilla Murphy Anderson
5415 East High Street, Suite 200
Phoenix, AZ 85054
Telephone: (480) 304-8300
Fax: (480) 304-8301
Email: TrusteeMaguire@gamlaw.com
About Frontier Development
Frontier Development, LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.
24-07505) on Sept. 9, 2024, with up to $1 million in both assets
and liabilities.
Ronald J. Ellet, Esq., at Ellet Law Offices, PC serves as the
Debtor's bankruptcy counsel.
FTX TRADING: CEO Skips Deposition Prior to Plan Hearing
-------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that FTX CEO
John J. Ray III does not have to sit for a deposition requested by
Virgin Islands-based LayerZero Labs Ltd. to answer questions about
why it was not included in a Chapter 11 settlement with the debtor,
a Delaware bankruptcy judge said Tuesday, October 1, 2024, as FTX
pursues confirmation of its bankruptcy plan.
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.
FUNDIMENSION LLC: Case Summary & 11 Unsecured Creditors
-------------------------------------------------------
Debtor: FunDimension, LLC
2129 NW 1st Court
Miami, FL 33127
Business Description: FunDimension offers a wide range of
attractions including arcade games, laser
tag, bumper cars, duckpin bowling, rock
climbing, virtual reality, and an
e-gaming.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-20351
Judge: Hon. Corali Lopez-Castro
Debtor's Counsel: Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 NE 4th Street, Suite 200
Fort Lauderdale, FL 33301
Tel: (954) 765-3166
Email: chad@cvhlawgroup.com
Total Assets: $514,619
Total Liabilities: $1,773,782
The petition was signed by Joyce Alarcon-Frohman as managing
partner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4HXFG4Q/FunDimension_LLC__flsbke-24-20351__0001.0.pdf?mcid=tGE4TAMA
GANDY'S TRANSPORT: Oct. 10 Final Hearing on Cash Collateral Access
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, granted Gandy's Transport, LLC authorization to use
cash collateral totaling $26,100 in accordance with an attached
budget. This budget specifies how the funds will be allocated to
cover essential operational expenses. The Debtor must utilize its
income solely for necessary costs and maintain compliance with the
specified financial plan.
Transport Factoring, Inc. DBA Traffic Service Bureau Balboa
Capital, Huntington Bank, Mitsubishi, Navitas Credit Corporation,
and Tandem Finance, Inc., may assert an interest in the cash
collateral. To protect the interests of secured parties, the court
granted them replacement liens on the Debtor's existing and
after-acquired property, ensuring that the liens reflect the same
order and priority as before, but only to the extent of any
reduction in value caused by the cash collateral use. The
replacement liens, however, do not extend to any Chapter 5 causes
of action or their proceeds.
The replacement liens are subject and subordinate to (a) the fees
and expenses of the Office of the United States Trustee and the
Clerk of the United States Bankruptcy Court for the Northern
District of Texas, and (b) the actual fees and expenses of all
court-approved professionals retained by the Debtor in this case
that are incurred through the date of the Final Hearing and are
ultimately allowed by Court order.
Additionally, the order stipulates that Gandy's Transport must
maintain insurance on its equipment and comply with regulations
regarding the utilization of cash collateral.
A final hearing on the matter is set for October 10, 2024.
About Gandy's Transport
Gandy's Transport, LLC is a transportation company that specializes
in freight and logistics services. Based in Fort Worth, Texas, the
company operates within the trucking industry, providing reliable
transport solutions for various goods and cargo.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-43354) on September
19, 2024, listing under $1 million in both assets and liabilities.
The petition was signed by Jared Gandy.
The Hon. Edward L. Morris oversees the case.
M. Jermaine Watson, Esq. -- jwatson@canteyhanger.com -- at Cantey
Hanger LLP, serves as the Debtor's counsel.
GC PROPERTIES: Amy Denton Mayer Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Amy Denton Mayer of
Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee for
GC Properties of Arcadia, LLC.
Ms. Mayer will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mayer declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Amy Denton Mayer
Stichter Riedel Blain & Postler P.A.
110 East Madison Street, Suite 200
Tampa, FL 33602
Phone: (813)229-0144
Email: amayer@subvtrustee.com
About GC Properties of Arcadia
GC Properties of Arcadia, LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-01361) on September 10, 2024, with $1 million to $10 million in
both assets and liabilities. Steven Game, managing member, signed
the petition.
Judge Caryl E. Delano oversees the case.
The Debtor is represented by Justin M. Luna, Esq., at Latham, Luna,
Eden & Beaudine, LLP.
GFH LTD: Unsecureds Will Get 25% of Claims over 60 Months
---------------------------------------------------------
GFH, Ltd., and its affiliates filed with the U.S. Bankruptcy Court
for the Southern District of Texas a Joint Plan of Reorganization
for Small Business under Subchapter V dated August 29, 2024.
GFH, Ltd., is a Texas limited partnership organized in January
2003. Its General Partner is, and has always been, GFH I, LLC. Its
primary purpose has been to own real estate consisting of funeral
homes in Victoria, Goliad, and Port Lavaca, Texas.
In fact, its funeral home in Goliad is the only funeral home in
Goliad County. There were originally a group of investors,
including C. Hauboldt, that held limited partnership interests.
Over the years, C. Hauboldt bought out the investors' interests,
and since 2012, he has been the sole Limited Partner of GFH.
The Debtors believe it is likely that his projected Disposable
Income will be more than adequate to pay all Allowed Claims in
full, with interest and applicable statutory penalties.
This Plan of Reorganization proposes to pay creditors of the
Debtors from: (a) proceeds from the sale of the Hauboldts'
non-exempt real property; (b) future Disposable Income from the
business operations of GFH, Grace, Hauwin, and Crossroads; and (c)
proceeds from the sale of all, or part, of the business of GFH,
Grace, Hauwin, and Crossroads within the 36-month period following
the Effective Date of the Plan.
Non-priority unsecured creditors holding Allowed Claims will
receive distributions, which the proponent of this Plan has valued
at approximately 25 cents on the dollar, not counting possible
future net sales proceeds equal to 5 percent of the net sales
proceeds from the consolidated Reorganized Entity Debtor. This Plan
also provides for the payment of administrative and priority
claims.
Class 13 consists of General Unsecured Claims. Holders of Allowed
Claims in this Class will be paid 25 percent of their Allowed
Claims, in 17 quarterly cash payments, aggregating approximately
$21,319.00 at the beginning of each quarter, commencing in 13th
month following the Effective Date and payable quarterly thereafter
with a final, payment in the 60th month following the Effective
Date.
Additionally, upon the sale of the Reorganized Debtor Entities,
holders of Allowed Claims in Class 13 will receive 5 percent of the
net amount realized after payment of all closing costs, taxes, and
allowed secured claims in Classes 1 through 5 that will be paid at
the closing of such sale. This Class is impaired.
Class 14 consists of the equity interests of: (a) the 99 percent
limited partnership interest of C. Hauboldt in GFH, Ltd., (b) the
common stock in Grace and Hauwin owned by C. Hauboldt, and the (c)
limited liability company membership interests in Crossroads held
by C. Hauboldt and H. Hauboldt. The Hauboldts will retain all
partnership interests, common stock, and membership interests in
the GFH, Ltd., Grace, Hauwin, and Crossroads. Until all Allowed
Claims are satisfied, they shall be entitled to no distributions
except to pay the income tax liability of the entities that may be
passed through to them, which are attributable to their specific
ownership in GFH, Ltd., Grace, Hauwin, and Crossroads.
Class 15 consists of Interests of the Individual Debtors in
Property of the Estate. All property of the Estate shall vest with
the Reorganized Individual Debtors on the Effective Date, subject
to the liens and security interests of Secured Creditors, as set
forth and described in Section V and in Classes 2 and 5 through 9.
The Reorganized Individual Debtors shall continue to be bound by
the terms of this Plan after the Effective Date.
It is contemplated that the Hauboldts will either: (a) sell all, or
part, of their equity in the Reorganized Debtor Entity to a third
party, or (b) sell the assets of the Reorganized Debtor Entity to a
third party and apply the proceeds to the satisfaction of Allowed
Claims in this Plan. Absent a written agreement to the contrary
with the holders of unpaid Allowed Claims in Classes 1 and 2, the
closing of this sale must occur within 36 months of the Effective
Date.
In addition to the sales of property, Allowed Claims of the
Reorganized Entity Debtor will be paid from the Reorganized Entity
Debtors’ Disposable Income.
A full-text copy of the Joint Plan dated August 29, 2024 is
available at https://urlcurt.com/u?l=PWNVVV from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Leonard H. Simon, Esq.
Pendergraft & Simon, LLP
2777 Allen Parkway, Suite 800
Houston, TX 77019
Telephone: (713) 528-8555
Facsimile: (713) 868-1267
About GFH Ltd.
GFH Ltd., a provider of death care services in Victoria, Texas, and
its affiliates filed their voluntary petitions under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
24-60025) on May 31, 2024. In the petition signed by Heather
Hauboldt, manager, GFH disclosed up to $10 million in both assets
and liabilities.
Judge Christopher M. Lopez handles the cases.
Pendergraft & Simon, LLP serves as the Debtors' counsel.
GOLDEN WEST: S&P Downgrades ICR to 'CCC-' on Weak Performance
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit ratings on Southern
California-based Golden West Packaging Group LLC (GWPG) to 'CCC-'
from 'B-'. At the same time, S&P lowered its rating on the
company's revolving credit facility and first-lien term loan to
'CCC-' from 'B-'. The recovery rating remains '3', reflecting its
expectation for meaningful (50%-70%; rounded estimate: 55%)
recovery in the event of a default.
The negative outlook reflects S&P's expectation that the company
will be unable to make interest or amortization payments absent a
meaningful improvement in performance or equity contribution from
its sponsor.
GWPG has faced significant volume declines and constrained
liquidity over the past six quarters, with limited prospects of
seeing improvement through the back half of 2024. Operating
performance through the second quarter remained weak compared to
the prior year as well as budgeted expectations, with year-to-date
sales volume down 9.4% versus the prior year, and total sales down
13.5%. This follows 2023 performance which saw revenues and EBITDA
fall 24.3% and 26.6% versus the prior year, respectively. The
company has experienced challenges in passing through the
corrugated pricing increases, one in February and another in June,
as customers have pushed back against the pricing increases,
leading to much lower margins. While the company believes it will
see an impact from pricing in the second half, continued softer
volumes could offset much of this pricing gain. As a result, S&P is
forecasting high-single-digit revenue declines and
high-double-digit S&P adjusted EBITDA declines in 2024, resulting
in S&P Global Ratings-adjusted leverage above 12x.
The company dealt with significant industry and geographical
headwinds in 2023, with ongoing destocking sapping volumes. GWPG is
heavily reliant on California/West Coast agriculture and the wine
industry, which had a difficult 2023 growing season given
significant weather-related challenges, further contributing to the
volume declines. This led to S&P Global Ratings-adjusted leverage
of 9.6x in 2023, though the company was able to generate a reported
free operating cash flow (FOCF) of roughly $5.1 million, primarily
a result of working capital inflows. The company had full
availability of its $30 million revolver at year-end.
S&P expects liquidity will remain an issue into 2025. In the second
quarter, the company received an equity contribution from sponsor
Lindsay Goldberg to help bridge an approximately $24 million cash
flow deficit through the second quarter, including first half
amortization payments, resulting in full availability on the
revolver. The company has roughly $7.5 million in amortization due
in the second half, in addition to roughly $3 million outflow for
its Masterflute In-Line Laminator (fourth-quarter 2024 shipment,
first-quarter 2025 installation) to complement the Heidelberg
Press.
S&P said, "We believe continued volume pressure and softer margins
will result in negative reported free cash flow in the second half
of 2024, leading to additional draws on the revolver. The company's
revolving credit facility is subject to a 7.15x first-lien net
leverage covenant, which is triggered when it draws on 35% or more
of its revolver commitment. Under our current assumptions, we
believe there is an increasing likelihood that the company would
breach the covenant over the next 6 months, absent additional cash
infusions from its sponsor. Further, we believe the company would
not have enough internally generated cash flow or availability
under its revolver to meet upcoming interest and amortization
payments over the next 6 months. As such, we believe this increases
the likelihood of a payment default or distressed restructuring
outside of an additional sponsor contribution and/or covenant
amendment.
"The negative outlook reflects our expectation that the company
will be unable to make interest or amortization payments absent a
meaningful improvement in performance or equity contribution from
its sponsor.
"We could lower the ratings if we expect a default to be a virtual
certainty. This could occur if the company does not meet its debt
service payments on time, or the company engages in a distressed
restructuring.
"We could raise our rating if we no longer believe a default or
debt restructuring is likely. Under this scenario, we would expect
the company to obtain or generate additional liquidity such that we
could believe they would be able to cover their debt service costs
at least over the next 12 months.
"Governance is a moderately negative consideration in our credit
analysis of GWPG, as is the case for most rated entities owned by
private-equity sponsors. We believe the company's highly leveraged
financial risk profile points to corporate decision-making that
prioritizes the interests of its controlling owners. This also
reflects private-equity owners' generally finite holding periods
and focus on maximizing shareholder returns. Environmental factors
have an overall neutral influence on our credit rating analysis of
Golden West Packaging Group, LLC. but GWPG's more- recycling
friendly diverse mix of substrates helps offset the impact."
GRYPHON ONLINE: Posts $659,868 Net Loss in H1 2024
--------------------------------------------------
Gryphon Online Safety, Inc. filed with the U.S. Securities and
Exchange Commission its Semiannual Report on Form 1-SA reporting a
net loss of $659,868 for the six-month period ending June 30, 2024,
compared to net a loss of $1,033,557 for the period ending June 30,
2023.
For the six-month period ending June 30, 2024, the Company had
total net revenues of $920,621, compared to total net revenue of
$885,194 for the six-month period ending June 30, 2023.
As of June 30, 2024, the company had $2,160,710 in total assets,
including $76,879 in cash and cash equivalents and $1,662,659 in
intangible assets, compared to $2,408,378 in total assets, $82,149
in cash and cash equivalents and $1,797,159 in intangible assets as
of December 31, 2023.
At the end of the sixth-month period ending June 30, 2024, the
Company had $76,879 in cash and cash equivalents. By comparison,
for the fiscal year ended December 31, 2023, the Company had
$82,149 in cash and cash equivalents, representing a 6% decrease.
This decrease was due to cash used in operations.
As of June 30, 2024, the company had $3,842,608 in total
liabilities including $1,546,143 in accounts payable and accrued
expenses, $489,006 in deferred revenue, and $40,757 in short term
notes payable, compared to $2,405,366 in total liabilities,
$1,293,548 in accounts payable and accrued expenses, $541,080 in
deferred revenue, and $41,472 in short term notes payable as of
December 31, 2023.
To date, the Company's activities have primarily been funded from
the sale of preferred stock, short-term loans, and revenues
generated from our operations. The company has enough capital to
last approximately 6 months at its current level of operations and
is working to secure additional sources of capital. However, the
Company has yet to achieve positive cash flow from operations and
has incurred losses from inception of $12,701,968, which raises
substantial doubt about the Company's ability to continue as a
going concern. The ability of the Company to continue as a going
concern is dependent upon management's ability to raise additional
capital from the issuance of debt or the sale of stock, its ability
to commence profitable sales of its flagship product and licensing
agreements, and its ability to generate positive operational cash
flow.
A full-text copy of the Company's Form 1-SA is available at:
https://tinyurl.com/2f9fdvz8
About Gryphon Online Safety
Gryphon Online Safety, Inc. offers a patented cloud managed,
network-based, protection service platform that's powerful yet
simple. The platform involves a family of elegant, high performance
WiFi router systems, a simple to use App, and machine learning that
will continuously improve over time and usage. Gryphon was formed
in January 2014 and is a Delaware corporation headquartered in San
Diego, California.
As of December 31, 2023, the Company had $2,408,378 in total
assets, $3,490,408 in total liabilities, and $1,082,030 in total
stockholders' deficit.
Spokane, Wash.-based Fruci & Associates II, PLLC, the Company's
auditor, issued a "going concern" qualification in its report dated
April 29, 2024, citing that the Company has yet to achieve positive
cash flows from operations and has incurred losses from inception
and has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
HAZ MAT: Hires Bennett Thrasher LLP as Financial Advisor
--------------------------------------------------------
Haz Mat Special Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Bennett Thrasher, LLP 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 and Monthly
Operating Reports;
b. assistance with the assessment and monitoring of the
Debtor's short term cash flow, liquidity, and operating results;
c. assistance with the review of the Debtor's potential
disposition or liquidation of both core and non-core assets (if
applicable);
d. assistance with review of any tax issues associated with,
but not limited to, claims/stock trading, preservation of net
operating losses, refunds due to the Debtor, plans of
reorganization, and assets sales;
e. assistance in the review of the claims reconciliation and
estimation process;
f. assistance in the review of other financial information
prepared by the Debtor, including but not limited to, cash flow
projections and budgets, business plans, cash receipts and
disbursement analysis, asset and liability analysis, and the
economic analysis of proposed transactions for which Court approval
is sought;
g. attendance at meetings and assistance in discussions with
the Debtor, banks, other secured lenders, the U.S. Trustee, other
parties in interest and professionals hired by the same, as
requested;
h. assistance in the review and/or preparation of information
and analysis necessary for the confirmation of a plan and related
disclosure statement in this Chapter 11 Case;
i. assistance in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers; and
j. provision of such other general business consulting or such
other assistance as the Debtor 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 this
proceeding.
The firm will be paid at these rates:
Partners $325 per hour
Director $205 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Chris Lang, a partner at Bennett Thrasher, 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:
Chris Lang
Bennett Thrasher, LLP
5495 Belt Line Road, Suite 345
Dallas, TX 75254
Tel: (469) 936-7990
About Haz Mat Special Services, LLC
Haz Mat Special Services LLC HMSS specializes in 24/7 emergency
response Services and is ready for the most challenging
circumstances involving hazardous materials incidents in all modes
of transportation & fixed sites. The Company's focus is responding
to emergency situations involving hazardous materials, industrial
fires, explosions, Chem/Bio, WMDs, radiologicals (TENORM) or
weather related events occur.
Haz Mat Special Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34269) on Sept.
13, 2024. In the petition filed by Joshua Williams, as sole member,
the Debtor estimated assets between $10 million and $50 million and
liabilities between $1 million and $10 million.
The Debtor is represented by:
Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
5465 Legacy Drive, Ste. 650
Plano, TX 75024
Tel: (972) 731-2590
E-mail: btittle@tittlelawgroup.com
HAZ MAT: Hires Tittle Law Group PLLC as Legal Counsel
-----------------------------------------------------
Haz Mat Special Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Tittle Law Group, PLLC as counsel.
The firm will provide these services:
a. provide legal advice with respect to the Debtor's powers
and duties as debtor-in-possession in the continued operation of
its business and the management of its property;
b. take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on behalf of
the Debtor, the defense of any actions commenced against the
Debtor, negotiations concerning litigation in which the Debtor is
involved, and objections to claims filed against the Debtor's
estates;
c. prepare on behalf of the Debtor necessary motions, answers,
orders, reports, and other legal papers in connection with the
administration of its estate;
d. assist the Debtor in preparing for and filing a plan of
reorganization at the earliest possible date;
e. perform any and all other legal services for the Debtor in
connection with the Debtor's Chapter 11 Case; and
f. perform such legal services as the Debtor may request with
respect to any matter, including, but not limited to, corporate
finance and governance, contracts, antitrust, labor, and tax.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brandon J. Tittle, a partner at Tittle Law Group, 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:
Brandon J. Tittle, Esq.
Tittle Law Group, PLLC
5465 Legacy Dr., Ste. 650
Plano, TX 75024
Tel: (972) 731-2590
Email: btittle@tittlelawgroup.com
About Haz Mat Special Services
Haz Mat Special Services LLC HMSS specializes in 24/7 emergency
response Services and is ready for the most challenging
circumstances involving hazardous materials incidents in all modes
of transportation & fixed sites. The Company's focus is responding
to emergency situations involving hazardous materials, industrial
fires, explosions, Chem/Bio, WMDs, radiologicals (TENORM) or
weather related events occur.
Haz Mat Special Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34269) on Sept.
13, 2024. In the petition filed by Joshua Williams, as sole member,
the Debtor estimated assets between $10 million and $50 million and
liabilities between $1 million and $10 million.
The Debtor is represented by:
Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
5465 Legacy Drive, Ste. 650
Plano, TX 75024
Tel: (972) 731-2590
E-mail: btittle@tittlelawgroup.com
HIGHLAND CAPITAL: Ruling in Intercompany Loans Dispute Affirmed
---------------------------------------------------------------
The United States Court of Appeals for the Fifth Circuit has
affirmed the order of the United States District Court for the
Northern District of Texas granting summary judgment in favor of
Highland Capital Management, L.P., with respect to the promissory
notes executed by its subsidiaries and founder James Dondero.
Dondero founded Highland, a Dallas-based investment firm, in 1993.
He was the general partner of Highland, and his family's trust,
Dugaboy Investment Trust, was a part-owner.
Dondero also managed a number of Highland's corporate affiliates,
through which it did business, including Highland Capital
Management Fund Advisors, NexPoint Advisors, Highland Capital Real
Estate Partners, and Highland Capital Management Services. Highland
loaned tens of millions of dollars to these companies and to
Dondero through a series of demand and term notes, allegedly to
enable them to make investments.
On October 16, 2019, while Dondero was acting as its CEO and
President, Highland filed for relief under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware. The court appointed a committee and
transferred the case to the Dallas Division of the Bankruptcy Court
for the Northern District of Texas. Dondero had a contentious
relationship with the committee, which had explored appointing a
Chapter 11 trustee because of "its concerns over and distrust of
Mr. Dondero, his numerous conflicts of interest, and his history
of alleged mismanagement (and perhaps worse)."
Highland (through Dondero) and the committee finally agreed on a
settlement whereby Dondero would relinquish control of Highland to
an independent board approved by the court. As of January 9, 2020,
Dondero was "out."
In conjunction with its Chapter 11 proceedings, on December 3,
2020, Highland -- now controlled by the independent board -- made
demands on the demand notes executed by Dondero, HCMFA, HCMS, and
HCRE. Appellants did not reply or make payment. Additionally, while
each of the Appellants subject to a term note (NexPoint, HCMS, and
HCRE) had met its first three annual installment requirements, each
failed to make the payments that became due on December 31, 2020.
Those Appellants made belated payments in January 2021, after
Highland notified them of their defaults.
The Highland board filed a reorganization plan with the bankruptcy
court on January 22, 2021. Part of the board's plan rested on the
assumption that "[a]ll demand notes are collected in the year
2021." All Appellants were made aware of Highland's reorganization
plan before it became effective on August 11, 2021. Although they
contested certain aspects of the plan, Appellants did not take
issue with the assumption that Highland would recover on all notes
that it was owed.
On January 22, 2021, Highland filed five adversary actions in the
bankruptcy court, one each against Dondero (No. 21-3003), HCMFA
(No. 21-3004), NexPoint (No. 21-3005), HCMS (No. 21-3006), and HCRE
(No. 21-3007). It sought enforcement of 16 promissory notes
executed in favor of Highland, with more than $60 million of unpaid
principal and interest alleged to be due and owing. On November 9,
2021, Highland filed a second action against HCMFA that was
specifically focused on the two pre-2019 notes issued by HCMFA in
favor of Highland.
Highland moved for summary judgment in both cases, which were
eventually consolidated into one before the district court (No.
21-881). After a joint motion to withdraw the reference, the
bankruptcy court acted "essentially as a magistrate judge for the
District Court prior to trial," and recommended that both of the
motions for summary judgment be granted. The district court adopted
the report and recommendations and entered judgment against all
Appellants.
Highland established its prima facie case by showing that the notes
were valid, due, and owing. The notes were (1) provided to
PricewaterhouseCooper, Highland's auditor; (2) included in all of
Highland's financial statements, books, and records; (3) carried as
assets on Highland's balance sheet with values equal to their
accrued and unpaid principal and interest; and (4) incorporated
into all of Highland's bankruptcy filings. Appellants, however,
raise a series of defenses that they say preclude summary
judgment.
Appellants first assert that they entered into oral agreements with
Highland whereby the notes would be forgiven if specific conditions
subsequent occurred. The Fifth Circuit points out the only evidence
that Appellants offer to show the existence of a genuinely disputed
material fact about whether there was an agreement to forgive these
notes is declarations and depositions by the Donderos. The fact
that this testimony is self-serving is not, in and of itself,
sufficient to defeat summary judgment, the Fifth Circuit says.
The Fifth Circuit further notes that, even if the alleged oral
agreements did exist, they would likely be unenforceable for lack
of consideration. Appellants assert that the consideration given to
Highland in exchange for forgiving the loans was (1) Dondero's
forbearance from increasing his own base compensation, and (2) his
incentive to increase the value of the portfolio companies in
efforts to sell the companies above cost. There is no evidence that
Highland knew or understood either of these alleged reasons for
entering into the agreement, the Fifth Circuit notes. But just
because loan forgiveness was allegedly part of Dondero's
compensation does not mean that he would forgo any additional
compensation outside of the agreements, which did not contain any
formal relinquishment of claims, the Fifth Circuit says. Even if
the oral agreements did exist, then, they would be unenforceable.
The notes remain due and owing, and summary judgment was proper,
according to the Fifth Circuit.
The Fifth Circuit finds Highland was able to present a prima facie
case of promissory note default, and Appellants failed to "set
forth specific facts showing that there is a genuine issue for
trial." Therefore, the district court did not err in granting
summary judgment in favor of Highland, the Appellate Court holds.
Second HCMFA Action
HCMFA asserts alternatively that Dondero did not intend for the
$7.4 million transferred from Highland to HCMFA in 2019 to be a
loan, but rather compensation for an error made by Highland that
allegedly caused HCMFA harm. In March 2019, Highland made an error
in calculating the net asset value of securities that a fund
managed by HCMFA held in a particular portfolio. With the help of
the SEC, Highland and HCMFA determined that the losses to the fund
from the NAV error amounted to approximately $7.5 million, which
HCMFA paid to its client. Appellants assert that Highland then
accepted responsibility for having caused the error and compensated
HCMFA in that amount through two transfers in May 2019. Dondero
testified that he instructed PwC to transfer those funds, but not
that they should be drawn up as loans.
The Fifth Circuit says there is no evidence in the summary judgment
record on which a reasonable juror could rely in finding that HCMFA
believed the payment to be compensation rather than a loan.
Instead, the evidence suggests the opposite.
According to the Fifth Circuit, there is no evidence (1) that HCMFA
ever accused Highland of causing the error or requested
compensation, or (2) that Highland accepted responsibility and
agreed to pay. There was nothing in HCMFA's books to suggest that
the payment from Highland was intended to be compensation rather
than a loan, the Appellate Court notes.
Dondero's testimony is insufficient to establish a dispute of
material fact as to the purpose of the transfer from Highland to
HCMFA, the Fifth Circuit states. The district court did not err in
granting summary judgment in favor of Highland on HCMFA's two 2019
notes, the Fifth Circuit concludes.
The appellate case is, Highland Capital Management, L.P., Appellee,
versus NexPoint Asset Management, L.P., formerly known as Highland
Capital Management Fund Advisors, L.P.; NexPoint Advisors, L.P.;
NexPoint Real Estate Partners, L.L.C., formerly known as HCRE
Partners L.L.C.; Highland Capital Management Services,
Incorporated; James Dondero, Appellants, No. 23-10911 (5th Cir.).
A copy of the Court's decision is available at
https://urlcurt.com/u?l=Euddfi
About Highland Capital Management
Highland Capital Management, LP was founded by James Dondero and
Mark Okada in Dallas in 1993. Highland Capital is the world's
largest non-bank buyer of leveraged loans in 2007. It also manages
collateralized loan obligations. In March 2007, it raised $1
billion to buy distressed loans. Collateralized loan obligations
are created by bundling together loans and repackaging them into
new securities.
Highland Capital Management sought Chapter 11 protection (Bank. D.
Del. Case No. 19-12239) on Oct. 16, 2019. On Dec. 4, 2019, the case
was transferred to the U.S. Bankruptcy Court for the Northern
District of Texas and was assigned a new case number (Bank. N.D.
Tex. Case No. 19-34054). Judge Stacey G. Jernigan is the case
judge.
At the time of the filing, Highland had between $100 million and
$500 million in both assets and liabilities.
The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy
counsel, Foley & Lardner LLP as special Texas counsel, and Teneo
Capital, LLC as litigation advisor. Kurtzman Carson Consultants,
LLC, is the claims and noticing agent.
The U.S. Trustee for Region 6 appointed a committee of unsecured
creditors on Oct. 29, 2019. The committee tapped Sidley Austin LLP
and Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, and
FTI Consulting, Inc. as financial advisor.
HIJOLE FOODS: Seeks to Sell All Assets to IBH Corp.
-----------------------------------------------------
Hijole Foods Bistro Corp. asks the U.S. Bankruptcy Court for the
District of Puerto Rico to grant its request to sell its property,
free and clear of any interests, liens, claims and encumbrances.
The Debtor says the assets up for sale has a liquidation value of
less than $11,500 and include coffee machine with the value of
$500, perishable food, and beverage with the value of $3,500.
IBH Corporation is offering $20,000 for the Debtor's assets and for
the right to continue using the name Hijole and assume the lease
contract. The Debtor says the "Hijole" name is not part of its
assets.
After the sale is completed, the Debtor will cease to continue or
operate any future businesses and will surrender the remaining
balance to McKenzie Capital LLC, the Debtor's only secured creditor
and owner of all cash collateral, after paying administrative
expenses and U.S. Trustee's fees.
In the event that the case will be converted into a Chapter 7
liquidation, only Mckenzie Capital will collect any of the Debtor's
proceeds based on their registered cash collateral agreement.
About Hijole Foods Bistro, Corp.
Hijole Foods Bistro, Corp. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-0015)
on Jan. 19, 2024, listing $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities.
Juan C. Bigas Valedon, Esq., at Juan C. Bigas Law Office,
represents the Debtor as counsel.
HOG FATHER'S: Court Approves Sale of Liquor License for $75,000
---------------------------------------------------------------
Hog Father's Old Fashioned BBQ LLC is granted approval by the U.S.
Bankruptcy Court for the Western District of Pennsylvania to sell
its Restaurant Liquor License R-11512 (LID:6118), free and clear of
liens, claims, and encumbrances, to Sagar Ukani.
The license is being disposed of in a private sale for $75,000.
The Pennsylvania Department of Revenue has the following claims
pursuant to the Debtor's confirmed Chapter 11 Plan of Liquidation:
-- a Class 1 secured claim for $137,796;
-- a Class 1 secured claim for $35,428; and
-- an Unsecured Priority Tax claim for $82,536
Reinhart Food Service LLC has a $693,044 Class 1 secured claim
pursuant to the Plan.
The liens and claims are transferred to the sale proceeds.
The sale proceeds will be used to pay for transfer of the liquor
license, broker's commission of $7,500.00, cost of legal journal
and newspaper advertising of $281.00 and the Bankruptcy Court sale
filing fee of $181.00 to be reimbursed to Steidl and Steinberg PC,
the Debtor's counsel. The remaining proceeds will be distributed
according to the Plan.
About Hog Father's Old Fashioned BBQ
Hog Father's Old Fashioned BBQ, LLC is a chain of barbeque
restaurants in Western Pennsylvania.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 23-21872) on Sept. 1,
2023, with $500,000 in total assets and $1 million in total
liabilities. Frank Puskarich, managing member, signed the
petition.
Judge John C. Melaragno oversees the case.
The Debtor tapped Christopher M. Frye, Esq., at Steidl & Steinberg,
P.C., as legal counsel, and Wilke CPA's & Advisors, LLP as
accountant.
The court confirmed the Debtor's Amended Chapter 11 plan of
liquidation on April 18, 2024.
HOLLYWOOD FOR CHILDREN: Creditors to Get Proceeds From Liquidation
------------------------------------------------------------------
Hollywood for Children Inc. filed with the U.S. Bankruptcy Court
for the Central District of California a First Amended Plan dated
August 29, 2024.
In 1994, the legendary actress Audrey Hepburn's sons, Sean Ferrer
and Luca Dotti, created "Hollywood for Children, Inc. a New York
nonprofit corporation d/b/a the Audrey Hepburn Children's Fund" in
order to continue their mother's humanitarian work.
In order to establish that it had separate enduring rights to use
Audrey Hepburn's name and likeness without Mr. Ferrer's consent,
even though Mr. Ferrer (with his brother) were the sole owners of
her intellectual property rights, a declaratory relief action was
commenced by the Debtor against Mr. Ferrer in 2019.
In October 2019, however, the trial court found that the Debtor
never had the independent right to use Miss Hepburn's name and
likeness, other than as part of its dba: "The Audrey Hepburn
Children's Fund." Thus, the court found that the Debtor's actions
(entering into contracts with third parties without Mr. Ferrer's
consent) exceeded its rights and were unlawful.
By virtue of finding in Mr. Ferrer's favor, the court also found
that there was no legal basis for the Debtor's claim for
interference with contract and therefore ruled in Mr. Ferrer's
favor on the Debtor's damage claim as a matter of law, declining to
permit that claim go to trial. As a result, a money judgment was
entered in favor of Mr. Ferrer.
In order to prevent Mr. Ferrer from undertaking any actions to
enforce the judgment, the Debtor commenced the chapter 11 case in
order to preserve the Debtor's assets over which there was no
dispute that they are owned outright by the Debtor, including, a
collection of Richard Avedon photographs, a collection of couture
clothing by Hubert de Givenchy consisting of 24 gowns and
accessories (that has been sold), and other assorted memorabilia
and personal property.
The Estate's primary assets consist of (a) cash on hand, and (b)
the Debtor's interests in memorabilia and personal property. The
Debtor estimates that the vast majority of proceeds to fund the
Plan will be derived from the following sources: (a) the Estate's
cash on hand on the Effective Date, and (b) the net proceeds
received on account of the liquidation and monetization of the
Estate's assets.
The parties consummated the sale of the Gown Collection in
accordance with the Purchase Agreement and the Sale Approval Order,
and the Debtor received the sum of $160,000, which was deposited in
its general operating account.
The Debtor, in conjunction with Mr. Ferrer, continues to take steps
to determine the proper course for monetizing the remaining assets,
since the Debtor's goal, as always, has been to maximize the net
proceeds to the Estate, even if the process took longer than
originally anticipated. The parties are continuing to determine the
proper method to monetize these remaining assets, including through
tradition auction houses, entertainment auction houses, eBay, or
other resources specializing in entertainment memorabilia.
Class 1 consists of the allowed general unsecured claims of the
Estate. The holders of allowed Class 1 claims shall receive, on the
Effective Date, a pro rata payment of the net cash remaining in the
Estate after payment of holders of allowed Administrative Expense
Claims, Priority Wage Claims, and Priority Tax Claims. No
post-Petition Date or postConfirmation Date interest will be paid
on account of any allowed General Unsecured Claim.
At this time, the Debtor believes the amount of Class 1 claims
total $1,520,420.23, provided, however, that the Debtor disputes
the claim of Gerson Lehrman Group in the amount of $65,608. Class 1
is impaired under the Plan and is entitled to vote.
Distributions to creditors will be funded primarily from the
following sources: (a) the Estate's cash on hand on the Effective
Date, and (b) the net proceeds received on account of the
liquidation and monetization of any of the Estate's assets.
A full-text copy of the First Amended Plan dated August 29, 2024 is
available at https://urlcurt.com/u?l=iITEAF from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Daniel A. Lev, Esq.
Greenspoon Marder LLP, A Professional Corporation
333 South Grand Avenue, Suite 3400
Los Angeles, CA 90071-1406
Telephone: (213) 626-2311
Facsimile: (954) 771-9264
Email: Daniel.Lev@gmlaw.com
About Hollywood for Children
Hollywood for Children, Inc., a New York non-profit charitable
organization, filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 20-18801) on Sept. 28, 2020, with total assets of $31,719 and
total liabilities of $1,423,923. Paul G. Alberghetti, secretary and
treasurer, signed the petition.
Judge Robert N. Kwan oversees the case.
Greenspoon Marder LLP, A Professional Corporation, is the Debtor's
legal counsel.
INDOCHINE EXPRESS LELAND: Case Summary & 13 Unsecured Creditors
---------------------------------------------------------------
Debtor: Indochine Express Leland LLC
1110 New Pointe Blvd, Ste 120
Leland, NC 28451
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03486
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/MSA7ZPQ/Indochine_Express_Leland_LLC__ncebke-24-03486__0001.0.pdf?mcid=tGE4TAMA
INDOCHINE EXPRESS OLEANDER: Case Summary & 19 Unsecured Creditors
-----------------------------------------------------------------
Debtor: Indochine Express Oleander, LLC
3608 Oleander Drive, Suite B
Wilmington, NC 28403
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03487
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NGFNMSA/Indochine_Express_Oleander_LLC__ncebke-24-03487__0001.0.pdf?mcid=tGE4TAMA
INDOCHINE EXPRESS SOUTHPORT: Case Summary & Unsecured Creditors
---------------------------------------------------------------
Debtor: Indochine Express Southport LLC
1131 North Atlantic Avenue
Southport, NC 28461
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03489
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 17 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NJGBVKA/Indochine_Express_Southport_LLC__ncebke-24-03489__0001.0.pdf?mcid=tGE4TAMA
INDOCHINE RESTAURANT: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Indochine Restaurant, LLC
7 Wayne Drive
Wilmington, NC 28403
Business Description: The Debtor is a restaurant serving Thai and
Vietnamese Asian cuisine.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03490
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Solange Thompson as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
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/N6P22ZQ/Indochine_Restaurant_LLC__ncebke-24-03490__0001.0.pdf?mcid=tGE4TAMA
INTELGENX TECHNOLOGIES: Completes Sale to atai Life in Quebec
-------------------------------------------------------------
IntelGenx Technologies Corp., a leading drug delivery company
focused on the development and manufacturing of pharmaceutical
films, announces that the Company and its subsidiary IntelGenx
Corp. have obtained on September 30, 2024 an approval and vesting
order from the Superior Court of Quebec (Commercial Division)
issued in connection with the previously announced proceedings
instituted pursuant to the Companies' Creditors Arrangement Act.
The Approval and Vesting Order approved the previously announced
transactions contemplated in the sale proposal from atai Life
Sciences AG, as well as the implementation of a reorganization of
the IGX Entities that involves:
(a) the incorporation of two new entities to ultimately hold
certain excluded liabilities of IGX and certain excluded assets,
and
(b) the exchange of the shares of IGX, on a one-for-one basis, for
common shares of New ParentCo.
Pursuant to the Transaction, which closed on October 2, 2024, atai
acquired all of the issued and outstanding shares of IGX. The
Transaction was structured as a credit bid, whereby atai agreed
that its senior secured debt in IntelGenx was discharged in
exchange for IGX shares. No atai equity or cash was exchanged in
connection with this Transaction.
Based on the terms of the Transaction and the consideration
received by New ParentCo, holders of the Company's shares will not
receive any payments for, or distributions on, their shares in
connection with the CCAA proceedings. It is also expected that the
Company, Residual IGX and New ParentCo, entities that will hold the
remaining assets and liabilities that atai chose not to purchase as
part of the Transaction, will file for bankruptcy in the coming
weeks under the laws of their respective jurisdictions.
About Intelgenx Technologies
Intelgenx Technologies Corp. is a drug delivery company established
in 2003 and headquartered in Montreal, Quebec, Canada. Its focus is
on the contract development and manufacturing of novel oral thin
film products for the pharmaceutical market. More recently, the
Company has made the strategic decision to enter the psychedelic
market by entering into a strategic partnership with atai Life
Sciences.
The Company has financed its operations to date primarily through
public offerings of its common stock, proceeds from the issuance of
convertible notes and debentures, bank loans, royalty, up-front and
milestone payments, license fees, proceeds from the exercise of
warrants and options, and research and development revenues. The
Company has devoted substantially all of its resources to its drug
development efforts, conducting clinical trials to further advance
the product pipeline, the expansion of its facilities, protecting
its intellectual property, and general and administrative functions
relating to these operations.
The future success of the Company is dependent on its ability to
develop its product pipeline and ultimately upon its ability to
attain profitable operations. As of March 31, 2024, the Company had
approximately $772,000 in cash. The Company does not have
sufficient existing cash to support operations for the next year
following the issuance of these financial statements. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern. Therefore, management plans to explore
any available strategic alternatives, according to the Company's
Quarterly Report on Form 10-Q for the period ended March 31, 2024.
IRWIN NATURALS: Committee Hires Golden Goodrich as Counsel
----------------------------------------------------------
The official committee of unsecured creditors of Irwin Naturals and
its affiliates seek approval from the U.S. Bankruptcy Court for the
Central District of California to employ Golden Goodrich LLP as
counsel.
The firm's services include:
a. advising the Committee concerning the rights and remedies
of creditors and of the Committee with respect to the assets of the
Debtor and Irwin Canada;
b. representing the Committee in any proceeding or hearing,
including, without limitation, examinations of the Debtor and/or
Irwin Canada pursuant to 11 U.S.C. §341(a), lien avoidance,
preference avoidance, and fraudulent conveyance litigation, in the
Bankruptcy Court, and in any action where the rights of the estate
or creditors may be litigated or affected;
c. assisting the Committee in reviewing any proposed sale of
assets and any plans of reorganization filed by the Debtor and/or
Irwin Canada or other interested party and assisting the Committee
in its analysis of any sales and/or plans of reorganization;
d. facilitating communication between the Committee, the
Debtor and Irwin Canada;
e. assisting the Committee with formulating one or more plans
of reorganization, if appropriate; and
f. representing the Committee at hearings in connection with
any proposed sale of assets, objections to claims, approval of
disclosure statements and confirmation of chapter 11 plans of
reorganization and any hearings or proceedings relating to the
same.
The firm will be paid at these rates:
Jeffrey I. Golden $500 per hour
Ryan W. Beall $500 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey I. Golden, Esq., a partner at Golden Goodrich 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:
Jeffrey I. Golden, Esq.
Ryan W. Beall, Esq.
Golden Goodrich LLP
3070 Bristol Street, Suite 640,
Costa Mesa, CA 92626
Tel: (714) 966-1000
Fax: (714) 966-1002
Email: jgolden@go2.law
rbeall@go2.law
About Irwin Naturals Inc.
Irwin Naturals Inc. is a provider of business support services.
Irwin Naturals Inc. sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11324) on Aug. 9,
2024. In the petition filed by Klee Irwin, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Honorable Bankruptcy Judge Victoria S. Kaufman oversees the
case.
The Debtor is represented by Joseph Axelrod, Esq.
IRWIN NATURALS: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
Irwin Naturals received interim court approval to use the cash
collateral of East West Bank and CFG Bank.
The interim order penned by Judge Victoria Kaufman of the U.S.
Bankruptcy Court for the Central District of California authorized
the company and its affiliates to use the lenders' cash collateral
until Nov. 8 to cover expenses in accordance with a court-approved
budget.
The companies can deviate from the budget by up to 15% but must
obtain court approval for deviations beyond this limit.
As adequate protection, the lenders were granted replacement liens
on the companies' post-petition assets and a super-priority
administrative expense claim. In addition, the lenders will receive
monthly interest payments of $155,000 from the companies during the
interim period.
As of Aug. 9, the companies owe the lenders $18.7 million under a
$40 million credit agreement. The collateral for this loan includes
nearly all of the companies' assets, including intellectual
property and cash equivalents.
A final hearing is scheduled for Nov. 7. The deadline for the
companies to file any additional briefs is on Oct. 24, with
responses due by Nov. 4.
About Irwin Naturals
Irwin Naturals is a provider of business support services.
Irwin Naturals and affiliates, 5310 Holdings, LLC, DAI US HoldCo,
Inc. and Irwin Naturals, Inc., filed Chapter 11 petitions (Bankr.
C.D. Calif. Lead Case No. 24-11323) on August 9, 2024. At the time
of the filing, Irwin Naturals reported $10 million to $50 million
in both assets and liabilities.
Judge Victoria S. Kaufman oversees the cases.
The Debtors tapped BG Law, LLP as bankruptcy counsel; Beach,
Freeman, Lim & Clelland, LLP as accountant; Province, LLC as
financial advisor; and Marula Capital Group, LLC as valuation
consultant. Omni Agent Solutions, Inc. is the Debtors'
administrative agent.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Golden Goodrich, LLP.
ISPECIMEN INC: Regains Compliance With Nasdaq's Bid Price Rule
--------------------------------------------------------------
iSpecimen Inc. disclosed in a Form 8-K filed with the Securities
and Exchange Commission that on Oct. 1, 2024, the Company received
a letter from the Listing Qualifications Department of The Nasdaq
Stock Market advising the Company that it had regained compliance
with Nasdaq's minimum bid price requirements under Nasdaq Listing
Rule 5550(a)(2) because the closing bid price of the Company's
common stock, par value $0.001 per share, from Sept. 16, 2024 to
Sept. 30, 2024, has been $1.00 per share or greater.
As previously reported, on Oct. 9, 2023, the Company received a
deficiency notice from Nasdaq informing the Company that its Common
Stock failed to comply with the Minimum Bid Price Requirement.
Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company was
initially provided 180 calendar days, or until April 8, 2024, to
regain compliance.
As also previously reported, on April 9, 2024, the Company received
a notification letter from Nasdaq informing the Company that, while
the Company had not regained compliance with the Minimum Bid Price
Requirement, Nasdaq determined that the Company was eligible for an
additional 180 calendar day period, or until Oct. 7, 2024, to
regain compliance.
About iSpecimen
Headquartered in Lexington, Massachusetts, iSpecimen --
http://www.ispecimen.com-- offers an online marketplace for human
biospecimens, connecting scientists in commercial and non-profit
organizations with healthcare providers that have access to
patients and specimens needed for medical discovery. Proprietary,
cloud-based technology enables scientists to intuitively search for
specimens and patients across a federated partner network of
hospitals, labs, biobanks, blood centers and other healthcare
organizations.
Boston, Massachusetts-based Wolf & Company, P.C., the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated March 13, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations and has a
significant accumulated deficit. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
J&A TRUCKING: Joseph Kershaw Spong Named Subchapter V Trustee
-------------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Joseph Kershaw Spong
as Subchapter V trustee for J&A Trucking, LLC.
Mr. Spong will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred. Melissa White, paralegal, and Rebecca
Faulkenberry, legal assistant, charge $150 per hour and $125 per
hour, respectively.
Mr. Spong declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph Kershaw Spong
P.O. Box 11449
Columbia, SC 29211
Phone: (803) 929-1400
Email: kspong@robinsongray.com
About J&A Trucking
J&A Trucking, LLC is a trucking company operating mostly throughout
the Southeast. It does not have a "brick and mortar" location but
operates from the road and the owner's residence in Anderson, S.C.
J&A Trucking filed for Chapter 11 protection (Bankr. D.S.C. Case
No. 24-03318) on Sept. 11, 2024, before Judge Helen E. Burris. The
Debtor listed $100,001 to $500,000 in both assets and liabilities.
The Debtor hired Jason Michael Ward, Esq., at Jason Ward Law, LLC,
as bankruptcy counsel.
JAMIESON CAPEX: Taps Dakota Bankruptcy Firm as Legal Counsel
------------------------------------------------------------
Jamieson CAPEX Fund, LLC seeks approval from the U.S. Bankruptcy
Court for the District of North Dakota to hire The Dakota
Bankruptcy Firm as general reorganization counsel.
The firm's services include:
(a) prepare and file all necessary pleadings, motions, and
other court papers, on behalf of the Debtor;
(b) negotiate with creditors and other interested parties;
(c) represent the Debtor in any adversary proceedings,
contested matters, and other proceedings before this Honorable
Court;
(d) prepare a plan of reorganization on behalf of the Debtor;
and
(e) tend to such other and further matters as are necessary
and appropriate in the prism of this case.
The hourly rates of the firm's counsel and staff are as follows:
Partner $400
Associate $200
Paralegal $100
Maurice VerStandig, Esq., an attorney at The Dakota Bankruptcy
Firm, disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Maurice B. VerStandig, Esq.
The Dakota Bankruptcy Firm
1630 1st Avenue N., Suite B PMB 24
Fargo, ND 58102
Telephone: (701) 394-3215
Email: mac@dakotabankruptcy.com
About Jamieson CAPEX Fund, LLC
Jamieson CAPEX Fund is engaged in activities related to real
estate.
Jamieson CAPEX Fund, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.N.D. Case No.
24-30422) on September 22, 2024, listing $8,172,488 in assets and
$3,122,538 in liabilities. The petition was signed by Jeremy
Carlson as manager.
Judge Shon Hastings presides over the case.
Maurice VerStandig, Esq. at The Dakota Bankruptcy Firm represents
the Debtor as counsel.
JAVELIN BUYER: S&P Assigns 'B-' Long-Term ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issuer credit rating
to cloud-based business automation software provider for spend
management and procurement Javelin Buyer Inc. (Jaggaer). The rating
is the same as its historical rating on the company. S&P will
discontinues all ratings on S2P Acquisition Borrower Inc. following
the proposed acquisition and repayment of the existing debt.
S&P said, "At the same time, we assigned a 'B-' issue-level rating
and '3' recovery rating to the proposed first-lien facilities. The
'3' recovery rating reflects our expectation for meaningful
(50%-70%; rounded estimate: 65%) recovery in the event of a
default. We also assigned a 'CCC+' issue-level rating and '5'
recovery rating to the proposed second-lien term loan. The '5'
recovery rating reflects our expectation for modest (10%-30%;
rounded estimate: 15%) recovery in the event of a default.
"The stable outlook reflects our expectation that the company will
grow total revenue sustainably by 6%-7% in 2024 and 2025 due to
higher recurring subscription revenue, with FOCF to debt sustained
above 2%.
"We expect Jaggaer's strong performance to lead to improved EBITDA
margins as well as deleveraging toward the low-8x area within the
next 12-18 months. New customer wins as well as Jaggaer's ability
to cross-sell its new and existing product offerings will allow the
company to deliver continued 7%-8% recurring revenue growth over
our forecast horizon. Our forecast stems from high levels of gross
retention in the mid-90% area."
In addition, a continued favorable mix shift toward higher-margin
recurring revenue and planned offshoring of personnel costs will
improve the company's S&P Global Ratings-adjusted EBITDA margins
toward 35% in 2024 and 36% in 2025. S&P said, "Our EBITDA
calculation treats capitalized software development costs as an
operating expense, which we forecast will be 5.0%-5.5% of revenue
going forward. Even so, we expect leverage of 9.2x this year to
decline to 8.3x by 2025, with sustained levels of FOCF to debt
above 2% even with the full year impact of higher interest expense
in 2025."
S&P said, "Jaggaer's very small scale and niche offering limit our
rating assessment. Key constraints in our assessment of Jaggaer's
business include its small scale, limited end market diversity, and
niche product offering. However, the company's highly recurring
revenue base with high retention rates, favorable industry
tailwinds, and good geographic reach partially offset these
weaknesses. Many of the solutions the company sells, such as
supplier management, sourcing, and contracts software, are heavily
embedded in the work processes of its customers with distinct needs
for each customer vertical. Its software saves time for employees
by providing real-time visibility into enterprise spending trends,
compliance with workflows, and supplier management. Jaggaer has
high customer retention rates due to the complexity of integration
across its customer base.
"We believe the software-as-a-service (SaaS) business within supply
chain management is niche and fragmented but also underpenetrated."
With that in mind, growth outside of Jaggaer's existing customer
base will likely come from taking advantage of white space
(potential customers without a solution or with an overly
simplistic solution) rather than taking market share from
competitors. Growth will likely also come from organic cross-sell
and upsell of Jaggaer's product offerings to existing customers.
The industry is competitive, most notably across the larger and
better capitalized competitor Ariba (an SAP company), which is in
direct competition with Jaggaer, as well as smaller private
companies such as Coupa and Ivalua.
Jaggaer's financial policy under new owner Vista Equity Partners
may limit sustained deleveraging. Jaggaer's pro forma S&P Global
Ratings-adjusted last-12-months leverage under the proposed capital
structure will be close to 10x at leveraged buyout close. Although
higher than historical levels, we expect its continued strong
operating performance will reduce leverage beneath 8x by 2026. That
said, the financial policy under new private-equity sponsor Vista
Equity Partners is uncertain. S&P said, "While we do not expect
leveraging dividends or aggressive mergers and acquisitions to be a
part of its return on investment strategy for Jaggaer, our view on
the company's financial risk takes into account corporate
decision-making that will prioritize the interest of controlling
shareholders.
"The stable outlook reflects our expectation that Jaggaer will grow
total revenue sustainably by 6%-7% in 2024 and 2025 due to higher
recurring subscription revenue, with FOCF to debt sustained above
2%."
JJJ CONTRACTING: Gets OK to Use Cash Collateral Until Dec. 29
-------------------------------------------------------------
JJJ Contracting, LLC received interim court approval to use its
secured creditors' cash collateral until Dec. 29.
The interim order penned by Judge Charles Walker of the U.S.
Bankruptcy Court for the Middle District of Tennessee authorized
the company to use the cash collateral for ordinary business
operations according to its revised budget, which covers a 13-week
period ending on Dec. 29.
JJJ had previously been granted temporary cash collateral use,
which expired on Sept. 27. During the hearing, the court considered
objections from Unique Funding Solutions, LLC and Reliance
Financial to the extended use of cash collateral. After
negotiations with creditors, including First Horizon Bank, and the
U.S. Trustee, an agreement was reached to extend the company's use
of cash collateral to Dec. 29.
JJJ is required to make monthly payments to secured creditors.
Specifically, First Horizon Bank will receive $2,500 per month,
with an additional $2,500 per month paid by non-debtor co-obligor
JJ Restoration, LLC.
In addition, JJJ will make $2,500 monthly payments to Unique
Funding Solutions and Reliance Financial. If it is later determined
that these creditors hold unsecured claims, they must return the
payments made to them.
The next hearing is scheduled for Dec. 18. At the hearing, the
court will determine if JJJ can continue to use cash collateral
beyond Dec. 29.
JJJ projects a total cash inflow of $40,000 per week, amounting to
$520,000 over the 13-week period. Major expenses include $12,500
weekly for payroll, $6,000 weekly to a vendor (S&AG), and other
operational costs. Specific payments include $9,485 for workers'
compensation in certain weeks and $2,500 monthly for adequate
protection.
About JJJ Contracting
JJJ Contracting, LLC is a construction company that offers planning
and design, construction management, building construction,
renovation and repair, landscape and outdoor living, and demolition
services.
JJJ sought relief under Subchapter V of Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-03462) on September
9, 2024, with total assets of $451,690 and total liabilities of
$3,248,479. Jeff Juengling, company owner, signed the petition.
Judge Charles M. Walker oversees the case.
The Debtor is represented by R. Alex Payne, Esq., at Dunham
Hildebrand Payne Waldron, PLLC.
JP MORGAN 2018-PTC: S&P Lowers Class A Certs Rating to 'CCC(sf)'
----------------------------------------------------------------
S&P Global Ratings lowered its ratings on five classes of
commercial mortgage pass-through 2018-PTC from J.P. Morgan Chase
Commercial Mortgage Securities Trust 2018-PTC, a U.S. CMBS
transaction.
This U.S. standalone (single-borrower) CMBS transaction was backed
by a pari-passu portion of a $115.3 million floating-rate,
interest-only mortgage loan secured by the fee simple and leasehold
interests in the Peachtree Center, an office and retail complex
totaling about 2.5 million sq. ft. in downtown Atlanta. The
properties became real estate-owned (REO) in late 2022.
Rating Actions
The downgrades on the class A, B, C, and D certificates reflect:
-- The lack of meaningful performance improvement at the REO
properties since S&P's last published review in November 2023.
Occupancy at the properties stood at 46.9% as of the June 2024
rent roll provided by the servicer, indicating minimal change from
the 42.6% occupancy rate we assumed in our last review.
-- The continued increase in servicer advances leading to a larger
exposure to the trust. According to the transaction's payment
waterfall, servicer advances are repaid to the servicer before any
distributions to the bondholders. Since S&P's published review in
November 2023, the reported exposure grew to $131.6 million. In
addition, due to the lack of clarity regarding the resolution of
the defaulted asset, we expect the servicer to potentially advance
an additional $10.6 million, or approximately 12-months in interest
payments, to the trust to pay bondholders interest due.
-- S&P said, "Our net recovery value of $59.92 million or $24 per
sq. ft., after reducing for the exposure build to date and
additional projected advances. This is 68.9% below the
servicer-reported appraisal value of $193.2 million as of July
2024, and indicates a risk of default and losses to the classes.
The value variance between our value against the appraisal value is
primarily due to the appraiser's valuation approach. To derive the
as-is valuation, the appraiser assumed a stabilization of the
office properties to an 80.0% occupancy rate, and then deducted the
lease-up costs, as well as capital expenditures required. Our
analysis assumed an in-place occupancy rate given the continued
downward trend in performance."
S&P said, "The downgrades on the class A, B, C, and D certificates
also reflect our view that, based on our current analysis, the
current market conditions, and their respective positions in the
payment waterfall, the risk of default and losses on these classes
has increased or remains elevated. Additionally, the classes are
susceptible to reduced liquidity support (in the event the servicer
implements an appraisal reduction amount [ARA] or deems the asset
nonrecoverable).
"The downgrade on the class X-EXT IO certificates reflects our
criteria for rating IO securities, which states that the rating on
the IO securities would not be higher than that of the lowest-rated
reference class. The notional amount of class X-EXT references
classes A, B, C, and D."
The loan transferred to the special servicer on March 22, 2022, due
to imminent monetary default and became REO in September 2022.
According to the September 2024 trustee remittance report, the
trust outstanding advances and accruals totaled $16.3 million, and
included the following:
-- Interest advances totaling $12.1 million;
-- Real estate tax and insurance advances totaling $1.6 million;
-- Other expense advances totaling $1.7 million;
-- Cumulative accrued unpaid advance interest totaling $757,422
million; and
-- Cumulative appraisal subordinate entitled reduction amount
totaling $207,493. This amount was the result of an ARA implemented
on the asset in March 2024 that was subsequently removed in July
2024 following the release of an updated appraisal value.
Although the servicer has not re-implemented an ARA on the trust
asset, given the lack of performance improvement at the properties,
S&P remains cautious of appraisal valuation declines in the future,
which could again trigger an ARA. Furthermore, the continued
increase in overall servicer advances may also result in a
nonrecoverable determination being made by the servicer.
According to the special servicer's comments, they have engaged
Transwestern to manage and lease the property, while efforts to
stabilize the property continue before determining the optimal
strategy to resolve the defaulted asset.
S&P said, "We will continue to monitor the tenancy and performance
of the properties. If we receive information that differs
materially from our expectations, including interest shortfalls
impacting the rated certificates, we may revisit our analysis and
take additional rating actions as we determine appropriate."
Updates To Property-Level Analysis
S&P said, "During our last review in November 2023, we revised our
S&P Global Ratings capitalization rate to 9.00% as a reflection of
the credit quality of the properties backing the trust's
certificates. At that time, our long-term sustainable net cash flow
of $7.7 million remained unchanged from our analysis derived in May
2023.
"Due to the lack of performance improvement at the property, as
well as the still weak office fundamentals, our current analysis
remains unchanged." Based on the June 2024 rent roll provided by
the special servicer, the overall occupancy rate averages 46.9%,
with individual occupancy rates at the seven properties ranging
from a low of 11.4% (South Tower) to a high of 76.2% (Marquis One).
At loan origination, the portfolio was approximately 70.0%
occupied, but soon declined to 61.0% occupancy in 2021, and
continued to decline to 50.0% in mid-2022, and now stands at 46.9%
as of June 2024.
According to CoStar, the downtown Atlanta submarket has a vacancy
rate of 17.5% as of September 2024, up from 10.0% in 2019. CoStar
projects the vacancy rate to increase to 19.0% in 2028.
Furthermore, CoStar peer properties that it deems are comparable in
quality to S&P's subject properties, have significantly weaker
credit matrices compared to the submarket and are performing
in-line with our subject properties. CoStar provided 17 peer
properties that in aggregate have a 68.1% vacancy rate with an
availability rate of 74.6%.
The September 2024 servicer reserve report does not indicate that
any funds are held by the special servicer. However, in a prior
communication with the special servicer, it was noted that $5.3
million of funds were held by the servicer as of May 2024. It is
unclear if any of the funds remain as collateral for the trust.
Ratings Lowered
J.P. Morgan Chase Commercial Mortgage Securities Trust 2018-PTC
Class A to 'CCC (sf)' from 'BB (sf)'
Class B to 'CCC- (sf)' from 'B (sf)'
Class C to 'CCC- (sf)' from 'B- (sf)'
Class D to 'CCC- (sf)' from 'CCC (sf)'
Class X-EXT 'CCC- (sf)' from 'CCC (sf)'
K & P COMMERCIAL: Case Summary & 10 Unsecured Creditors
-------------------------------------------------------
Debtor: K & P Commercial Contractors, LLC
9949 Clodine Rd
Richmond, TX 77407-7968
Business Description: K & P is a commercial construction company
specializing in hospitality renovations.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-34688
Judge: Hon. Eduardo V Rodriguez
Debtor's Counsel: Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
E-mail: notifications@lanelaw.com
Total Assets: $343,791
Total Liabilities: $1,801,912
The petition was signed by Landon Knapp as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/O3TETHQ/K__P_Commercial_Contractors_LLC__txsbke-24-34688__0001.0.pdf?mcid=tGE4TAMA
KNS HOLDCO: S&P Downgrades ICR to 'CCC', Outlook Negative
---------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
KNS Holdco LLC (KNS) to 'CCC' from 'CCC+'.
S&P said, "Concurrently, we lowered our issue-level rating on KNS'
first-lien secured term loan to 'CCC' from 'CCC+'. The '3' recovery
rating is unchanged, indicating our expectation for meaningful
(50%-70%; rounded estimate: 60%) recovery in the event of a payment
default.
"The negative outlook reflects the possibility that we will lower
our ratings on the company if the risk of a near-term default
increases such that we envision a specific default scenario in the
subsequent six months.
"KNS' operating performance in the first half of 2024 was weaker
than our expectations. The company continues to underperform our
forecast, largely due to continued weakness in its core Nutrisystem
business. KNS' net sales declined by $65 million year to date,
including a top line decline of $129 million at Nutrisystem, which
was partially offset by $48 million of Jenny Craig (digital
offering launched in September 2023) revenue and 12% growth in the
vitamins, minerals, and supplements (VMS) segment. Nevertheless,
the impact of protracted declines in Nutrisystem has been the
driving factor of substantially weaker profitability. KNS' S&P
Global Ratings-adjusted EBITDA declined 30% year to date relative
to the same period in 2023. The company can typically reduce its
marketing and advertising spending to protect its earnings when its
customer acquisition costs become unfavorable, though we believe
the level of the decline in Nutrisystem's sales has surpassed the
company's ability to offset it with reduced deferable spending. We
note that the company anticipated strategically spending more on
advertising in 2024,; however, its total marketing spend was down
11% year over year in the first half."
In 2024, KNS made strategic changes to its go-to-market and digital
marketing approaches. However, these adjustments have not yet led
to improvements in the company's growth, earnings, or cash flow.
Coming in to 2024, KNS expected a more-favorable environment for
growth in its weight management business. The Nutrisystem brand
continues to be negatively affected by poor shopping cart
conversion and a stretched core consumer that is lower income. As
such, KNS attempted to be nimble to changing consumer preferences
by launching club purchasing options that are more flexible than
its legacy program offerings. S&P said, "It is our understanding
that the company's club customers provide a higher profit margin
but offer lower lifetime value because they typically spend less
than program customers. We also believe the risk of cannibalization
of legacy program customers could exacerbate management's struggles
with revenue growth over the medium term if its customers
permanently trade down to the club option."
S&P said, "Overall, we expect KNS' net sales will be down 15% in
2024. In addition, we anticipate its S&P Global Ratings-adjusted
EBITDA margin will be essentially flat compared with 2023, which
will cause its S&P Global Ratings-adjusted leverage to rise to
10.5x. We believe KNS' debt service coverage will likely remain
manageable during the second-lien payment-in-kind (PIK) interest
period related to its distressed exchange in December 2023. When
the cash interest payments are reinstated in the second quarter of
2025, we believe the company's cash flow deficits will likely
materially deplete its remaining liquidity. We also note that KNS'
revolver becomes current in April 2025. Absent an operational
turnaround that results in improvements to profitability, cash
flow, and liquidity, we envision a conventional payment default or
covenant violation that precipitates a distressed exchange in the
next 12 months.
"We currently forecast minimal EBITDA cushion under the company's
springing maximum first-lien net leverage covenant, which is
currently in effect.As of June 30, 2024, KNS had $51 million
outstanding under its $75 million revolving credit facility. With
the springing covenant in effect, we expect the company's EBITDA
cushion will be less than 5% as of the end of 2024, which increases
the potential for a payment default or debt restructuring. We also
note that KNS' first-lien term loan trades at highly distressed
levels in the secondary market.
"The negative outlook on KNS reflects the possibility that we will
lower our ratings if the risk of a near-term default increases such
that we envision a specific default scenario in the subsequent six
months.
"We would likely lower our rating on KNS if its profit and cash
flow deficits point to a specific default scenario that appears
inevitable within the subsequent six months. This could include a
liquidity shortfall, a financial covenant default that leads to a
balance sheet restructuring, or a debt buyback below par." These
could occur due to:
-- Persistently weak demand for the company's weight-loss
products;
-- Nutrisystem's core customer remains pressured over the next few
quarters, resulting in a continued barrier to conversion; or
-- The incremental revenue from Jenny Craig and the improvement in
performance of its VMS segment are insufficient to offset the
declines in its base weight management business.
S&P could take a positive rating action on KNS if it demonstrate a
substantial increase in its earnings and improves its liquidity
position such that it believes the likelihood of a near-term
liquidity shortfall or restructuring is significantly reduced. This
could occur if:
-- Effective marketing and advertising spending drive meaningful,
high-value customer growth;
-- The demand for its weight-loss products improves;
-- The company begins to convert more economically sensitive
consumers to its core Nutrisystem meal plans; and
-- The company generates modest levels of positive free operating
cash flow (FOCF).
LAVIE CARE: Gets Okay on Updated Plan Creditor Votes
----------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that bankrupt
skilled nursing facility operator LaVie Care Centers received
conditional approval for its Chapter 11 plan disclosures Monday,
Sept. 30, 2024, in Georgia court, allowing the debtor to seek
creditor votes on an updated plan that resulted from mediation.
On Oct. 1, 2024, the Debtors filed their Second Amended Combined
Disclosure Statement and Joint Chapter 11 Plan of Reorganization.
Following a hearing, the Court entered an order that, among other
things: (a) conditionally approved the Disclosure Statement as
containing "adequate information" pursuant to Section 1125(a) of
the Bankruptcy Code subject to final approval at the Combined
Hearing and (b) authorized the Debtors to solicit acceptances for
the Combined Disclosure Statement and Plan.
The hearing at which the Court will consider final approval of the
Disclosure Statement and confirmation of the Plan (the "Combined
Hearing") will commence on Nov. 14, 2024, at 9:30 a.m. (prevailing
Eastern Time) before the Honorable Paul M. Baisier, in the United
States Bankruptcy Court for the Northern District of Georgia.
Parties may attend the Combined Hearing in Courtroom 1202 in the
Richard B. Russell Federal Building and United States Courthouse,
75 Ted Turner Drive, SW, Atlanta, GA 30303 or virtually via Judge
Baisier's Virtual Hearing Room.
About Lavie Care Centers
LaVie Care Centers, LLC is the parent company of skilled nursing
facility operators and providers, with facilities primarily located
in Mississippi, North Carolina, Pennsylvania and Virginia. The
company operates 43 licensed facilities, with 4,300 beds, providing
short-term rehabilitation, comprehensive post-acute care, and
long-term care to its residents.
On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul
Baisier in Atlanta.
The Debtors tapped McDermott Will & Emery, LLP as legal counsel;
Stout Capital, LLC as investment banker; and Ankura Consulting as
financial advisor. M. Benjamin Jones, senior managing director at
Ankura, serves as the Debtors' chief restructuring officer.
Kurtzman Carson Consultants, LLC is the claims agent, and maintains
the page http://www.kccllc.com/LaVie
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
LEFEVER MATTSON: Oct. 15 Final Hearing on Cash Collateral Access
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Santa Rosa Division, granted LeFever Mattson and its affiliated
debtors permission to use cash collateral on an interim basis. The
court reviewed the motion and associated evidence and found that it
was necessary to grant the relief to prevent irreparable harm to
the debtors estates and creditors.
The order authorizes the debtors to use the cash collateral
according to a Property Budget, specifically for paying
property-level expenses. The debtors are also required to provide
adequate protection to accepting lenders through monthly debt
service payments, continued property maintenance, and regular
reporting.
However, the order prohibits the debtors from using the cash
collateral of non accepting lenders, such as Socotra Capital, Inc.
and Umpqua Bank, unless they provide written consent. The court
reserves the right to modify this ruling if the debtors can prove
that non accepting lenders are adequately protected.
Additionally, the property manager must provide detailed financial
reports for properties where Socotra holds a mortgage. This
reporting includes a breakdown of cash activities starting from the
petition dates. The first report is due by October 10, 2024.
A final hearing on the cash collateral motion is scheduled for
October 15, 2024. Any objections to the final relief must be filed
by October 8, 2024. The court retains jurisdiction over all matters
related to the order's implementation and enforcement.
About LeFever Mattson
LeFever Mattson, a California corporation, manages a portfolio of
more than 200 properties, comprised of commercial, residential,
office, and mixed-use real estate, as well as vacant land, located
throughout Northern California, primarily in Sonoma, Sacramento,
and Solano Counties. The Company generates income from the
Properties through rents and use the proceeds to fund their
operations. Timothy LeFever and Kenneth W. Mattson each own 50% of
the equity in LeFever Mattson.
LeFever Mattson and 58 affiliated LLCs and LPs sought Chapter 11
protection (Bankr. N.D. Cal. Lead Case No. 24-10545) on Sept. 12,
2024. The cases are assigned to the Hon. Charles Novack.
LeFever Mattson estimated $100 million to $500 million in total
assets and liabilities as of the bankruptcy filing.
The Debtors tapped San Francisco, California-based Keller
Benvenutti Kim LLP as counsel. Kurtzman Carson Consultants, LLC,
doing business as Verita Global, is the claims agent.
LEGACY ENTERPRISES: Case Summary & 14 Unsecured Creditors
---------------------------------------------------------
Debtor: Legacy Enterprises of North America, Ltd
809 Taylor Street
Windsor, NC 27983
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03477
Judge: Hon. Joseph N Callaway
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
E-mail: george@olivercheek.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Faulk as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/KBXJGVI/Legacy_Enterprises_of_North_America__ncebke-24-03477__0001.0.pdf?mcid=tGE4TAMA
LEVEL UP: Hires Johnson Pope Bokor Ruppel & Burns as Counsel
------------------------------------------------------------
Level Up Auto Sales, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Johnson Pope
Bokor Ruppel & Burns, LLP as counsel.
The firm will provide these services:
a. give the Debtors legal advice with respect to their duties
and obligations as Debtors in Possession or "DIP";
b. take necessary steps to analyze and pursue any avoidance
actions, if in the best interest of the estate;
c. prepare on behalf of the Debtors the necessary motions,
notices, pleadings, petitions, answers, orders, reports and other
legal papers required in this Chapter 11 case;
d. assist the Debtors in taking all legally appropriate steps
to effectuate compliance with the Bankruptcy Code; and
e. perform all other legal services for the Debtors which may
be necessary herein including closings of sales of the Debtors'
assets.
The firm will be paid at $500 per hour.
The firm received a retainer in the amount of $50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Edward J. Peterson, Esq. a partner at Johnson Pope Bokor Ruppel &
Burns, 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:
Edward J. Peterson, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
400 N Ashley Dr., Ste. 3100
Tampa, FL 33602
Tel: (813) 225-2500
Email: edwardp@jpfirm.com
About Level Up Auto Sales, Inc.
Level Up Auto Sales, Inc. in Saint Petersburg, FL, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. M.D. Fla. Case No.
24-05588) on Sept. 18, 2024, listing $1 million to $10 million in
assets and $10 million to $50 million in liabilities. Rizah Mahmuti
as manager, signed the petition.
Judge Roberta A Colton oversees the case.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP serve as the Debtor's
legal counsel.
LEXARIA BIOSCIENCE: Appoints Michael Shankman as CFO
----------------------------------------------------
Lexaria Bioscience Corp. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that effective Oct. 1, 2024,
Michael Shankman, age 64, has been appointed to the position of
chief financial officer of the Company replacing Lexaria's former
CFO, Nelson Cabatuan who resigned effective July 15, 2024 and
assuming the position of principal financial officer and principal
accounting officer previously assumed by the Company's CEO, Richard
Christopher.
Mr. Shankman was previously engaged by the Company as an outsourced
CFO via NowCFO from June 2023 to February 2024. Upon the
effectiveness of Mr. Shankman's appointment as chief financial
officer, Mr. Shankman also became the Company's principal financial
officer and principal accounting officer, and Richard Christopher,
the Company's chief executive officer who assumed the
responsibilities as the Company's principal financial officer on an
interim basis, relinquished those responsibilities to Mr.
Shankman.
Mr. Shankman does not have any family relationships with any other
person employed or engaged by the Company nor has Mr. Shankman been
a party to any transaction with the Company exceeding $120,000.
Mr. Shankman is a Certified Public Accountant holding an MBA,
Finance from California State University who previously worked with
NowCFO from 2021 to 2024. During his time with NOW CFO, Mr.
Shankman provided outsourced CFO and Controller services gaining
extensive experience and familiarity with both public and private
companies in a wide variety of industry fields. Prior to his
engagement with NowCFO, Mr. Shankman worked for The Articom Group,
being a $160M provider of refrigeration and HVAC design,
installation, maintenance and repair services to national grocery
chains, as its Corporate Controller from 2020-2021. From 2019 to
2020, Mr. Shankman was the Controller for Change.Org. a $35M public
benefit corporation.
In his position as chief financial officer, Mr. Shankman will be
compensated with a base annual salary which will be subject to
annual increases of 1.25 x the annual inflation rate as determined
by the US Federal Reserve Board and annual performance milestone
bonuses of up to 35% during the first year, 40% during the second
year and thereafter up to 50% of the base salary. In accordance
with the Agreement, on Oct. 1, 2024, the Board granted Mr. Shankman
an incentive stock option to purchase up to 50,000 shares of the
Company's common stock, pursuant to its Equity Incentive Plan. The
Options have an exercise price per share equal to $3.17, being one
cent ($0.01) above the closing price of the Company's shares on the
Nasdaq Capital Market on the grant date, and will vest commencing
on Feb. 28, 2025 as to 20,000 options, an additional 15,000 vesting
on Aug. 31, 2025 and the remaining 15,000 vesting on Aug. 31,
2026.
Should Mr. Shankman be terminated without cause, after an initial
six months with the Company, he will be entitled to severance pay
equal to two months base salary, with such severance pay increasing
by a month for each completed year of employment.
About Lexaria
Headquartered in Kelowna BC Canada, Lexaria Bioscience Corp. --
http://www.lexariabioscience.com-- is a biotechnology company
developing the enhancement of the bioavailability of a broad range
of fat-soluble active molecules and active pharmaceutical
ingredients ("APIs") using its patented DehydraTECH drug delivery
technology. DehydraTECH combines lipophilic molecules or APIs with
specific long-chain fatty acids and carrier compounds that improve
the way they enter the bloodstream, increasing their effectiveness
and allowing for lower overall dosing while promoting healthier
oral ingestion methods.
"Since inception, the Company has incurred significant operating
and net losses. Net losses attributable to shareholders were $3.6
million and $5.5 million for the nine-months ended May 31, 2024,
and 2023, respectively. As of May 31, 2024, we had an accumulated
deficit of $49.4 million. We expect to continue to incur
significant operational expenses and net losses in the upcoming 12
months. Our net losses may fluctuate significantly from quarter to
quarter and year to year, depending on the stage and complexity of
our research and development (R&D) studies and corporate
expenditures, additional revenues received from the licensing of
our technology, if any, and the receipt of payments under any
current or future collaborations we may enter into. The recurring
losses and negative net cash flows raise substantial doubt as to
the Company's ability to continue as a going concern," said Lexaria
in its Quarterly Report for the period ended May 31, 2024.
LL FLOORINGS: Completes Property, Asset Sale to F9 Investments
--------------------------------------------------------------
LL Flooring Holdings, Inc., announced on October 1, 2024, that the
Company has completed the previously announced going-concern sale
of the business to F9 Investments for the acquisition of 219
stores, inventory in those stores, LL Flooring's intellectual
property and other company assets. LL Flooring also announced the
completion of its previously disclosed private sale of the Sandston
distribution center. With the completion of the sale transactions,
the court-supervised sale process has concluded.
Charles Tyson, President and Chief Executive Officer of LL
Flooring, said, "We are pleased to have reached these
value-maximizing sales to preserve the business and maintain
ongoing operations. This marks the start of a new chapter for LL
Flooring and we are working closely with F9 Investments to ensure a
seamless transition for our customers. I would like to express my
sincere gratitude to our associates for their hard work and
dedication to serving our customers throughout this process."
LL Flooring continues to work with Hilco Merchant Resources, LLC,
to assist the Company in store closing sales at locations that were
not part of the agreement with F9 Investments. These locations will
continue serving customers through the store closing process. A
full list of stores closing can be found on the LL Flooring website
at https://www.llflooring.com/store-closings/.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, Houlihan Lokey is serving as financial advisor, and
AlixPartners LLP is serving as restructuring advisor to the
Company.
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. serves as the Debtors'
investment banker, AlixPartners LLP acts as the Debtors' financial
advisor, and Stretto, Inc., acts as the Debtors' claims and
noticing agent.
LUMIO HOLDINGS: Resolves Creditor Dispute, Clears Liquidation
-------------------------------------------------------------
Steven Church of Bloomberg News reports that Lumio Holdings Inc.,
the bankrupt maker of residential solar panels, cut a deal with
unsecured creditors that will pave the way to sell its main
business and liquidate everything else, the company said in court
Tuesday, October 1, 2024.
The creditors dropped their opposition to Lumio's plan to borrow as
much as $8 million to fund the Chapter 11 bankruptcy, a company
lawyer told US Bankruptcy Judge J. Kate Stickles.
Stickles said she would approve the loan after the company made
minor wording changes to the court documents.
Last week, Judge Stickles gave the Utah-based company permission to
sell itself to an affiliate.
About Lumio Holdings
Lumio Holdings, Inc., is a privately-held residential solar
provider in Lehi, Utah, which is fully vertically integrated with a
full suite of photovoltaic solar system sales, installation and
operations.
Lumio Holdings and Lumio HX, Inc. filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11916) on Sept. 3, 2024. Jeffrey
T. Varsalone, chief restructuring officer, signed the petitions.
At the time of the filing, the Debtors reported $100 million to
$500 million in both assets and liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP, Houlihan
Lokey Capital, Inc. and C Street Advisory Group as legal counsel,
investment Banker and strategic communications advisor,
respectively. Stretto, Inc. is the claims and noticing agent and
administrative advisor.
MARINUS PHARMACEUTICALS: PTAB Denies Ovid's IPR Request
-------------------------------------------------------
Marinus Pharmaceuticals, Inc. disclosed in a Form 8-K filed with
the Securities and Exchange Commission that on Sept. 20, 2024, the
U.S. Patent and Trademark Office Patent Trial and Appeal Board (the
"PTAB") issued a decision denying institution of the Inter Partes
Review ("IPR"), stating that Ovid Therapeutics, Inc. has not
established a reasonable likelihood that it would prevail in
showing the unpatentability of at least one claim challenged in the
Petition. The decision is publicly available on the U.S. Patent
Office's website (uspto.gov). Ovid could choose to file for
rehearing or seek director review at the PTAB within 30 days from
the Sept. 20, 2024 PTAB decision date. Ovid cannot appeal the
denial of institution to the U.S. Court of Appeals for the Federal
Circuit.
On March 26, 2024, Ovid filed a petition with PTAB seeking Inter
Partes Review of one of the patents of Marinus for the use of
ganaxolone in treating status epilepticus (U.S. Patent No.
11,110,100). The Company filed a preliminary response to Ovid's
petition on June 26, 2024.
About Marinus Pharmaceuticals
Marinus -- www.marinuspharma.com -- is a commercial-stage
pharmaceutical company dedicated to the development of innovative
therapeutics for seizure disorders. The Company first introduced
FDA-approved prescription medication ZTALMY (ganaxolone) oral
suspension CV in the U.S. in 2022 and continues to invest in the
potential of ganaxolone in IV and oral formulations to maximize
therapeutic reach for adult and pediatric patients in acute and
chronic care settings.
Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 5, 2024, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
MEGA BROADBAND: S&P Alters Outlook to Positive, Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings revised the outlook to positive from stable and
affirmed all its ratings on U.S.-based internet and cable TV
provider Mega Broadband Investments Intermediate I LLC (dba Vyve
Broadband), including the 'B+' issuer credit rating.
The positive outlook reflects S&P's expectation that leverage will
be comfortably below 5x and FOCF to debt will approach 5% within
12-months on earnings growth and debt repayment.
The outlook revision reflects the likelihood that earnings growth
from high-speed data (HSD) will continue to facilitate Vyve's
potential to improve credit metrics over the next 12-months. S&P
said, "We believe that mid-single-digit percent HSD average revenue
per user (ARPU) growth should drive total revenue growth of 2%-4%
through 2025, which should enable deleveraging to the mid- to
high-4x area by 2025 from 5.1x as of June 30, 2024. In addition, we
believe that free operating cash flow (FOCF) to debt will approach
5% by 2025 from about 1% at June 30, 2024 on fewer working capital
outflows and improved earnings on 4%-5% broadband revenue growth."
ARPU growth combined with modest subscriber growth should translate
to mid-single-digit percent broadband revenue growth in 2025. S&P
Global Ratings believes Vyve's subscriber base will organically
expand at about 1%-2% in 2025, better than our estimate of about 0%
in 2024, on fewer headwinds associated with the expiration of the
Affordable Connectivity Program (ACP). S&P said, "We expect net HSD
organic subscriber additions to be 3,000-4,000 in 2025 compared
with our expectation for 200-500 net adds in 2024. We believe the
expiration of ACP, which we believe accounted for about 7% total
HSD subscribers, will limit net adds this year. Still, we believe
residential HSD revenue will grow 4%-6% through 2025 on
mid-single-digit percent average ARPU growth as customers roll off
promotions, upgrade to faster speeds, and opt into the company's
eero branded wifi modems."
S&P said, "We believe fiber-to-the-home (FTTH) poses a competitive
threat to small cable operators such as Vyve. We believe FTTH
competitors such as AT&T will take market share because they offer
very fast data speeds, which could increase churn. Furthermore,
Vyve is not as well positioned as larger peers Comcast Corp. and
Charter Communications Inc. to effectively defend against FTTH
competition given its scale disadvantages and limited financial
flexibility to profitably bundle mobile service via a mobile
virtual network operator (MVNO) agreement with its in-home
broadband product. Still, we recognize that only about 35% of
Vyve's footprint overlaps with operators offering gigabyte speeds,
noticeably better than peers like Cable One at roughly 50%."
FWA will continue to pressure cable subscriber additions for the
next year or so. The technology works well and is offered at lower
prices. S&P said, "Therefore, we believe FWA could make it more
challenging for Vyve to add customers at the lower end of the
market, limiting its ability to take share from digital subscriber
line (DSL). FWA network capacity will eventually become
constrained, but it is unclear when. Furthermore, wireless
operators are deploying mid-band spectrum nationwide, enabling them
to offer faster data speeds. We believe FWA subscribers may skew
more rural because these markets have lower mobile data traffic
than urban areas."
However, the low density of rural markets means that not all homes
will be reachable by mid-band spectrum, which could insulate Vyve
to some degree, given the rural nature of its footprint.
The positive outlook reflects our expectation that leverage will be
comfortably below 5x in 12-months on 5%-7% earnings growth and debt
repayment.
S&P could revise the outlook to stable if:
-- A more competitive operating environment leads to a contraction
in its EBITDA such that S&P tightens its rating triggers; or
-- S&P believes limited earnings growth will keep leverage above
5x and FOCF to debt well below 5%.
could raise the rating if leverage were to decline below 5x and
free operating cash flow (FOCF) to debt approaching 5%. In
addition, an upgrade would be dependent on the belief that
financial policy considerations would not lead to higher leverage.
MFT RESOURCES: Hires John Bernard Realty as Real Estate Broker
--------------------------------------------------------------
MFT Resources, LLC, f/k/a Master Flow Technologies, LLC, seeks
approval from the U.S. Bankruptcy Court for the Western District of
Louisiana to employ John Bernard Realty Company as real estate
broker.
The firm will market and sell the Debtor's immovable property.
The firm will be paid a commission of 2.5 percent of the gross sale
proceeds.
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:
Steven Session
John Bernard
John Bernard Realty Company
120 Lateral Ln
Natchitoches, LA 71557
Tel: (318) 332-9850
About MFT Resources, LLC
f/k/a Master Flow Technologies, LLC
MFT Resources, LLC f/k/a Master Flow Technologies, LLC in
Natchitoches LA, sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. La. Case No. 24-80523) on Aug. 27, 2024, listing
as much as $1 million to $10 million in both assets and
liabilities. Waylon R. White as managing member, signed the
petition.
Judge Stephen D Wheelis oversees the case.
THOMAS R. WILLSON serve as the Debtor's legal counsel.
MILLENKAMP CATTLE: Taps Vertex Companies as Expert Witness
----------------------------------------------------------
Millenkamp Cattle, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Idaho to employ Lance
VanDemark and Theodore Isbell of The Vertex Companies, LLC as
expert witness.
The Debtor requires the professionals to be expert witnesses in the
litigation involving East Valley Cattle, LLC, in Cassia County,
Case No. CV16-21-00486.
The firm will be paid at $435 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Lance VanDemark
Theodore Isbell
The Vertex Companies, LLC
6990 Columbia Gateway Drive, Suite 325
Columbia, MD 21046
Tel: (443) 539-7757
About Millenkamp Cattle
Millenkamp Cattle Inc., is part of a family-owned agriculture
business that can produce more than 1 million pounds of milk per
day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
Judge Noah G. Hillen oversees the cases.
The Debtors tapped Matthew T. Christensen, Esq., at Johnson May,
PLLC as bankruptcy counsel and Givens Pursley as special counsel.
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until Oct 23
---------------------------------------------------------------
Miracle Restaurant Group, LLC received interim approval from the
U.S. Bankruptcy Court for the Eastern District of Louisiana to use
cash collateral to fund its continued operations.
The interim order permits the company to use cash in its bank
account and cash generated from operations until Oct. 23 in
accordance with the budget approved by the court.
Adequate protection measures were established for creditors, which
include replacement security interests in various assets and a
super priority administrative claim to protect against any loss in
value of their interests.
The company's weekly cash flow forecast indicates projected inflows
primarily from credit card deposits totaling $380,000 each week.
Operating outflows, including payroll, supplier payments, and
various expenses range from approximately $285,000 to $416,000
weekly.
The next hearing is scheduled for Oct. 23.
About Miracle Restaurant Group
Miracle Restaurant Group, LLC owns and operates a fast food
restaurant in Covington, La.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves
as Subchapter V trustee.
Judge Meredith S. Grabill presides over the case.
The Debtor tapped Douglas S. Draper, Esq., at Heller, Draper &
Horn, LLC as legal counsel and Peak Franchise Capital, LLC as
financial advisor.
MISTY MOON: Court Approves Use of Cash Collateral Thru Oct 9
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maine granted Misty
Moon Transport 2 LLC authorization to use cash collateral on an
interim basis, with the consent of Bangor Savings Bank (BSB), based
on a proposed budget. The order allows the Debtor to use cash
collateral for essential expenses to avoid immediate harm but
excludes certain costs like advertising and supplies until the next
hearing.
To protect the interests of its Prepetition Secured Parties, CHTD
and BSB, Misty Moon has agreed to certain conditions including
monthly payments of $350 to CHTD and $2,000 to BSB, along with the
creation of debtor-in-possession accounts at BSB. Additionally, the
Debtor will file a Chapter 11 plan within 60 days, proposing
structured payments to both secured parties, including 8% interest
for CHTD and 11.25% interest for BSB.
The Debtor also will provide weekly financial reporting to the
secured parties and adhere to a 10% variance in cash flow. Should
the Debtor breach this variance, its authority to use cash
collateral will be immediately suspended.
A Second Interim Hearing is scheduled for October 9, 2024, where
the Court will evaluate continued use of the cash collateral based
on updated financials. The Debtor is required to submit a revised
budget by October 1, 2024, for consideration at this hearing.
About Misty Moon Transport
Misty Moon Transport 2 LLC is a transportation company involved in
logistics and freight services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 24-201970) with
$1,533,128 in assets and $2,539,568 in liabilities. The petition
was signed by Morgan Morang as president.
The Hon. Peter G. Cary oversees the case.
J. Scott Logan, Esq., at LAW OFFICE OF J. SCOTT LOGAN, LLC, is the
Debtor's legal counsel.
MOORE MEDICAL: Seeks to Tap David Jennis P.A. as Attorney
---------------------------------------------------------
Moore Medical Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ David Jennis,
P.A. as attorney.
The firm will provide these services:
a. take all necessary action to protect and preserve the
estate of the Debtor, including the prosecution of actions on its
behalf, the defense of any actions commenced against the Debtor,
negotiations concerning any litigation in which the Debtor may be
involved, and objections, when appropriate, to claims filed against
the estate;
b. prepare, on behalf of the Debtor, any applications,
answers, orders, reports, and/or papers in connection with the
administration of the estate;
c. counsel the Debtor with regard to its rights and
obligations as a Debtor-in-possession;
d. prepare and file schedules of assets and liabilities;
e. prepare and file a Chapter 11 plan and corresponding
disclosure statement, if required; and
f. perform all other necessary legal services in connection
with this Chapter 11 case.
The firm will be paid at these rates:
Paralegals $125 to 225 per hour
Attorneys $325 to $575 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David S. Jennis, a partner at David Jennis, 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:
David S. Jennis, Esq.
David Jennis, P.A. d/b/a Jennis Morse
606 East Madison Street,
Tampa, FL 33602
Telephone: (813) 229-2800
Email: djennis@jennislaw.com
About Moore Medical Group, Inc.
Moore Medical Group, Inc. in Lake Mary, FL, sought relief under
Chapter 11 of the Bankruptcy Code filed its voluntary petition for
Chapter 11 protection (Bankr. M.D. Fla. Case No. 24-05162) on Sept.
24, 2024, listing $481,336 in assets and $2,762,511 in liabilities.
Eric A. Moore as CEO, signed the petition.
Judge Grace E Robson oversees the case.
DAVID JENNIS, PA serve as the Debtor's legal counsel.
NCD HOLDINGS: Hires Coldwell Banker Apex as Real Estate Broker
--------------------------------------------------------------
NCD Holdings Trust seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Coldwell Banker Apex,
Realtors LLC as real estate broker.
The firm will market and sell the Debtor's real property located at
921 Cedar Shores Drive, Rockwall, Texas 75032.
The firm will be paid a commission of 4 percent of the gross sales
price.
Dee Evans, a partner at Coldwell Banker Apex, Realtors 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:
Dee Evans
Coldwell Banker Apex, Realtors LLC
8805 Line Ave. Ste 100
Shrevport, LA 71106
Tel: (318) 861-2461
About NCD Holding Trust
NCD Holdings is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101 (51B)).
NCD Holdings Trust in Austin TX, filed its voluntary petition for
Chapter 11 protection (Bankr. N.D. Tex. Case No. 24-30638) on March
4, 2024, listing as much as $1 million to $10 million in bothassets
and liabilities. Kelli Haynie as trustee, signed the petition.
TITTLE LAW GROUP, PLLC serve as the Debtor's legal counsel.
NEW FORTRESS ENERGY: Strikes Agreement to Delay Debt Deadline
-------------------------------------------------------------
Giulia Morpurgo of Bloomberg Law reports that New Fortress Energy
Inc. has reached a deal with some of its bondholders to push back
its debt maturities.
The US-based energy infrastructure company will sell $1.2 billion
of new debt to repay notes coming due in a year with the backing of
some of its existing creditors, it said in a filing on Tuesday,
October 1, 2024.
Holders of the new notes will benefit from more collateral versus
its existing debt, including a 49% stake in one of the holding
companies owning New Fortress Energy's business in Brazil, said the
statement.
About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) operates as an integrated
gas-to-power infrastructure company, provides energy and
development services to end-users worldwide. The company engages in
the natural gas procurement and liquefaction; and shipping,
logistics, facilities and conversion, or development of natural
gas-fired power generation. New Fortress Energy Inc. was founded in
1998 and is based in New York, New York.
NIKOPAT & ASSOCIATES: Hires Iweanoges' Firm PC as Attorney
----------------------------------------------------------
Nikopat & Associates, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to employ Iweanoges' Firm, PC as
attorney.
The firm will provide these services:
a. provide the Debtor with legal advice with respect to its
powers and duties as Debtor-in-possession;
b. prepare, as necessary, applications, answers, orders,
reports and other legal papers, filed by the Debtor; and
c. perform all other legal services for the Debtor, which may
be necessary herein.
The firm will be paid at $450 per hour.
The firm has accepted an initial retainer in the amount of $1,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Charles C. Iweanoge, a partner at Iweanoges' 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:
Charles Iweanoge, Esq.
The Iweanoges' Firm, PC
1026 Monroe Street, NE
Washington DC 20017
Tel: (202) 347-7026
Email: cci@iweanogesfirm.com
About Nikopat & Associates, LLC
NikoPat & Associates, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 24-17524) on Sept. 6, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by THE IWEANOGES' FIRM, PC.
NOSTRUM LABORATORIES: Hits Chapter 11 Bankruptcy
------------------------------------------------
Nostrum Laboratories Inc. filed for Chapter 11 protection in the
District of New Jersey. According to court filing, the Debtor
reports between $10 million and $50 million in debt owed to 200 and
999 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Sec. 341(a) is slated to be
held on Nov. 6, 2024, at 9:00 AM at Telephonic. Proofs of claim
are due by Dec. 9, 2024. Government proofs of claim are due by
March 29, 2025.
The Court has entered an order to show cause why the case should
not be dismissed for the Debtor's failure to file missing
documents, including the statement of financial affairs. A hearing
is scheduled for Oct. 22, 2024, at 10:00 a.m. at JKS - Courtroom
3D, Newark.
About Nostrum Laboratories
Nostrum Laboratories Inc. operates as a pharmaceutical company. The
Company offers sucralfate, and theophylline extended release (ER)
tablets, as well as piroxicam capsules, and carbamazepine ER
capsules.
Nostrum Laboratories Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-19611) on September
30, 2024. In the petition filed by James Grainer, as chief
financial officer, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $10 million
and $50,000.
The Honorable Bankruptcy Judge John K. Sherwood handles the case.
The Debtor is represented by:
David L. Bruck, Esq.
Greenbaum, Rowe, Smith, et al.
1800 N. Topping Avenue
Kansas City, MO 64120
OPEN RANGE: Gets Final Approval to Use Cash Collateral
------------------------------------------------------
Open Range Services, Inc. received final court approval to use the
cash collateral of The Small Business Administration.
The order penned by Judge Michael Romero of the U.S. Bankruptcy
Court for the District of Colorado granted the company permission
to use cash collateral according to a budget filed with the court,
while ensuring adequate protection for secured creditors.
SBA claims a first-position security interest in the company's
personal property through two loan agreements. To provide adequate
protection for SBA's cash collateral, the company is required to
make timely monthly payments of $7,723 and $2,437 as specified in
the loan documents. Additionally, SBA will receive a replacement
lien on proceeds from post-petition accounts to safeguard its
interests.
The order also provides several protections for creditors with a
perfected security interest in the cash collateral. These include
providing replacement liens on post-petition accounts; maintaining
adequate insurance coverage on all personal property; and
submitting periodic reports to the bankruptcy court.
Moreover, Open Range Services is permitted to spend cash collateral
only according to the approved budget, with minor fluctuations of
up to 15% allowed for each expense line item per month. The company
is also required to pay all post-petition taxes to ensure
compliance with its obligations during the bankruptcy process.
About Open Range Services
Open Range Services Inc. is a construction company that specializes
in heavy civil construction, commercial site development, public
infrastructure, underground utilities, oilfield services and
transportation logistics services. The company offers manpower,
heavy equipment, material resources and expertise to construct
projects of any size and at any location across the Western United
States.
Open Range Services sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-14377) on July 31,
2024, with total assets of $2,452,125 and total liabilities of
$10,323,840. Jason Gant, president, signed the petition.
Judge Michael E. Romero oversees the case.
The Debtor is represented by David V. Wadsworth, Esq., at Wadsworth
Garber Warner Conrardy, PC.
ORION ADVISOR: S&P Rates First-Lien Senior Secured Term Loan 'B'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level and '2' recovery
ratings to Orion Advisor Solutions Inc.'s proposed amended and
extended $935 million first-lien senior secured term loan due in
September 2030. The proceeds from the proposed amended and extended
term loan will be used to repay the existing term loan and fees
associated with the transaction, making the transaction largely
leverage neutral. S&P will withdraw the ratings on the existing
term loan upon completion of the transaction. The company is also
extending the maturity of its $80 million revolving credit facility
by two years to June 2029. Both the term loan and revolver are
subject to a springing maturity to 91 days inside the second lien
term loan which matures in September 2028.
S&P said, "Our 'B-' issuer credit rating and stable outlook on
Orion is unchanged, although we view the maturity extensions as a
credit positive. S&P Global Ratings-adjusted pro forma leverage for
the 12 months ended June 30, 2024, was relatively unchanged at
about 10.5x. This measure includes preferred stock, which we view
as a debt-like obligation. We also deduct capitalized software
development costs from EBITDA."
Orion's second-quarter performance was above our expectation with
year-over-year revenue growth of 10%. This was due to double-digit
percent growth in technology revenue, which benefited from a 15%
increase in accounts and favorable pricing changes, as well as
single-digit percent growth in wealth management revenue. For the
same period, EBITDA improved over 30% due to strong cost
management.
S&P said, "We could lower our rating on Orion over the next 12
months if a sharp decline in its assets under management (AUM) that
stems from capital market volatility causes sustained, negative
FOCF generation; a large draw on its revolving credit facility
because of difficult operating conditions; or a capital structure
we consider unsustainable. Although unlikely over the next 12
months, we could raise our rating on Orion if it reduces S&P Global
Ratings-adjusted leverage below 7x and improves FOCF to debt to
mid-single-digit percent or above."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
Orion's pro forma capital structure will comprise:
-- $80 million revolving credit facility due in June 2029 (subject
to a springing maturity 91 days inside the second lien term loan);
-- $935 million term loan B due in September 2030 (subject to a
springing maturity 91 days inside the second lien term loan);
-- $325 million second-lien term loan due in September 2028;
Simulated default scenario
-- Orion Advisor Solutions Inc. is the borrower of the first- and
second-lien facilities.
-- The '2' recovery rating on the first-lien debt reflects our
expectation for substantial (70%-90%; rounded estimate: 70%)
recovery in the event of a payment default.
S&P's recovery analysis assumes a payment default in 2026 due to
steep equity market declines leading to lower asset-based fees,
increased competition from banks, a significant loss of customers,
or unfavorable shifts in the regulatory environment. These factors
could result in lower revenue and cash flow. Because of this, Orion
may have to fund its cash flow shortfalls with available cash and
borrowings from its revolver.
S&P assumes the company would be reorganized or sold as a going
concern as opposed to being liquidated because it would likely
retain greater value as an ongoing entity in the event of a
default. This is primarily because of its solid technology
capabilities, high level of customer integration, and its position
as one of the leading players in an industry with favorable growth
dynamics.
Simulated default assumptions
-- Simulated year of default: 2026
-- Revolver draw at default: 85%
-- EBITDA at emergence: $117 million
-- EBITDA multiple: 6.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $722
million
-- Valuation spit (obligors/nonobligors): 100%/0%
-- Value available to first-lien debt claims: $723 million
-- Secured first-lien debt claims: $1.0 billion
--Recovery expectations: 70%-90% (rounded estimate: 70%)
Notes: All debt amounts include six months of prepetition
interest.
PALMER SQUARE 2022-5: S&P Assigns BB- (sf) Rating on Cl. E-R Notes
------------------------------------------------------------------
S&P Global Ratings assigned its ratings to the class A-1-R, A-2-R,
B-R, C-R, D-1-R, D-2-R, and E-R replacement debt from Palmer Square
CLO 2022-5 Ltd./Palmer Square CLO 2022-5 LLC, a CLO originally
issued in September 2022 that is managed by Palmer Square Europe
Capital Management LLC.
The replacement debt was issued via a supplemental indenture, which
outlines the terms of the replacement debt. According to the
supplemental indenture:
-- The replacement class A-1-R, A-2-R, B-R, C-R, D-1-R, D-2-R, and
E-R debt were issued at a lower spread over three-month SOFR than
the original debt.
-- The original fixed class B-2 debt were removed from the
structure.
-- The stated maturity, reinvestment period, and non-call period
were extended two years.
S&P said, "Our review of this transaction included a cash flow
analysis, based on the portfolio and transaction data in the
trustee report, to estimate future performance. In line with our
criteria, our cash flow scenarios applied forward-looking
assumptions on the expected timing and pattern of defaults and the
recoveries upon default under various interest rate and
macroeconomic scenarios. Our analysis also considered the
transaction's ability to pay timely interest and/or ultimate
principal to each of the rated tranches. The results of the cash
flow analysis (and other qualitative factors, as applicable)
demonstrated, in our view, that the outstanding rated classes all
have adequate credit enhancement available at the rating levels
associated with the rating actions.
"We will continue to review whether, in our view, the ratings
assigned to the debt remain consistent with the credit enhancement
available to support them and take rating actions as we deem
necessary."
Ratings Assigned
Palmer Square CLO 2022-5 Ltd./Palmer Square CLO 2022-5 LLC
Class A-1-R, $320.00 million: AAA (sf)
Class A-2-R, $7.50 million: AAA (sf)
Class B-R, $52.50 million: AA (sf)
Class C-R (deferrable), $30.00 million: A (sf)
Class D-1-R (deferrable), $30.00 million: BBB- (sf)
Class D-2-R (deferrable) $5.00 million: BBB- (sf)
Class E-R (deferrable), $15.00 million: BB- (sf)
Ratings Withdrawn
Palmer Square CLO 2022-5 Ltd./Palmer Square CLO 2022-5 LLC
Class A to NR from 'AAA (sf)'
Class B-1 to NR from 'AA (sf)'
Class B-2 to NR from 'AA (sf)'
Class C (deferrable) to NR from 'A (sf)'
Class D (deferrable to NR from 'BBB- (sf)'
Class E (deferrable to NR from 'BB- (sf)'
Other Debt
Palmer Square CLO 2022-5 Ltd./Palmer Square CLO 2022-5 LLC
Subordinated notes, $40.50 million: NR
NR--Not rated.
PERASO INC: Extends Expiration of Series B Warrants to Nov. 8
-------------------------------------------------------------
Peraso Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Oct. 3, 2024, it extended the
expiration date of its outstanding Series B warrants (CUSIP number
71360T 135) to 5:00 p.m. (New York City time) on Nov. 8, 2024, by
entering into a second amendment to that certain Warrant Agency
Agreement dated as of Feb. 8, 2024 by and between the Company and
the warrant agent, Equiniti Trust Company, LLC.
The Series B warrants to purchase up to an aggregate of 3,974,520
shares of the Company's common stock, par value $0.001 per share,
were issued on Feb. 8, 2024 as part of an underwritten public
offering. The Company previously extended the expiration date of
the Series B Warrants from 5:00 p.m. (New York City time) on Aug.
8, 2024 to 5:00 p.m. (New York City time) on Oct. 7, 2024. The
Series B Warrants have an exercise price of $2.25 per share and
would otherwise have expired at 5:00 p.m. (New York City time) on
Oct. 7, 2024.
The Series B Warrants and shares of common stock issuable upon
exercise of the Series B Warrants are registered on the Company's
registration statement on Form S-1, as amended (File No.
333-276247), previously filed with and declared effective by the
SEC.
About Peraso Inc.
Headquartered in San Jose, California, Peraso Inc. (NASDAQ: PRSO)
-- www.perasoinc.com -- is a pioneer in high-performance 60 GHz
unlicensed and 5G mmWave wireless technology, offering chipsets,
antenna modules, software and IP. Peraso supports a variety of
applications, including fixed wireless access, immersive video and
factory automation. In addition, Peraso's solutions for data and
telecom networks focus on Accelerating Data Intelligence and
Multi-Access Edge Computing, providing end-to-end solutions from
the edge to the centralized core and into the cloud.
Los Angeles, California-based Weinberg & Company, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 29, 2024, citing that during the year ended Dec.
31, 2023, the Company incurred a net loss and utilized cash in
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
PERSPECTIVES INC: Court OKs Sale of Property to VVRM
----------------------------------------------------
Perspectives Inc. received the green light from the U.S. Bankruptcy
Court for the District of Minnesota to sell real and personal
property located at 3381 Gorham Avenue, St Louis Park, Minnesota
55246 and 7008 Walker Street, St. Louis Park, Minnesota 55426.
The Debtor is selling the property to VVRM Commercial Partners LLC
and any subsequent assignee.
The sale proceeds will be used to pay any and all closing or title
fees and expenses required in the terms of the sale and any unpaid
property taxes and the $136,000 owed to NAI Legacy.
The Debtor is also required to pay secured lenders in full and
complete satisfaction of the mortgages, liens, and debits owed to
Propel Nonprofits, Yale Mechanical LLC, the Internal Revenue
Service in the amount of $295,336.61, and Bremer Bank in the amount
of $10,000.
The IRS's liens in excess of $295,336 will attach to the remaining
sale proceeds in the same priority, dignity, and effect as the
liens on the Real Property.
As reported by the Troubled Company Reporter, VVRM has offered $2.3
million for the assets, which include a 22,000-square-foot building
in St. Louis Park, Minn., that Perspectives used as a family
center; a parking lot adjacent to the building; and personal
property.
About Perspectives Inc.
Perspectives, Inc., is a human service program that addresses
society's most pressing issues: equity, diversity, inclusion,
homelessness, poverty, addiction, mental illness, food security,
and lack of access to life-changing opportunities for
disenfranchised women and children. It is based in St. Louis Park,
Minn.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-40832) on March 28,
2024, with $1 million to $10 million in both assets and
liabilities. Steven Nosek serves as Subchapter V trustee.
Judge Katherine A. Constantine presides over the case.
Steven R. Kinsella, Esq., at Fredrikson & Byron, P.A., is the
Debtor's legal counsel.
Perspectives, Inc., submitted a Second Amended Plan of Liquidation
dated August 26, 2024, proposing to pay creditors from cash flow
generated from the liquidation of the Debtor's assets. The Court
confirmed the Plan on September 6.
PUERTO RICO: Cobra Acquisitions Receives $150M Initial Settlement
-----------------------------------------------------------------
Cobra Acquisitions LLC, a wholly owned subsidiary of Mammoth Energy
Services, Inc. announced on Oct. 1, 2024, the receipt of $150
million from the Commonwealth of Puerto Rico in accordance with the
Settlement Agreement with the Puerto Rico Electric Power
Authority.
Arty Straehla, Chief Executive Officer, commented, "We are happy to
have received the initial $150 million in settlement proceeds. With
this first installment, we intend to extinguish all outstanding
obligations under our term credit facility on or before October 16,
2024 and we expect the remaining amount of approximately $98.8
million, along with the $38.4 million still owed to us through the
remaining installments, will have a transformative impact on our
business going forward. We now maintain a significant cash position
on our balance sheet, and we will take a meticulous and strategic
approach when deploying this capital. We intend to pursue
accretive, value-enhancing opportunities as we strive to strengthen
Mammoth for the future."
Under the terms of the Settlement Agreement, which was approved by
Judge Laura Taylor Swain, Cobra will receive total settlement
proceeds of $188.4 million. Of the $38.4 million still owed to
Cobra, $18.4 million relates to funds PREPA has received from the
Federal Emergency Management Agency ("FEMA") but are currently
withholding. These funds are to be paid out according to the terms
of the Settlement Agreement, which can be found below.
Settlement Agreement Terms
The proceeds of the Settlement Agreement will be paid to Cobra
through three installments:
(i) $150 million on the later of (A) ten business days following
approval of the Settlement Agreement by the Title III Court and (B)
August 31, 2024;
(ii) $20 million within seven days following the effective date of
PREPA's plan of adjustment; and
(iii) $18.4 million in the Withheld FEMA Funds within either (A)
ten business days after the deadline for appealing the entry of the
settlement order by the Title III Court under the applicable
bankruptcy rules of procedure if no such appeal is filed, or (B) if
the provisions of the settlement order allowing PREPA to release
the Withheld FEMA Funds to Cobra without retaining any liability to
the Specified Municipalities are appealed by the Specified
Municipalities, within ten business days of the filing of the
notice of such appeal.
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services company
focused on the providing products and services to enable the
exploration and development of North American onshore
unconventional oil and natural gas reserves as well as the
construction and repair of the electric grid for private utilities,
public investor-owned utilities and co-operative utilities through
its infrastructure services businesses. Mammoth's suite of services
and products include: well completion services, infrastructure
services, natural sand and proppant services, drilling services and
other energy services. For more information, please visit
www.mammothenergy.com.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PUERTO RICO: Cobra Acquisitions Secures $150M Payment from PREPA
----------------------------------------------------------------
Sebastian Tong of Bloomberg News reports that Mammoth Energy unit
Cobra Acquisitions has received $150m from Puerto Rico as part of a
settlement agreement with the Puerto Rico Electric Power
Authority.
Mammoth to extinguish all outstanding obligations under its term
credit facility on or before October 16, 2024.
The Company expects remaining $98.8m, along with the $38.4 million
still owed to it through the remaining installments to have a
transformative impact on its business.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
R&W CLARK: Updates Unsecureds & Secured Claims Pay Details
----------------------------------------------------------
R&W Clark Construction, Inc., submitted a Second Amended Plan of
Reorganization for Small Business dated August 29, 2024.
This Second Amended Plan of Reorganization proposes to pay
creditors of the Debtor from its monthly business income.
The Plan provides for payment of 2 classes of secured creditors and
1 class of general unsecured non-priority claims. Unsecured
non-priority creditors holding allowed claims will receive payment
through periodic cash distributions disbursed by the Debtor. The
Plan also provides for the payment of administrative and priority
claims including priority tax claims.
Class 2 Secured Claims:
* The IDES holds a first priority lien on all of the assets of
the Debtor in the amount of $181,000.92 arising out the filing of
notices of lien for the time periods from February 11, 2004,
through December 11, 2018. The IDES' secured claim shall be paid,
in full, plus interest at the rate of 48% per annum, through 72
equal monthly installments in the amount of $2,831.79, commencing
on the 1st of the month following the Effective Date and the 1st of
the month thereafter until paid in full.
* The IRS holds a second priority lien on all of the assets of
the Debtor in the amount of $45,012.45 arising out of the filing of
notices of lien filed for the time periods from August 7, 2012,
through February 23, 2023. The IRS' secured claim shall be paid, in
full, plus interest at the rate of 48% per annum, through 72 equal
monthly installments in the amount of $704.23, commencing on the
1st of the month following the Effective Date and the 1st of the
month thereafter until paid in full.
Class 2 claimants will retain the tax lien securing their claim to
the extent of the allowed amount of such claim. Notwithstanding
anything to the contrary in the Plan or the order confirming the
Plan, nothing in the Plan or order confirming the Plan enjoins any
claim, right, cause of action or suit of the United States, the IRS
and/or the IDES or its agencies and nothing in the Plan or any
order confirming the Plan shall affect or impair any setoff or
recoupment rights and defenses of the United States, the IRS and/or
the IDES or its agencies.
Class 3 consists of General Unsecured Non-Priority Claims. General
Unsecured Non-Priority Claims aggregate $8,153,743.76, as set forth
on the Allowed Unsecured Non-Priority Claims Register (the "Claims
Register"). This figure is subject to adjustment pending the
resolution of the Debtor's claim objections related to the Disputed
Priority Claims.
Allowed Class 3 claims shall be paid a dividend in the minimum
amount of $50,000.00 (the "Unsecured Creditors Fund") through pro
rata distributions of deferred cash payments to holders of allowed
Class 3 Claims in bi-annual installments of $5,000.00 each over the
period of sixty months, as follows:
Year 2025 June 15, 2025, and December 31, 2025
Year 2026 June 15, 2026, and December 31, 2026
Year 2027 June 15, 2027, and December 31, 2027
Year 2028 June 15, 2028, and December 31, 2028
Year 2029 June 15, 2028, and December 31, 2028
To the extent that the Disputed Priority Claims are resolved in
favor of the Debtor, the Unsecured Creditor Fund shall increase
dollar for dollar based on the reduction of the Disputed Priority
Claims to an amount not to exceed $300,000.00. The bi-annual
installments shall be distributed to allowed Class 3 Claims, pro
rata, by the Debtor. Class 3 claimants may be prepaid without
penalty or discount. Class 3 claims are impaired under the Plan.
This Plan is self-executing. The Debtor shall not be required to
execute any newly created documents to evidence the claims, liens,
or terms of repayment to the holder of an Allowed Claim.
The Plan shall be funded by proceeds from the Estate's available
cash, cash equivalents, and proceeds generated from Debtor's
business operations. The Debtor projects that its cash flow will be
sufficient to make the Plan payments.
A full-text copy of the Second Amended Plan dated August 29, 2024
is available at https://urlcurt.com/u?l=3iKSmY from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Gregory K. Stern, Esq.
Dennis E. Quaid, Esq.
Monica C. O'Brien, Esq.
Rachel S. Sandler, Esq.
Gregory K. Stern, P.C.
53 West Jackson Boulevard, Suite 1442
Chicago, IL 60604
Phone: (312) 427-1558
Email: greg@gregstern.com
dquaid3@gmail.com
monica@gregstern.com
rachel@gregstern.com
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.
RED CAT: OKs Issuance of 2.16M Shares to FlighWave Stockholders
---------------------------------------------------------------
Red Cat Holdings, Inc., disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Sept. 30, 2024, the
Company authorized 2,163,242 shares of its common stock to be
issued to certain stockholders of FlightWave and 381,750 shares of
Common Stock were reserved for issuance to be deposited in an
escrow account as security for indemnification obligations of
FlightWave and its stockholders for a period of 18 months.
The issuance was exempt under Section 4(a)(2) of the Securities Act
of 1933, as amended.
On Sept. 4, 2024, Red Cat, Teal Drones, Inc., FW Acquisition, Inc.,
a Nevada corporation ("Buyer") and FlightWave Aerospace Systems
Corporation, a Delaware corporation, entered into and closed on the
transactions set forth in an Asset Purchase Agreement.
FlightWave designs, develops, manufactures, and sells long range,
AI-Powered Unmanned Aerial Vehicles.
As previously disclosed in its Current Report on Form 8-K filed
Sept. 9, 2024, the Company's acquisition of FlightWave was made
pursuant to an APA providing for the payment of the Purchase Price
in shares of its common stock, par value $0.001 per share at the
Volume Weighted Average Price (VWAP) of its Common Stock on
Sept. 30, 2024 and Dec. 31, 2024.
About Red Cat Holdings Inc.
Red Cat (Nasdaq: RCAT) -- http://www.redcatholdings.com-- is a
drone technology company integrating robotic hardware and software
for military, government, and commercial operations. Red Cat's
solutions are designed to "Dominate the Night" and include the Teal
2, a small unmanned system offering the highest-resolution thermal
imaging in its class.
Red Cat reported a net loss of $24.05 million for the year ended
April 30, 2024, a net loss of $28.11 million for the year ended
April 30, 2023, a net loss of $11.69 million for the year ended
April 30, 2022, a net loss of $13.24 million for the year ended
April 30, 2021, and a net loss of $1.60 million for the year ended
April 30, 2020.
RED RIVER: Court Orders Parties to Meet Prior to Venue Hearing
--------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that a Texas
bankruptcy judge on Monday, September 30, 2024, ordered lawyers
fighting over a bid to get Johnson & Johnson's latest Chapter 11
moved to New Jersey to meet and confer before a hearing on the
potential venue transfer.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an
order denying LTL's stay motion on March 31, 2023, and, on the dame
day, issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may
be requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
REGAL PRESS: Amends Flagstar Secured Claims Details
---------------------------------------------------
The Regal Press Inc. submitted an Amended Disclosure Statement with
respect to Plan of Reorganization dated August 29, 2024.
On August 7, 2024, the Debtor filed its Motion to (A) Approve Sub
Lease, (B) Reject Existing Lease, And (C) Use Cash Collateral (the
"Lease Motion") [doc. no. 129], pursuant to which it requested,
among other things, Bankruptcy Court approval of a lease for a new
location.
The Debtor's existing lease expires on December 31, 2024, and the
proposed new lease is for a better location, with the rent and
utility costs being approximately $15,000 less per month than the
Debtor's current leased space. The Debtor's principal, William
Duffey, is contributing a portion of the security deposit for the
new lease and the cost of the move in order to reduce any impact on
the Debtor's cash flow.
Subject to Bankruptcy Court approval, the Debtor subsequently
reached agreement with Highland to buy the equipment that was the
subject of the Highland lease for $150,000. Under the agreement,
the Debtor will pay Highland $1,000 per month for 12 months and
$2,500 per month for the next twenty-four months, with the balance
of the purchase price due in 36 months. Highland, moreover, will
advance the approximately $38,000 cost of moving the equipment to
the Debtor's new facility, and the Debtor will pay one-half of
those costs with the balloon payment due in 36 months. The Debtor
is in the process of negotiating an agreement with Highland to
memorialize this agreement and will seek Bankruptcy Court approval
for the agreement.
The Plan will be funded from the Reorganized Debtor's continued
operations and by a contribution of new value from William N.
Duffy, Jr., the President of the Debtor, consisting of the amount
necessary to pay (the "Plan Contribution"): (a) up to $30,000 of
the security deposit in connection with a sublease with
Automationsolutions, Inc.; (b) the Allowed Professional Fee Claims;
(c) the Debtor's costs of moving, estimated to be between $100,000
to $150,000; and (d) up to $120,000, as needed, to the Reorganized
Debtor to be used for working capital. The Plan permits the Debtor
to restructure its debts, continue operations and proceed with
further development of its customer base.
Allowed Secured Claims and Allowed Administrative Expense Claims
will be paid in full. General Unsecured Claims will receive a Pro
Rata share of: (a) the Plan Payment, consisting of $250,000.00, to
be paid in twelve quarterly installments, and (b) fifty percent of
the Net Proceeds of any Avoidance Actions recovered by the
Reorganized Debtor. Absent the restructuring proposed under the
Plan, the Debtor believes that its will be liquidated and, with the
exception of a portion of the claims of the first lienholder on the
Debtor's assets, no creditors will receive a meaningful recovery on
account of their claims. The Debtor believes that the Plan presents
the best alternative for a recovery for all of the Debtor's
creditors.
Class 5 consists of Flagstar's Secured Claim against the Debtor.
Flagstar shall have an Allowed Secured Claim in the amount of
$60,000.00. In full and final satisfaction, settlement, discharge
and release of the Allowed Flagstar Secured Claim, the holder of
such Claim shall receive 60 monthly payments of $1,000.00, with the
first such payment commencing on the first day of the first full
month following the Effective Date.
Flagstar shall have an Allowed Deficiency Claim in the amount of
$308,751.33 that shall be treated as a Class 10 General Unsecured
Claim. Class 5 is impaired and the holder of the Flagstar Secured
Claim shall be entitled to vote to accept or reject the Plan.
Class 10 consists of the General Unsecured Claims. In full and
final satisfaction, settlement, discharge and release of the
Allowed General Unsecured Claims, each holder of an Allowed General
Unsecured Claim shall receive a Pro Rata share of: (a) the Plan
Payment, and (b) fifty percent of the Net Proceeds of any Avoidance
Actions recovered by the Reorganized Debtor. Class 10 is impaired.
The Plan will be funded by the Plan Contribution and from the
Debtor's continued operations. Upon the Effective Date, the Debtor
is authorized to take all action permitted by their Organization
Documents and by the law, including, without limitation, to use
their Cash and other Assets for all purposes provided for in the
Plan and in their operations, to borrow funds, to obtain new
financing secured by their Assets (provided such financing is not
secured by a Lien senior to the Liens retained by certain creditors
under the Plan), and to grant liens on their unencumbered Assets.
A full-text copy of the Amended Disclosure Statement dated August
29, 2024 is available at https://urlcurt.com/u?l=b85RCL from
PacerMonitor.com at no charge.
Counsel to the Debtor:
D. Ethan Jeffery, Esq.
MURPHY & KING, PROFESSIONAL CORPORATION
One Beacon Street 21st Floor
Boston, MA 02108
Tel: (617) 226-3410
Fax: (617) 305-0614
Email: ejeffery@murphyking.com
About Regal Press Inc.
The Regal Press, Inc., offers commercial printing and brand
management services to organizations of all sizes in the United
States and internationally.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-10485) on March 13,
2024. In the petition signed by William N. Duffey, Jr., president,
the Debtor disclosed up to $10 million in assets and up to $20
million in liabilities.
Judge Christopher J. Panos oversees the case.
D. Ethan Jeffery, Esq., at MURPHY & KING, PROFESSIONAL CORPORATION,
is the Debtor's legal counsel.
REID'S EDUCATIONAL: Aaron Cohen Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Reid's Educational Child Care Centre, LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Reid's Educational Child Care Centre
Reid's Educational Child Care Centre, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-02749) on September 10, 2024, with $100,001 to $500,000 in both
assets and liabilities.
Robert Elrod, Esq., represents the Debtor as legal counsel.
RENO CITY CENTER: Amends Plan to Include Delphi & Insider Claims
----------------------------------------------------------------
Reno City Center Owner LLC submitted an Amended Disclosure
Statement describing Amended Plan of Reorganization dated August
29, 2024.
The Plan was strategically crafted to optimize the value of the
Debtor's current assets and to leverage the existing
infrastructure, expertise, and experience of the Debtor and its
management team to complete construction of the Debtor's Project,
increase the value of Debtor's fixed assets, and generate future
reoccurring revenue.
The Debtor has hired Baxter Construction Company, LLC as its new
general contractor for the Project. The Debtor believes that
entering into this contract is in the ordinary course of the
Debtor's business; however, in an abundance of caution, the Debtor
has filed a motion to approve the agreement between the Debtor and
Baxter.
The Debtor has entered into the following contract post-petition in
the ordinary course of business: a Management Agreement with Reno
City Center, LLC regarding the management of the Property. Pursuant
to the management agreement, by and through RCC, the Debtor has
resumed operation of the hotel as Reno Suites and is exploring
options for sale, lease or joint venture for the hotel.
Pursuant to the management agreement, by and through RCC, the
Debtor has entered into the following contracts post-petition in
the ordinary course of business: the Laundry Services Agreement
with Park Place Laundry to provide laundry services to the Debtor
in connection with the Debtor's hotel operations as Reno Suites;
and the Reno, Nevada Parking Lease Agreement with Rockwood
Construction Company LLC to utilize certain parking spaces on
Levels One, Two and Three of the parking structure located at 219
University Way, Reno, Nevada 89501.
Like in the prior iteration of the Plan, the Class 4 allowed
general unsecured as of February 16, 2024, will accrue interest at
4% per annum from the Petition Date until paid, and shall be paid
by the Debtor in quarterly installments of $500,000 starting on
January 1, 2026, and continuing on the first day of each calendar
quarter thereafter until paid in full, with each quarterly payment
to be distributed on a pro rata basis among all allowed Class 4
claims.
The Class 5 allowed unsecured claim of Delphi CRE Funding, LLC,
shall be subordinated by agreement to all other allowed unsecured
claims, and Delphi will not seek payment from the Debtor pursuant
to the Parties' Settlement Agreement. The Class 5 allowed unsecured
claim shall remain a valid claim for all other purposes.
Accordingly, the Class 5 allowed unsecured claim of Delphi CRE
Funding, LLC is impaired under the Plan.
The Class 6 disputed insider claims filed by Christopher Beavor and
his related entities will not receive any payment from the Debtor
unless those claims are allowed by the Court or by agreement with
the Debtor. Any allowed Class 6 Claims shall be paid as follows:
Class 6 allowed insider claims will accrue interest at 4% per annum
from the Petition Date until paid and shall be paid by the Debtor
in quarterly installments of $250,000 starting on January 1, 2026,
and continuing on the first day of each calendar quarter thereafter
until paid in full, with each quarterly payment to be distributed
on a pro rata basis among all allowed Class 6 insider claims.
The Debtor intends to fund its Plan and ongoing construction and
business operations from a combination of equity contributions,
tenant improvement funding, and new financing.
A full-text copy of the Amended Disclosure Statement dated August
29, 2024 is available at https://urlcurt.com/u?l=P3gSTd from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Elizabeth Fletcher, Esq.
FLETCHER & LEE, LTD.
448 Ridge Street
Reno, NV 89501
Tel: (775) 324-1011
Email: efletcher@fletcherlawgroup.com
Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
850 E. Patriot Blvd., Suite F
Reno, NV 89511
Tel: (775) 786-7600
Email: steve@harrislawreno.com
About Reno City Center Owner
Reno City Center is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Reno City Center Owner LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case no.
24-50152) on Feb. 16, 2024, listing $100 million to $500 million in
both assets and liabilities. The petition was signed by Kirk
Walton, Managing Member of GPWM QOF Manager LLC, its Manager.
Judge Hilary L Barnes presides over the case.
Elizabeth Fletcher, Esq. at Fletcher & Lee, is the Debtor's
counsel.
RHODIUM ENCORE: Court Tosses Landlord's Live Mining Inspection Bid
------------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that a Texas
bankruptcy judge on Monday, September 30, 2024, shot down a
landlord's request for its expert to inspect live mining operations
at a facility run by bankrupt Rhodium Encore LLC, saying historic
performance data should provide enough information as the bitcoin
miner and its landlord gear up for a fight over the property lease
and connected agreement.
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug. 24, 2024. In
the petition filed by Michael Robinson, as co-CRO, the Debtor
reports lead debtor's estimated assets between $100 million and
$500 million and estimated liabilities between $50 million and $100
million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
RHODIUM ENCORE: Hires Stris & Maher as Special Litigation Counsel
-----------------------------------------------------------------
Rhodium Encore LLC and its affiliates seek approval from the U.S.
Bankrutpcy Court for the Southern District of Texas to hire Stris &
Maher LLP as special litigation counsel.
The firm will render these services:
a. along with co-counsel Lehotsky Keller Cohn LLP, represent
the Debtors in all matters in which the Whinstone Dispute is at
issue, including specifically in the Motions to Assume Contracts
With Whinstone (ECF Nos. 7, 32), and in the Tarrant County
Litigation;
b. represent the Debtors in the Midas Green Patent Litigation,
including in connection with any subpoenas Debtors receive for
documents in the Midas Green Patent Litigation; and
c. represent Debtors in the Temple Green Data Matter.
Stris & Maher received its first retainer of $250,000 from Debtors
to represent them in the Whinstone dispute on June 14, 2023.
Stris & Maher LLP's 2024 rates for its attorneys and other
professionals range from $325 to $1,250 per hour.
The following is provided in response to the request for additional
information set forth in Paragraph D.1 of the U.S. Trustee Fee
Guidelines:
Question: Did the firm agree to any variations from, or
alternatives to, the firm's standard billing arrangement for this
engagement?
Answer: No, except that the firm has agreed to provide a 10%
courtesy discount for fees incurred in the Tarrant County
Litigation.
Question: Do any of the firm's professionals in this engagement
vary their rate based on the geographical location of the Rhodium
chapter 11 case?
Answer: No. The hourly rates used by the firm in representing
Rhodium are consistent with the rates that the firm charges
comparable clients.
Question: If the firm has represented Rhodium in the 12 months
prepetition, disclose the firm's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition.
If the firm's billing rates and material financial terms have
changed postpetition, explain the difference and the reasons for
the difference.
Answer: In the 12 months pre-petition, the firm has represented
Rhodium in the Whinstone Dispute, Midas Green Patent Litigation,
Temple Green Data Matter, and the Celsius Matter. In the Whinstone
Dispute (with the exception of the Tarrant County Litigation),
Temple Green Data Matter, and Celsius Matter, the firm was retained
on an hourly basis at its standard rates.
In the Tarrant County Litigation, the firm was retained on an
hourly basis at its standard rates, subject to a 10% courtesy
discount. In the Midas Green Patent Litigation, the firm was
initially retained on a monthly flat-fee basis
but, starting in April of 2024, Rhodium agreed to pay the firm
hourly at its standard rates. For all matters, the firm's billing
rates and material financial terms have not changed post-petition.
Question: Has Rhodium approved the firm's budget and staffing
plan, and if so, for what budget period?
Answer: Rhodium regularly reviews the firm's staffing and
invoices. Rhodium requested a budget for this engagement, which the
firm provided and which Rhodium has approved.
Peter Stris, a partner Stris & Maher LLP, assured the court that
his firm is a "disinterested person" within the meaning of 11
U.S.C. 101(14).
The firm can be reached through:
Peter K. Stris, Esq.
Stris & Maher LLP
777 S. Figueroa Street, Suite 3850
Los Angeles, CA 90017
Tel: (213) 995-6800
Fax: (213) 261-0299
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
RHODIUM ENCORE: Seeks to Hire Province LLC as Financial Advisor
---------------------------------------------------------------
Rhodium Encore LLC and its affiliates seek approval from the U.S.
Bankrutpcy Court for the Southern District of Texas to hire
Province, LLC as financial advisor.
The firm's services include:
(a) assistance to the Debtors in the preparation of financial
disclosures required by the Court;
(b) assistance in preparation of a cash forecast and related
analyses;
(c) assistance in the monetization of remaining assets,
including, but not limited to, running numerous sale processes and
reviewing the requisite agreements, such as bidding procedures,
stalking horse bids, and APAs;
(d) assistance in discussions with the interested parties and
their professionals in this case on all requisite matters;
(e) assistance in general case administration and management;
(f) assistance in the preparation of and review of avoidance
action and claim analyses;
(g) advice the Debtors on the current state of these Chapter
11 Cases;
(h) If necessary, participation as a witness in hearings
before the bankruptcy court with respect to matters upon which
Province has provided advice; and
(i) provision of other activities as are approved by the
Debtors, the Debtors' counsel, and as agreed to by Province.
The firm will be paid at these hourly rates:
Managing Directors and Principals $870 to $1,450 per hour
Vice Presidents, Directors
and Senior Directors $690 to $950 per hour
Analysts, Associates
and Senior Associates $370 to $700 per hour
Other / Para-Professional $270 to $410 per hour
Province received an initial retainer in the amount of $250,000.
Michael Robinson, managing director of Province, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Michael Robinson
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Tel: (702) 685-5555
Email: mrobinson@provincefirm.com
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
RHODIUM ENCORE: Taps Lehotsky Keller as Special Litigation Counsel
------------------------------------------------------------------
Rhodium Encore LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire
Lehotsky Keller Cohn LLP as special litigation counsel.
Lehotsky Keller Cohn, along with co-counsel Stris & Maher LLP, may
represent Debtors in all matters in which the Whinstone Dispute is
at issue, including specifically in the Motions to Assume Contracts
With Whinstone (ECF Nos. 7, 32), and in the Tarrant County
Litigation.
The firm will render these services:
a. take all necessary actions to protect and preserve the
Debtors' estates, including the prosecution of actions on the
Debtors' behalf, the defense of any actions commenced against the
Debtors, the negotiations of disputes in which the Debtors are
involved and the preparation of objections to claims filed against
the Debtors' estates;
b. advise the Debtors with respect to their responsibilities
in complying with the United States Trustee Guidelines and
Reporting Requirements and with the rules of the Court;
c. prepare, on behalf of the Debtors, as debtors in
possession, all necessary motions, applications, answers, orders,
reports, and other papers in connection with the administration of
the Debtors' estates;
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 Debtors' estates;
e. take all appropriate actions in connection with the sale of
any or all of the Debtors' assets pursuant to section 363 of the
Bankruptcy Code, or otherwise; and
f. perform all other necessary legal services in connection
with the prosecution of these Chapter 11 Cases.
The firm will be paid at these hourly rates:
Partners $1,400
Other Partners $1,300
Counsel $1,000
Associates $850
Staff Attorney $500
Lehotsky Keller Cohn LLP has agreed to discount its rates in
exchange for a contingent fee. For the first $250,000 of time at
standard rates in a month, there will be a 20 percent discount. For
the next $250,000 of time at standard rates in a month, there will
be a 25 percent discount. For all additional time in a month, there
will be a 30 percent discount.
The following is provided in response to the request for additional
information set forth in Appendix B, Paragraph D.1 of the Fee
Guidelines.
Question: Did the firm agree to any variations from, or
alternatives to, the firm's standard billing arrangement for this
engagement?
Answer: Yes. The firm's standard billing arrangement is hourly.
For the Whinstone Dispute, the firm agreed to reduce its hourly
rates in exchange for a contingent fee.
Question: Do any of the firm's professionals in this engagement
vary their rate based on the geographical location of the Rhodium
chapter 11 case?
Answer: No. The hourly rates used by the firm in representing
Rhodium are consistent with the rates that the firm charges
comparable clients.
Question: If the firm has represented Rhodium in the 12 months
prepetition, disclose the firm's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition.
If the firm's billing rates and material financial terms have
changed postpetition, explain the difference and the reasons for
the difference.
Answer: In the 12 months pre-petition, the firm has represented
Rhodium in the Whinstone Dispute and a separate matter. In the
Whinstone Dispute, the firm was retained on an hourly basis at its
standard 2023 rates -- $1300 for name partners, $1200 for other
partners, $900 for counsel, and $750 for associates -- with two
exceptions. First, those hourly rates were discounted in exchange
for a contingent fee. Second, the work of one attorney was charged
based on a monthly flat fee. In a new engagement letter, which was
post-petition for some Debtors but pre-petition for another Debtor,
the hourly rates were updated to the firm's standard 2024 rates,
with the same two exceptions noted above. In a separate,
post-petition engagement letter, the firm agreed to charge hourly
for all attorneys, including the attorney whose work was previously
charged based on a monthly flat fee. In the other matter, the firm
was retained on a monthly flat-fee.
Question: Has Rhodium approved the firm's budget and staffing
plan, and if so, for what budget period?
Answer: Rhodium regularly reviews the firm's staffing and
invoices. Rhodium requested a budget for this engagement, which the
firm provided and which Rhodium has approved.
Jonathan Cohn, Esq., a partner at Lehotsky Keller Cohn, 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:
Jonathan F. Cohn, Esq.
Lehotsky Keller Cohn LLP
408 W. 11th Street, 5th Floor
Austin, TX 78701
Tel: (512) 693-8350
Fax: (833) 233-2202
Email: jon@lkcfirm.com
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
RHODIUM ENCORE: Taps Quinn Emanuel Urquhart & Sullivan as Attorney
------------------------------------------------------------------
Rhodium Encore LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Quinn
Emanuel Urquhart & Sullivan, LLP as attorneys.
The firm will render these services:
a. take all necessary actions to protect and preserve the
Debtors' estates, including the prosecution of actions on the
Debtors' behalf, the defense of any actions commenced against the
Debtors, the negotiations of disputes in which the Debtors are
involved and the preparation of objections to claims filed against
the Debtors' estates;
b. advise the Debtors with respect to their responsibilities
in complying with the United States Trustee Guidelines and
Reporting Requirements and with the rules of the Court;
c. prepare, on behalf of the Debtors, as debtors in
possession, all necessary motions, applications, answers, orders,
reports, and other papers in connection with the administration of
the Debtors' estates;
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 Debtors' estates;
e. take all appropriate actions in connection with the sale of
any or all of the Debtors' assets pursuant to section 363 of the
Bankruptcy Code, or otherwise; and
f. perform all other necessary legal services in connection
with the prosecution of these Chapter 11 Cases.
The firm will be paid at these hourly rates:
Partners $1,720. to $1,765
Counsel $1,570
Associates $1,395 to $1,515
Law clerks $645
Paraprofessionals $550
Quinn Emanuel currently holds $243,883.98 in its retainer account.
The following is provided in response to the request for additional
information set forth in Appendix B, Paragraph D.1 of the Fee
Guidelines.
Question: Did the firm agree to any variations from, or
alternatives to, the firm's standard billing arrangements for this
engagement?
Answer: No.
Question: Do any of the firm's professionals in this engagement
vary their rate based on the geographical location of the Debtors'
Chapter 11 Case?
Answer: No. The hourly rates used by Quinn Emanuel in
representing the Debtors are consistent with the rates that the
firm charges other comparable chapter 11 clients, regardless of the
location of the chapter 11 case.
Question: If the firm has represented the Debtors in the 12
months pre-petition, disclose the firm's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition. If the firm's billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Answer: Quinn Emanuel was first retained by the Debtors in March
2024. Quinn Emanuel's fees are determined on the basis of time
billed at hourly rates.
The hourly rates billed by Quinn Emanuel pre-petition are the same
hourly rates requested post-petition.
Question: Have the Debtors approved Quinn Emanuel's budget and
staffing plan, and if so, for what budget period?
Answer: The Debtors have not requested a budget and/or staffing
plan from Quinn Emanuel.
Patricia Tomasco, Esq., a partner at Quinn Emanuel Urquhart &
Sullivan, 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:
Patricia B. Tomasco, Esq.
QUINN EMANUEL URQUHART & SULLIVAN, LLP
711 Louisiana, Suite 3900
Houston, TX 77002
Telephone: (713) 221-7000
Facsimile: (713) 221-7100
Email: pattytomasco@quinnemanuel.com
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
ROBERTSHAW US: Emerges From Chapter 11, Eliminates $650M Debt
-------------------------------------------------------------
Robertshaw US Holding Corporation, a leading global design,
engineering, and manufacturing company announced the successful
completion of its Chapter 11 sale and restructuring and its new
ownership by a group of Robertshaw's pre-existing primary senior
secured lenders and an affiliate of the pre-existing sponsor.
Through completion of the sale and emergence from Chapter 11,
Robertshaw eliminated approximately $650 million of debt,
substantially reducing its debt service burden, greatly improving
its liquidity, and giving the Company the financial flexibility to
invest in growth and better serve its global customer base.
Robertshaw also entered into a settlement with the Creditors'
Committee and resolved litigation issues related to the May 2023
and December 2023 liability management transactions.
Throughout the restructuring process, Robertshaw prioritized
supporting its customers as well as trade creditors to secure the
subcomponents needed to meet customer demand. With the confirmation
of the Chapter 11 plan and completed sale, trade creditors as a
whole will receive payment of over 75% of their pre-bankruptcy
claims.
"This important milestone marks the conclusion of Robertshaw's
seven month restructuring process at a time when we are celebrating
our 125th anniversary. With a stronger balance sheet, we look
forward to continuing to serve our valued customers. We appreciate
the overwhelming and meaningful support of our customers, vendors,
and employees during this process, and we are excited to bring
innovative and high-quality products to our customers for the next
125 years," said John Hewitt, Chief Executive Officer, Robertshaw.
About Robertshaw US Holding Corp.
Robertshaw US Holding Corp., along with its affiliates, is a global
leader in designing and manufacturing innovative control systems
and components for the appliance and HVAC industries.
Robertshaw US Holding and its affiliates filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90052) on February 15, 2024,
with $500 million to $1 billion in assets and liabilities. John
Hewitt, chief executive officer, signed the petitions.
The Debtors tapped Hunton Andrews Kurth LLP & Latham & Watkins, LLP
as bankruptcy counsel; Guggenheim Securities, LLC as investment
banker and financial advisor; and KPMG, LLP as accountant, tax
advisor and auditor. Kroll Restructuring Administration, LLC is the
claims, noticing, solicitation and balloting agent.
ROYSTONE ON QUEEN: All Classes to be Paid in Full in Plan
---------------------------------------------------------
Roystone on Queen Anne LLC filed with the U.S. Bankruptcy Court for
the Western District of Washington a Disclosure Statement for
Chapter 11 Plan of Reorganization dated August 29, 2024.
Roystone owns real property and multi-family improvements commonly
known as the Roystone Apartments, located in the heart of lower
Queen Anne at 5 W Roy Street in Seattle, Washington.
The Property is comprised of 93 residential units, almost 4,000
square feet of retail space, and 15 subterranean parking stalls.
The actual, vertical construction largely occurred during the
COVID-19 pandemic. In September 2017, Vibrant Cities, LLC created
Roystone on Queen Anne LLC.
Real property and improvements thereon comprising the Property
located at 5 W Roy Street in Seattle, Washington commonly known as
the Roystone Apartment with a scheduled value of $39,056,543, which
reflected the Debtor's opinion of value. The Debtor engaged Cushman
and Wakefield to complete an appraisal. Cushman and Wakefield
appraised the Property "as is" at $33,800,000.
The Schedules reflect general Unsecured Claims as of the Petition
Date totaling approximately $698,247.86. In addition to its Secured
Claim, Pavilion asserts a general Unsecured Claim in the amount of
$1,020,616.00.
The Plan provides the Debtor with the option to either refinance
the Secured Claims, or sell the Property, so long as either such
event creates Net Proceeds sufficient to pay all Allowed Claims in
full. The Debtor through its management believes that, in the case
of a sale, the value of the Property will be more than sufficient
prior to the Plan Maturity Date to pay all Allowed Claims in full.
The Plan also anticipates that the amount of the 5 Roy Claim that
is allowable as a Secured Claim pursuant to section 506(a) of the
Bankruptcy Code (and therefore treated as a Class 1 Claim under the
Plan) will not be determined prior to Confirmation, as such amount
will be dependent upon, among other things, (i) the value of the
Property, and (ii) the viability and value of claims the Debtor may
hold against 5 Roy. The Plan identified that 5 Roy asserts the
initial amount of the Class 1 Claim in the amount of $31,793,489.27
based on the 5 Roy Proof of Claim. The ultimate amount of the
Allowed Claim of 5 Roy shall be subject to Final Order of the Court
and the Debtor's right to object to any amounts of the claim it
believes are not properly included.
The Plan provides for full payment of all creditors from cash on
hand, income generated from the Debtor's business operations,
proceeds of a post-petition exit loan, and the proceeds of a
refinance of the existing secured obligations and/or a sale of the
Debtor's real property.
Class 6 consists of all Unsecured Claims other than Allowed Claims
that qualify for or elect treatment under Class 5 (each, a "Class 6
Claim"). The Class 6 Allowed Claims shall be paid as follows:
* Each Holder of a Class 6 Allowed Claim shall be paid from
the Net Proceeds of a Financial Event after payment in full of
Classes 1, 2, 2A, and 3.
* Each Holder of a Class 6 Allowed Claim shall be paid pro
rata with Holders of Allowed Claims in Classes 2, 2A, and 3 from
the Net Proceeds generated from any Litigation Claims or Avoidance
Claims.
* Upon the occurrence of a Financial Event, the remaining
balance of all Class 6 Allowed Claims, if any, shall be paid in
full.
Interest shall accrue on Class 6 Allowed Claims at the federal
judgment rate, which shall be adjusted annually. Class 6 is
impaired under the Plan.
Class 7 consists of Equity Interests. The Holders of Equity
Interests shall each retain such Equity Interests in the same
equity class and priority, if any, following the Effective Date as
existed as of the Petition Date. No distributions shall be made on
account of the Equity Interests until all Allowed Claims are paid
in full in accordance with the Plan.
All Allowed Claims will be paid in full from monthly payments from
cash on hand, Net Income, funds advanced pursuant to the Exit Loan,
proceeds of Litigation Claims and/or Avoidance Actions, and from
the Net Proceeds of a Financial Event. The Plan provides and
invests the Reorganized Debtor with the right and authority to sell
the Property at any time following Confirmation, without further
notice or order of the Court.
The Plan provides for payment of all Allowed Claims ultimately
through a sale of the Property and/or the refinance of some or all
of the Secured Claims. If all Allowed Claims under the Plan have
not been paid in full by the fifty-second full month following the
Effective Date, the Reorganized Debtor shall list the Property for
sale by the last business day of the 52nd month on the open market
by listing it with a qualified, licensed commercial realtor, at the
sole discretion of the Reorganized Debtor, at a commercially
reasonable listing price.
A full-text copy of the Disclosure Statement dated August 29, 2024
is available at https://urlcurt.com/u?l=iXI6vi from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Richard B. Keeton, Esq.
Bush Kornfeld Llp
601 Union Street, Suite 5000
Seattle, WA 98101
Tel: (206) 292-2110
Email: rkeeton@bskd.com
About Roystone On Queen Anne
Roystone on Queen Anne, LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments located
at 5 W. Roy Street, Seattle, Wash. The property has an appraised
value of $39,056,543.
Roystone on Queen Anne filed its voluntary petition for Chapter 11
protection (Bankr. W.D. Wash. Case No. 24-11462) on June 12, 2024,
listing $39,433,126 in assets and $35,776,259 in liabilities. James
H. Wong, manager of Vibrant Cities, LLC, signed the petition.
Judge Christopher M. Alston oversees the case.
Bush Kornfeld, LLP serves as the Debtor's legal counsel.
RYLEE & COMPANY: May Use Cash Collateral Thru Dec. 31
-----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas, Plano
Division, granted Rylee & Company, LLC authorization to use cash
collateral, determining that secured creditors were adequately
protected under the terms outlined in a previously agreed interim
order. The debtor may continue using cash collateral according to a
specific budget through December 31, 2024.
The debtor is required to submit a proposed budget for each
subsequent budget period to First United Bank and Trust Co.,
Bayfirst National Bank, the subchapter V trustee, any committee,
and the U.S. Trustee for review. These parties have five days to
object to the proposed budget. In the absence of objections or if
the court overrules any objections, the proposed budget will be
adopted for the next period, allowing the debtor to continue using
cash collateral.
Creditors maintain their liens and security interests in the
debtor's prepetition assets and proceeds, including cash
collateral, to the extent outlined in prepetition loan documents.
Adequate protection liens are granted to secured creditors for any
reduction in the value of collateral resulting from the debtor's
use. However, the liens are subject to administrative expense
carve-outs, including for Clerk of Court fees, U.S. Trustee fees
and subchapter V trustee fees.
Additionally, the adequate protection liens do not extend to the
debtor's avoidance rights under Chapter 5 of the Bankruptcy Code,
which preserve the debtor's ability to challenge or avoid certain
pre-bankruptcy transfers. The order also preserves the right of
creditors to request further limitations on the debtor's use of
cash collateral if necessary.
A copy of the Court's Order, which includes the Debtor's
three-month budget from October to December, is available at
https://urlcurt.com/u?l=dpZWTH The budget includes operating
expenses for utilities, payroll, insurance, and supplies, with
monthly operating costs estimated at $22,558. The debtor expects
monthly revenue of $26,500, with a contingency of 5% to cover
fluctuating costs. The budget projects a monthly profit of $3,588,
including food program reimbursements.
About Rylee & Company
Rylee & Company, LLC provides childcare services, generating
revenue from tuition, subsidies, and reimbursements while managing
operational costs like utilities, payroll, and supplies. The
company is undergoing financial reorganization to stabilize and
ensure sustainability.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Texas Case No. 24-42062) with $500,000
to $1 million in assets and $1 million to $10 million in
laibilities.
The petition was signed by Amber Castillo, owner/director.
The Hon. Brenda T. Rhoades presides over the case.
Mark J. Petrocchi, Esq., at GRIFFITH, JAY & MICHEL, LLP, is the
Debtor's legal counsel.
SC-GA OPERATOR: Case Summary & One Unsecured Creditor
-----------------------------------------------------
Debtor: SC-GA Operator Holdings, Inc.
South Atlantic Health Care
2870 Peachtree Road
Suite 502
Atlanta, GA 30305
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 24-60573
Debtor's Counsel: Matthew W. Levin, Esq.
SCROGGINS, WILLIAMSON & RAY, P.C.
4401 Northside Parkway
Suite 230
Atlanta, GA 30327
Tel: 404-893-3380
Fax: 404-893-3886
E-mail: mlevin@swlawfirm.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Katie Goodman as CRO.
The Debtor listed Health Care Navigator located at 2 Bridge Street
Suite 210, Irvington, NY 10533 as its sole unsecured creditor
holding a claim of $1 million.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/WBYWR3A/SC-GA_Operator_Holdings_Inc__ganbke-24-60573__0001.0.pdf?mcid=tGE4TAMA
SIX RIVERS: Hires BCM Advisory Group LLC as Financial Advisor
-------------------------------------------------------------
Six Rivers Construction, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Maine to employ BCM Advisory
Group, LLC as financial advisor.
The firm will assist the Debtor with its financial and account
responsibilities with regard to its Chapter 11 filing and the
Debtor's ongoing business operations.
The firm will be paid $1,500 every other week to be held in escrow,
toward allowed fees and expenses.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jason J. Mills, CFE, a partner at BCM Advisory 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:
Jason J. Mills, CFE
BCM Advisory Group, LLC
190 Main St., 3rd Floor
Saco, ME 04072
400 The Hill, Suite 1
Portsmouth, NH 03801
Telephone: (207) 807-9516
About Six Rivers Construction
Six Rivers Construction LLC offers construction services for
residential and commercial projects. Six Rivers Construction is
also a local dealer for Lester Buildings Systems, specializing in
pre-engineered post-frame buildings that offer a multitude of
options for farm, livestock, equine, hobby, and commercial
purposes.
The Honorable Bankruptcy Judge Peter G. Cary oversees the case.
The Debtor is represented by:
Tanya Sambatakos, Esq.
MOLLEUR LAW FIRM
190 Main St., 3rd Fl
Saco ME 04072
Tel: (207) 283-3777
Email: tanya@molleurlaw.com
SKY MEDIA PAY: Court OKs Sale of Epic West Condominium Property
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida has
allowed Sky Media Pay Inc. to dispose of Unit 4811 of Epic West
Condominium located at 200 Biscayne Blvd. Way, Miami, Florida.
According to the Court:
1. Secured creditors, International Finance Bank, and Epic
West Condominium Association Inc., must be paid in full from the
sale proceeds after the closing of the sale;
2. Proceeds remaining after the disbursements to the secured
creditors as well as any
customary and ordinary closing costs must be deposited into the
trust account belonging to the Debtor's counsel, Roshawn Banks;
and
3. Banks will administer all remaining plan payments to the
remaining creditors in the confirmed plan.
The Debtor was approved to retain Fortune International Realty to
either sell or lease its properties on December 29, 2021. The Unit
4811 has an "as is" contract, cash purchase offer of $715,000 with
a closing date of September 30, 2024.
The Debtor said the sale amount covers all liens on the property,
including:
-- International Finance Bank, Proof of Claim 8, $566,380.00
(does not include updated payoff); and
-- Epic West Condominium Association, Proof of Claim 13,
$59,530.76 (does not include updated payoff).
According to the Debtor, the Creditor for this real property has
obtained relief from the automatic stay on April 26, 2024, and a
foreclosure sale has been set for October 28, 2024. The Secured
Creditors have been aware of the sale since the contract date.
While the property is no longer part of the estate, the underwriter
for closing has requested a court order to sell, the Debtor added.
About Sky Media Pay
Sky Media Pay, Inc., is the fee simple owner of four real
properties in Miami, Fla., having a total current value of $2.52
million.
Sky Media Pay filed a voluntary petition for Chapter 11 protection
(Bankr. S.D. Fla. Case No. 21-20444) on Oct. 29, 2021, listing
$2,521,691 in total assets and $4,503,498 in total liabilities.
Paola Angulo, president, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Roshawn Banks, Esq., at The All Law Center, PA, serves as the
Debtor's legal counsel.
SMITH MICRO: Completes Concurrent Equity Offerings Raising $6.9M
----------------------------------------------------------------
Smith Micro Software, Inc. announced Oct. 3 the completion of
investments in Company securities in two offerings: a registered
offering with certain institutional and accredited investors and an
unregistered offering with the Company's chief executive officer.
Both offerings were priced based on the market value of the offered
securities as of the time of signing the purchase agreements, and
the gross proceeds of the two offerings is $6.9 million, including
the investment of $3.0 million made by the Company's chief
executive officer.
Registered Offering
The Company has completed its offering of 3,321,881 registered
shares of its common stock (together with accompanying unregistered
warrants) at a price of $1.165 per share to certain institutional
and accredited investors pursuant to a definitive agreement with
the investors. The holders of the warrants will be able to
purchase up to an aggregate of 3,321,881 shares of the Company's
common stock at an exercise price of $1.04 per share. The warrants
were issued to the investors in a private placement and will become
exercisable following the six-month anniversary of the closing date
for the Registered Offering transaction and will expire on the date
that is five and one-half years after the closing date of the
Registered Offering. The Registered Offering resulted in gross
proceeds to the Company of approximately $3.87 million prior to
transaction expenses.
Private Placement
Concurrently, the investment in Company securities by the Company's
chief executive officer by means of a private placement of
2,575,107 unregistered shares of the Company's common stock
(together with unregistered warrants to purchase an equal number of
shares), at a purchase price of $1.165 per share, which represents
the market value of the securities as of the signing of the
definitive purchase agreement for the transaction has been
completed.
Each warrant issued pursuant to the Private Placement is
exercisable for one share of common stock at an exercise price of
$1.04 per share. The warrants will become exercisable six months
after they are issued and will expire five years thereafter;
provided, however, that the warrants will not be exercisable if
such exercise would cause the holder's ownership of Company common
stock to exceed 19.99%, unless and until the transaction is
approved by Company stockholders in accordance with NASDAQ Listing
Rule 5635(b).
The Private Placement resulted in gross proceeds to the Company of
approximately $3.0 million prior to transaction expenses.
Smith Micro intends to use the net proceeds from both the
Registered Offering and the Private Placement transaction for
working capital and general corporate purposes. Buchanan Ingersoll
& Rooney PC served as legal counsel to the Company.
A shelf registration statement on Form S-3, File No. 333-264667,
relating to the Registered Offering of the shares of common stock
described above was filed with the Securities and Exchange
Commission and declared effective on May 12, 2022. A prospectus
supplement describing the terms of the Registered Offering and the
accompanying base prospectus have been filed with the SEC and are
available for free on the SEC's website located at
http://www.sec.gov. The offering of the securities in the
Registered Offering may be made only by means of a prospectus.
Electronic copies of the prospectus supplement and the accompanying
prospectus relating to the offering, when available, may be
obtained by contacting: Smith Micro Software, Inc., 5800 Corporate
Drive, Pittsburgh, PA 15237 Attn: Investor Relations, telephone:
412-837-5300, or by email at ir@smithmicro.com.
The common stock issued in the Private Placement transaction and
the warrants for the Registered Offering and Private Placement
transaction were offered and sold in a transaction exempt from the
registration requirements of the Securities Act of 1933, as
amended, pursuant to the exemption for transactions by an issuer
not involving any public offering under Section 4(a)(2) of the
Securities Act and Rule 506 of Regulation D of the Securities Act
and in reliance on similar exemptions under applicable state laws.
Accordingly, the privately placed shares, all warrants and
underlying shares of common stock issuable upon exercise of the
warrants issued in both the Registered Offering and Private
Placement transaction may not be offered or sold in the United
States except pursuant to an effective registration statement or an
applicable exemption from the registration requirements of the Act
and such applicable state securities laws. The Company has agreed
to file a registration statement with the SEC registering the
resale of the shares of common stock issued in the Private
Placement transaction, and the shares of common stock issuable upon
exercise of the warrants issued in connection with the Registered
Offering and the Private Placement transaction.
About Smith Micro Software
Pittsburgh, Pa.-based Smith Micro Software, Inc. develops software
to simplify and enhance the mobile experience, providing solutions
to some of the leading wireless and cable service providers around
the world. From enabling the family digital lifestyle to providing
powerful voice messaging capabilities, the Company's solutions
enrich today's connected lifestyles while creating new
opportunities to engage consumers via smartphones and consumer IoT
devices. The Smith Micro portfolio also includes a wide range of
products for creating, sharing and monetizing rich content, such as
visual voice messaging, optimizing retail content display and
performing analytics on any product set.
Los Angeles, Calif.-based SingerLewak LLP, the Company's auditor
since 2005, issued a "going concern" qualification in its report
dated Feb. 26, 2024, citing that the Company has suffered recurring
losses from operations and has projected future cash flow
requirements to meet continuing operations in excess of current
available cash. This raises substantial doubt about the Company's
ability to continue as a going concern.
SMOKIN' DUTCHMAN: Scott Chernich Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Scott Chernich as
Subchapter V trustee for Smokin' Dutchman Holdings, LLC.
Mr. Chernich will be paid an hourly fee of $375 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Chernich declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Scott A. Chernich
313 S. Washington Square
Lansing, MI 48933
517-371-8133
Email: schernich@fosterswift.com
About Smokin' Dutchman Holdings
Smokin' Dutchman Holdings is a Dickey's Barbecue Restaurants
franchisee.
Smokin' Dutchman Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-02343) on Sept.
9, 2024, with total assets of $100,000 to $500,000 and total
liabilities of $1 million to $10 million. Krage Fox, a member of
Smokin' Dutchman Holdings, signed the petition.
The Debtor is represented by Perry Pastula, Esq., at Dunn, Schouten
& Snoap, P.C.
SONOMA CELLAR: Hires Mcnamee Hosea P.A. as Counsel
--------------------------------------------------
Sonoma Cellar LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Virginia to employ Mcnamee Hosea, P.A. as
counsel.
The firm's services include:
a. providing the Debtor legal advice with respect to its
powers and duties as a debtor in possession and in the operation of
its business and management of its property;
b. preparing any necessary applications, answers, orders,
reports and other legal papers, and appearing on the Debtor's
behalf in proceedings instituted by or against the Debtor;
c. assisting the Debtor in the process of selling its property
and/or the confirmation of a plan and approval of a disclosure
statement;
d. assisting the Debtor with other legal matters;
e. performing all of the legal services for the Debtor that
may be necessary or desirable herein.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The Debtor paid the firm a retainer of $21,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Justin Fasano, Esq., a partner at McNamee Hosea, 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:
Justin Fasano, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: (301) 982-9450
Email: jfasano@mhlawyers.com
About Sonoma Cellar LLC
Sonoma Cellar LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Va. Case No. 24-11780-KHK) on Sept. 24, 2024. The Debtor hires
Mcnamee Hosea, P.A. as counsel.
SOUTH COAST EQUIPMENT: Oct 16 Final Hearing on Cash Collateral Use
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
granted South Coast Equipment LLC interim approval to use cash
collateral, effective from September 3, 2024. The final hearing is
set for October 16, 2024.
The court authorized interest-only adequate protection payments of
$2,315.60 per month to the U.S. Small Business Administration
(SBA), starting October 1, 2024. On Deck Capital and two other
creditors will not receive payments as they are either fully
secured or unsecured.
On Deck and SBA are granted replacement liens on post-petition cash
collateral used. The debtor is authorized to use cash collateral
per the budget provided, with a 10% variance allowance. Expenses
will be paid for post-petition activities only.
The order preserves the rights of all parties to seek further
relief, including modifications or objections to the interim order.
South Coast Equipment LLC filed budget projections from September
2024 to February 2025. A copy of the Court's order and budget is
available at https://urlcurt.com/u?l=3mREEH
The Debtor's counsel can be reached through:
Chad Van Horn, Esq.
Van Horn Law Group, P.A.
500 NE 4th Street #200
Fort Lauderdale, FL 33301
Telephone: (954) 765-3166
Facsimile: (954) 756-7103
Email: Chad@cvhlawgroup.com
About South Coast Equipment LLC
South Coast Equipment LLC in Miami, FL, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. S.D. Fla. Case No. 24-19043) on Sept. 3,
2024, listing $618,928 in assets and $1,219,748 in liabilities.
David Presmanes as president, signed the petition.
Judge Laurel M. Isicoff oversees the case.
VAN HORN LAW GROUP, P.A. serve as the Debtor's legal counsel.
SPRING HILL COLLEGE: Reaches Agreement with Nuveen to Stop Default
------------------------------------------------------------------
Amanda Albright and Nic Querolo of Bloomberg News report that
Spring Hill College, the oldest Catholic educational institution in
the southeast of the US, has struck a deal with its biggest
creditor Nuveen that gives it more time to shore up its finances
and overcome a default.
The Mobile, Alabama-based college entered into what’s known as a
forbearance agreement with UMB Bank — the trustee for bondholders
like Nuveen — after breaching a covenant, according to an Oct. 1,
2024 regulatory filing.
As part of such agreements, bondholders can agree to hold off on
steps like lawsuits to give distressed borrowers more time to right
their finances.
About Spring Hill College
Spring Hill College is a Mobile, Alabama-based college.
STEWARD HEALTH: Cannot Be Compelled to Reassign Contract
--------------------------------------------------------
Clara Geoghegan of Law360 reports that while a government
contractor was within its rights to end a subcontracting agreement
with embattled hospital group Steward Health, the Bankruptcy Code's
provisions for assignment of contracts mean the debtor can't be
compelled to reassign the agreement while in Chapter 11, a Texas
bankruptcy judge said Tuesday, October 1, 2024.
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. Tex. Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
TIRES RIMS: Case Summary & 15 Unsecured Creditors
-------------------------------------------------
Debtor: Tires Rims and Parts, LLC
1807 Sweet Gum Drive
Norristown, PA 19403
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Eastern District of Pennsylvania
Case No.: 24-13582
Judge: Hon. Patricia M Mayer
Debtor's Counsel: Dimitri L. Karapelou, Esq.
MUSI, MERKINS, DAUBENBERGER & CLARK, L.L.P.
21 W. Third Street
Media, PA 19063
Tel: (610) 891-8806
Fax: (610) 891-8807
E-mail: dlk@mmdlawfirm.com
Total Assets: $313,877
Total Liabilities: $2,860,566
The petition was signed by Jeff Myers and Lisa Myer as co-managing
members.
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/VLUUVNQ/Tires_Rims_and_Parts_LLC__paebke-24-13582__0001.0.pdf?mcid=tGE4TAMA
TNT CYBER: Elizabeth Lally Named Subchapter V Trustee
-----------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Elizabeth Lally,
Esq., at Lally Legal Group, LLC as Subchapter V trustee for TNT
Cyber Solutions, LLC.
Ms. Lally will be paid an hourly fee of $440 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Lally declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Elizabeth Lally
Lally Legal Group, LLC
12020 Shamrock Plaza, Suite 200
Omaha, NE 68154
Phone: 402-778-4840
Email: elally@lally-legal.com
About TNT Cyber Solutions
TNT Cyber Solutions, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Neb. Case No. 23-41217) on December 21, 2023, with up to
$1 million in both assets and liabilities.
Judge Brian S. Kruse oversees the case.
The Debtor is represented by Turner Legal Group, LLC.
TRAN URGENT: Hires Neeleman Law Group as Legal Counsel
------------------------------------------------------
Tran Urgent Care & Wellness Centers, LLC seeks approval from the
U.S. Bankruptcy Court for the Western District of Washington to
employ Neeleman Law Group as legal counsel.
The firm's services include:
a. assisting the Debtor in the investigation of the financial
affairs of the estate;
b. providing legal advice and assistance to the Debtor with
respect to matters relating to this case and creditor
distribution;
c. preparing all pleadings necessary for proceedings arising
under this case; and
d. performing all necessary legal services for the estate in
relation to this case.
The firm will be paid at these rates:
Attorney $550 per hour
Associate $475 per hour
Paralegal fees $225 per hour
The firm will be paid a retainer in the amount of $17,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jennifer L. Neeleman, Esq., a partner at Neeleman Law Group,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jennifer L. Neeleman, Esq.
Neeleman Law Group
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
About Tran Urgent Care & Wellness Centers
Tran Urgent Care & Wellness Centers LLC offers urgent care, primary
care, pain management, and rehabilitation services.
Tran Urgent Care & Wellness Centers LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.
Wash. Case No. 24-41827) on August 19, 2024. In the petition filed
by Dat Tran, as managing member, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
The Honorable Bankruptcy Judge Mary Jo Heston handles the case.
The Debtor is represented by:
Thomas D. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: courtmail@expresslaw.com
TWO RIVERS: Gets Interim OK to Use Cash Collateral Until Nov. 5
---------------------------------------------------------------
Two Rivers Corporate Centre, LP received interim court approval to
use the cash collateral of Wells Fargo Bank, National Association
until Nov. 5.
The interim order penned by Randal Mashburn of the U.S. Bankruptcy
Court for the Middle District of Tennessee allows Two Rivers to use
available cash and accounts receivable to cover necessary operating
expenses in accordance with a court-approved budget.
In addition, Two Rivers is allowed to spend up to 110% of the
budgeted monthly amounts for operational expenses. Any additional
spending beyond this amount requires written permission from Wells
Fargo. Payments to bankruptcy professionals remain subject to court
approval, ensuring that the expenses adhere to the terms set out by
the court.
As adequate protection to Wells Fargo, Two Rivers is required to
grant the bank replacement liens and make payments at the
contract's non-default interest rate. The principal loan balance is
$19,764,842, with additional accrued interest and attorney fees.
In addition to the replacement liens, Wells Fargo has reserved its
right to object to any unauthorized use of cash collateral,
particularly for pre-bankruptcy charges. The bank will not be
required to take additional actions to validate its liens and its
rights will continue until full repayment of its claim.
The final hearing on the continued use of cash collateral is
scheduled for Nov. 5. Objections are due by Oct. 25.
About Two Rivers Corporate Centre
Two Rivers Corporate Centre, LP was formed in 2001 and is the owner
of a three-building, 283,789-square-foot single story office park
located at 2501 McGavock Pike, Nashville, Tenn. The land is zoned
CA (Commercial Attraction) which also allows for high density
residential and industrial development by right in addition to
office space and retail uses. The property has a number of tenants
that are government agencies with long-term leases in place as well
as government contractors that serve governmental agencies.
Two Rivers sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-00399) on Feb. 7,
2024, with $10 million to $50 million in both assets and
liabilities.
Judge Randal S. Mashburn oversees the case.
Robert J. Gonzales, Esq., at EmergeLaw, PLC, is the Debtor's legal
counsel.
U.S. NEUROSURGICAL: Changes Name to 'Elite Health Systems, Inc.'
----------------------------------------------------------------
Elite Health Systems, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Sept. 30, 2024, the
Company filed with the Secretary of State of the State of Delaware
a Certificate of Amendment to its Certificate of Incorporation to
change the legal name of the Company from U.S, Neurosurgical
Holdings, Inc. to Elite Health Systems Inc., effective as of Sept.
30, 2024. The Company's board of directors approved the Charter
Amendment pursuant to Section 242 of the General Corporation Law of
the State of Delaware.
New OTC Symbol
On Sept. 25, 2024, Company applied to FINRA to change its common
stock ticker symbol. The Company applied to use either EHSI or
ELIT as its new ticker symbol and was advised the process will take
two to four weeks to approve one of the requested symbols, or
potentially another if both requested symbols are taken.
New Corporate Website
In connection with the name change, the Company is in the process
of launching a new corporate website: www.elitehealthsystems.com.
The Company's investor relations information, including press
releases and links to the Company's filings with the Securities and
Exchange Commission, will be found on this website.
About U.S. NeuroSurgical Holdings
U.S. NeuroSurgical Holdings, Inc., through its wholly-owned
subsidiaries, holds interests in radiological treatment facilities
and, more recently, has been developing a business to provide
Medicare Advantage plans, concentrating initially in Nevada and
California.
New Delhi, India-based Mercurius & Associates LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 5, 2024, citing that the Company has an
accumulated deficit of $2,390,000 and $1,710,000 as of December 31,
2023, and December 31, 2022, respectively and there is a working
capital deficit of $80,000 as of December 31, 2023. These
conditions raise substantial doubt about the uncertainty in the
Company's ability to continue as a going concern.
URBAN CHESTNUT: Committee Hires Lewis Rice LLC as Counsel
---------------------------------------------------------
The official committee of unsecured creditors of Urban Chestnut
Brewing Company Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Missouri to employ Lewis Rice LLC as
counsel.
The firm will provide these services:
a. attend the meetings of the Committee;
b. review financial information furnished by Debtor to the
Committee;
c. review and investigate the liens of purported secured
party(ies);
d. confer with Debtor's management and counsel;
e. coordinate on any efforts to sell assets of Debtor in a
manner that maximizes the value for unsecured creditors;
f. review Debtor's schedules, statement of affairs and
business plan;
g. advise the Committee as to the ramifications regarding all
of Debtor's activities and motions before this Court;
h. file appropriate pleadings on behalf of the Committee;
i. review and analyze any accountant's work product and
reports to the Committee;
j. provide the Committee with legal advice in relation to the
case;
k. prepare various applications and memoranda of law submitted
to the Court for consideration and handle all other matters
relating to the representation of the Committee that may arise;
l. assist the Committee in negotiations with Debtor and other
parties in interest on an emergence plan; and
m. perform such other legal services for the Committee as may
be necessary or proper in these proceeding.
The firm will be paid at these rates:
John Hall, Member $740 per hour
Meagan Nydegger, Associate $280 per hour
Larry Parres, Member $750 per hour
Scott Moore, Member $740 per hour
Devin Hayes, Associate $350 per hour
Skylar Pettit, Associate $350 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John Hall, Esq. a partner at Lewis Rice 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:
John J. Hall, Esq.
LEWIS RICE LLC
600 Washington Ave., Suite 2500
St. Louis, MO 63101
Tel: (314) 444-7600
Fax: (314) 612-7660
Email: jhall@lewisrice.com
About Urban Chestnut Brewing Company Inc.
Urban Chestnut Brewing Co. is a brewer of craft beer in Saint
Louis, Mo., which specializes in German beer and lagers with a
variety of beer styles from IPAs to weissbiers.
Urban Chestnut Brewing Co. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-43233} on Sept.
6, 2024, with $1 million to $10 million in both assets and
liabilities. David M. Wolfe, president, signed the petition.
Judge Brian C. Walsh oversees the case.
The Debtor is represented by Spencer Desai, Esq., at The Desai Law
Firm.
VIRTUSA HOLDCO: S&P Upgrades ICR to 'B+', Outlook Stable
--------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Virtusa
HoldCo Inc. by one notch to 'B+'. Additionally, S&P also raised its
issue-level rating on the first-lien credit facility by one notch
to 'B+' and its issue-level rating on the unsecured notes by one
notch to 'B-'.
The stable outlook reflects S&P's expectation that leverage and
cash flow metrics will remain resilient despite some pressure on
revenue for this fiscal year.
S&P said, "The upgrade reflects our improved view of the business
and our expectation that credit metrics will be managed in a narrow
range. Virtusa has meaningfully improved both its revenue base and
EBITDA margins since we first assessed its business in 2020. Over
the last few years, the company reported a strong expansion in its
revenue as its customers increasingly embraced digital
transformation initiatives, mostly on an organic basis. The company
expanded via large deal wins and onboarding of new clients across
all sectors. Despite the recent weakness in IT budgets over the
last 18 months, Virtusa's annual revenues remain fairly consistent
in the $1.7 billion range.
"Given that it is still relatively early days for digital
transformation services, we expect the company's total addressable
market will continue to expand especially as budgetary tightness
among Virtusa's customers eases with macroeconomic improvements.
EBITDA margins have also expanded to 17%-18% currently from the
low-teen percent range in 2020, supported by a higher revenue base,
relatively low attrition levels, good utilization metrics, and
modest increases in offshoring talent.
"We forecast leverage will remain in the low-5x range over the next
few years and free operating cash flow (FOCF) to debt will remain
in the mid- to high-single-digit percent range. Our expectations
for a return to revenue growth in fiscal 2026 (beginning April
2025) and resilient EBITDA margins support these stable credit
metrics. We do not expect major debt-funded dividends given that
the sponsor's focus is for the company to become more acquisitive
and generate value from both organic and inorganic growth. The
company made its first tuck-in acquisition under its existing
sponsor in July 2023, with two more tuck-ins in February and March
of 2024. We note that future tuck-ins may require use of the
revolver (which was recently upsized to $237 million from $220
million in September); however, we believe the company's strong
cash flow conversion will allow for revolver draw repayments.
"Despite a highly concentrated customer base, we believe Virtusa is
well positioned for a return to growth. Virtusa provides services
across the entire spectrum of the IT services lifecycle, generating
roughly 56% of revenue from application outsourcing and 44% of
revenue from consulting services, and three large end markets
comprised of banking, financial services, and insurance (55% of
first-quarter fiscal 2025 revenue); communications and technology
(21%); and health care (17%). The company also services the media
and information sector, which represents 7% of revenue.
"Clients in these end markets manage heavy on-premises workloads,
and Virtusa specializes in bridging their legacy systems with
highly specialized front-end platforms. We expect IT spending by
large banks will continue to grow as the macroeconomic environment
improves, due to the increasing penetration of digital channels
among customers." Although Virtusa is susceptible to IT spending
trends that can be cyclical, its emphasis on digital transformation
and process automation tends to be more resilient than its peers.
For example, organic revenue declines in fiscal 2024 and the first
quarter of fiscal 2025 were better than public peers which purely
focus on high-level consultative engagements.
Virtusa's top five clients account for about 40% of revenue, and
top 20 clients account for 70% of revenue. However, the company's
expansive project-based recurring revenue stream leads to highly
sticky customer relationships; the average relationship length of
the company's top five clients is over 15 years. Additionally, 97%
of annual revenues come from existing customers because Virtusa
focuses on repeat business, thus providing revenue visibility.
S&P said, "The stable outlook reflects our expectation that Virtusa
will maintain solid levels of profitability while generating free
operating cash flow (FOCF) of at least $90 million and S&P Global
Ratings-adjusted leverage in the low-5x range over the next 12
months. We also expect financial policies will support sustaining
leverage around these levels."
WALNUT HILLS-GREENVILLE: Trustee Hires Ross Smith as Counsel
------------------------------------------------------------
Tom Howley, the Chapter 11 Trustee of Walnut Hills-Greenville Ave,
LLC, seeks approval from the U.S. Bankruptcy Court for the Southern
District of Texas to employ Ross, Smith & Binford, PC as counsel.
The firm will provide these services:
a. serve as counsel of record for the Chapter 11 Trustee in
all legal aspects of this Bankruptcy Case, including without
limitation, the prosecution of actions on behalf of the Chapter 11
Trustee;
b. prepare pleadings in connection with the Bankruptcy Case;
and
c. appear before the Court to represent the interests of the
Chapter 11 Trustee in connection with the Bankruptcy Case.
The firm will be paid at these rates:
Shareholders $600 per hour
Associates and Counsel $400 to $525 per hour
Paraprofessionals $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jason Binford, Esq., a partner at Ross, Smith & Binford, 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:
Jason Binford, Esq.
Ross, Smith & Binford, PC
2901 Via Fortuna
Bldg. 6, Suite 450
Austin, Texas 78746
Tel: (512) 351-4778
Fax: (214) 377-9409
Email: jason.binford@rsbfirm.com
About Walnut Hills-Greenville
Walnut Hills-Greenville Ave, LLC is a commercial real estate entity
focused on managing and operating a property located at 7502
Greenville Avenue in Dallas, Texas.
Walnut Hills-Greenville Ave, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.,
Case No.24-31485) on April 1, 2024,listing approximately $68
million in assets and approximately $20,667,025.38 in liabilities.
Judge Hon. Thad J. Collins presides over the case.
Joshua Gordon, Esq., at the Lane Law Firm represents the Debtor as
counsel.
WESTERN URANIUM: Buys Property to Advance Milling Strategy
----------------------------------------------------------
Western Uranium & Vanadium Corp. announced Oct. 1 that the Company
has executed a binding Stock Purchase Agreement to purchase 100% of
the shares of Pinon Ridge Corporation and thereby acquire an
approximately 900 acre property located in Montrose County,
Colorado. In connection with the Agreement, the former PRC
shareholders will be paid approximately US$830,000 for their PRC
equity and shareholder loan repayments.
The acquisition is the second property package Western has acquired
in addition to the Maverick Mineral Processing Plant site in Utah
and is part of Western's plans for developing and licensing one or
more uranium and vanadium processing facilities to process
production from its resource properties in Colorado and Utah.
Western is utilizing a multiple site approach in order to optimize
transportation and processing costs; notably, the Utah Site is
located approximately four miles from Western's San Rafael project,
while the Colorado Site is about 25 miles from Western's flagship
Sunday Mine Complex. Significant accretion is sought through mine
to mill proximity and the corresponding reduction to transportation
and related costs. Purchasing the PRC Site has additional benefits
having been previously licensed for a uranium mill in terms of
offering a unique opportunity to leverage historical licenses, data
and resources.
The preliminary engineering design, developed by Precision Systems
Engineering (PSE), may be utilized at both the proposed Utah Site
and the PRC Site. Additionally, the Sites are being designed to
process mined material from third party miners. This next
generation conventional mill design will include a kinetic
separation circuit to separate the mineralized rock from the waste
rock in a pre-milling process. The Company plans to evaluate
alternate financing approaches to best optimize value to Western's
shareholders; scenarios will be considered that involve third
parties owning or co-owning the Sites.
George Glasier, the President, CEO and a director of Western, and
his wife Kathleen own 50% of the shares of PRC, and Andrew Wilder,
a director of Western, indirectly owns 3% of the shares of PRC.
Therefore, this transaction constitutes a related party transaction
within the meaning of Multilateral Instrument 61-101 - Protection
of Minority Security Holders in Special Transactions. The Company
is relying on exemptions from the valuation and minority
shareholder approval requirements of MI 61-101 contained in section
5.7(1)(a) of MI 61-101, as the fair market value of the transaction
does not exceed 25% of the market capitalization of the Company.
The Company's Board of Directors has established an independent
committee of the Board, comprised of directors who are not
considered to have an interest in the transaction. The independent
committee of the Board has overseen the negotiation and approved
the entering into the Agreement on behalf of the Corporation.
The Company did not file a material change report more than 21 days
before the expected closing date of the Agreement because the
details of the transaction were not settled until shortly prior to
entering into the Agreement and the Company wishes to close the
transaction on an expedited basis for sound business reasons.
Western will file in due course a material change report under its
profile on SEDAR+.
About Western Uranium
Western Uranium & Vanadium Corp is engaged in the business of
exploring, developing, mining and producing uranium and vanadium
resources. In addition to the flagship property located in the
prolific Uravan Mineral Belt, the production pipeline also includes
conventional projects in Colorado and Utah. The Maverick Minerals
Processing Plant and Pinon Ridge Corporation processing plants will
be licensed to include the kinetic separation process.
Mississauga, Canada-based MNP LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has incurred continuing
losses and negative cash flows from operations and is dependent
upon future sources of equity or debt financing in order to fund
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
WNK FOODS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: WNK Foods, Inc.
d/b/a Rally's
31680 Serrento Drive
Murrieta, CA 92563
Business Description: The Debtor owns and operates a restaurant.
Chapter 11 Petition Date: October 4, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-15964
Judge: Hon. Mark D Houle
Debtor's Counsel: Robert Rosenstein, Esq.
ROSENSTEIN & ASSOCIATES
28600 Mercedes St.
Suite 100
Temecula, CA 92590
Email: info@thetemeculalawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wahid Karas as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/7V7DLKI/WNK_Foods_Inc__cacbke-24-15964__0001.0.pdf?mcid=tGE4TAMA
YUNHONG GREEN: Posts $414,000 Net Loss in Fiscal Q2
---------------------------------------------------
Yunhong Green CTI Ltd filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $414,000 on $4.4 million of net sales for the three months ended
June 30, 2024, compared to a net loss of $149,000 on $4.1 million
of net sales for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $989,000 on $9.2 million of net sales, compared to a net
income of $247,000 on $9.1 million of net sales for the same period
in 2023.
The Company has a cumulative net loss from inception to June 30,
2024 of approximately $25 million and had less than $0.1 million of
cash as of June 30, 2024. The Company's cash resources from
operations may be insufficient to meet its anticipated needs during
the next 12 months. If the Company does not execute its plan, it
may require additional financing to fund its future planned
operations.
As of June 30, 2024, the Company had $21.6 million in total assets,
$10.5 million in total liabilities, and $11.1 million in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/bdxuwhm4
About Yunhong Green
Barrington, Ill.-based Yunhong Green CTI Ltd develops, produces,
distributes and sells a number of consumer products throughout the
United States and in several other countries, and it produces film
products for commercial and industrial uses in the United States.
The Company's principal lines of products include: Novelty Products
consisting principally of foil and latex balloons and related gift
items; and Flexible Films for food and other commercial and
packaging applications.
As of March 31, 2024, Yunhong Green CTI had $16.75 million in total
assets, $11.47 million in total liabilities, and $5.28 million in
total shareholders' equity.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
The Company dismissed BF Borgers as its auditor after the firm and
its owner, Benjamin F. Borgers, were charged by the Securities and
Exchange Commission with deliberate and systemic failures to comply
with PCAOB standards in audits and reviews included in over 1,500
SEC filings from January 2021 through June 2023. The charges
included false representations of compliance with PCAOB standards,
fabrication of audit documentation, and false statements in audit
reports. Borgers agreed to a $14 million civil penalty and a
permanent suspension from practicing before the Commission.
The Company appointed Wolf & Company, P.C. as its new auditor,
effective April 1, 2024.
[*] Bankruptcy Cases in Texas Decreased 65% After Judge Jones Exit
------------------------------------------------------------------
James Nani of Bloomberg Law reports that large corporate
bankruptcies in the Southern District of Texas decreased by 65% in
the first half of 2024 compared with the first half of 2023
following a top bankruptcy judge's resignation, according to a new
report.
The US Bankruptcy Court for the Southern District of Texas remained
the second most preferred venue for big restructurings in the last
12 months behind Delaware, according to a report released Wednesday
by financial and economic consulting firm Cornerstone Research.
But after David R. Jones' resignation announcement in October 2023
under a cloud of ethics concerns, the venue saw a decrease in big
bankruptcies cases.
[*] Epiq Renews Partnership With Global 50 Law Firm
---------------------------------------------------
Epiq, a global technology-enabled leader to the legal industry and
corporations, announced on Sept. 30, 2024, a renewed partnership
with the US side of a large global law practice where it provides
elevated office services and has added records and information
governance. This is the eleventh major strategic outsourcing deal
secured by Epiq this year.
Epiq began working with the firm in 2013 and today provides
comprehensive business transformation services, including advanced
front-of-house services such as conference room and reception
services and facilities management, and back-of-house services like
copy, print, and document production services and mail management
and courier services.
Epiq's experienced consulting team assessed the firm's current
operations and identified several impactful opportunities to reduce
costs and improve efficiencies. Epiq is now also providing
staffing, expert advice, and project management to assist the firm
with the remediation of its 80,000 box physical records in
accordance with its Records Management Policy. This approach helps
the firm not only meet requirements but also be prepared for the
future.
"Our skilled teams, solutions, and technologies enable our clients
to pivot and recalibrate to ever-changing needs," said Michelle
Deichmeister, President of Epiq's Global Business Transformation
Solutions business. "Across our work, we proudly see ourselves as
the heartbeat of our clients' operations, delivering unwavering
commitment and exceptional value. Our dedicated team understands
the importance of every task, recognizing its vital role in the
health of our clients' operations and we take pride in our
reputation for exceptional service delivery."
Epiq has brought the firm's front- and back-end processes to
program maturity since the beginning of the partnership with the
firm. The team continuously prepares the firm for the future by
actively engaging through regular meetings to review operational
success and challenges and provide ongoing training and strategy
development aligned to firm goals.
"We look forward to this expansion with Epiq," said the Global 50
Law Practice's Chief Operating Officer. "Epiq listens and adapts,
consistently providing innovative ideas and in-depth expertise
around process innovation to reduce costs, improve efficiencies,
and enable our lawyers to focus on their core tasks. Having a
flexible team that is seamlessly embedded into our firm and able to
transform our operations in a scalable, high-touch service delivery
model helps to not only address our current needs but also lays the
groundwork for future growth and transformation."
Epiq's understanding of the evolution of client pressures and
priorities has helped it to become the trusted advisor to thousands
of brand name organizations across the world, including 91 of the
top 100 law firms. Its global team of experts, specialists, and
leaders in their fields are stationed across 18 countries and
on-the-ground at more than 500 client sites. By leveraging its
expertise with flexible utility players, process improvement, and
advanced technology solutions, Epiq is able to soundly engrain with
clients' strategies to outsource front- and back-end processes.
About Epiq
Epiq, a global technology-enabled services leader to the legal
industry and corporations, takes on large-scale, increasingly
complex tasks for corporate counsel, law firms, and business
professionals with efficiency, clarity, and confidence. Clients
rely on Epiq to streamline the administration of business
operations, class action, and mass tort, court reporting,
eDiscovery, regulatory, compliance, restructuring, and bankruptcy
matters. Epiq subject-matter experts and technologies create
efficiency through expertise and deliver confidence to
high-performing clients around the world. Learn more at
www.epiqglobal.com.
[*] Jones Walker Welcomes Four New Partners to Litigation Group
---------------------------------------------------------------
Jones Walker LLP is pleased to welcome four new partners, Richard
Gaal, Fred Helmsing, Hart Benton, and Alex Steadman, as members of
the Litigation Practice Group in the Mobile office.
"As we continue the strategic expansion of our Litigation Practice
Group, we are pleased to welcome Richard, Fred, Hart, and Alex to
Jones Walker," said Bill Hines, managing partner. "Their deep
knowledge and experience will strengthen the firm's ability to
support our clients in need of strong litigators in Alabama, in the
Southeast, and across the country."
The four partners joining from McDowell Knight bring
well-established practices and deep relationships in the bankruptcy
and restructuring, corporate compliance, and civil and criminal
defense fields.
"We are pleased to join the firm and eager to bolster a team of
litigators that are among the most recognized and recommended in
the region," Richard stated.
Fred added, "We are also excited to utilize Jones Walker's platform
to better serve our current clients and expand our practices."
About Richard Gaal
A knowledgeable bankruptcy attorney, Richard represents clients in
complex bankruptcy matters throughout the country, including
secured lenders and other creditors, unsecured creditors'
committees, debtors-in-possession, trustees, and asset purchasers.
He helps businesses and individuals successfully reorganize and
confirm plans, including liquidating plans, and is well versed in
filing and helping confirm creditor plans. Richard has a deep
understanding of both debtor and creditor perspectives, allowing
him to navigate the complexities of bankruptcy law. He also has
substantial experience in business and commercial litigation, class
action litigation, and partnership disputes.
About Fred Helmsing
Fred is an accomplished civil and criminal litigator whose practice
focuses on products liability, complex commercial litigation, and
white collar criminal matters. In his products liability practice,
he has extensive experience representing both manufacturers and
distributors throughout Alabama and regionally. Fred also routinely
handles complex commercial litigation and regularly counsels
clients regarding these matters outside the scope of formal
litigation. He has prosecuted and defended claims involving
multiparty contract disputes, procurement disputes, shareholder
disputes, derivative litigation, corporate and partnership
disputes, and allegations involving workplace safety violations. In
his criminal practice, Fred represents businesses and individuals
against a broad range of white collar criminal allegations,
including allegations of bank fraud, mail fraud, conspiracy, and
criminal anticompetitive activity.
About Hart Benton
Hart's practice is focused on the areas of white collar
governmental investigations and proceedings, complex commercial
disputes and litigation, and employment law. His white collar
defense practice is concentrated on criminal and civil governmental
investigations, criminal proceedings, and civil enforcement actions
in areas including securities, bank, wire, and mail fraud. Hart
also regularly advises clients on commercial dispute resolution
strategies and aggressively prosecutes and defends a wide variety
of complex commercial litigation matters. He also represents large
and small businesses alike in all aspects of the employment
relationship, from counseling employers on day-to-day issues of
regulatory compliance, dispute resolution strategy, employment
contracts, and employee handbooks to defending them in private
litigation matters and in federal and state administrative
proceedings.
About Alex Steadman
Alex focuses his practice on bankruptcy and restructuring law,
representing both creditors and debtors in complex bankruptcy
matters across a multitude of industries. He is well versed in
several areas of bankruptcy law, including handling creditor
collection matters in Chapter 7, Chapter 11, and Chapter 13
bankruptcy cases, ensuring his clients' interests are protected. As
an attorney for the debtor in Chapter 11 bankruptcy matters, Alex
represents business owners during restructuring efforts, and his
strategic guidance helps clients navigate complex financial
landscapes.
About Jones Walker
Jones Walker LLP (joneswalker.com) is among the largest 145 law
firms in the United States. With offices in Alabama, Arizona, the
District of Columbia, Florida, Georgia, Louisiana, Mississippi, New
York, and Texas, we serve local, regional, national, and
international business interests. The firm is committed to
providing a comprehensive range of legal services to major
multinational public and private corporations, Fortune(R) 500
companies, money center banks, worldwide insurers, and emerging
companies doing business in the United States and abroad.
[*] Mandolfo Joins Cahill's D.C. Office as White Collar Counsel
---------------------------------------------------------------
Cahill Gordon & Reindel LLP announced Oct. 2, 2024, that James
Mandolfo has joined the firm’s Congressional Investigations and
White Collar Defense & Investigations practices as a counsel in
Washington, D.C. James most recently served as Chief Counsel of
Investigations and General Counsel for the U.S. House Committee on
Oversight and Accountability. He also previously served in multiple
roles at the U.S. Department of Justice (DOJ).
James' practice will focus on representing public companies,
government contractors, financial institutions, and executives in
congressional investigations, criminal prosecutions, and other
government inquiries and investigations.
James conducted numerous complex investigations for the Committee
on Oversight and Accountability (the Committee) beginning in
November 2022. There, he led dozens of high-profile depositions
and witness interviews that garnered significant press and media
attention. Additionally, James drafted and approved Congressional
subpoenas, prepared questions for the Committee's public hearings,
and briefed Members of the House and Senate Leadership, among other
duties. Before serving in the House, he held various roles in the
DOJ -- as a trial attorney in the Fraud Section, in the Foreign
Corrupt Practices Act (FCPA) Unit, and as Chief of Staff and
Counselor to the Assistant Attorney General, Criminal Division. In
the latter role, he provided support in managing DOJ sections,
including Fraud, Public Integrity, Money Laundering and Asset
Recovery, and Computer Crime and Intellectual Property. He also
spent more than a decade as a prosecutor, as an AUSA in the Middle
District of Florida and as an Assistant District Attorney for the
Manhattan District Attorney's Office. He has tried over 20 cases
to verdict in state and federal courts, including complex fraud,
public corruption, and national security matters.
"Less than a month ago, we brought Edward O'Callaghan to Cahill to
lead and expand our Congressional Investigations practice in D.C.
Already, he has landed an all-star talent in James who brings to
the table an incredible range and depth of experience and a
perfectionist’s work ethic. Both will prove immensely valuable
to our financial, corporate, and executive clients as they face
government inquiries," said Herb Washer, Chair of Cahill’s
Executive Committee.
"James has impressed his peers and colleagues at every step of his
career -- as prosecutor, Congressional investigator, and in his
leadership role in the Criminal Division at Justice -- often while
working on matters involving global financial institutions or other
corporate entities. Having conducted investigations and trials from
every angle of the government side, plus his years at the center of
Washington, James has the ability to see around corners on behalf
of clients. He knows what's coming and he's ready to guide clients
safely to the other side," said Edward O'Callaghan, Chair of
Cahill’s Congressional Investigations practice.
"James has been involved in high-profile terrorism cases, FCPA
matters, and anti-money laundering resolutions in jurisdictions
around the country," said Anirudh Bansal, Chair of Cahill's White
Collar Defense & Investigations practice, himself a former AUSA.
"He's lived these investigations and understands how such matters
move toward resolution or trial. If it goes to trial, he's been
there more often than the vast majority of his peers in the field.
He's a powerful addition to Cahill's team."
James is the third lawyer with AUSA experience to join Cahill's
litigation practice in the last three months, arriving shortly
after Kiersten A. Fletcher and Edward O'Callaghan. Ed also held
leading roles at DOJ.
"The opportunity to work with Ed and the broader Cahill litigation
team was simply too appealing to pass up," James said. "So many
Big Law firms are just collecting 'formers' from public service.
Cahill has a clear plan for growth and is successfully executing
it, offering me an opportunity to roll up my sleeves and provide
excellent service to clients in a market where we expect big demand
-- not just in Congressional Investigations, but across parallel
proceedings originating with DOJ, the Securities and Exchange
Commission, and other government regulators."
James received his J.D. from Fordham University School of Law and
his B.A. from The Pennsylvania State University. In addition to
his prosecutorial roles, he served as a law clerk to the Hon. K.
Michael Moore, a U.S. District Judge in Miami, Florida.
About Cahill Gordon & Reindel LLP
Cahill is among the most successful law firms in the world. With a
history of legal innovation dating back to the firm's founding in
1919, Cahill is trusted by market-leading financial institutions,
companies and their boards to manage significant corporate
transactions, litigation and regulatory matters. Based in New
York, Cahill also has offices in London, Washington, D.C., and
Delaware.
[*] Mega Bankruptcies Continue to Rise, Cornerstone Reports
-----------------------------------------------------------
Large corporate bankruptcy filings continued to climb in the latter
half of 2023 through the first half of 2024, according to a report
released Oct. 2, 2024, by Cornerstone Research.
The report, Trends in Large Corporate Bankruptcy and Financial
Distress-Midyear 2024 Update, reveals a notable increase in Chapter
7 and Chapter 11 filings among public and private companies with
assets exceeding $100 million. Over the past 12 months (2H
2023–1H 2024), the number of filings rose by 8%, reaching 113
compared to 105 in the previous 12-month period (2H 2022–1H
2023). This figure is 43% higher than the annual average of 79
observed between 2005 and 2023. Notably, 60 of these bankruptcies
were recorded in the first half of 2024, nearly 50% above the
semiannual average of 40 filings between 2005 and 2023.
In the first half of 2024, the number of mega bankruptcies -- those
filed by companies with over $1 billion in reported assets --
reached their highest half-year numbers since 2020. Companies
filing mega bankruptcies in the last 12 months most commonly
identified the following contributing factors: (i) rising costs due
to high inflation and interest rates, (ii) lingering impacts of
COVID-19, (iii) increased competition for the company's products or
services, and (iv) unsuccessful strategic initiatives.
"The recent rise in large corporate bankruptcies, with an 8%
increase in filings over the past 12 months, reflects the
challenging economic environment many major companies have been
navigating amid high inflation and interest rates," said Matt
Osborn, a principal at Cornerstone Research and coauthor of the
report. "As the economic landscape continues to evolve, it is
clear that the rising costs, lingering effects from the COVID-19
pandemic, and increased competition have continued to take a toll
on many large and established companies."
Dr. Osborn noted that out-of-court refinancings known as
"uptiering" transactions are also on the rise. He observed that
despite the potential financial benefits for the borrower from this
structure, a substantial fraction of the companies that undertook
an uptiering transaction in past years have since filed for Chapter
11 bankruptcy. It remains to be seen if this trend continues for
the more recent uptick in uptiering transactions observed in 2023
and 1H 2024.
The most common venues for bankruptcy filings were Delaware and the
Southern District of Texas, accounting for 43% and 13% of filings
in 1H 2024, respectively. Following the resignation of Judge David
R. Jones in October 2023, bankruptcy filings in the Southern
District of Texas decreased by 65% in 1H 2024 compared to 1H 2023.
From 2017 to 2023, Judge Jones took on 81 large corporate
bankruptcy cases, the highest number of cases among bankruptcy
judges nationwide.
The services and manufacturing industries saw increased filings,
with 17 and 15, respectively, in the first half of 2024. The
finance, insurance, and real estate industry also experienced an
increase in bankruptcies, with 10 filings in the first half of the
year.
About Cornerstone Research
Cornerstone Research provides economic and financial consulting and
expert testimony in all phases of complex disputes and regulatory
investigations. The firm works with an extensive network of
prominent academics and industry practitioners to identify the
best-qualified expert for each assignment. With a reputation for
high quality and effectiveness, Cornerstone Research has
consistently delivered rigorous, state-of-the-art analysis since
1989. The firm has more than 1,000 professionals in nine offices
across the United States, UK, and EU.
[^] BOND PRICING: For the Week from Sept. 30 to Oct. 4, 2024
------------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
2U Inc TWOU 2.250 42.000 5/1/2025
99 Cents Only Stores LLC NDN 7.500 6.280 1/15/2026
99 Cents Only Stores LLC NDN 7.500 7.500 1/15/2026
99 Cents Only Stores LLC NDN 7.500 7.500 1/15/2026
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 42.440 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 42.127 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 42.127 2/15/2028
Amyris Inc AMRS 1.500 1.078 11/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Ares Finance Co LLC ARES 4.000 99.570 10/8/2024
Ares Finance Co LLC ARES 4.000 99.995 10/8/2024
At Home Group Inc HOME 7.125 31.065 7/15/2029
At Home Group Inc HOME 7.125 31.065 7/15/2029
Audacy Capital Corp CBSR 6.750 2.513 3/31/2029
Audacy Capital Corp CBSR 6.500 4.500 5/1/2027
Audacy Capital Corp CBSR 6.750 2.513 3/31/2029
Azul Investments LLP AZUBBZ 5.875 65.658 10/26/2024
Azul Investments LLP AZUBBZ 7.250 50.146 6/15/2026
Azul Investments LLP AZUBBZ 5.875 63.000 10/26/2024
Azul Investments LLP AZUBBZ 7.250 50.146 6/15/2026
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Bank of America Corp BAC 4.021 99.477 10/9/2024
Bank of America Corp BAC 4.095 99.287 10/9/2024
Beasley Mezzanine Holdings BBGI 8.625 58.939 2/1/2026
Beasley Mezzanine Holdings BBGI 8.625 60.213 2/1/2026
Biora Therapeutics Inc BIOR 7.250 57.058 12/1/2025
BuzzFeed Inc BZFD 8.500 93.519 12/3/2026
CDK Global II LLC CDK 6.500 98.166 10/15/2024
CDW LLC / CDW Finance Corp CDW 5.500 99.602 12/1/2024
Castle US Holding Corp CISN 9.500 45.319 2/15/2028
Castle US Holding Corp CISN 9.500 45.661 2/15/2028
CorEnergy Infrastructure
Trust Inc CORR 5.875 70.250 8/15/2025
Curo Oldco LLC CURO 7.500 3.000 8/1/2028
Curo Oldco LLC CURO 7.500 21.104 8/1/2028
Curo Oldco LLC CURO 7.500 3.000 8/1/2028
Cutera Inc CUTR 2.250 15.750 6/1/2028
Cutera Inc CUTR 4.000 16.366 6/1/2029
Cutera Inc CUTR 2.250 30.533 3/15/2026
Danimer Scientific Inc DNMR 3.250 10.969 12/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 0.400 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 1.000 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.075 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 0.785 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 0.894 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 0.894 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 0.675 8/15/2026
Energy Conversion Devices ENER 3.000 0.762 6/15/2013
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 4.250 1/15/2026
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 4.138 1/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 35.000 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 35.588 7/15/2026
Federal Home Loan Banks FHLB 0.500 99.732 10/9/2024
Federal Home Loan Banks FHLB 2.500 99.317 10/11/2024
Federal Home Loan Banks FHLB 0.400 92.956 10/7/2024
Federal Home Loan Banks FHLB 0.650 99.316 10/7/2024
Federal Home Loan Banks FHLB 0.500 98.940 10/17/2024
Federal Home Loan Banks FHLB 0.500 96.998 10/30/2024
Federal Home Loan Banks FHLB 0.550 99.293 10/8/2024
Federal Home Loan Banks FHLB 2.800 99.325 10/11/2024
Federal Home Loan Banks FHLB 2.300 99.311 10/11/2024
Federal Home Loan Banks FHLB 0.750 93.656 11/8/2024
Federal Home Loan Banks FHLB 0.900 96.993 11/1/2024
Federal Home Loan Banks FHLB 0.550 99.250 10/11/2024
Federal Home Loan Banks FHLB 0.600 93.544 10/30/2024
Federal Home Loan Banks FHLB 0.550 92.768 11/1/2024
Federal Home Loan Banks FHLB 0.550 99.078 10/15/2024
Federal Home Loan Banks FHLB 0.750 92.751 11/8/2024
Federal Home Loan
Mortgage Corp FHLMC 4.500 99.413 10/11/2024
Federal Home Loan
Mortgage Corp FHLMC 2.500 99.374 10/8/2024
First Republic Bank/CA FRCB 4.375 3.000 8/1/2046
First Republic Bank/CA FRCB 4.625 2.250 2/13/2047
Florida Power & Light Co NEE 5.078 95.389 11/14/2068
GS Finance Corp GS 5.214 95.570 10/31/2057
GoTo Group Inc LOGM 5.500 31.093 5/1/2028
GoTo Group Inc LOGM 5.500 30.912 5/1/2028
Goldman Sachs Group Inc/The GS 6.375 100.000 10/6/2028
Goldman Sachs Group Inc/The GS 5.750 99.566 10/3/2025
Goldman Sachs Group Inc/The GS 3.795 99.383 10/9/2024
Goldman Sachs Group Inc/The GS 6.000 100.000 4/5/2027
Goodman Networks Inc GOODNT 8.000 5.000 5/11/2022
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 7.158 6/1/2026
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 6.841 6/1/2026
Hallmark Financial Services HALL 6.250 19.811 8/15/2029
Homer City Generation LP HOMCTY 8.734 38.750 10/1/2026
Inotiv Inc NOTV 3.250 30.000 10/15/2027
Inseego Corp INSG 3.250 78.776 5/1/2025
Invacare Corp IVC 4.250 1.002 3/15/2026
JPMorgan Chase Bank NA JPM 2.000 91.140 9/10/2031
Ligado Networks LLC NEWLSQ 15.500 15.500 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 3.500 5/1/2024
Ligado Networks LLC NEWLSQ 15.500 18.500 11/1/2023
Lightning eMotors Inc ZEVY 7.500 1.000 5/15/2024
Luminar Technologies Inc LAZR 1.250 47.000 12/15/2026
MBIA Insurance Corp MBI 16.823 5.000 1/15/2033
MBIA Insurance Corp MBI 16.823 5.029 1/15/2033
Macy's Retail Holdings LLC M 6.700 86.463 7/15/2034
Mashantucket Western
Pequot Tribe MASHTU 7.350 52.000 7/1/2026
Morgan Stanley MS 1.800 80.899 8/27/2036
Morgan Stanley MS 4.500 99.583 10/10/2024
NanoString Technologies Inc NSTG 2.625 74.250 3/1/2025
Office Properties
Income Trust OPI 4.500 88.062 2/1/2025
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 47.155 5/15/2026
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 45.139 5/15/2026
Porch Group Inc PRCH 0.750 47.500 9/15/2026
Provident Funding
Associates LP /
PFG Finance Corp PROFUN 6.375 99.114 6/15/2025
Rackspace Technology
Global Inc RAX 5.375 30.096 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 27.500 2/15/2028
Rackspace Technology
Global Inc RAX 5.375 29.875 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 28.760 2/15/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 5.000 2/15/2027
Rite Aid Corp RAD 6.875 3.491 12/15/2028
Rite Aid Corp RAD 6.875 3.491 12/15/2028
RumbleON Inc RMBL 6.750 81.036 1/1/2025
SVB Financial Group SIVB 3.500 59.500 1/29/2025
Sandy Spring Bancorp Inc SASR 4.250 94.460 11/15/2029
Shutterfly LLC SFLY 8.500 47.500 10/1/2026
Shutterfly LLC SFLY 8.500 47.500 10/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 66.297 3/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 66.240 3/1/2026
Spirit Airlines Inc SAVE 1.000 21.500 5/15/2026
Spirit Airlines Inc SAVE 4.750 62.665 5/15/2025
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 9.000 5/15/2027
Veritex Holdings Inc VBTX 4.750 90.641 11/15/2029
Veritone Inc VERI 1.750 36.750 11/15/2026
Virgin Galactic Holdings Inc SPCE 2.500 32.949 2/1/2027
Vitamin Oldco Holdings Inc GNC 1.500 0.578 8/15/2020
Voyager Aviation Holdings VAHLLC 8.500 15.445 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 15.445 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 15.445 5/9/2026
Vroom Inc VRM 0.750 53.875 7/1/2026
WW International Inc WW 4.500 23.202 4/15/2029
WW International Inc WW 4.500 22.420 4/15/2029
Wesco Aircraft Holdings Inc WAIR 13.125 1.801 11/15/2027
Wesco Aircraft Holdings Inc WAIR 9.000 42.028 11/15/2026
Wesco Aircraft Holdings Inc WAIR 13.125 1.801 11/15/2027
Wesco Aircraft Holdings Inc WAIR 9.000 42.028 11/15/2026
*********
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.
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Each Tuesday edition of the TCR contains a list of companies with
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liabilities delivered to nation's bankruptcy courts. The list
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Monthly Operating Reports are summarized in every Saturday edition
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The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
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