/raid1/www/Hosts/bankrupt/TCR_Public/241015.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 15, 2024, Vol. 28, No. 288
Headlines
2675970 ONTARIO: Seeks CCAA Protection to Commence Sale
3480 MAIN: Public Sale Auction Slated for Nov. 7
8501 FORT HAMILTON PARKWAY: Files for Chapter 11 Bankruptcy
A&R CONSTRUCTION: Sec. 341(a) Meeting of Creditors on Nov. 7
ADVENTURE COAST: Gary Murphey Named Subchapter V Trustee
AG PARENT: S&P Affirms 'B-' ICR on Improved Profitability
ALL DAY: $200MM Bank Debt Trades at 57% Discount
AMERICAN NUTS: Investcorp Marks $4.6MM Loan at 76% Off
AMERICAN TIRE: $1BB Bank Debt Trades at 50% Discount
ASTRA ACQUISITION: $615.7MM Bank Debt Trades at 81% Discount
ATLAS PURCHASER: $134.6MM Bank Debt Trades at 76% Discount
ATLAS PURCHASER: $154.4MM Bank Debt Trades at 87% Discount
ATLAS PURCHASER: $423.7MM Bank Debt Trades at 55% Discount
ATLAS PURCHASER: $45.6MM Bank Debt Trades at 92% Discount
AUSTRALIA: Immigration Detention System Faces Refugee Class Suit
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 16% Discount
AVENTIV TECHNOLOGIES: $288MM Bank Debt Trades at 72% Discount
BANQ INC: Court Tosses Chapter 11 Bankruptcy as Bad-Faith Filing
BARROW SHAVER: Dore Rothberg Represents Petitioning Creditors
BH&G HOLDINGS: Amends Plan to Include Surety Parties Secured Claim
BIG LOTS: Gets Clearance to Pay Its Vendors Up to $60 Million
BOART LONGYEAR: S&P Withdraws 'B-' Issuer Credit Rating
BUCKEYE PARTNERS: Fitch Keeps 'BB' LongTerm IDR on Watch Negative
BW NHHC HOLDCO: $195MM Bank Debt Trades at 66% Discount
BYJU'S ALPHA: Raveendran Says Missing Money Used in Legit Purposes
CAFE CHINOIS: Sec. 341(a) Meeting of Creditors on Nov. 12
CARABOBO PROSPER: Frances Smith Named Subchapter V Trustee
CAREERBUILDER LLC: Investcorp Marks $5.9MM Loan at 57% Off
CARROTHERS INSPECTION: Judy Wolf Weiker Named Subchapter V Trustee
CASTLE US: EUR500MM Bank Debt Trades at 35% Discount
CELSIUS NETWORK: Distributes $2.57-Bil. to Creditors, Customers
CONNORSVILLE COMMONS: Sec. 341(a) Meeting of Creditors on Nov. 8
DENALI CONSTRUCTION SERVICES: Seeks Chapter 11 Bankruptcy
DIAMOND SPORTS: Gets Court OK to Continue Getting Creditor Votes
DOVGAL ENTERPRISES: To Sell Marham Property to Sam Express Prime
EDGIO INC: DOJ Watchdog Opposes Milbank as Lead Counsel
ELEVATE TEXTILES: $250MM Bank Debt Trades at 33% Discount
EMERGENCY HOSPITAL SYSTEMS: Hits Chapter 11 Bankruptcy
EXACTECH INC: $235MM Bank Debt Trades at 48% Discount
EXPAND ENERGY: Moody's Affirms 'Ba1' CFR, Outlook Remains Positive
FINANCIAL BUSINESS: Court Stays Jeffers Lawsuit Due to Bankruptcy
FIREFLY STORE: Ashley Rusher Named Subchapter V Trustee
FTX TRADING: Bankruptcy Settlement Gives Creditors 119% Profit
FTX TRADING: Schulte & Bielli Revise List of Preferred Shares
GANNETT CO: Fitch Puts 'B' LongTerm IDR on Watch Negative
GENWORTH HOLDINGS: Moody's Affirms Ba1 Rating on Sr. Unsecured Debt
GIMEXTECH COMPANY: Gregory Jones Named Subchapter V Trustee
GIP II BLUE:S&P Affirms 'BB-' Issuer Credit Rating, Outlook Stable
GIRARDI & KEESE: Wants New Memory Issues Fraud Trial
GOODY'S FLEET: Gets Interim OK to Use Cash Collateral
GQ NCF CLERMONT: Unsecured Creditors to Split $60K in Plan
GRAND VALLEY MHP: Gets Interim OK to Use Cash Collateral
GSE GLOBAL: Michael Thomson Named Subchapter V Trustee
HANEY INC: To Sell Printing Machine to Quality Discount Equipment
HAYES MECHANICAL: Matthew Brash Named Subchapter V Trustee
HAYS TABERNACLE: Hits Chapter 11 Bankruptcy Protection
HAYS TABERNACLE: Sec. 341(a) Meeting of Creditors on Nov. 2
HOW TO BUILD: Gets Interim OK to Use Cash Collateral
HS PURCHASER: $670MM Bank Debt Trades at 19% Discount
INDIVIDUALIZED ABA SERVICES: Starts Subchapter V Proceeding
INDOCHINE RESTAURANT: Seeks Chapter 11 Bankruptcy Protection
IVANTI SOFTWARE: $545MM Bank Debt Trades at 33% Discount
JAMIESON CAPEX: Thomas Kapusta Named Subchapter V Trustee
KATANA ELECTRONICS: Unsecured Creditors to Split $5K in Plan
LA HACIENDA: Unsecured Creditors to be Paid in Full in Plan
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 61% Discount
LIFESCAN GLOBAL: Moody's Appends 'LD' Designation to 'Caa3-PD' PDR
LIGHTHOUSE PHOTOGRAPHY: LaMonica Lawyer Named Subchapter V Trustee
MAGENTA SECURITY: $1.04BB Bank Debt Trades at 58% Discount
MAGENTA SECURITY: $1.07BB Bank Debt Trades at 26% Discount
MBMG HOLDING: Case Summary & 30 Largest Unsecured Creditors
MONTICELLO ACADEMY: S&P Affirms 'BB+' Rating on Revenue Bonds
NAKED JUICE: $1.82BB Bank Debt Trades at 21% Discount
NEW CONSTELLIS: S&P Upgrades ICR to 'CCC+' on Refinancing
OCEANWIDE PLAZA: Updates Unsecured Claims Pay Details
OUTCOMES GROUP: Moody's Hikes CFR to B2 & Alters Outlook to Stable
PEGASUS RESTAURANT: Unsecureds to Get 15% of Claims over 60 Months
PRAIRIE KNOLLS MHP: Gets Interim OK to Use Cash Collateral
REALD INC: $60MM Bank Debt Trades at 33% Discount
RED RIVER: Brown Rudnick, Otterbourg & Stutzman Advise Coalition
RED RIVER: Paul Hastings & Parkins Represent Ad Hoc Committee
ROLLING ACRES: Gets Interim OK to Use Cash Collateral
SALEM POINTE: Case Summary & 15 Unsecured Creditors
SALEM POINTE: Gets Interim OK to Use Cash Collateral
SALUS MEDICAL: Get Interim OK to Use Cash Collateral
SANDVINE CORP: Investcorp Marks $5.2MM Loan at 38% Off
SANO RACING: Unsecureds Will Get 1% to 5% of Claims in Plan
SC-GA OPERATOR HOLDINGS: Files Subchapter V Bankruptcy Case
SEA LATCH INN: Foreclosure Auction Set for October 17
SKYLOCK INDUSTRIES: Has Until Oct. 16 to Address Stay in L&J Suit
SM WELLNESS: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
SMILE KRAFTERS: Unsecureds to Get Litigation & Asset Sale Proceeds
SONRAVA HEALTH: $552.5MM Bank Debt Trades at 33% Discount
STAR AIRCONDITIONING: Gets OK to Use Cash Collateral Until Nov. 14
SUCCESS VILLAGE: Court Dismisses Chapter 11 Bankruptcy Case
SYNAPSE FINANCIAL: Case Trustee Seeks Nov. 15 Auction of Assets
TANTUM COMPANIES: Continued Operations to Fund Plan Payments
THERAPY BRANDS: $235MM Bank Debt Trades at 18% Discount
TIRE RIMS & PARTS: Sec. 341(a) Meeting of Creditors on Nov. 15
TMC BUYER: Moody's Affirms 'B2' CFR & Rates New Secured Loans 'B2'
TOP PARK SERVICES: Gets Interim OK to Use Cash Collateral
TOWN & COUNTRY WEST: Files for Chapter 11 Bankruptcy
TPT GLOBAL: Settles Lease Payment Dispute With Vertical Bridge
TRUE VALUE: Case Summary & 30 Largest Unsecured Creditors
TW AUTOMATION: Reaches Settlement with SBB, Files Amended Plan
ULTRA CLEAN: S&P Assigns 'B+' Rating on Repriced Term Loan B
UNITED BELIEVERS: G. Matt Barberich Named Subchapter V Trustee
VORTEX OPCO: $1.60BB Bank Debt Trades at 28% Discount
VOYAGER DIGITAL: 2 Execs. Gets Okay for $6.5M Deal With Holders
WEATHERFORD INT'L: Fitch Hikes IDR to 'BB-', Outlook Stable
WW INTERNATIONAL: $945MM Bank Debt Trades at 74% Discount
Z BRAND GROUP: Case Summary & 15 Unsecured Creditors
[*] Dec. 10 Snowmass Properties Public Sale Auction Set
[*] York Beach Boutique Hotel Complex Up for Sale on Oct. 17
[^] Large Companies with Insolvent Balance Sheet
*********
2675970 ONTARIO: Seeks CCAA Protection to Commence Sale
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2675970 Ontario Inc. and 16 affiliated entities1 ("Tokyo Smoke")
commenced court-supervised restructuring proceedings under the
Companies' Creditors Arrangement Act, as amended ("CCAA") by
obtaining an order ("Initial Order") from the Ontario Superior
Court of Justice (Commercial List), which, among other things,
provides for a stay of proceedings until Sept. 7, 2024 ("Stay
Period"). The Stay Period may be extended by the Court from time
to time.
Pursuant to the Initial Order, Alvarez & Marsal Canada Inc. was
appointed as monitor of the business and financial affairs of Tokyo
Smoke.
According the court documents, the key focus of the restructuring
proceeding is a sale and investment solicitation process ("SISP"),
that is intended to broadly canvass sale, investment, and other
opportunities for the business and assets of the Tokyo Smoke.
Pursuant to the court-approved SISP milestone, the Phase 2 Bid
Deadline is Nov. 11, 2024. The closing of the Successful Bid is
expected to occur by Dec. 6, 2024.
In addition, the business emerging as a going-concern is critical
to the success of the restructuring. If the SISP is not
successful, the Tokyo Smoke's commercial partners, suppliers,
approximately 350 employees, customers and financial stakeholders
will be negatively impacted.
During the Stay Period, all parties are prohibited from commencing
or continuing legal action against Tokyo Smoke, and all rights and
remedies of any party against or in respect of Tokyo Smoke or their
assets are stayed and suspended except with the written consent of
Tokyo Smoke and the Monitor or with leave of the Court.
A copy of the Initial Order and all materials filed in these
proceedings may be obtained at the Monitor's website at
https://www.alvarezandmarsal.com/TokyoSmoke or on request from the
Monitor by calling 1-416-847-5157 or by emailing
TokyoSmoke@alvarezandmarsal.com.
The monitor can be reached at:
Alvarez & Marsal Canada Inc.
Royal Bank Plaza, South Tower
200 Bay Street, Suite 3501
Toronto, ON M5J 2J1
Josh Nevsky
Email: jnevsky@alvarezandmarsal.com
Tel: 416-847-5161
Skylar Rushton
Email: srushton@alvarezandmarsal.com
Tel: 416-847-5204
Mitchell Binder
Email: mbinder@alvarezandmarsal.com
Tel: 416-847-5202
Counsel to the Monitor:
Stikeman Elliott LLP
5300 Commerce Court West, 199 Bay St.
Toronto, ON M5L 1B9
Maria Konyukhova
Email: mkonyukhova@stikeman.com
Tel: 416-869-5230
Lee Nicholson
Email: leenicholson@stikeman.com
Tel: 416-869-5604
Philip Yang
Email: pyang@stikeman.com
Tel: 416-869-5593
Rania Hammad
Email: rhammad@stikeman.com
Tel: 416-869-5578
Counsel to Tokyo Smoke:
Reconstruct LLP
Richmond-Adelaide Centre
120 Adelaide Street West, Suite 2500
Toronto, ON M5H 1T1
Caitlin Fell
Email: cfell@reconllp.com
Tel: 416-613-8282
Sharon Kour
Email: skour@reconllp.com
Tel: 416-613-8288
Jessica Wuthmann
Email: jwuthmann@reconllp.com
Tel: 416-613-8283
2675970 Ontario Inc. owns, operates, and franchises retail
dispensaries in Canada selling premium cannabis products and
accessories.
3480 MAIN: Public Sale Auction Slated for Nov. 7
------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, by virtue of certain events of default
under that certain partnership interests pledge and security
agreement, dated as of Dec, 23, 2021 ("pledged agreement"),
executed and delivered by 3480 Main Highway GP LLC and 3480 Main
Highway Limited Partnership LP ("pledgors"), and in accordance with
it rights as holder of the security, 3480 Main Highway Lender 2 LLC
("secured party"), will offer for sale at public auction (i) all
pledgors' rights, title and interest in and to the following: 3480
Main Highway LP ("mortgage borrower"), and (ii) certain related
rights and property relating thereto ("collateral").
Secured party's understanding is that the principal asset of the
pledged entity is the premises located at 3480 Main Highway, Miami,
Florida ("property"). The pledge agreement was thereafter modified
by that certain restructuring agreement, dated as of Dec. 21, 2023,
entered into by and among pledgors, secured party, pledged entity
and 3480 Main Highway Lender 1 LLC ("mortgage lender").
Moecker Auctions Inc. will conduct a public sale consisting of the
collateral, via online bidding, on Nov. 7, 2024, at 3:30 p.m. EST,
in satisfaction of an indebtedness in the approximate amount of
$4,523,807.57, including, interest on principal, and reasonable
fees and costs, plus default interest through Nov. 7, 2024, subject
to open charges and all additional costs, fees and disbursements
permitted by law.
Online bidding will be made available via zoom meeting:
Meeting link: https://bit.ly/3480HwayUCC
Meeting ID: 889 2970 5724
Passcode: 371341
On Tap Mobile +16465588656,,88929705724#,,,,*371341#
US Dial by you location: +1 646 558 8656 US (New York) +1 646 931
3860 US
Interested parties who intend to bid on the collateral must contact
Brett Rosenberg at Jones Lang LaSalle Americas Inc, 330 Madison
Avenue, New York, New York 10017, (212) 812-5926,
Brett.Rosenberg@jll.com, to receive the terms and conditions of
sale and bidding instructions by Nov. 6, 2024, by 4:00 p.m. Upon
execution of a standard confidentiality and non-disclosure
agreement, which can be found at
https://www.3480MainHighwayUCCSale.com, additional documentation
and information will be available.
Attorneys for the Secured Party can be reached at:
Jerold C. Feuerstein, Esq.
Kriss & Feuerstein LLP
360 Lexington Avenue, Suite 1200
New York, New York 10017
Tel: (212) 661-2900
8501 FORT HAMILTON PARKWAY: Files for Chapter 11 Bankruptcy
-----------------------------------------------------------
8501 Fort Hamilton Parkway Ltd. filed Chapter 11 protection in the
Eastern District of New York. According to court filing, the Debtor
reports $5,371,964 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 8, 2024 at 2:00 a.m. in Room Telephonically on telephone
conference line: 1 (877) 953-2748. participant access code:
3415538#.
About Fort Hamilton Parkway Ltd.
Fort Hamilton Parkway Ltd. 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.
8501 Fort Hamilton Parkway Ltd. sought Chapter 11 protection
(Bankr. E.D.N.Y. Case No. 24-44150) on Oct. 4, 2024.
The Honorable Bankruptcy Judge Nancy Hershey Lord handles the
case.
The Debtor is represented by:
Kevin Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLSTEIN LLP
125 Park Ave
New York, NY 10017-5690
E-mail: knash@gwfglaw.com
A&R CONSTRUCTION: Sec. 341(a) Meeting of Creditors on Nov. 7
------------------------------------------------------------
A&R Construction LLC filed for chapter 11 protection in the Western
District of Texas (Case No. 24-52008). According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 7, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: (866)909-2905. participant access code: 5519921#.
About A&R Construction LLC
A&R Construction LLC -- https://www.buildingwithar.com/ -- is a
family owned and operated excavation company, established in
Pueblo, Colorado in 1997.
A&R Construction LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-52008) on
October 7, 2024. In the petition filed by Tyler Mason, as owner,
the Debtor reports estimated assets between $100,000 and $500,000
and estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Craig A. Gargotta handles the case.
The Debtor is represented by:
Robert Chamless Lane, Esq.
The Lane Law Firm PLLC
511 Lets Roll Dr
New Braunfels, TX 78623
ADVENTURE COAST: Gary Murphey Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Gary Murphey as Subchapter
V trustee for Adventure Coast, LLC.
Mr. Murphey will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Murphey declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary Murphey
Resurgence Financial Services, LLC
3330 Cumberland Blvd., Suite 500
Atlanta, GA 30330
Tel: (770) 933-6855
Email: Murphey@RFSLimited.com
About Adventure Coast
Adventure Coast, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
24-60023) listing $1 million to $10 million in both assets and
liabilities.
Benjamin R. Keck, Esq., at Keck Legal, LLC represents the Debtor as
counsel.
AG PARENT: S&P Affirms 'B-' ICR on Improved Profitability
---------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
pharmacovigilance reporting service provider AG Parent Holdings
LLC, the parent company of ArisGlobal Holdings LLC,. The outlook
remains stable.
S&P said, "At the same time, we affirmed our 'B-' issue-level
ratings on the company's first-lien term loan and revolving credit
facility and our 'CCC' issue-level rating on its senior secured
second-lien term loan.
"The stable outlook reflects our expectation that profitability
will significantly improve over the next 12 months, but leverage
will remain above 7x and free operating cash flow (FOCF) will be
roughly breakeven.
"We expect profitability to continue to improve over the second
half of 2024 and into 2025, leading to positive FOCF generation
beginning in 2025. While revenue in 2023 was mostly in line with
our expectations, EBITDA was much lower than expected due to
persistently high hosting costs and one-time costs related to
headcount reduction. This resulted in an EBITDA margin of 7.3%
versus our expectation of 18.6%. In the first half of 2024 the
company generated EBITDA margin of 24% compared with 10.7% in the
same period last year resulting from the reduction in headcount and
synergies associated with the Amplexor and CorrIT (SPORify)
acquisitions. We now expect an overall EBITDA margin of 23% in
2024. We also expect the EBITDA margin to continue improving to
about 25% in 2025 as some duplicative hosting costs roll off by the
end of 2024. While we still expect a reported FOCF deficit of $3
million-$5 million in 2024, the improved profitability and
declining base rates will lead to positive FOCF of about $2
million-$5 million in 2025. As the company continues to grow, we
would expect sustainable FOCF growth in 2026 and beyond.
"We expect revenue growth to be muted at 1%-2% in 2024, pacing up
to about 6% in 2025. While revenue growth remained muted in the
first half of 2024 due to customer churn resulting from conversion
to software as a service (SaaS) solutions and accounting
adjustments that overstated revenue in the comparable period, we
expect it to pace up and settle in the 6% area from 2025 onward,
supported by the company's ongoing efforts to win back clients for
its SaaS offering, an acceleration in bookings resulting from its
new AI offerings, and optimized sales efforts. We also anticipate
increased contributions from the company's Amplexor and CorrIT
acquisitions as the company cross sells existing offerings to the
acquired clients."
ArisGlobal remains vulnerable to intensifying competition and
changes to the regulatory environment. S&P said, "We believe
ArisGlobal's revenue growth and expanding customer base reflect the
superiority of its pharmacovigilance reporting services. However,
Oracle Corp., the company's primary competitor in this business,
and Veeva Systems Inc. (not rated), a leader in the clinical space,
have greater financial resources available than ArisGlobal. We
believe high switching costs constrain ArisGlobal's expansion but
also protect the market share gains it has already secured. We view
an intensification of competition in the safety segment as the
greatest risk to the company's performance. As cloud-based
platforms mature, we believe switching costs will decline and
price-based competition may intensify." In addition, operational
challenges that damage the business's reputation regarding quality
or security could disrupt the business. Although unlikely within
the next several quarters, regulatory changes that simplify safety
reporting requirements (e.g., the international harmonization of
data requirements) could reverse the trend toward outsourcing these
services or intensify pricing pressures.
The company operates in a niche industry and its multi-tenant
LifeSphere software platform competes with those of much larger
companies with greater financial resources and a broader array of
products and services. The company generates most of its revenue
from the safety segment (about 77% of 2023 revenue). The company
specializes in a narrower segment than most rated peers. S&P said,
"We view an intensification of competition in the safety segment as
the greatest risk to the company's performance. Similarly, a
cybersecurity incident that erodes trust in the software vendor
could significantly hurt customer retention. We view ArisGlobal's
regulatory, clinical, and medical affairs segments as more
vulnerable to competition given the more fragmented competitive
landscapes in those industries."
The stable outlook reflects S&P's expectation that profitability
will significantly improve over the next 12 months, but leverage
will remain above 7x and FOCF will be roughly breakeven.
S&P could lower its ratings on the company within the next 12
months if it believed the company would be unable to consistently
generate positive FOCF and its capital structure would become
unsustainable over time.
This could occur if:
-- The company's revenue growth stagnated or declined due to
client losses and competitive pressures, or
-- Persistent elevated costs resulted in an EBITDA margin that
remained below 15%-16%.
Although unlikely, S&P could raise its rating on ArisGlobal within
the next 12 months if:
-- S&P expected it to achieve and maintain adjusted leverage of
below 7x;
-- It sustained annual FOCF generation (excluding net working
capital sources of cash) in excess of 3% of its debt; and
-- S&P received more information about EBITDA margin stability and
financial policy.
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis. Our assessment of the
company's financial risk profile as highly leveraged reflects
corporate decision-making that prioritizes the interests of the
controlling owners, in line with our view of the majority of rated
entities owned by private-equity sponsors. Our assessment also
reflects the generally finite holding periods and a focus on
maximizing shareholder returns."
ALL DAY: $200MM Bank Debt Trades at 57% Discount
------------------------------------------------
Participations in a syndicated loan under which All Day
AcquisitionCo LLC is a borrower were trading in the secondary
market around 42.7 cents-on-the-dollar during the week ended
Friday, October 11, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $200 million Term loan facility is scheduled to mature on
December 29, 2025. The amount is fully drawn and outstanding.
All Day AcquisitionCo LLC does business as Reorganized 24 Hour
Fitness Worldwide Inc., an operator of fitness centers in the U.S.
AMERICAN NUTS: Investcorp Marks $4.6MM Loan at 76% Off
------------------------------------------------------
Investcorp Credit Management BDC, Inc has marked its $4,600,689
loan extended to American Nuts Holdings, LLC to market at
$1,116,748 or 24% of the outstanding amount, according to a
disclosure contained in Investcorp's Form 10-K for the Quarterly
Period Ended June 30, 2024, filed with the Securities and Exchange
Commission.
Investcorp is a participant in a First Lien Senior Secured Debt
Term Loan B (3M S + 11.75% Payment in Kind (1% Floor)) to American
Nuts Holdings, LLC. The loan matures on April 10, 2026.
Investcorp, Classified the Loan as non-accrual asset.
Investcorp, is a Maryland corporation formed in May 2013, is a
closed-end, externally managed, non-diversified management
investment company that has elected to be regulated as a business
development company under the Investment Company Act of 1940, as
amended, and has elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code for U.S.
federal income tax purposes. Investcorp is an investment company
and accordingly follows the investment company accounting and
reporting guidance of the Financial Accounting Standards Board
Accounting Standard Codification Topic 946 Financial
Services-Investment Companies.
Investcorp is led by Suhail A. Shaikh, Director, President and
Chief Executive Officer; and Walter Tsin, Chief Financial Officer.
The fund can be reach through:
Suhail A. Shaikh
Investcorp Credit Management BDC, Inc
Maryland, 280 Park Avenue 39th Floor
New York, NY, 10017
Tel: (212) 257-5199
American Nuts, LLC wholesales and distributes food products. The
Company imports nuts, seeds, dried fruit, and organic ingredients.
AMERICAN TIRE: $1BB Bank Debt Trades at 50% Discount
----------------------------------------------------
Participations in a syndicated loan under which American Tire
Distributors Inc is a borrower were trading in the secondary market
around 49.8 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $1 billion Term loan facility is scheduled to mature on October
23, 2028. The amount is fully drawn and outstanding.
American Tire Distributors, Inc. distributes motor vehicle parts.
The Company offers custom wheels, tires, and other related
products. American Tire Distributor serves customers in the United
States.
ASTRA ACQUISITION: $615.7MM Bank Debt Trades at 81% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Astra Acquisition
Corp is a borrower were trading in the secondary market around 18.7
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $615.7 million Term loan facility is scheduled to mature on
October 25, 2028. The amount is fully drawn and outstanding.
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ATLAS PURCHASER: $134.6MM Bank Debt Trades at 76% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 24.1
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $134.6 million Payment in kind Term loan facility is scheduled
to mature on May 5, 2028. The amount is fully drawn and
outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATLAS PURCHASER: $154.4MM Bank Debt Trades at 87% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 12.7
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $154.4 million Term loan facility is scheduled to mature on May
5, 2028. The amount is fully drawn and outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATLAS PURCHASER: $423.7MM Bank Debt Trades at 55% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 44.9
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $423.7 million Payment in kind Term loan facility is scheduled
to mature on May 5, 2028. The amount is fully drawn and
outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATLAS PURCHASER: $45.6MM Bank Debt Trades at 92% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 8.5
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $45.6 million Term loan facility is scheduled to mature on May
5, 2028. The amount is fully drawn and outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
AUSTRALIA: Immigration Detention System Faces Refugee Class Suit
----------------------------------------------------------------
David Estcourt of ABC News reports that a newly launched class
action seeks to expand the decision in NZYQ, which saw the release
of approximately 150 detainees last year.
Many of the detainees had criminal records, causing the federal
government a huge political headache.
What's next?
Advocates say people in immigration detention are being kept in
legal limbo for years, while the opposition has called for the
government to pass legislation that it blocked in the Senate.
The potential release and financial compensation of asylum seekers
could pose a significant challenge for the government's immigration
detention system if a recently launched class action succeeds.
The action, filed on Friday, October 4, as a High Court
intervention in an existing legal challenge, aims to expand on the
decision in the NZYQ High Court case, which prompted the release of
about 150 detainees last November and caused a political furore for
the federal government.
Many of those released had criminal records and some have gone on
to offend since being released.
The Asylum Seeker Resource Centre has filed a new class action on
behalf of South Sudanese refugees arguing that those being held in
detention are in legal limbo, unable to return to the country they
were born in or to a third country, and that they should be
released into the community once their refugee status has been
confirmed.
Hannah Dickinson, principal solicitor at the Asylum Seeker Resource
Centre, said the class action aimed to restore the dignity of
people who have endured the conditions of Australia's tough
detention system, and release those who are eligible and still
subject to it.
"In bringing this action, [the lead plaintiff] argues that as soon
as the Australian government recognises a person cannot return to
their country of birth because it is not safe for them, that is
that they are a refugee, it can't continue to keep that person in
detention," she said.
"There's simply no legitimate basis to do so.
"At present, we see people languishing in detention for years, even
after recognition that they are refugees."
The case also seeks compensation for wrongful detainment.
Due to poor record keeping, the changing political situation in
Sudan and South Sudan, and limited information on detainees in
Australia, it is unclear how many detainees and refugees the case
applies to.
But there are currently 400 detainees who have listed their country
of origin as "other", some of whom could come from South Sudan.
The lead plaintiff in the case, known only as LPSP, spent just over
a year in an Australian prison after his humanitarian visa was
cancelled.
He was then moved to immigration detention where he spent five
years, from 2019 to 2024.
The man now lives in the community with his family after being
found to pose no risk and is seeking compensation for what he
argues was almost 1,200 days of unlawful detention.
The case covers all South Sudanese people detained after protection
obligations were recognised in Australia, but it will also have
implications for others.
'Botched from the word go'
Opposition immigration spokesman Dan Tehan said it was inevitable
that the NZYQ decision would be used as a foundation to launch
further litigation.
"What we were always deeply concerned about was the cascading
effect of the NZYQ case, and it seems that this is another issue
which has arisen from it," he said.
"This goes to . . . the Albanese-Labor government's immigration
approach.
"It has been botched from the word go, and this will be another
consequence if the government loses this case."
He said the government should be better prepared for the
challenge.
"You need to be looking at third country options," he said.
"You need to be making sure that you're preparing for court cases
so that you can defend the right for the Commonwealth to protect
its citizens, and where you have legislation before the parliament
to deal with some of the consequences of this that you would
actually put that legislation to a vote so that we can get an
outcome which would help keep Australians safe."
The ABC put questions to Immigration Minister Tony Burke but was
referred to the Home Affairs Department.
In a statement, a department spokesperson said the safety and
security of the Australian community remained their absolute
priority, but that they do not comment on individual cases due to
privacy, nor on matters currently before the courts.
"The department makes preparations before all significant court
rulings to prepare for all potential outcomes," the spokesperson
said. Lead plaintiff spent years in limbo.
LPSP arrived in Australia as a 12-year-old boy on a humanitarian
visa from South Sudan. He is now in his 30s and has family who are
Australian citizens.
The man's lawyer said his life had been shaped by trauma and
conflict.
He was born in a refugee camp and at age three was forced to flee
with his family to another camp in Kenya where he lived for the
next eight years.
During this time he witnessed horrific and traumatic events
including murder, violence, and ongoing conflict.
He told the ABC that he was sorry for his offending in Australia
and was working hard to turn his life around.
"I know I've made serious mistakes when I was young, and I regret
what I've done every day," he said.
"I'm sorry to everyone in the Australian community for my
behaviour. But I've learned the hard way and proved myself over the
years.
"Now, I'm working so hard to rebuild my life and support the people
I love, especially my mum and my kids." He said Australia's
detention regime took a toll on him.
"No-one who gets out of detention will ever be the same. We were
not treated like humans," he said.
"Before detention, I used to be social and happy. Now I'm in my own
world and so anxious and sad, I don't even want to go outside. I
feel scared all the time."
Now in the community and living with family, he said he was
struggling to readjust to life after years of traumatic and
indefinite detention.
Asylum seeker advocates say this is 'not justice'
Ms Dickinson said a two-tiered justice system has emerged in
Australia's immigration detention regime.
"If you're unfortunate enough to be a refugee or a person seeking
asylum in Australia, you will be exposed to further punishment,"
she said.
"[That includes] a return to persecution or indefinite detention,
often for years afterwards, for many times over, what the sentence
you had been committed to was." She said it was not unusual for the
Asylum Seeker Resource Centre to interview clients who arrived in
Australia as a child refugee.
"[They] have family in Australia and a part of the community in
every other way, apart from the piece of the paper that declares
[them] a citizen," she said.
"This is not justice."
A fresh challenge to the law
For immigration detention to be lawful it must have a legitimate
and non-punitive purpose.
NZYQ said that where the purpose for detention was removal, but
there was no reasonable prospect of removal possible from Australia
in the foreseeable future, the detention became unlawful. While a
visa application is still under consideration, the government has
argued that the purpose of detention is admission and visa
consideration.
But LPSP argues that as soon as the government learns it owes
protection obligations to a detainee, the detention becomes
unlawful, regardless of whether a person's application remains
under consideration by the government.
After that point, LPSP said the detention cannot be for a
legitimate purpose, which renders the detention unlawful and means
they must be released.
LPSP spent 1,192 days in detention after a protection finding was
made in his favour. [GN]
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 16% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aventiv
Technologies LLC is a borrower were trading in the secondary market
around 84.3 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $1.03 billion Term loan facility is scheduled to mature on
November 1, 2024. The amount is fully drawn and outstanding.
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
AVENTIV TECHNOLOGIES: $288MM Bank Debt Trades at 72% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Aventiv
Technologies LLC is a borrower were trading in the secondary market
around 28.1 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $288 million Term loan facility is scheduled to mature on
November 1, 2025. The amount is fully drawn and outstanding.
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
BANQ INC: Court Tosses Chapter 11 Bankruptcy as Bad-Faith Filing
----------------------------------------------------------------
James Nani of Bloomberg Law reports that Banq Inc. had its
bankruptcy tossed after a Nevada federal judge found that the
one-time cryptocurrency technology company filed only to gain an
advantage in pending litigation.
Banq's small business bankruptcy reorganization plan was rejected
and its case dismissed as a bad-faith filing, because it's really a
two-party dispute, according to an order filed Tuesday by Judge
Natalie M. Cox of the US Bankruptcy Court for the District of
Nevada.
"It is apparent from the totality of the circumstances that
Debtor's actual purpose in filing this case is not to successfully
reorganize," Cox said.
About Banq Inc.
Banq Inc. is a developer of digital payment, banking and crypto
systems.
Banq Inc. filed a Chapter 11 petition (Bankr. D. Nev. Case No.
23-12378) on June 13, 2023. In the petition signed by Joshua
Sroge, CEO, the Debtor disclosed $17,725,914 in assets and
$5,451,447 in liabilities.
Bart Larsen, Esq., of SHEA LARSEN PC, is the Debtor's counsel.
BARROW SHAVER: Dore Rothberg Represents Petitioning Creditors
-------------------------------------------------------------
In the Chapter 11 case of Barrow Shaver Resources Company LLC Axis
Energy Services, LLC, DOC Energy Services, LLC, Cudd Pressure
Control, Inc., Thru Tubing Solutions, Inc., Genesis Fluids, LLC,
and Force Pressure Control, LLC, (collectively the "Petitioning
Creditors") filed a verified statement pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure.
The Petitioning Creditors have hired Dore Rothberg Law, P.C. (the
"Firm") to represent them in the above captioned case, but the
representation is on an individual basis and not as a committee.
These claims are secured by mineral liens under the Texas Property
Code in the amounts and information provided by the respective
creditor and may be subject to change.
The Firm does not have any prepetition claims against, or equity
interest in, the Debtor.
The Petitioning Creditors' address and the nature and amount of
disclosable economic interests held in relation to the Debtor are:
1. Axis Energy Services, LLC
901 Main Street, Suite 4920
Dallas, TX 75202
Trade Creditor
* $505,535.11
2. DOC Energy Services, LLC
481 US-98
Columbia, MS 39429
Trade Creditor
* $1,294,432.75
3. Cudd Pressure Control, Inc.
21320 Springbridge Drive
Houston, TX 77073
Trade Creditor
* $959,340.00
4. Thru Tubing Solutions, Inc.
5759 IH 37 Access Road
Corpus Christi, TX 78409
Trade Creditor
* $198,466.69
5. Genesis Fluids, LLC
9701 N. Broadway Ext.
Oklahoma City, OK 73114
Trade Creditor
* $2,370,875.03
6. Force Pressure Control, LLC
10077 Grogans Mills Rd., Suite 500
The Woodlands, TX 77380
Trade Creditor
* $3,126,331.43
Attorneys for the Petitioning Creditors:
DORÉ ROTHBERG LAW, P.C.
Lisa Paige Rothberg, Esq.
Connor Smith, Esq.
Laura Crabtree
16225 Park Ten Place Dr., Suite 700
Houston, Texas 77084
(281) 829-1555
(281) 200-0751 Fax
Email: LRothberg@dorelaw.com
CSmith@dorelaw.com
LCrabtree@dorelaw.com
About Barrow Shaver Resources Company
Barrow Shaver Resources Company, LLC, is a privately held,
independent oil and gas exploration and acquisition company based
in Tyler, Texas. Barrow Shaver is engaged in prospect generation,
producing properties acquisition, lease acquisition, assembly and
marketing of prospects for the exploration and development of oil
and natural gas in the prolific producing trends of the East Texas
and West Texas Basins.
Barrow Shaver Resources Company sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-33353)
on Aug. 19, 2024, with $50 million to $100 million in both assets
and liabilities. James Katchadurian, chief restructuring officer,
signed the petition.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Jones Walker, LLP, as legal counsel; CR3
Partners, LLC as financial advisor; and Kroll Restructuring
Administration, LLC as claims, noticing, and solicitation agent.
BH&G HOLDINGS: Amends Plan to Include Surety Parties Secured Claim
------------------------------------------------------------------
BH&G Holdings, LLC, submitted a Second Amended Disclosure Statement
for the Second Amended Plan of Reorganization dated September 6,
2024.
The Debtor is a single asset real estate entity organized for the
purpose of developing and constructing that certain residential
apartment complex consisting of multiple buildings in the City of
Henderson, Nevada (the "City") known initially as Apex 582, and
most recently, as the Apex at Galleria (the "Project"), located on
a 19.04-acre site at the southeast corner of Boulder Highway and
Galleria Drive, in Henderson, Nevada, Assessor's Parcel No.
178-02-513-001 (the "Property").
The members of the Debtor are: (i) MGP Apex 582 Multifamily, LLC
a/k/a ("MGP Equity Member"); (ii) MGP Apex 582 Development, LLC,
a/k/a MGP Developer Member or Investor Manager; (iii) MGP Apex 582
Guaranty, LLC ("MGP Guarantor Member"); and BH&G Enterprises, LLC
("Developer Member"). The Developer Member is managed by Tru
Management Group LLC, which is managed by the Developer Principal.
As of February 16, 2024, the Developer Member asserts that it owns
4.707% capital sharing ratio and 12.207% residual sharing ratio of
the Debtor, as defined in the First Amendment to Amended and
Restated Operating Agreement of BH&G Holdings, LLC, dated July 12,
2021, and the other members assert that the Developer Member owns a
4.02% membership interest, and owns approximately two percent
(2.014%) fully diluted.
On June 21, 2024, the Debtor filed its Motion to Approve Compromise
with Trez, the Surety Parties, the Deters Parties, the Norton
Parties, and the C-PACE Lender Pursuant to Bankruptcy Rule 9019
(the "9019 Motion"), which sought Court approval of the Global
Stipulation. On July 9, 2024, the Bankruptcy Court orally approved
the 9019 Motion and related Global Stipulation and entered an order
approving the same on July 15, 2024 (the "Global Settlement
Order"). As described in the 9019 Motion, the Global Stipulation
provides as follows:
* The Debtor will stipulate to allow Trez's secured claim for
all purposes, second only to WO PACE, in the amount of $30,000,000
("Trez Secured Claim");
* The Parties agree to a competitive 363 sale subject to sales
procedures consented to by Trez under which it is agreed:
-- a ceiling on Trez's credit bid in the amount of
$28,000,000, around which the Debtor can run a sale provided,
however, that Trez may credit bid any amount below $28,000,000;
Trez will be deemed a Qualified Bidder (as defined in the bid
procedures), with the ability to overbid above $28,000,000 with
cash.
-- consent to hiring a broker/real estate agent; identity and
compensation of the broker/real estate agent is subject to further
agreement between BH&G and Trez, in consultation with Norton and
Deters: If Trez's credit bid of any amount is the winning bid for
the property, Trez will backstop a broker being paid $50,000 for
its work (or as otherwise agreed between the parties as set forth
in section (c)(ii)); and BH&G and Trez will further discuss the
broker's compensation for if any overbidding above $28,000,000
occurs.
* The waterfall of the sale proceeds under the 363 sale will
flow as follows:
-- If Trez is the successful credit bidder, Trez will pay a
total of $500,000 to fund payments to non-insider unsecured
creditors; provided, however, if the stalking horse or another
overbidder is the successful purchaser, $500,000 of sale proceeds
will be carved out to pay non-insider claims and administrative
claims under a confirmed plan;
-- the real estate broker's compensation to be determined;
-- One percent aggregate break-up fees and expense
reimbursement if the Debtor chooses a stalking horse bidder of at
least $28,000,000 in accordance with the bid procedures; provided,
however, if there is an overbid, the first overbid must be at least
$28,280,000;
-- Trez's Secured Claim until paid in full, provided Trez
agrees it will accept cash bids in excess of $28,000,000;
-- The balance of the Debtor's non-insider creditors and
interest holders in order of their priority under the Bankruptcy
Code;
-- To equity, in their respective ownership percentages; and
-- Equity, including Norton and Deters, will receive no
distribution, payment, or funds from the Debtor except pursuant to
this waterfall.
Class 7 consists of the Secured Claim of the Surety Parties.
Impaired and shall receive the treatment set forth in the Global
Stipulation and the Arch Culvert Stipulation. Specifically, the
Surety Parties shall retain their rights in any collateral held in
the Surety Account until completion of the Arch Culvert. Any funds
remaining in the Surety Account after: (i) certification of
completion of the Arch Culvert; (ii) release of the Bond; and (iii)
satisfaction of any losses and expenses of the Surety Parties under
their indemnity agreement shall be released and paid to Trez
subject to the terms of the Arch Culvert Stipulation.
In the event there are insufficient Proceeds for construction of
the Arch Culvert and the Surety Parties incur a loss related
thereto, the Surety Parties may file a claim in the Chapter 11 case
and retain their rights to receive distributions as General
Unsecured Creditors in Class 8.
Class 8 consists of General Unsecured Claims. Class 8 shall consist
of all allowed nonpriority general unsecured claims. Each holder of
an Allowed General Unsecured Claim shall receive its pro rata share
of the proceeds of Causes of Action, other estate assets plus the
proceeds of the Sale of the Debtor's Property, and the Carve-Out,
if any, after payment of all Administrative Claims, Priority
Claims, and Secured Claims.
Pursuant to the Plan and the Global Stipulation, and as the
Debtor's principal Restructuring Transaction, the Debtor seeks to
sell its Property and related assets in conjunction with the Plan
Confirmation process. The Property will be sold pursuant to an
auction (the "Auction") as set forth in those certain Bidding
Procedures.
A full-text copy of the Second Amended Disclosure Statement dated
September 6, 2024 is available at https://urlcurt.com/u?l=Xlz2hl
from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Samuel A. Schwartz, Esq.
Gabrielle A. Hamm, Esq.
SCHWARTZ LAW, PLLC
601 East Bridger Avenue
Las Vegas, NV 89101
Telephone: (702) 385-5544/(702) 802-2207
Facsimile: (702) 385-2741
Email: legalinfo@nvfirm.com
About BH&G Holdings LLC
BH&G Holdings, LLC is a single asset real estate entity organized
for the purpose of developing and constructing that certain
residential apartment complex consisting of multiple buildings in
the City of Henderson, Nevada known initially as Apex 582, and most
recently, as the Apex at Galleria (the "Project"), located on a
19.04-acre site at the southeast corner of Boulder Highway and
Galleria Drive, in Henderson, Nevada, Assessor's Parcel No. 178
02-513-001 (the "Property").
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Nev. Case No. 24-10687) on
February 27, 2024, listing $50,000,001 to $100 million in assets
and $10,000,001 to $50 million in liabilities.
Judge Hilary L Barnes presides over the case.
Matthew L. Johnson of Johnson & Gubler, P.C., represents the Debtor
as counsel.
BIG LOTS: Gets Clearance to Pay Its Vendors Up to $60 Million
-------------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that Big Lots won bankruptcy
court approval to pay as much as $60 million to vendors the
discount retailer said are critical to it.
US bankruptcy court Judge Kate Stickles said at a Wednesday court
hearing that she'd approve Big Lots' request to pay critical
vendors.
The firm had said in court papers that the payments were necessary
to ensure it's able to have sufficient merchandise at its stores.
Other key issues, including approval for an asset-sale bidding
procedure and obtaining post-petition financing, have been
adjourned to October 21, 2024.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value. The
Company is dedicated to being the big difference for a better life
by delivering bargains to brag about on everything for the home,
including furniture, decor, pantry and more. It fulfills its
mission to help customers "Live BIG and Save LOTS" with sourcing
strategies to grow extreme bargains through closeouts,
liquidations, overstocks, private labels, and value-engineered
products. The Big Lots Foundation, together with the Company's
customers, associates, and vendors, has delivered more than $176
million of philanthropic support to critical needs in hunger,
housing, healthcare, and education. On the Web: http://biglots.com/
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC, is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus.
BOART LONGYEAR: S&P Withdraws 'B-' Issuer Credit Rating
-------------------------------------------------------
S&P Global Ratings withdrew its 'B-' issuer credit rating on Boart
Longyear Ltd. at the issuer's request.
The withdrawal followed its acquisition by American Industrial
Partners from Centerbridge Partners L.P. in April 2024.
S&P withdrew its 'B-' issuer credit rating on Boart Longyear at the
issuer's request. The withdrawal followed completion of its
acquisition by American Industrial Partners from Centerbridge
Partners L.P. in April 2024. At the time of the withdrawal the
outlook was stable.
Boart Longyear had no rated debt at the time of withdrawal.
BUCKEYE PARTNERS: Fitch Keeps 'BB' LongTerm IDR on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has maintained Buckeye Partners, L.P.'s 'BB'
Long-Term Issuer Default Rating (IDR), as well as the company's
instrument ratings on Rating Watch Negative (RWN).
The RWN reflects the risk that Buckeye's leverage may not return to
levels appropriate for the rating in the near term. Fitch expects
to resolve the RWN once Buckeye receives a large cash contribution
from its parent, Buckeye Energy Holdings (Holdings) from certain
asset sale proceeds expected to be generated by Holdings' other
subsidiaries. Fitch expects this contribution before YE 2024.
The proceeds will be used to reduce Buckeye's outstanding debt,
supporting Fitch's assumption that EBITDA leverage will be below
6.0x by YE 2024. Fitch notes the resumption of full operations at
Buckeye's partially owned FLNG Liquefaction 2, LLC (FLIQ2;
BBB/Stable) investment around the end of July 2024.
Key Rating Drivers
Near-Term Equity Contribution Expected: Fitch considers it
reasonable for Buckeye to receive significant cash, assumed to come
from liquidity generated at Holdings, including potential asset
monetization. Buckeye has made large investments in recent years
into alternative energy assets that are now under Holdings.
Management has guided for an asset sale at Holdings and an equity
contribution to Buckeye in 2024. Fitch expects Buckeye to use the
cash infusion for debt repayment, deeming it necessary for
achieving Fitch-calculated EBITDA leverage below 6.0x by YE 2024.
Full Operations Resume at FLIQ2: Operations at FLIQ2 fully resumed
at the end of July 2024, following disruptions that began with a
fire at the facility in mid-2022, followed by subsequent unplanned
maintenance activities. The loss of FLIQ2 distributions after 2Q22
significantly reduced Fitch-calculated EBITDA for Buckeye. Fitch
estimates that run-rate annual distributions from contracted cargos
will range between $110 million and $130 million. Buckeye has
received meaningful distributions from FLIQ2 in 2024 so far. Fitch
expects these payments to continue regularly going forward.
Credit Support Materially Removed: The majority of credit support
previously provided by Buckeye to Holdings' alternative energy
business has been released. The remaining credit support provided
to Holdings' alternative energy business as of 2Q24 is in the form
of about $22 million in letters of credit (LOCs) under Buckeye's
revolving credit facility (RCF). Fitch expects a further reduction
in LOCs through the balance of 2024.
Modest Growth in Pipeline Volumes/Terminal Throughput: Buckeye has
benefited from a stable operating environment, leading to modest
growth in pipeline volumes and terminal throughput through 2024.
Average daily pipeline throughput increased by about 2% yoy in
1H24, exceeding 1.2 million barrels per day in 2Q24. Additionally,
terminal throughput volumes were roughly flat in 1H24 but rose just
over 1% yoy in 2Q24. Steady demand for Buckeye's assets in this
segment provides a reliable base of cash flows, supporting
Buckeye's credit quality.
Improving Storage Utilization Trend: Buckeye has benefitted from an
improving trend in utilization at its storage assets in 2024.
Utilization reached nearly 70% in 2Q24, up from around 63% in the
same period last year. If this trend continues in 2H24, it would
slightly exceed Fitch's current expectations for the segment.
Rating Linkages: There is a parent-subsidiary relationship between
Holdings and Buckeye. Fitch believes Buckeye has the stronger
Standalone Credit Profile (SCP) than Holdings, and views Holdings'
SCP on consolidated credit metrics. Fitch sees Holdings' SCP as in
line with a low-'BB' category IDR, and therefore follows the
stronger subsidiary path.
Legal ring-fencing is assessed as 'Open' due to the ability to move
cash freely between the entities. Fitch views access and control as
'Porous' as Fitch expects a mixture of external and intercompany
funding. These linkage considerations lead Fitch to limit the
difference between Holdings and Buckeye to one notch.
Derivation Summary
The 'BB' rating reflects Buckeye's diverse asset base, size and
scale, and higher relative leverage, in addition to its secured
debt structure and private equity ownership. Buckeye has higher
leverage than investment-grade peers that operate in the crude oil
and refined-product pipelines, terminalling and storage subsectors,
such as Plains All American Pipeline L.P. (PAA; BBB/Stable).
Buckeye's leverage remained elevated at around 7x in 2023, and
Fitch expects it to decline to below 6.0x in 2024 and beyond. Fitch
forecasts leverage at PAA to be below 3.5x in 2024, in line with
the company's net leverage target range of 3.25x to 3.75x. The
significantly lower leverage is the primary driver of the
three-notch difference in their IDRs.
Key Assumptions
- Significant cash contributions from Holdings to Buckeye for prior
investments made in/assets contributed to Holdings' alternative
energy business received in the near term;
- Pipeline and terminal throughput volumes grow at low-single
digits and storage utilization remains in mid-60% range through
2024;
- Full operations at FLIQ2 supporting continued dividend payments
to Buckeye over the forecast period;
- Growth capital to average around $150 million annually over the
forecast;
- Credit support from Buckeye to its affiliates in the form of LOCs
continue to be removed in the near term;
- Base interest rates applicable to variable rate exposed debt
instruments reflect Fitch's Global Economic Outlook;
- Gross distributions from Buckeye to Holdings range between $250
million to $500 million annually over the forecast period. Fitch
assumes the level of dividends paid by Buckeye is driven by the
achievement of internally set financial policies related to
leverage.
RATING SENSITIVITIES
Factors That Could, Individually Or Collectively, Lead To Positive
Rating Action/Upgrade
- Fitch could resolve the Rating Watch following the receipt of a
significant cash contribution related to Buckeye's investments
in/assets contributed to Holdings' alternative energy business by
YE 2024;
- EBITDA leverage expected to be sustained at or below 5.0x;
- Favorable changes in the business mix, including but not limited
to a meaningful increase in the percentage of EBITDA coming from
revenue assurance-type contracts and/or a significant increase in
the remaining weighted-average life of existing revenue
assurance-type contracts.
Factors That Could, Individually Or Collectively, Lead To Negative
Rating Action/Downgrade
- Buckeye not receiving a significant cash contribution related to
its investments in/assets contributed to Holdings' alternative
energy business by YE 2024 or not using those proceeds to repay
debt;
- Expectations that Buckeye is no longer being run as a separate,
standalone midstream company could potentially lead to a
multi-notch downgrade;
- Expected EBITDA leverage at or above 6.0x for a sustained period
of time;
- Increases in capital spending and/or funding for acquisitions, or
an aggressive distribution policy beyond Fitch's expectation that
have negative consequences for the credit profile;
- Given the rating linkage with Holdings, should Fitch deem
Holdings' SCP weaker than a low-'BB' category IDR;
- Should Fitch expect a significant deviation from the sponsor's
currently supportive leverage and distributions policies, as well
as the sponsor's intention to maintain Buckeye as a distinctly
separate entity.
Liquidity and Debt Structure
Adequate Liquidity: Buckeye had approximately $1 billion of
available liquidity as of June 30, 2024. There were approximately
$140 million of outstanding borrowings and about $29 million of
LOCs on the company's $1.2 billion senior secured RCF. Buckeye also
had almost $11 million of cash and cash equivalents on the balance
sheet as of June 30, 2024.
Debt maturities are manageable with $200 million of senior
unsecured notes due to mature in 2024, followed by $400 million due
in March 2025 and $600 million due in December 2026. Fitch notes
Buckeye has sufficient room on its revolving credit facility to
repay maturing notes due over the next 6 months.
Issuer Profile
Buckeye is a large liquid petroleum product pipeline and terminals
operator with assets located across the East Coast, Midwest, Gulf
Coast and Southeast region of the U.S. as well as in the Caribbean.
Buckeye is wholly owned by IFM Global Infrastructure Fund.
Summary of Financial Adjustments
Cash distributions from equity investments such as FLIQ2 are added
to EBITDA and equity earnings from such investments are excluded.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Buckeye Partners, L.P. has an ESG Relevance Score of '4' for Group
Structure due to related-party transactions and credit support to
affiliate companies, which has a negative impact on the credit
profile, and is relevant to the rating[s] in conjunction with other
factors.
Buckeye Partners, L.P. has an ESG Relevance Score of '4' for
Financial Transparency due to its affiliate structure without
transparency into affiliates, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Buckeye
Partners, L.P. LT IDR BB Rating Watch Maintained BB
senior
unsecured LT BB Rating Watch Maintained RR4 BB
senior
secured LT BBB- Rating Watch Maintained RR1 BBB-
BW NHHC HOLDCO: $195MM Bank Debt Trades at 66% Discount
-------------------------------------------------------
Participations in a syndicated loan under which BW NHHC Holdco Inc
is a borrower were trading in the secondary market around 34.1
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $195 million Term loan facility is scheduled to mature on May
15, 2026. About $10 million of the loan is withdrawn and
outstanding.
BW NHHC HoldCo Inc. is the primary borrower for the merger between
Jordan Health Services and Great Lakes Caring Home Health and
Hospice. Combined, the company provides skilled home health,
personal care and hospice services, primarily to Medicare and
Medicaid patients.
BYJU'S ALPHA: Raveendran Says Missing Money Used in Legit Purposes
------------------------------------------------------------------
Steven Church and Anto Antony of Bloomberg News report the founder
of Byju's, a once high-flying Indian education company that
defaulted on its US debts, denied that he orchestrated a scheme to
fraudulently transfer $533 million away from lenders.
On the day a judge considered the lenders' fraudulent transfer
claims against his company, Byju Raveendran outlined for the first
time in court his explanation for what happened to the money, which
lenders have been trying to track down for more than a year.
About BYJU's Alpha
BYJU's Alpha, Inc., designs and develops education software
solutions.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 24-10140) on Feb. 1, 2024. In the
petition signed by Timothy R. Pohl, chief executive officer, the
Debtor disclosed up to $1 billion in assets and up to $10 billion
in liabilities.
Judge John T. Dorsey oversees the case.
Young Conaway Stargatt & Taylor, LLP and Quinn Emanuel Urquhart &
Sullivan, LLP serve as the Debtor's legal counsel.
GLAS Trust Company LLC, as DIP Agent and Prepetition Agent, is
represented in the Debtor's case by Kirkland & Ellis LLP, Pachulski
Stang Ziehl & Jones, and Reed Smith.
CAFE CHINOIS: Sec. 341(a) Meeting of Creditors on Nov. 12
---------------------------------------------------------
Cafe Chinois LLC filed Chapter 11 protection in the Eastern
District of North Carolina. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 12, 2024 at 10:00 a.m. at Greenville 341 Meeting Room.
About Cafe Chinois LLC
Cafe Chinois LLC, formerly known as Phoenix Rising of NC, LLC, is a
French-inspired Asian Cuisine restaurant featuring Thai,
Vietnamese, Korean, and Chinese foods.
Cafe Chinois LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03484) on October 4,
2024. In the petition filed by Solange Thompson, as manager, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
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
CARABOBO PROSPER: Frances Smith Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 6 appointed Frances Smith, Esq., at
Ross, Smith & Binford, PC, as Subchapter V trustee for Carabobo
Prosper Holdings, LLC.
Ms. Smith will be paid an hourly fee of $475 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Smith declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Frances A. Smith, Esq.
Ross, Smith & Binford, PC
700 N. Pearl Street, Ste. 1610
Dallas, TX 75201
Phone: 214-593-4976
Fax: 214-377-9409
Email: frances.smith@rsbfirm.com
About Carabobo Prosper Holdings
Carabobo Prosper Holdings, LLC is a Texas-based distributor of oil
and lubricants serving mechanics throughout the state.
Carabobo Prosper Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Texas. Case No. 24-32882), with
$500,001 to $1 million in assets and $1 million to $10 million in
liabilities. Miguel Angel Chirinos Gonzalez, chief executive
officer, signed the petition.
Robert C. Lane Esq., at The Lane Law Firm, PLLC represents the
Debtor as bankruptcy counsel.
CAREERBUILDER LLC: Investcorp Marks $5.9MM Loan at 57% Off
----------------------------------------------------------
Investcorp Credit Management BDC, Inc. has marked its $5,924,347
loan extended to CareerBuilder, LLC to market at $2,525,025 or 43%
of the outstanding amount, according to a disclosure contained in
Investcorp's Form 10-K for the Quarterly Period Ended June 30,
2024, filed with the Securities and Exchange Commission.
Investcorp is a participant in a First Lien Senior Secured Debt (1M
S + 2.50% + 4.25% Payment in Kind (1.00% Floor) to CareerBuilder,
LLC. The loan matures on July 31, 2026.
Investcorp, Classified the Loan as non-accrual asset.
Investcorp, is a Maryland corporation formed in May 2013, is a
closed-end, externally managed, non-diversified management
investment company that has elected to be regulated as a business
development company under the Investment Company Act of 1940, as
amended, and has elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code for U.S.
federal income tax purposes. Investcorp is an investment company
and accordingly follows the investment company accounting and
reporting guidance of the Financial Accounting Standards Board
Accounting Standard Codification Topic 946 Financial
Services-Investment Companies.
Investcorp is led by Suhail A. Shaikh, Director, President and
Chief Executive Officer; and Walter Tsin, Chief Financial Officer.
The fund can be reach through:
Suhail A. Shaikh
Investcorp Credit Management BDC, Inc
Maryland, 280 Park Avenue 39th Floor
New York, NY, 10017
Tel: (212) 257-5199
Careerbuilder, LLC operates an online job portal. The Company
offers job postings, standard job optimization, employment
recommendation e-mails, branding, talent and compensation
intelligence, and recruitment services.
CARROTHERS INSPECTION: Judy Wolf Weiker Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 10 appointed Judy Wolf Weiker of
Manewitz Weiker Associates, LLC as Subchapter V trustee for
Carrothers Inspection Services, LLC.
Ms. Weiker 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. Weiker declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Judy Wolf Weiker
Manewitz Weiker Associates, LLC
P.O. Box 40185
Indianapolis, IN 46240
Phone: 973-768-2735
Email: JWWtrustee@manewitzweiker.com
About Carrothers Inspection Services
Carrothers Inspection Services, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
24-05110) on Dec. 19, 2023, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities.
Judge James M. Carr oversees the case.
The Debtor tapped Hester Baker Krebs, LLC as bankruptcy counsel.
CASTLE US: EUR500MM Bank Debt Trades at 35% Discount
----------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 65
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The EUR500 million Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CELSIUS NETWORK: Distributes $2.57-Bil. to Creditors, Customers
---------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that Celsius
Network reported that the reorganized debtor has now distributed a
total of $2.57 billion to creditors and customers in both cash and
cryptocurrency, meaning more than two-thirds of creditors have
received a recovery. Celsius said in court filings that 71% of
creditors have received distributions. Since Sept. 10, a total of
$30 million in distributions were made to 18,000 former users.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC, serve as the examiner's legal counsel and financial
advisor, respectively.
CONNORSVILLE COMMONS: Sec. 341(a) Meeting of Creditors on Nov. 8
----------------------------------------------------------------
Connorsville Commons LLC filed Chapter 11 protection in the
Southern District of Texas. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 8, 2024 at 10:00 a.m., US Trustee Houston Teleconference.
About Connorsville Commons LLC
Connorsville Commons LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Connorsville Commons LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34691) on October 4,
2024. In the petition filed by Thomas Noons, as managing partner,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Debtor is represented by:
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
DENALI CONSTRUCTION SERVICES: Seeks Chapter 11 Bankruptcy
---------------------------------------------------------
Denali Construction Services LLC filed Chapter 11 protection in the
Northern District of Texas. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Denali Construction Services LLC
Denali Construction Services LLC 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.
Denali Construction Services LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-33155) on
October 4, 2024. In the petition filed by Michelle L. Thrailkill,
as president and
managing member, the Debtor estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
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
DIAMOND SPORTS: Gets Court OK to Continue Getting Creditor Votes
----------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that bankrupt sports
broadcaster Diamond Sports Group won court approval to finish
polling creditors on its plan to survive Chapter 11 by cutting debt
and broadcasting local games for the upcoming National Hockey
League and National Basketball Association seasons.
Judge Christopher Lopez said Wednesday, October 9, 2024, he'd grant
Diamond's request to continue soliciting creditor votes on its
restructuring plan, which the court will consider approving in
November. Under the plan, Diamond will either reorganize following
the 2024-2025 NBA and NHL seasons or wind down its operations,
according to an October 2, 2024 court filing.
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.
DOVGAL ENTERPRISES: To Sell Marham Property to Sam Express Prime
----------------------------------------------------------------
Dovgal Enterprises LLC will seeks permission from the Honorable
Timothy A. Barnes of the U.S. Bankruptcy Court for the Northern
District of Illinois, Eastern Division, at a hearing on October 30,
2024, to grant the sale of its property.
The Debtor is an Illinois limited liability company engaged in the
leasing and ownership of commercial real property located at 2064
W. 167th Street, Markham, Illinois. According to the Debtor, the
Property has significant equity owed to its secured creditor,
Byline Bank, and to the Cook County Treasurer for unpaid real
estate taxes.
The members of the Debtor are Alina Kim (50%) and Oleksandr Dovgal
(50%) and all of the entities occupying the Property are owned or
controlled by the members including Dovgal Express Inc., Unibox
Warehouse Inc., Markham Truck Center Inc., and Altex Logistics
Inc.
The Debtor has retained Chris Nelson of Lee & Associates of
Illinois LLC as real estate broker to sell the Property.
The Debtor has received an offer to purchase the Property for
$8,000,000 from Sam Express Prime, LLC, an Illinois Limited
Liability company. The Property is subject to a mortgage in favor
of Byline Bank, which has a balance of $2,949,167.00 secured by
that mortgage, and unpaid real estate taxes of $444,533 to the Cook
County Treasurer.
The Debtor anticipates that the net proceeds of the Property will
be $4,000,000 to $5,000,000 and recommends that the total net
proceeds of the sale be deposited in a separate segregated account
controlled by the title company used for closing.
About Dovgal Enterprises
Dovgal Enterprises, LLC is an Illinois limited liability company
engaged in the leasing and ownership of commercial real property
located at 2064 W. 167th Street, Markham, Illinois.
Dovgal Enterprises, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-10615) on July 23, 2024, with up to $1 million in both assets
and liabilities.
Judge Timothy A. Barnes presides over the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman represents the
Debtor as legal counsel.
EDGIO INC: DOJ Watchdog Opposes Milbank as Lead Counsel
-------------------------------------------------------
Alex Wolf of Bloomberg Law reports that Milbank LLP should be
prevented from serving as bankruptcy counsel to media content
delivery company Edgio Inc. because the international law firm is
also representing company directors in shareholder suits,
government attorneys said.
The US Bankruptcy Court for the District of Delaware should deny
Edgio's request to hire Milbank as its lead counsel in its Chapter
11 proceedings because the firm will be left with conflicting
loyalties to both the company's bankrupt estate and to individuals
who may have harmed the company, the Justice Department's
bankruptcy monitoring division—the US Trustee—said in a filing
Tuesday, October 8, 2024.
About Edgio Inc.
Edgio Inc. (NASDAQ: EGIO) helps companies deliver online
experiences and content faster, safer, and with more control. Its
developer-friendly, globally scaled edge network, combined with our
fully integrated application and media solutions, provide a single
platform for the delivery of high-performing, secure web properties
and streaming content. Through this fully integrated platform and
end-to-end edge services, companies can deliver content quicker and
more securely, thus boosting overall revenue and business value.
Edgio Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 24-11985) on Sept. 9, 2024 with a deal to
sell its assets to lender Lynrock Lake Master Fund LP for a credit
bid of $110 million, absent higher and better offers.
The Hon. Karen B. Owens presides over the cases.
Edgio disclosed $379,013,042 in total assets against $368,613,842
in total liabilities as of June 30, 2024.
The Debtors tapped MILBANK LLP as general bankruptcy counsel;
RICHARDS, LAYTON & FINGER, P.A., as local counsel; TD SECURITIES
(USA) LLC (d/b/a TD COWEN) as financial restructuring advisor; and
RIVERON CONSULTING LLC as business advisor. C STREET ADVISORY GROUP
is serving as strategic communications advisor to the Debtors. OMNI
AGENT SOLUTIONS, INC., is the claims agent.
ELEVATE TEXTILES: $250MM Bank Debt Trades at 33% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Elevate Textiles
Inc is a borrower were trading in the secondary market around 67.5
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $250 million Payment in kind Term loan facility is scheduled to
mature on September 30, 2027. The amount is fully drawn and
outstanding.
Elevate Textiles, Inc. manufactures and supplies textile products
worldwide.
EMERGENCY HOSPITAL SYSTEMS: Hits Chapter 11 Bankruptcy
------------------------------------------------------
Emergency Hospital Systems LLC filed Chapter 11 petition in the
Southern District of Texas. 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. Section 341(a) is slated for
November 7, 2024 at 10:00 a.m. , US Trustee Houston Teleconference.
About Emergency Hospital Systems
Emergency Hospital Systems LLC, doing business as 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.
Emergency Hospital Systems LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34683) on
October 3, 2024. In the petition filed by Rafael Delaflor, as
operating officer, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Honorable Bankruptcy Judge Eduardo V. Rodriguez oversees the
case.
The Debtor is represented by:
Kenna Seiler, Esq.
SEILER RAPP & GUERRA, PLLC
2700 Research Forest Drive Suite 100
The Woodlands, TX 77381
Tel: (281) 419-7770x8020
E-mail: kseiler@srg-law.com
EXACTECH INC: $235MM Bank Debt Trades at 48% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Exactech Inc is a
borrower were trading in the secondary market around 52.5
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $235 million Term loan facility is scheduled to mature on
February 14, 2025. About $217.5 million of the loan is withdrawn
and outstanding.
Exactech, Inc. develops, manufactures, markets, and sells
orthopedic implant devices and related surgical instrumentation.
EXPAND ENERGY: Moody's Affirms 'Ba1' CFR, Outlook Remains Positive
------------------------------------------------------------------
Moody's Ratings affirmed Expand Energy Corporation's Ba1 Corporate
Family Rating and Ba1-PD Probability of Default Rating, and
maintained the positive outlook. Expand's SGL-1 Speculative Grade
Liquidity (SGL) rating remains unchanged. Expand was formerly known
as Chesapeake Energy Corporation (Chesapeake).
Moody's also upgraded Expand's senior unsecured notes and the
senior unsecured notes previously issued by Southwestern Energy
Company (Southwestern) to Ba1 from Ba2. Upon the merger between
Chesapeake and Southwestern, Southwestern has ceased to exist and
Expand became the successor issuer in respect to Southwestern's
senior unsecured notes.
Concurrently, Moody's withdrew Southwestern's Ba1 Corporate Family
Rating (CFR), Ba1-PD Probability of Default Rating (PDR), NP
Commercial Paper rating and SGL-1 Speculative Grade Liquidity (SGL)
rating. Southwestern's outlook was changed to rating withdrawn from
positive.
"Expand should derive the benefits of basin intensification through
the Southwestern merger in its already established position in the
Marcellus and Haynesville shale plays, with a considerably larger
production base and deeper drilling inventory, which should enable
enhanced drilling and operating efficiencies," commented Amol
Joshi, Moody's Ratings Vice President and Senior Credit Officer.
RATINGS RATIONALE
Expand's positive outlook reflects the combined company's
considerable scale, and that the company's credit profile should
improve due to post acquisition debt reduction and asset
integration benefits through 2025 even as natural gas prices likely
remain volatile, with the company following prudent governance and
financial policy.
Expand's Ba1 rating is supported by the significant size and scale
of its exploration and production (E&P) operations with a
diversified asset base in the premier natural gas focused supply
basins in the US. Expand's leverage metrics are modestly weaker as
a result of the combination relative to Chesapeake's standalone
metrics. However, Moody's view the pro forma leverage metrics to be
sound and supported by a large and more resilient asset base. The
combined company is expected to achieve meaningful debt reduction
through 2025 further enhancing the credit profile. Expand's
management team has stated its commitment to targeting leverage of
less than 1x net debt to EBITDAX at a Henry Hub natural gas price
of $3/Mcf, reflecting its commitment to improve leverage metrics.
The company is also expected to align capital investment with
market conditions to optimize free cash flow generation. While the
combined company will likely continue pursuing sizeable shareholder
returns including dividends and opportunistic share repurchases,
Moody's expect financial strength and flexibility will be
maintained and prioritized.
Expand's solid credit profile is supported by largely contiguous
assets in prolific basins and the ability to generate consistent
free cash flow before dividends, which will enhance its resilience
and bolster its capacity to withstand negative credit impacts from
carbon transition risks. While the financial performance of the
company will continue to be influenced by industry cycles, compared
to historical experience, Moody's expect future profitability and
cash flow in this sector to be more volatile because global
initiatives to limit adverse impacts of climate change will
constrain the use of hydrocarbons and accelerate the shift to less
environmentally damaging energy sources. The company's focus on
natural gas does provide it with better positioning than its oil
focused peers with respect to carbon transition risks.
Expand's very good liquidity is reflected by its SGL-1 rating. At
June 30, prior to the closing of the merger, Chesapeake had over $1
billion and Southwestern had $15 million of balance sheet cash,
excluding $76 million of Chesapeake's restricted cash. Chesapeake
had no revolver borrowings and Southwestern had $445 million of
borrowings under its revolver. After closing, Expand's revolving
credit facility has a borrowing base of $3.5 billion and aggregate
commitments of $2.5 billion, maturing in December 2027. The
revolver is expected to be unsecured upon its collateral falling
away shortly, and should have only one material financial covenant
at that time, requiring debt to total capitalization to be no
greater than 65%. Expand should have comfortable cushion for future
compliance under this covenant. In terms of upcoming debt
maturities, Expand has $389 million maturing in January 2025 and
$500 million due in February 2026, which the company can manage
within its committed liquidity and provides the ability for debt
reduction.
Expand's senior unsecured notes are rated Ba1, in line with the
company's Ba1 CFR, reflecting Moody's expectation that Expand's
revolver will be unsecured shortly.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Expand's ratings could be upgraded to Baa3 if the company
demonstrates significant progress towards its debt reduction
target, captures anticipated synergies and reduces its finding and
development costs to generate competitive returns on investment
while maintaining its size and scale. For an upgrade, Expand should
consistently demonstrate it can generate a leveraged full-cycle
ratio (LFCR) approaching 2x and retained cash flow (RCF) to debt
exceeding 50% at mid-cycle natural gas prices. Ratings could be
downgraded if the combined company generates meaningful negative
free cash flow, capital efficiency deteriorates, or RCF to debt
falls below 30%. Significant debt-funded acquisitions or
shareholder payouts could pressure the ratings.
Oklahoma City, OK-based Expand Energy Corporation is a large
independent exploration and production company that is primarily
focused on natural gas production from the Marcellus and
Haynesville shale basins.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
FINANCIAL BUSINESS: Court Stays Jeffers Lawsuit Due to Bankruptcy
-----------------------------------------------------------------
The Honorable Cynthia Bashant of the United States District Court
for the Southern District of California stayed the case captioned
as KRISTIN JEFFERS, Plaintiff, v. FINANCIAL BUSINESS AND CONSUMER
SOLUTIONS, INC., Defendant, Case No. 24-cv-01011-BAS-DDL (S.D.
Calif.).
Financial Business and Consumer Solutions has notified the Court
that it is subject to a bankruptcy case in the United States
Bankruptcy Court for the Eastern District of Pennsylvania (Case No.
24-13029-amc). Pursuant to 11 U.S.C. Sec. 362(a), the filing of a
bankruptcy petition automatically stays a judicial action against
the debtor. Finding good cause, the Court stays this action in its
entirety.
A copy of the Court's decision dated October 4, 2024, is available
at https://urlcurt.com/u?l=kjiNJd
Financial Business and Consumer Solutions, Inc. filed a Chapter 7
bankruptcy petition (Bankr. E.D. Pa. Case No. 24-13029) on August
29, 2024. The Hon. Ashely M. Chan presides over the case.
Founded in 1982, FBCS was a Hatboro, Pa.-based licensed collection
agency that provided accounts receivable management and collection
services throughout the United States across a variety of
industries.
FIREFLY STORE: Ashley Rusher Named Subchapter V Trustee
-------------------------------------------------------
John Paul Cournoyer, the U.S. Bankruptcy Administrator for the
Middle District of North Carolina, appointed Ashley Rusher as
Subchapter V trustee for Firefly Store Solutions, Inc.
Ms. Rusher 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. Rusher declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
About Firefly Store Solutions
Firefly Store Solutions, Inc., a company in Greensboro, N.C., has
been providing American retailers with store solutions, retail
store fixtures, and store displays since 1954.
Firefly Store Solutions filed its voluntary Chapter 11 petition
(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 legal counsel.
FTX TRADING: Bankruptcy Settlement Gives Creditors 119% Profit
--------------------------------------------------------------
PYMNTS reports that most of FTX's creditors will profit from their
investments in the failed cryptocurrency exchange.
That's according to a bankruptcy agreement approved Monday, October
7, 2024, by a federal court, giving 98% of FTX's creditors
approximately 119% of their claim.
"Looking ahead, we are poised to return 100% of bankruptcy claim
amounts plus interest for non-governmental creditors through what
will be the largest and most complex bankruptcy estate asset
distribution in history," FTX CEO John Ray said in a news release.
He added that FTX is at work on finalizing plans to "make
distributions to creditors across more than 200 jurisdictions
around the world."
Ray became chief executive after FTX declared bankruptcy in
November 2022, a collapse that rocked the crypto world and sent at
least three former executives to prison. At the time of his
takeover, Ray — who also helped with Enron's post-bankruptcy
recovery — blasted FTX's previous management for a "complete
failure of corporate controls."
Since then, he and his team have worked at recovering the company's
assets. FTX says it has amassed $14.7 billion to $16.5 billion
worth of property for distribution. The company has said it owes
creditors around $11.2 billion.
The bankruptcy plan approved in court gives credits 119% of their
claims as of November of 2022. The price of bitcoin has skyrocketed
since then, which led many creditors to argue they weren't being
given a fair price for their claims.
Meanwhile, the criminal proceedings tied to FTX's implosion
continue. Last month, Caroline Ellison, the former executive who
played a role in the company's downfall but also served as star
witness against FTX founder Sam Bankman-Fried, was sentenced to two
years in prison.
That was a harsher sentence than the three years of supervised
release, with no prison time, recommended by federal probation
officials.
But Judge Lewis Kaplan — while praising Ellison's cooperation
with prosecutors — said a custodial sentence was necessary to
deter others from committing fraud, calling the no-jail-time
recommendation a "literal get-out-of-jail-free card I can't agree
to."
Bankman-Fried — serving 25 years for fraud and conspiracy — has
recently asked for a new trial, arguing that Kaplan had hamstrung
his defense. In his filing, Bankman-Fried contends that "everyone
rushed to judgment" after FTX's implosion and that a "sentence
first-verdict afterwards tsunami" prevented a fair trial.
"“When the government introduces evidence, defendants have the
right to rebut that evidence and present their side of the story,"
the filing said. "But none of that happened here."
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Schulte & Bielli Revise List of Preferred Shares
-------------------------------------------------------------
The law firms of Schulte Roth & Zabel LLP and Bielli & Klauder, LLC
filed a verified first supplemental statement pursuant to Rule 2019
of the Federal Rules of Bankruptcy Procedure to disclose that in
the Chapter 11 cases of FTX Trading Ltd. and affiliates, the firms
represent Preferred Equity Holders.
Pursuant to Bankruptcy Rule 2019(d), this Verified First
Supplemental Statement supplements the information provided in the
Initial Statement to reflect changes to the composition of the ad
hoc group and updates to each Preferred Equity Holder's disclosable
economic interests, where applicable.
As of the date of this Verified First Supplemental Statement,
Schulte and BK represent parties in their individual capacities
unrelated to the objective of the Preferred Equity Holders in the
Chapter 11 Cases. Further, as of the date of this Verified First
Supplemental Statement, the members of the Preferred Equity
Holders, either collectively or individually, do not represent or
purport to represent any other entities in connection with these
chapter 11 cases.
The Preferred Equity Holders' address and number of shares in
relation to the Debtors are:
1. Canyon Capital Advisors LLC, on behalf of its managed funds and
accounts
2728 N. Harwood St., 2nd FL
Dallas, TX 75201
* West Realm Shires, Inc. Series A Preferred Shares (4,669,507)
* FTX Trading Ltd. Series B Preferred Shares (1,768,015)
* FTX Trading Ltd. Series B-1 Preferred Shares (152,622)
* FTX Trading Ltd. Series C Preferred Shares (107,870)
* FTX Trading Ltd. Common Shares (610,488)
* West Realm Shires, Inc. Common Shares (9,007,000)
2. Steadview Capital Management
30 Berkeley Square, 6th Floor
London, W1J 6EX
* West Realm Shires, Inc. Series A Preferred Shares (6,564,551)
* FTX Trading Ltd. Series C Preferred Shares (539,353)
3. Tribe Capital Management, LLC
2700 19th Street
San Francsico, CA 94110
* West Realm Shires, Inc. Series A Preferred Shares (8,205,689)
* FTX Trading Ltd. Series B Preferred Shares (381,535)
* FTX Trading Ltd. Series B-1 Preferred Shares (15,262)
* FTX Trading Ltd. Series C Preferred Shares (134,838)
* FTX Trading Ltd. Common Shares (62,685)
4. Vetamer Capital Management
1300 El Camino Real, Suite 100
Menlo Park, CA 94025
* West Realm Shires, Inc. Series A Preferred Shares (163,000)
* FTX Trading Ltd. Series B-1 Preferred Shares (7,631)
* FTX Trading Ltd. Common Shares (30,524)
4. Tiger Global Management, LLC
9 West 57th Street, 35th Floor
New York, NY 10019
* West Realm Shires, Inc. Series A Preferred Shares (6,564,551)
* FTX Trading Ltd. Series B-1 Preferred Shares (59,141)
* FTX Trading Ltd. Series C Preferred Shares (323,612)
* FTX Trading Ltd. Common Shares (236,565)
* FTX US Common Shares (1,269,000)
About FTX Group
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 counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
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.
GANNETT CO: Fitch Puts 'B' LongTerm IDR on Watch Negative
---------------------------------------------------------
Fitch Ratings has placed both Gannett Co., Inc. (GCI) and Gannett
Holdings LLC (Gannett) Long-Term Issuer Default Ratings (IDR) on
Rating Watch Negative (RWN). Fitch has also placed Gannett's senior
secured first-lien debt on RWN.
The RWN reflects the likelihood a downgrade based on the expected
increase in first-lien debt upon completion of the proposed debt
exchanges. The company would increase total first-lien borrowings
from $605 million, as of June 30, 2024, to an estimated pro-forma
balance of $877 million, resulting in a pro-forma first-lien
leverage increase of approximately one full turn, from 2.3x to
3.3x. Additionally, the potential for up to $900 million of
first-lien borrowings would have a negative implication on the
previously published recovery rating.
Fitch expects to resolve the RWN once the proposed debt exchange is
complete, likely at the end of October 2024.
Key Rating Drivers
Operational Headwinds: Gannett has faced major macroeconomic and
operational headwinds over the past two years, including an
advertising recession from 2H22 into 1Q24. The recession caused
digital revenue to fall and accelerated the decline in linear
advertising within the newspaper sector, causing a significant drag
in 2022 and 2023. Operating performance was also dampened by the
drop in linear circulation progressing faster than Fitch expected.
Debt Reduction: Gannett has engaged in aggressive debt reduction
efforts using a mix of FCF, asset sale proceeds and cash on hand.
This saw debt fall by $254 million over the past two years to $1.09
billion at June 30, 2024, despite the operational headwinds.
Overall, the company has cut debt by 38% from a peak of $1.76
billion following its 2019 acquisition by New Media Investment
Group, Inc.
Gannett's proposed debt exchange transaction materially improves
the credit's maturity profile, as it pushes the vast majority of
prior 2026 and 2027 maturity dates off to 2029 and 2031. Upon
completion of this transaction, Gannett will likely not require
additional capital markets access for another five years.
Elevated Leverage: Fitch-calculated EBITDA leverage of 4.3x at June
30, 2024 exceeded Fitch's prior expectation of 3.5x and continues
to exceed sensitivities. However, Fitch expects leverage to return
to within the sensitivities in 2025 on continued operating
improvements and debt repayment.
Operating Recovery: Gannett's operating performance has been
improving and the decline in revenue has decelerated for the last
seven quarters, with a recovery in digital advertising and linear
weakness appearing to have reached a trough. While Fitch expects
positive momentum to continue across Gannett's digital platforms,
the agency questions the long-term growth prospects of legacy media
and expects linear to continue to decline.
Digital to Drive Growth: Gannett's steady transition into the
digital sphere via its digital marketing services (DMS) and
circulation and advertising segments is a credit positive, as it
counters the structural decline of its traditional linear business.
Fitch expects the aggregate digital revenue contribution to exceed
50% of total revenue by 2025, against 42% in the 12 months ended
June 30, 2024 and about 30% in 2020. The DMS segment offers the
strongest growth potential, given the large base of untapped
small-to-medium sized businesses.
DMS provides a cloud-based platform, LocaliQ, which offers digital
advertising and marketing solutions to businesses located primarily
in the U.S. along with the U.K., Australia, New Zealand and Canada.
DMS has approximately 14,700 clients and provided 19% of Gannett's
total revenue in the 12 months ended June 30, 2024, against 13% in
2020. This was driven by a 39% increase in average revenue per
user. Gannett plans to continue expanding this segment by
developing its product portfolio using artificial
intelligence-powered solutions and moving into smaller verticals.
Improved FCF Generation: Gannett has returned to positive FCF
generation, generating $56 million in 2023 and $55 million in the
12 months ended June 30, 2024. This was after operational headwinds
compressed margins and led to negative FCF of $5 million in 2022.
Fitch expects positive FCF generation to continue improving and for
Gannett to realize annual low-single-digit revenue growth from
2025, as digital revenue growth offsets the ongoing decline in
linear revenue. Fitch expects the annual cash interest expense to
continue falling, even assuming higher refinancing rates, given
historical and expected aggressive debt repayment. Capital
intensity is expected to remain below 2%.
Industry Headwinds: Industry-related risk weighs heavily on
Gannett's rating, stemming from the ongoing decline in linear
circulation and readership amid rising digital news consumption and
audience fragmentation. Fitch expects linear media to become
increasingly hyper cyclical and continue losing share to digital,
as seen in Gannett's increasing portion of revenue from digital.
Fitch expects the fall in print advertising and circulation to
continue and for digital advertising revenue to exceed revenue from
linear advertising starting in 2025.
Diverse Portfolio: In addition to DMS, Gannett is the leading U.S.
news media publisher based on circulation and owns USA TODAY and
daily and weekly content brands in roughly 220 local markets. Its
U.K. operations comprise over 150 daily and weekly newspapers and
70 magazines and related digital news and media sites. The company
had more than three million paid subscribers as of June 30, 2024,
including two million digital-only subscribers and 185 million
aggregate unique monthly visitors to its websites.
Rating Linked with Parent: Fitch equalizes the ratings of Gannett
and its parent, GCI, in accordance with its Parent and Subsidiary
Rating Linkage Criteria using a 'strong subsidiary/weak parent'
approach. Fitch assesses the quality of overall linkages as high
resulting in an equalization of the ratings, reflecting open legal
ringfencing and open access and control across the capital
structure.
Derivation Summary
Gannett is a global multi-media company consisting of publishing
and digital media solution segments in the U.S. and U.K. Although
Gannett is facing the same industry challenges as News
Corporation's (BBB-/Stable) print media segment, Gannett has a
smaller scale, lower diversification and higher leverage. This
leads to the multi-notch rating differentiation.
Gannett's rating reflects its substantially smaller scale and
higher leverage relative to larger and more diversified media
peers, like The Walt Disney Company (A-/Stable), Warner Bros.
Discovery, Inc. (BBB-/Stable) and Paramount Global (BBB-/Negative).
Gannett has lower leverage than Gray Television Inc. (BB-/Negative)
and The E.W. Scripps Company (B/Stable), but this is offset by its
narrower margin, greater operating volatility, smaller advertising
market share and greater industry-related challenges.
Key Assumptions
- Revenue declines continue decelerating in 2024, as digital
revenue maintains its positive growth trajectory and linear revenue
declines moderate. Margin to improve driven by revenue growth
deceleration and stabilizing operating leverage;
- Revenue to rise in the low-single-digits annually from 2025 on
the continued deceleration in linear revenue losses and
high-single-digit annual digital growth. Total revenue momentum is
driven by aggregate digital revenue, which continue to take share
from linear, and are likely to exceed 50% of total revenue in
2025;
- EBITDA margin to see a slow annual improvement, reaching about
11.6% by 2027 on improving operating leverage from both linear,
which benefits from a smaller cost base, and digital;
- Capex intensity between 1.3%-2.0%;
- Improving FCF generation over the medium term, with the margin
nearly tripling to 6.0% in 2027 (2023: 2.1%);
- Real estate and non-strategic asset sales totalling $45 million
in 2024, with proceeds used to pay down debt;
- Proposed Apollo term loan and debt exchange transactions are
completed at end of October 2024;
- Shareholder returns remain paused.
Recovery Analysis
The recovery analysis assumes Gannett would be considered a going
concern (GC) in bankruptcy and would be reorganized rather than
liquidated. Fitch also assumes a 10% administrative claim.
GC Approach
Gannett's recovery analysis assumes that the company is unable to
expand its digital subscriptions, advertising or media solutions
business segments and reset its cost structure sufficiently to
offset accelerated declines in linear subscribers and advertising.
Fitch believes a GC EBITDA of $200 million is appropriate, as it
expects Gannett's aggregate digital revenue to exceed linear
revenue starting in 2025. This is in line with Fitch's expectation
that linear platforms have become increasingly hyper-cyclical and
will continue ceding market share to digital. Although Fitch
believes Gannett will be unable to recover the linear revenue lost
over the last two years, it expects linear declines to moderate.
Fitch also expects the DMS segment, with its substantial portion of
recurring revenue, will generate 20% of revenue in 2025.
Fitch assumes a GC recovery enterprise value (EV) multiple of 4.5x
EBITDA based on the following factors. In September 2020, The
McClatchy Company was acquired out of bankruptcy for $312 million,
or an estimated 4.2x 2021 adjusted EBITDA, based on McClatchy's
financial projections provided in its February 2020 disclosure
statement as part of its initial proposed equitization
reorganization.
Additional transactions include the acquisitions by New Media
Investment Group, Inc. of several news, media and digital marketing
providers for an average 4.1x multiple and Gannett in November 2019
for $1.34 billion, or 4.2x in the 12 months ended June 30, 2019
EBITDA. Similar public companies trade at EBITDA multiples ranging
from the mid-single-digits to low teens, with the higher multiples
belonging to large newspapers with national distribution and
industry-leading digital subscriber success.
The 4.5x multiple exceeds the M&A transactions, but is supported by
the expectation that Gannett's ability to offset linear revenue
declines with digital revenue growth will accelerate in the next 12
months, reversing the decline in total revenue and proving that the
new paradigm is defensible. The multiple is further supported by
Gannett's ownership of USA Today, a newspaper with national
distribution; Newsquest, which has outperformed Gannett's domestic
newspapers; and DMS, which is largely unaffiliated with the
newspaper sector and continues to boost average revenue per user
and revenue.
Finally, the 4.5x exit multiple is in-line with multiples of peer
companies covered in Fitch's latest technology, media and telecom
bankruptcy case study.
The proposed new Apollo term loan would potentially materially
increase its first-lien debt and impact its calculated recovery
value.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Successful execution of strategic operating transformation
leading to sustainable total digital revenue growth that
meaningfully offsets the decline in legacy revenues;
- Consistent EBITDA and FCF margin improvement;
- Fitch-calculated leverage (total debt with equity
credit/operating EBITDA) declines below 2.0x on a sustainable
basis.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fitch anticipates resolving the RWN when the proposed debt exchange
is complete, likely at the end of October 2024.
- Digital revenue growth slows or declines and is insufficient to
meaningfully offset print subscriber declines;
- Fitch-calculated leverage exceeds 3.5x without a creditable plan
to return leverage within sensitivities.
Liquidity and Debt Structure
Adequate Liquidity:
The company had $99 million in cash and cash equivalents as of June
30, 2024, and generated $55 million of FCF in the 12 months ended
June 30, 2024. Gannett does not have a revolving credit facility as
it typically generates FCF. Fitch expects FCF to rise in the medium
term due to EBITDA growth, consistent with company guidance for FCF
to accelerate over the 2025/2026 timeframe. The new Apollo term
loan requires annual amortization of $68 million which will thereby
require the company to direct the vast majority of free cash flow
to be directed to loan repayment.
Issuer Profile
Gannett is a global media company offering a broad array of digital
and linear news and media brands in the U.S., where it has the
largest aggregate circulation, and the U.K. It also provides
digital advertising and marketing solutions to SMB clients.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Gannett Co., Inc. LT IDR B Rating Watch On B
Gannett Holdings
LLC LT IDR B Rating Watch On B
senior secured LT BB Rating Watch On RR1 BB
GENWORTH HOLDINGS: Moody's Affirms Ba1 Rating on Sr. Unsecured Debt
-------------------------------------------------------------------
Moody's Ratings has affirmed the Ba1 backed senior unsecured debt
and the Ba2 (hyb) backed junior subordinate debt ratings of
Genworth Holdings, Inc. (Holdings), an intermediate holding company
owned by Genworth Financial Inc. (Genworth, NYSE: GNW, unrated).
The rating outlook for Holdings was changed to positive from
stable. Concurrently, Moody's have upgraded by one notch to B3 from
Caa1 the insurance financial strength (IFS) ratings of Genworth's
long-term care insurance subsidiaries, Genworth Life Insurance
Company and Genworth Life Insurance Company of New York (GLIC and
GLICNY, collectively, GLIC), and to B2 from B3 the IFS rating of
the company's life insurance subsidiary, Genworth Life and Annuity
Insurance Company (GLAIC). The rating outlooks for GLIC, GLICNY and
GLAIC remain stable.
A List of Affected Credit Ratings is available at
https://urlcurt.com/u?l=hGtK4N
RATINGS RATIONALE
Genworth Holdings
The affirmation of the ratings on Holdings reflects the company's
good liquidity position, financial flexibility, and debt ladder
that includes no maturities until 2034. The rating action also
reflects the expectation for continued dividends from its ownership
in Enact Holdings, Inc. (Enact, Baa3 positive). The company's
strengths are offset by the challenges to organically expand
liquidity sources, and the pressure on financial flexibility from
reduced dividends from Enact during a stressed scenario or economic
downturn. Holdings' ratings also reflect the structural
subordination of the holding company's liabilities to the
liabilities of Enact and the risks associated with the dividend
inflows from its insurance companies.
The positive outlook reflects the company's good liquidity that
provides sufficient coverage to service its liabilities and holding
company needs, and the expectation that Holdings will further
increase liquidity with periodic dividends from Enact subject to
its board approval, continued emergence of cash tax payments from
its subsidiaries as part of its tax sharing arrangements, and
adjusted financial leverage (excluding the US life business equity)
around 20%. The change in outlook also reflects the positive
outlook of Enact's ratings.
The Life Companies
The upgrade of GLIC, GLICNY, and GLAIC reflect the positive results
on the company's financial profile from management's focus on
addressing the key risks in its legacy insurance businesses.
Profitability has benefitted from premium rate actions, increased
lapses, reduced future benefit obligations, and lower than expected
utilization in its long-term care (LTC) business in recent years.
GLAIC has also benefited from favorable operating results and
higher investment income. However, the life companies have
experienced lower mortality impacts as the pandemic has subsided.
The company's LTC block experienced higher new claims severity and
impacts related to additional legal settlements, but it continues
to make progress on reducing its tail risk and obtaining premium
rate actions.
The related pressures on the life, annuity and health businesses
still remain from lower than expected profitability. The weak
financial profile includes low quality and relative low levels of
capital relative to its liability profile, its large in-force block
of long-term care (LTC) business that is dependent on premium rate
actions, its inability to grow margins, and the tail risk
associated with the LTC business. In addition, Moody's remain
concerned regulators could deny the future premium rate actions
changes or an economic downturn could weaken its life companies
earnings and reduce capital adequacy. Furthermore, despite an
increase in interest rates, the life companies remain exposed to a
low interest rate scenario as a result of the longer duration
liabilities implicit and explicit rate guarantees in its products.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Genworth Holdings
The following factors could result in an upgrade of Genworth
Holdings' ratings: 1) an improvement of financial flexibility
including increased dividend capacity; 2) further reduction in its
debt ladder with financial leverage (excluding US life business
equity) that is around the 20% range; and 3) an upgrade of Enact's
ratings.
Given the positive outlook, a downgrade over the near term is
unlikely. However, the following factors could cause us to change
the outlook back to stable: 1) a change in the outlook to stable
from positive of Enact's ratings; 2) a deterioration in financial
flexibility including decreased dividend capacity or higher
leverage; or 3) public policy decisions that significantly diminish
the role of mortgage insurance in the US housing finance market.
The Life Companies
The following factors could lead to an upgrade of GLIC/GLICNY's
ratings: 1) increased certainty regarding significant LTC rate
approvals and/or other actions that help grow margins in the legacy
LTC book of business, and 2) stability in statutory earnings, and
return on statutory surplus greater than 4%, and 3) sustained
improvement in GLIC's RBC ratio above NAIC CAL RBC ratio of 300%.
Conversely, the following factors that could result in a downgrade
of GLIC/GLICNY's ratings: 1) continued uncertainty and/or further
deterioration of the margins on LTC reserves, increasing the
probability of a material reserve charge in the future, 2)
sustained NAIC CAL RBC ratio at GLIC of less than CAL 300%, and 3)
inability to obtain LTC rate approvals embedded in margin testing,
further pressuring reserve adequacy of legacy LTC business.
For GLAIC, the following factors could lead to an upgrade of its
ratings: 1) stability in statutory earnings, and return on
statutory surplus greater than 4%, and 2) sustained CAL RBC ratio
> 350%.
Conversely, factors that could result in a downgrade of GLAIC's
rating include: 1) failure to maintain NAIC CAL RBC > 300% for
an extended period of time, and 2) return on statutory surplus less
than 4%.
PRINCIPAL METHODOLOGY
The principal methodology used in rating Genworth Holdings, Inc.
was Mortgage Insurers published in March 2024.
Genworth Holdings, Inc. is the intermediate holding company of
Genworth, an insurance and financial services holding company
headquartered in Richmond, Virginia. Genworth Holdings also acts as
a holding company for its respective life insurance subsidiaries.
In addition, Genworth Holdings relies on the financial resources of
Genworth including Enact Holdings, Inc. to meet its obligations. As
of June 30, 2024, Genworth reported total assets of $87.5 billion
and shareholders' equity of $9.4 billion.
GIMEXTECH COMPANY: Gregory Jones Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 16 appointed Gregory Jones, Esq., at
Stradling Yocca Carlson & Rauth, PC as Subchapter V trustee for
Gimextech Company, Inc.
Mr. Jones will be paid an hourly fee of $595 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gregory K. Jones, Esq.
Stradling Yocca Carlson & Rauth, PC
10100 N. Santa Monica Boulevard, Suite 1400
Los Angeles, CA 90067
Telephone: (424) 214-7000
Facsimile: (424) 214-7010
Email: gjones@stradlinglaw.com
About Gimextech Company
Gimextech Company, Inc., a company in Alhambra, Calif., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Calif. Case No. 24-17758) on September 24, 2024. The Debtor
listed $4,425,000 in total assets and $6,682,419 in total
liabilities as of Sept. 21, 2024, according to the petition signed
by Faye Y Liu, secretary.
Judge Julia W. Brand presides over the case.
John Bauer, Esq., at Financial Relief Legal Advocates, Inc.
represents the Debtor as bankruptcy counsel.
GIP II BLUE:S&P Affirms 'BB-' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on GIP
II Blue Holding L.P. (HoldCo) and our 'BB-' issue-level rating on
its senior secured term loan B. The '3' recovery rating indicates
its expectation of meaningful (50%-70%; rounded estimate: 65%)
recovery in the event of a payment default.
The stable outlook on HoldCo reflects S&P's expectation that HESM
will continue to increase its distributions at least 5% annually,
and HoldCo will maintain S&P Global Ratings-adjusted debt to EBITDA
of 2.5x-3.5x and S&P Global Ratings-adjusted EBITDA interest
coverage ratio of 2.9x-4.0x through 2025.
S&P said, "Our 'BB-' issuer credit rating on HoldCo reflects its
structurally subordinated credit quality relative to that of HESM.
We continue to rate HoldCo under our noncontrolling equity interest
criteria as it relies exclusively on distributions from HESM to
service its financial obligations and has no substantive assets
other than its equity interest in HESM. The rating incorporates our
view of HoldCo's cash flow stability, corporate and governance
policy, financial ratios, and ability to liquidate its investments
in HESM to repay its approximately $355 million outstanding senior
secured term loan as of Oct. 4, 2024.
"Our base case expectation is for HoldCo to maintain its current
level of ownership in HESM and to receive steadily rising
distributions from HESM for the forecast period. HoldCo exclusively
relies on distributable cash from HESM on a quarterly basis to
service debt obligations. We view HESM's cash flows and contract
profile as relatively stronger than its midstream peers' given its
cash flows are backed by long-term and 100% fee-based contracts
with approximately 85% of revenues underpinned by minimal volume
commitments. In 2023, HESM outperformed and generated over $1
billion S&P Global Ratings-adjusted EBITDA. As the demand for crude
and natural gas remains high and production in the Bakken continues
growing, we expect HESM's S&P Global Ratings-adjusted EBITDA will
rise by 10%-15% in 2024 and by at least 15% in 2025. In addition,
HESM's expansion in gas compression capacity and gathering system
well connects will boost its volumes and bring additional cash
flows. HESM's distribution per share (DPS) has increased quarter
over quarter since the inception. In our base-case scenario, we
expect HESM's DPS will continue to grow by about 5% annually at
least through 2026. Thus, our view of HoldCo's cash flow stability
is positive."
HoldCo has substantial governance rights over HESM with its shared
control in the partnership. While Hess Corp. (Hess) controls HESM's
day-to-day operations, there are certain actions requiring Global
Infrastructure Partners' (GIP) approval. These include, but are not
limited to, changes to its distribution policy; the modification or
termination of its commercial agreements with Hess; issuing debt or
equity securities; and approving a reorganization, consolidation,
or merger. S&P said, "Given the 50-50 structure and shared control
with Hess, we believe HESM is incentivized to distribute all
available cash to its sponsors and public unitholders on a
quarterly basis. We also believe it is unlikely GIP would support a
change to HESM's distribution policy that would negatively affect
HoldCo. These factors support our positive corporate and governance
policy assessment."
At its recent price, HoldCo could sell its entire stake in HESM and
repay its total debt by over 3x. Year to date, the average daily
trading volume for HESM units is approximately 916,000. S&P said,
"Although the average daily trading volume for HESM units has
increased from last year, we believe an attempt to monetize
HoldCo's entire stake could depress the price of the partnership's
units given its material stake in HESM. We view HoldCo's ability to
liquidate its investments in HESM as negative."
S&P said, "While we forecast HoldCo will receive materially lower
distributions due to lower ownership in HESM, we expect its
financial ratios will remain neutral throughout the outlook period.
In 2023, HoldCo received approximately $210 million-$220 million
distributions from HESM, which we forecast will drop to $130
million-$140 million in 2024 and $85 million-$95 million in 2025
due to HoldCo's declined ownership in HESM. HoldCo's term loan B is
subject to an excess cash flow (ECF) sweep of 50% when leverage is
above 3.5x and 25% when leverage is above 2.5x through the end of
2024, stepping up to 75% when leverage is above 3.5x, 50% when
leverage is above 2.5x, and 25% when leverage is above 1.5x
thereafter. With forecast distributions from HESM and ECF sweep, we
expect HoldCo's S&P Global Ratings-adjusted leverage will be
2.5x-3.5x and S&P Global Ratings-adjusted EBITDA interest coverage
will be 2.9x-4.0x in 2024 and 2025. We note that HoldCo's credit
metrics could deteriorate if it continues lowering its ownership in
HESM without using proceeds to repay its outstanding debt. In
addition, HoldCo's financial metrics are in the stronger end among
its similarly structured holding company peers. Therefore, we apply
our positive comparable rating analysis.
"The stable outlook on HoldCo reflects our expectation that its S&P
Global Ratings-adjusted debt to EBITDA will remain in the 2.5x-3.5x
range and S&P Global Ratings-adjusted EBITDA interest coverage
ratio will remain in the 2.9x-4.0x range through 2025. We also
expect HESM will increase its distributions at least 5% annually."
S&P could consider a negative rating action if:
-- Its S&P Global Ratings-adjusted debt to EBITDA deteriorates to
above 4x; or
-- S&P anticipates HESM's credit quality will deteriorate.
Although higher ratings are unlikely due to S&P's view that its
debt is structurally subordinated to HESM, it could consider a
positive rating action only if it raises its stand-alone credit
rating on HESM.
Environmental factors are a negative consideration in S&P's credit
rating analysis of HoldCo. As a minority owner of HESM and no other
tangible assets, HoldCo's environmental credit indicator reflects
that of HESM. Volumes and utilization of HESM assets could decline
if Hess reduces drilling and production as part of the energy
transition.
GIRARDI & KEESE: Wants New Memory Issues Fraud Trial
----------------------------------------------------
Madison Arnold of Law360 reports that disbarred attorney Tom
Girardi has called on a California federal court to overturn his
conviction for misappropriating $15 million in client settlement
funds, arguing he was not competent to stand trial due to memory
problems that left him unable to remember witnesses or even his own
attorneys.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GOODY'S FLEET: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Goody's Fleet Solutions, LLC received interim approval from the
U.S. Bankruptcy Court for the Middle District of Florida to use
cash collateral retroactive to Sept. 11.
The interim order approved the use of cash collateral to pay the
company's operating expenses estimated at $10,97,364 as outlined in
the court-approved budget. Payments to insiders or professionals
require court approval.
Goody's is required to comply with obligations as a
debtor-in-possession, maintain insurance, and allow secured
creditors access to records and premises for inspections.
The secured creditors will be granted replacement liens on their
cash collateral, with the same validity and priority as their
pre-bankruptcy liens.
The next hearing is scheduled for Oct. 31.
About Goody's Fleet Solutions
Goody's Fleet Solutions, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05407) on
September 11, 2024, with up to $50,000 in assets and up to $500,000
in liabilities. Michael Markham, Esq., serves as Subchapter V
trustee.
Judge Roberta A. Colton presides over the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A. represents the Debtor
as legal counsel.
GQ NCF CLERMONT: Unsecured Creditors to Split $60K in Plan
----------------------------------------------------------
GQ NCF Clermont Cleaners, Inc., filed with the U.S. Bankruptcy
Court for the Middle District of Florida an Amended Plan of
Reorganization dated September 5, 2024.
The Debtor is a Corporation founded in 2014 and domiciled in
Florida. The Debtor, owned by Mr. Guillermo Gallegos, is in the dry
cleaning and shoe repair business.
The Debtor's principal place of business is 2430 E Highway 50, Unit
F-A, Clermont, FL 34711 (the "Clermont Location"). The Debtor
leases the Clermont Location and the lease is being assumed in this
Plan.
The Debtor initiated the case and filed for small business
reorganizational relief under Chapter 11, Subchapter V of Title 11
of the United States Code to repay its legitimate creditors and
reorganize its business. Creditor, Fratello Capital, LLC, had
frozen debtor's merchant accounts and disrupted the ongoing
operation of the business.
The Plan under chapter 11 of the Bankruptcy Code proposes to pay
creditors of the Debtor from the Debtor's current and future
earnings.
This Plan provides for one class of priority claims, seven classes
of secured claims, one class of general unsecured claims, and one
class of equity security holders. Secured and unsecured creditors
holding allowed claims will receive a distribution on their claim,
payable over five years. This Plan also provides for the payment of
administrative and priority claims under the terms to the extent
permitted by the Code or by agreement between the Debtor and the
claimants.
Class 10 consists of General Unsecured Claims. The Debtor will pay
claimants in this class 26.02% of their allowed claim without
interest in an amount of $60,000 paid in years 4 and 5 in the Plan.
This Class is impaired.
Class 11 consists of Equity Security Holder of the Debtor. Equity
will retain ownership in the Debtor postconfirmation. No
distribution will be made to equity until such time as all payments
in Class 10 have been made.
Current equity will continue to manage the Debtor post
confirmation. The Plan will be funded by the continued operations
of the Debtor.
A full-text copy of the Amended Plan dated September 5, 2024 is
available at https://urlcurt.com/u?l=HaX9LM from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Joel M. Aresty, Esq.
Stiberman Law, P.A.
2601 Hollywood Blvd.
Hollywood, FL 33020
Telephone: (954) 922-2283
Facsimile: (954) 302-8707
Email: ras@stibermanlaw.com
About GQ NCF Clermont Cleaners
GQ NCF Clermont Cleaners, Inc., is in the dry-cleaning and
shoe-repair business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02247) on May 6,
2024. In the petition signed by Guillermo Gallegos, president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Grace E. Robson oversees the case.
Robert A. Stiberman, Esq., at Stiberman Law, P.A., is the Debtor's
legal counsel.
GRAND VALLEY MHP: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Grand Valley MHP, LLC received interim court approval to use the
cash collateral of its secured creditors.
The interim order penned by Judge Pamela McAfee of the U.S.
Bankruptcy Court for the Eastern District of North Carolina
approved the use of cash collateral for ordinary business expenses,
which are estimated at $24,584.01.
The company may exceed individual expense categories by up to 10%
or more, provided the total excess does not surpass 10% of the
aggregate authorized expenditures.
The interim order granted secured creditors replacement liens on
the company's assets, with the same priority as their
pre-bankruptcy liens. However, creditors are not entitled to liens
on certain assets, including causes of action.
About Grand Valley MHP
Grand Valley MHP, LLC operates in the mobile home park industry,
managing and providing residential spaces for mobile homeowners.
The company primarily focuses on leasing land and facilities to
individuals or families who own mobile homes, offering essential
services such as land maintenance, utility connections, and
sometimes community amenities.
Grand Valley MHP sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03431 with $10
million to $50 million in both assets and liabilities. The petition
was signed by Neil Carmichael Bender, II as manager.
Judge Pamela W Mcafee oversees the case.
The Debtor is represented by:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, FL 33431
Telephone: 561-443-0800
Email: bss@slp.law
GSE GLOBAL: Michael Thomson Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 11 appointed Michael Thomson as
Subchapter V trustee for GSE Global.
Mr. Thomson will be paid an hourly fee of $445 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Thomson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael F. Thomson
222 South Main Street, Suite 1730
Salt Lake City, UT 84101
801-478-6917
Email: thomsonm@gtlaw.com
About GSE Global
GSE Global, a company in Sheridan, Wyo., sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No.
24-24810) on September 23, 2024, with $1 million to $10 million in
both assets and liabilities. Wali BGohar Shah, manager, signed the
petition.
Adam Ford, Esq., at Ford & Huff, LC represents the Debtor as legal
counsel.
HANEY INC: To Sell Printing Machine to Quality Discount Equipment
-----------------------------------------------------------------
Haney Inc. seeks approval from Judge Beth A. Buchanan of the U.S.
Bankruptcy Court for the Southern District of Ohio, Western
Division, to sell Edale Digicon 3000 Series One Station UV Flex
Printing Press and accessories, free and clear of liens, claims,
encumbrances, and other interests.
The Debtor owns the Edale Digicon 3000 Series One Station UV Flex
Printing Press, a specialty type single color press for limited
applications and is only useful to a few number of printers, which
is no longer in use.
The Debtor has engaged in an arm's-length negotiations and entered
a a purchase agreement with Quality Discount Equipment LLC with a
proposed sale price of $250,000. Since the purchase was negotiated
by the Debtor, there are no broker's fees to be paid.
The lienholders of the Equipment include PNC Bank, Small Business
Administration, and 14 other creditors with UCC filings.
The Debtor asserts that only PNC's liens attach to the property and
have priority over all other creditors as the balance of their
lien, $1,844,842.70, is greater than the sale price.
About Haney Inc.
Haney, Inc., is a consumer packaging micro-supply chain which
handles all aspects of small-batch packaging projects, from
concepting and prototyping, to packing and fulfillment.
Haney Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-11405) on June
21, 2024, listing $1,965,433 in assets and $4,079,770 in
liabilities. The petition was signed by Matthew Haney as CEO.
Judge Beth A Buchanan presides over the case.
Eric W. Goering, Esq., at GOERING & GOERING represents the Debtor
as counsel.
HAYES MECHANICAL: Matthew Brash Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for Hayes Mechanical,
LLC.
Mr. Brash will be paid an hourly fee of $415 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
About Hayes Mechanical
Hayes Mechanical, LLC is a full-service mechanical contractor in
Chicago, Ill.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-13904) on September
19, 2024, with $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. John D. Mooney, manager, signed the
petition.
Judge Janet S. Baer presides over the case.
David C. Christian II, Esq., at David Christian Attorneys, LLC
represents the Debtor as bankruptcy counsel.
HAYS TABERNACLE: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
Hays Tabernacle CME Church filed for Chapter 11 protection in the
District of Central California. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 12, 2024 at 02:30 a.m. at UST-LA2, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
About Hays Tabernacle CME Church
Hays Tabernacle CME Church sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-18171) on
October 7, 2024. In the petition filed by Rev. Dr. Phillip D
Washington, the Debtor reports estimated assets and liabilities
between $1 million and $10 million.
The Debtor is represented by:
Shumika T. R. Sookdeo, Esq.
Robinson Sookdeo Law
10121 S. Central Ave.
Los Angeles, CA 90002
HAYS TABERNACLE: Sec. 341(a) Meeting of Creditors on Nov. 2
-----------------------------------------------------------
Hays Tabernacle CME Church filed Chapter 11 protection in the
Central District of California. According to court filing, the
Debtor reports $2,997,638 in debt owed to 1 and 49 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 2, 2024 at 10:00 a.m. at UST-LA2, Telephonically on
telephone conference line: 1-866-816-0394. participant access
code:5282999.
About Hays Tabernacle CME Church
Hays Tabernacle CME Church is a religious organization that owns
five properties in California consisting of a church, commercial
buildings and residential home having a total current value of
$5.44 million.
Hays Tabernacle CME Church sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-18171) on
October 6, 2024. In the petition filed by Rev. Dr. Phillip D.
Washington, as pastor, the Debtor reports total assets of
$5,475,938 and total liabilities of $2,997,638.
The Honorable Bankruptcy Judge Sandra R. Klein handles the case.
The Debtor is represented by:
Shumika T.R. Sookdeo, Esq.
ROBINSON SOOKDEO LAW
4129 Main Street, Ste. 200-B
Riverside, CA 92501
Tel: 951-683-3974
Email: shumika@robinsonsookdeolaw.com
HOW TO BUILD: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
How to Build a Tent, LLC received interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida to use the cash
collateral of its secured creditors.
The order allows the company to use cash collateral for necessary
expenses outlined in the court-approved budget, with a 10% variance
on line items.
Secured creditors will have a post-petition lien on cash collateral
with the same priority and validity as their pre-bankruptcy liens.
In addition, the court has allowed secured creditors to access the
company's business records and premises for inspection, provided
such access does not interfere with operations.
The next hearing is scheduled for Nov. 20.
About How to Build a Tent
How to Build a Tent, LLC specializes in residential glass
solutions, offering a wide range of services including showers,
mirrors, tabletops, sliding doors, windows, glass bathtubs,
Digitally Infused Glass, shelves, and frameless glass dry erase
boards. The company conducts business under the name A-Rite Glass.
How to Build a Tent sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Nev. Case No. 24-01003) on July 11,
2024, with total assets of $500,000 to $1 million and total
liabilities of $1 million to $10 million. Ruediger Mueller of TCMI,
Inc. serves as Subchapter V trustee.
Judge Caryl E. Delano oversees the case.
The Debtor is represented by David Lampley, Esq., at F&L Law Group,
P.A.
HS PURCHASER: $670MM Bank Debt Trades at 19% Discount
-----------------------------------------------------
Participations in a syndicated loan under which HS Purchaser LLC is
a borrower were trading in the secondary market around 80.6
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $670 million Term loan facility is scheduled to mature on
November 19, 2027. The amount is fully drawn and outstanding.
HS Purchaser, LLC develops infrastructure software.
INDIVIDUALIZED ABA SERVICES: Starts Subchapter V Proceeding
-----------------------------------------------------------
Individualized ABA Services for Families LLC filed Chapter 11
protection in the Northern District of California. According to
court filing, the Debtor reports $1,635,914 in debt owed to 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
October 28, 2024 at 2:30 p.m. via UST Teleconference, Call in
number/URL: 1-877-991-8832 Passcode: 4101242.
About Individualized ABA Services for Families LLC
Individualized ABA Services for Families LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.
Cal. Case No. 24-41559) on October 2, 2024. In the petition filed
by Raajna Naidu, as CEO, the Debtor reports total assets of
$193,244 and total liabilities of $1,635,914.
The Debtor is represented by:
Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
INDOCHINE RESTAURANT: Seeks Chapter 11 Bankruptcy Protection
------------------------------------------------------------
Indochine Restaurant LLC filed Chapter 11 protection in the Eastern
District of North Carolina. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to
50 and 99 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 12, 2024 at Greenville 341 Meeting Room.
About Indochine Restaurant LLC
Indochine Restaurant LLC is a restaurant serving Thai and
Vietnamese Asian cuisine.
Indochine Restaurant LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03490) on October 4,
2024. In the petition filed by Solange Thompson, as manager, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
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
IVANTI SOFTWARE: $545MM Bank Debt Trades at 33% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 66.9
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $545 million Term loan facility is scheduled to mature on
December 1, 2028. The amount is fully drawn and outstanding.
Ivanti is an IT Software Company headquartered in South Jordan,
Utah. It produces software for IT Security, IT Service Management,
IT Asset Management, Unified Endpoint Management, Identity
Management and supply chain management.
JAMIESON CAPEX: Thomas Kapusta Named Subchapter V Trustee
---------------------------------------------------------
The Acting U.S. Trustee for Region 12 appointed Thomas Kapusta as
Subchapter V trustee for Jamieson CAPEX Fund, LLC.
Mr. Kapusta will be paid an hourly fee of $285 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kapusta declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Thomas J. Kapusta
P.O. Box 90624
Sioux Falls, SD 57109
Email: tkapusta@aol.com
About Jamieson CAPEX Fund
Jamieson CAPEX Fund, LLC is a Fargo-based company engaged in
activities related to real estate.
Jamieson CAPEX Fund filed a petition under Chapter 11, Subchapter V
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 legal counsel.
KATANA ELECTRONICS: Unsecured Creditors to Split $5K in Plan
------------------------------------------------------------
Katana Electronics, LLC filed with the U.S. Bankruptcy Court for
the District of Utah a Plan of Reorganization for Small Business
dated September 5, 2024.
The Debtor was formed in June of 2009. The Debtor's principal
Shaher Hawatmeh had been involved in the electronic manufacturing
industry for several decades prior to 2009.
For the past 14 years in business, Debtor has contracted with
government entities mostly in the defense department, private
business, and quasi government communications agencies to provide
elite level electronic manufacturing. Among may other facets, the
Debtor primary specialty was the complex assembly of circuit boards
for production and telecommunication devices.
As shown by the Schedules and Statements, the Debtor began to fall
behind on payroll, payroll taxes, and almost all its other
creditors by the Spring of 2023. The Debtor was fighting through
the process, working with its secured lender, the Small Business
Administration, and had entered reasonable payment plans with the
Utah State Tax Commission, Department of Workforce Services, and
its utility creditors. However, Tencell, LLC, the Debtor's only
judgment creditor besides Rocky Mountain Power, would not work with
the Debtor on a reasonable payment plan. Despite all of the
Debtor's property being encumbered by the SBA's UCC-1, Tencell, LLC
sought a writ of replevin, which forced the Debtor into
bankruptcy.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income $6,000.00. The final Plan
payment is expected to be paid on July 2028.
Class 3 consists of Non-priority unsecured creditors. All claims in
Class 3 shall receive the pro rata distribution of of all
disposable income during the life of the plan, which is estimated
to be $4,978.80. This Class is impaired.
The Debtor shall make monthly plan payments of $5,000.00 a month to
satisfy its obligation to Classes of Creditors. Unsecured creditor
will receive their portion of the plan payment in accordance with
their classification and pursuant to the pro rata portion of their
claims, unsecured creditor shall receive no less than $4,978.80
total.
The Debtor shall retain all property of the estate during the
implementation of the Plan. The Debtor shall provide all disposable
income to the Plan from its regular monthly operations.
A full-text copy of the Plan of Reorganization dated September 5,
2024 is available at https://urlcurt.com/u?l=ob1Sxb from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Ted F. Stokes, Esq.
Stokes Law, PLLC
2072 North Main Suite 102
North Logan, UT 84341
Tel: (435) 213-4771
Fax: (888) 443-1529
Email: ted@stokeslawpllc.com
About Katana Electronics
Katana Electronics, LLC is an electronics manufacturing company
specializing in circuit boards and other electronic hardware.
Katana Electronics filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Utah Case No. 23-22919) on July
11, 2023, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities. Brian Rothschild, Esq., has been appointed
as Subchapter V trustee.
Judge Kevin R. Anderson oversees the case.
The Debtor tapped Theodore Floyd Stokes, Esq., at Stokes Law PLLC
as legal counsel and Beynon & Associates, Inc. as accountant.
LA HACIENDA: Unsecured Creditors to be Paid in Full in Plan
-----------------------------------------------------------
La Hacienda Mobile Estates, LLC filed with the U.S. Bankruptcy
Court for the Eastern District of California a Disclosure Statement
for Chapter 11 Plan of Reorganization dated September 6, 2024.
The Debtor proposes to restructure its business through the
reconfiguration of its real property, which is located at 104 E.
Sierra Ave., Fresno, CA 93710, and includes a single family
residence located at 158 E. Sierra Ave., Fresno, CA 93710
(collectively, the "Park").
The Park includes 61 available spaces, of which approximately 35
are currently vacant (a vacancy rate of 57.4%). Debtor is unable to
fund its secured debt and operating expenses at the current rental
rate, even at full occupancy, because Debtor has not been allowed
by the City of Fresno to charge a fair market rent at the Park.
Debtor has separately filed a civil action against the City of
Fresno regarding this issue.
Pursuant to California Government Code Section 65863.7(f), Debtor's
Plan proposes to close the Park and reconfigure the use of the Park
to pay the amounts required under application California law, which
Debtor believes is the in-place appraised value of all current
mobile homes or manufactured homes ("Coaches") located at the Park,
pursuant to Gov. Code Section 65863.7(a). The schedule of proposed
payments for Coaches is set forth in Exhibit A to the Plan. In
addition, all current occupants of the Park will receive an
additional payment of $2,500 if they expressly accept the Plan.
As of the date hereof, the following Claims have been allowed or
asserted against the Debtor in the following amounts: (i) Secured
Claims of approximately $856,052.56, secured by the Park; (ii)
Priority Claims of $0, (iii) Unsecured Claims of approximately
$15,000 (consisting mainly of pre-petition claims owed to Debtor's
attorneys, and an unknown amount of disputed, unliquidated claims,
mainly by the Associations), and (iv) Unsecured Insider Claims of
approximately $876,654.33.
The Plan is a plan of reorganization. Under the Plan, the Debtor
will be provided with a substantial cash infusion in the amount of
$400,000 which will fully fund all proposed payments under the
Plan, including the Incentive Payments, all Administrative Claims
in full (solely to the extent any additional funds are necessary to
pay additional administrative claims), and all Allowed Unsecured
Claims (other than insider claims) in full. The Debtor will emerge
from plan confirmation with an assumption of prior secured debt,
unsecured insider claims, and with a restructured business as set
forth herein.
The Plan provides for payment in full of Administrative Claims,
Priority Tax Claims (none are estimated to be owed, and secured
property tax claims will also be paid in full), and General
Unsecured Claims to the extent such Claims are Allowed. Holders of
unsecured insider Claims will not receive any Distribution.
The Plan is a plan of reorganization with the intent to pay all
allowed unsecured non-insider creditors 100% on account of any
allowed claims. The primary purpose of the Plan is to close the
Park so that it can be reconfigured to its highest and best use.
Class 2 consists of General Unsecured, Contingent Claims of Park
Occupants. All Allowed General Unsecured Claims of Park Occupants
will be paid in full, subject to estimation or further allowance of
such claim. This Class is unimpaired
* Option 1. If a Class 3 claimant so elects, their Class 3
Claim shall be an Allowed Claim in the amount of the proposed
Incentive Payment.
* Option 2. If a Class 3 claimant does not elect Option 1, the
Court will determine the Allowed amount of any General Unsecured
Claims of Park Occupants, which will be paid in full upon the
allowance of such Claims.
Class 3 consists of General Unsecured, Noncontingent Claims Not
Including Park Occupants and Insiders. All Allowed General
Unsecured Claims in this class will be paid in full, in Cash, on
the Effective Date, without interest. This Class is impaired.
Class 4 consists of General Unsecured Insider Claims. Holders of
Unsecured Insider Claims shall not receive any recovery on account
of such Claims, and such claims shall be assumed by the reorganized
debtor. This Class is impaired.
Holders of Equity Interests shall not receive any Distribution in
respect of such Equity Interests but shall retain their ownership
interests in the Debtor.
The Plan will be funded through Cash on hand plus $400,000 in
funding from a segregated account ("Plan Fund") which will be
funded by Debtor's management or affiliates of Debtor's ownership.
The Plan Fund shall be subject to the Court's jurisdiction and no
distributions shall be made from the Plan Fund absent express
authority from the Court to make such a distribution. Any funds
remaining in the Plan Fund after all plan payments are made shall
revert back to the Debtor upon approval by the Court.
A full-text copy of the Disclosure Statement dated September 6,
2024 is available at https://urlcurt.com/u?l=MjMU5e from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
D. Edward Hays, Esq.
Tinho Mang, Esq.
Marshack Hays, LLP
870 Roosevelt
Irvine, CA 92620
Tel: (949) 333-7777
Fax: (949) 333-7778
FEAR WADDELL, P.C.
Peter L. Fear, Esq.
Gabriel J. Waddell, Esq.
Peter A. Sauer, Esq.
7650 North Palm Avenue, Suite 101
Fresno, California 93711
(559) 436-6575
(559) 436-6580 (fax)
About La Hacienda Mobile Estates
La Hacienda Mobile Estates, LLC, is primarily engaged in renting
and leasing real estate properties.
La Hacienda sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bank. D. Del. Case No. 24-10984) on May 9, 2024,
with $1 million to $5 million in both assets and liabilities. The
petition was signed by Matt Davies as managing member.
The Hon. Karen B. Owens presides over the case.
The Debtor tapped Ashby & Geddes, P.A., as bankruptcy counsel.
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 61% Discount
---------------------------------------------------------
Participations in a syndicated loan under which LifeScan Global
Corp is a borrower were trading in the secondary market around 39.1
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.01 billion Term loan facility is scheduled to mature on
December 31, 2026. About $842.7 million of the loan is withdrawn
and outstanding.
LifeScan Global Corporation is a provider of blood glucose
monitoring systems for home and hospital use.
LIFESCAN GLOBAL: Moody's Appends 'LD' Designation to 'Caa3-PD' PDR
------------------------------------------------------------------
Moody's Ratings (appended a limited default ("/LD") designation to
LifeScan Global Corporation's ("LifeScan") Probability of Default
Rating, revising it to Caa3-PD/LD from Caa3-PD. There is no change
to the Caa3 Corporate Family Rating, the B3 rating on the backed
senior secured 1st lien super priority revolving credit facilities
(expiring July 2025 and October 2026), the Caa3 rating on the
backed senior secured first lien term loan due December 2026, the
Ca rating on the backed senior secured second lien term loan due
March 2027, the Ca rating on the backed senior secured term loan
tranche due October 2024, and the stable outlook.
In October 2024, LifeScan missed a payment on a term loan (rated
Ca), with maturity due October 1, 2024, of approximately $27
million. The missed payment constitutes an event of default under
LifeScan's credit agreements. Concurrently, LifeScan entered into a
forbearance agreements with its lenders. The forbearance period
will expire no later than October 29th, 2024 as LifeScan and its
lenders work towards a potential resolution. While the forbearance
period will delay an acceleration of the company's debt
obligations, there is no guarantee that the company will be able to
reach an agreement with lenders. Moody's view the company's failure
to repay the loan at the maturity date as a limited default under
Moody's definition.
LifeScan's Caa3 Corporate Family Rating reflects Moody's view that
the company's revenues will continue to decline for BGM products as
volume and pricing will remain pressured. Moody's expect that CGM
products -- a category where LifeScan is currently working with a
partner on a possible product, but does not yet generate revenue --
will continue to gain share over time. LifeScan's rating also
reflects the company's weak liquidity, including Moody's
expectation that the company will generate negative cash flow over
the next 12 to 18 months after required term loan amortization and
debt maturities. The rating is supported by LifeScan's leading
market position in BGM products and its global presence with a
majority of revenue generated outside North America. The prevalence
of diabetes continues to grow, particularly in emerging markets,
which is a partial offset for inroads by CGM products in developed
markets.
Headquartered in Malvern, PA, LifeScan Global Corporation is a
global manufacturer and distributor of BGM products including
meters, testing strips, lancets, point of care testing systems and
related monitoring software. Fiscal 2023 revenues were
approximately $751 million. LifeScan, previously a division of
Johnson & Johnson, was acquired by affiliates of Platinum Equity in
October 2018.
LIGHTHOUSE PHOTOGRAPHY: LaMonica Lawyer Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Salvatore LaMonica, Esq.,
at LaMonica Herbst & Maniscalco, LLP, as Subchapter V trustee for
Lighthouse Photography Dream Weddings, Inc.
Mr. LaMonica will be paid an hourly fee of $725 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMonica declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Salvatore LaMonica, Esq.
LaMonica Herbst & Maniscalco, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Phone: (516) 826-6500
Email: sl@lhmlawfirm.com
About Lighthouse Photography
Lighthouse Photography Dream Weddings, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-73670) on September 23, 2024, with $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities.
Judge Louis A. Scarcella presides over the case.
Ronald D. Weiss, Esq. represents the Debtor as legal counsel.
MAGENTA SECURITY: $1.04BB Bank Debt Trades at 58% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Magenta Security
Holdings LLC is a borrower were trading in the secondary market
around 42 cents-on-the-dollar during the week ended Friday, October
11, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.04 billion Term loan facility is scheduled to mature on July
27, 2028. The amount is fully drawn and outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
MAGENTA SECURITY: $1.07BB Bank Debt Trades at 26% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Magenta Security
Holdings LLC is a borrower were trading in the secondary market
around 74.2 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $1.07 billion Term loan facility is scheduled to mature on July
27, 2028. The amount is fully drawn and outstanding.
The Company's country of domicile is the United States.
MBMG HOLDING: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Sixteen affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
MBMG Holding, LLC (Lead Debtor) 24-20576
7500 S.W. 8th Street, Ste. 400
Miami, FL 33144
Care Center Medical Group, LLC 24-20577
Care Center Network, LLC 24-20580
CCMC Physician Holdings, Inc. 24-20578
Clinical Care Pharmacy, LLC 24-20579
Florida Family Primary Care Center, LLC 24-20581
Florida Family Primary Care Center of Pasco, LLC 24-20582
Florida Family Primary Care Centers of Orlando, LLC 24-20583
Florida Family Primary Care Centers of Pinellas, LLC 24-20584
Florida Family Primary Care Centers of Tampa, LLC 24-20585
MB Medical Operations, LLC 24-20586
MB Medical Transport, LLC 24-20587
MBMG Intermediate Holding, LLC 24-20588
Miami Beach Medical Centers, Inc. 24-20589
Miami Beach Medical Consultants, LLC 24-20590
Miami Medical & Wellness Center, LLC 24-20591
Business Description: The Debtors are an independent primary care
and integrated physician group focused on
value-based, multi-specialty healthcare
services. The Debtors deliver health and
wellness services to approximately 35,000
patients across 26 primary care centers in
Florida, with half of those centers being in
Miami-Dade County. In addition to primary
care services, the Debtors provide several
in-house and ancillary support services to
patients, including dental, vision, in-home,
telehealth, case management, podiatry,
chiropractic, pain management, lab, x-ray,
and transportation services, and operate
wellness centers that provide meal support
and social activities.
Chapter 11 Petition Date: October 13, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Judge: Hon. Corali Lopez-Castro
Debtors'
General
Bankruptcy
Counsel: Paul Steven Singerman, Esq.
Jordi Guso, Esq.
Christopher Andrew Jarvinen, Esq.
BERGER SINGERMAN LLP
1450 Brickell Avenue, Ste. 1900
Miami, FL 33131
Tel: (305) 755-9500
Fax: (305) 714-4340
Email: singerman@bergersingerman.com
jguso@bergersingerman.com
cjarvinen@bergersingerman.com
Debtors'
Restructuring
Advisor: MERU, LLC
Debtors'
Investment
Banker: OPPENHEIMER & CO. INC.
Debtors'
Notice &
Claims
Agent: EPIQ CORPORATE RESTRUCTURING, LLC
Lead Debtor's
Estimated Assets: $0 to $50,000
Lead Debtor's
Estimated Liabilities: $100 million to $500 million
The petitions were signed by Nicholas K. Campbell as chief
restructuring officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/C3IRVWI/MBMG_Holding_LLC__flsbke-24-20576__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. NextGen Healthcare Inc. Trade Debt $749,891
18111 Von Karman Ave, Suite 600
Irvine, CA 92612
Contact: David Sides
Phone: 1-855-510-6398
Email: results@nextgen.com
2. Lyft Inc. Trade Debt $411,972
185 Berry St, Ste 400
San Francisco, CA 94107-1725
Contact: Jacob Rudolph
Tel: 844-250-2773
Fax: 415-703-1758
Email: jrudolph@lyft.com
3. McKesson Medical Surgical Trade Debt $170,880
6555 State Hwy 161
Irving, TX 75039
Contact: Stanton McComb
Phone: 855-571-2100
Email: customerservice@mckesson.com
4. TTEC Healthcare Solutions Trade Debt $102,510
6312 Fiddlers Green Circle
Suite 100N
Greenwood Village, CO 80111
Phone: 1-800-835-3832
Email: cx@ttec.com
5. Fox Rothschild LLP Trade Debt $81,894
PO Box 931646
Atlanta, GA 31193-1646
Contact: Erin J. Letey,
Mary Balent Long
Tel: 206-389-1585
Fax: 404-962-1200
Email: eletey@foxrothschild.com
6. Vonage Business Trade Debt $61,112
101 Crawfords Corner Rd, Ste 2416
4th FL, Bldg 2
Holmdel, NJ 07733
Contact: Niklas Heuveldop
Phone: 1-844-365-9460
Email: support@vonage.com
7. Lightbeam Health Solutions Trade Debt $53,244
2999 Olympus Blvd
Suite 800
Dallas, TX 75019
Contact: Pat Cline
Phone: (972) 831-7270
Email: info@lightbeamhealth.com
8. Aaneel Infotech Trade Debt $46,806
16606 Hutchison Rd
Odessa, FL 33556
Contact: Niyati Patel
Tel: 1-813-909-9555
Fax: 1-813-533-5421
Email: sales@aaneel.com
9. A&T Mobility Trade Debt $41,640
PO Box 6463
Carol Stream, IL 60197-6493
Contact: Karen A. Cavagnaro
Phone: 800-331-0500
Email: km1426@att.com
10. Creation Financial LLC Trade Debt $37,657
7950 NW 53 St
Suite 221
Doral, FL 33166
Contact: Jose Arriaza
11. Chebere Appetite, Inc. Trade Debt $36,041
4720 NW 167 St
Miami Gardens, FL 33014
Contact: Ricardo Gonzalez
Phone: 305-454-1900
12. WOW Mktg Trade Debt $35,000
804 S Douglas Road
Suite 500 Executive Tower
Coral Gables, FL 33134
Contact: Jose Dans Junior
Phone: 305-273-8373
13. Mialab Inc. Trade Debt $25,916
2129 West 76th Street
Hialeah, FL 33016
Tel: 305-364-7100
Fax: 305-364-7558
Email: michael@mialab.com
14. IPower Technologies Trade Debt $25,880
6111 Broken Sound Parkwah NW
Suite 170
Boca Raton, FL 33487
Contact: Jarrett Pavao
Phone: 877-832-3181
Email: info@goipower.com
15. Mercedes-Benz Financial Trade Debt $24,453
Services USA LLC
10701 SW 211th St.
Cutler Bay, FL 33189
Phone: 800-654-6222
Email: marketing@mbcoralgables.com
16. Scrivas LLC Trade Debt $24,052
8720 N Kendall Drive
Suite 204
Miami, FL 33176
Contact: Alexandra Fernandez
Phone: 888-362-4614
Email: sai.info@scrivas.com
17. Scribeemr, Inc. Trade Debt $22,534
500 West Cummings Park
Suite 2700
Woburn, MA 01801
Phone: 800-200-8739
Email: info@scribeemr.com
18. FPL Trade Debt $18,513
General Mail Facility
Miami, FL 33188-0001
Phone: 1-800-226-3545
Email: support@fpl.com
19. Evergreen 3, LLC Trade Debt $15,063
5340 N Federal Hwy
Suite 110
Lighthouse Point, FL 33064
Contact: Hang Nguyen
20. Isla Multi Services Trade Debt $13,740
2435 US Hwy 98 N
Lakeland, FL 33805
Contact: Mariano Caba
Phone: 786-953-6000
21. Privamedis, LLC Trade Debt $11,830
4308 Alton Road Suite 880
Miami Beach, FL 33140
Contact: Merlino J Gary
Tel: 305-604-2888
Fax: 305-604-2887
22. I Am Divid, LLC Trade Debt $10,000
2125 NE 40 Ave
Homestead, FL 33033
23. Remedy Repack Trade Debt $9,977
625 Kolter Drive Ste 4
Indiana, PA 15701
Contact: Lauren Stout
Phone: 1-724-910-8543
Email: lsstout@remedyrepack.com
24. Tower Professional Plaza Trade Debt $9,465
Condo Association
381 N Krome Ave
Suite 205
Homestead, FL 33030
Contact: Lisa Pellerin
Phone: 941-928-5657
25. Medical Care Trade Debt $8,541
Transportation Inc.
2766 NW 62nd St
Miami, FL 33147-7662
Contact: Rene Gonzalez
Phone: +1(305) 871-1111
Email: hello@transportationamerica.com
26. Pharma Delivery Group Trade Debt $8,427
11384 Miramar Parkway
Miramar, FL 33025
Contact: Llismel O Cabrero
Phone: 786-332-2322
Emaii: info@pharmadeliverygroup.com
27. Marion Simmons Trade Debt $8,378
507 Sandalwood Drive
Plant City, FL 33563
28. Terrace Walk Plaza Trade Debt $8,081
8902 N. Dale Mabry Highway
Ste. 200
Tampa, FL 33614
Tel: 800-728-5379
Fax: 813-963-2596
Email: katkins@rmcpg.com
29. Waste Management Inc. of Trade Debt $7,735
Florida
8801 NW 91st Street
Medley, FL 33178
Phone: (855) 292-6719
Email: jmills@wm.com
30. Waste Connections of Florida Trade Debt $7,008
3840 N.W. 37th CT
Miami, FL 33142-4208
Phone: 727-847-9100
MONTICELLO ACADEMY: S&P Affirms 'BB+' Rating on Revenue Bonds
-------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed its 'BB+' long-term rating on Monticello Academy(MA),
Utah's series 2014 charter school revenue refunding bonds, issued
by the Utah Charter School Finance Authority.
"The outlook revision reflects MA's weakened liquidity metrics and
operating performance in fiscal 2023, resulting in a debt service
coverage covenant violation, as well as a liquidity profile that,
when combined with an increased debt burden after recently
purchasing its West Point campus, is weaker relative to that of
similarly rated peers," said S&P Global Ratings credit analyst
Jesse Brady.
As of June 30, 2023, MA had $20 million in debt outstanding,
consisting of the series 2014 and series 2022 bonds (unrated). The
series 2022 bonds are privately placed, issued for the purpose of
acquiring the school's previously leased West Point school
facility. All bonds are fixed-rate obligations secured by a pledge
of the charter school's revenues at both locations, although the
pledge on the 2022 bonds is subordinate to the 2014 bonds pursuant
to the 2022 loan agreement. S&P does not view the 2022 private
placement as presenting contingent liquidity risk because
acceleration due to an event of default under the loan agreement is
not immediate and must be directed by a majority bondholder vote.
S&P said, "We assessed MA's enterprise profile as adequate,
characterized by growing enrollment of about 1,116 for fall 2023,
as well as sufficient demand and acceptable academics.
"The negative outlook reflects our view of MA's weakening liquidity
metrics, weak profit margins, less than 1x maximum annual debt
service (MADS) coverage, and high debt burden metrics brought on by
the expansion.
"We could lower the rating if financial operations do not improve
such that they do not provide sufficient MADS coverage to satisfy
bond covenants in fiscal 2024 as currently expected. We could also
lower the rating if liquidity does not exhibit a trend of
improvement closer to previous levels, or if MA is unable to
maintain a stable demand profile."
A positive rating action would be based on a demonstrated trend of
improved operating margins and MADS coverage, with sustained
liquidity growth back to levels consistent with that of the current
rating category medians. S&P would also expect the school to
maintain at least stable demand metrics during this period.
NAKED JUICE: $1.82BB Bank Debt Trades at 21% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 79.3
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.82 billion Term loan facility is scheduled to mature on
January 24, 2029. The amount is fully drawn and outstanding.
Naked Juice LLC is the entity resulting from a spin-off from
PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39%
stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and
other select juice brands.
NEW CONSTELLIS: S&P Upgrades ICR to 'CCC+' on Refinancing
---------------------------------------------------------
S&P Global Ratings raised its issuer credit rating for New
Constellis Borrower LLC (New Constellis) to 'CCC+' from 'SD'
(selective default) and its issue-level rating on the company's
second-lien term loan to 'CCC-' from 'D' with a recovery rating of
'6' (estimated recovery 0%) while the issue level rating on the
company's first-lien debt remains 'CCC+' with a recovery rating of
'3' (estimated recovery of 55%).
The negative outlook reflects S&P's view that though the company's
refinancing will improve liquidity and cash flow for next year or
so, the pace of new contracts awards has been slower than
anticipated, while contracts with weak economics remain a drag on
metrics.
S&P said, "We view the refinancing as necessary to enhance
liquidity and bolster cash flow, positioning the company for
upcoming contract awards.. In September of 2024, the company
completed the refinancing of its first- and second-lien term loans
in a transaction that we viewed as a distressed exchange. The
transaction pushed maturities to December 2027 and December 2028,
respectively, reduced total funded debt by about $60 million and
secured more favorable pricing. Additionally, lenders within the
first-lien facility will provide $35 million in incremental debt
allocated toward capital needs related to new contracts. Together,
the new money and refinancing transaction will provide immediate
cash flow improvement by lowering the company's debt service burden
while also adding significant liquidity that it can utilize for
working capital needs. We expect free operating cash flow (FOCF) to
be negative to breakeven in 2024, then improving to moderately
positive in 2025, partly due to the transaction."
The slow pace of new contract awards and lingering roll off of
legacy contracts will result in weak credit metrics. Demand for
security services provided by New Constellis remains abundant;
however, the pace of new contract awards has been slower than
anticipated. S&P said, "We expect to see contract awards to
increase, domestically as well as abroad, following the election
cycle and upon congress reaching a budget agreement beyond a
continuing resolution. We now expect the company's top-line to
decline by 6% in 2024 before realizing marginal improvement of
between 2.5% and 5% in 2025. Additionally, the company continues to
execute its strategic exit of legacy contracts with weak economics.
We expect the managed exits will remain a drag on margins at least
for the next 12 months. The company has been able to offset some of
the drag through cost-cutting initiatives, however, not completely.
As a result of the weak top-line growth and pressured margins, we
expect leverage will remain elevated over the next 24 months, at
between 8.5x and 9.0x in 2024, improving to between 7.75x and 8.25x
in 2025. Additionally, we expect funds from operations (FFO) to
debt between negative 2.0% and 3.0% in 2024 and 2025, while FOCF is
forecast to be negative in 2024 and between breakeven and 2.0% in
2025."
S&P said, "We assess the company's liquidity as adequate. New
Constellis held around $17.5 million of cash as of June 2024, and
about $69 million in availability under its asset-based lending
(ABL) facility. We expect FFO will be a cash use of between $4
million and $6 million in fiscal 2024 and capital expenditures
(capex) will remain consistent between $3 million and $5 million
due to growth investments and maintenance spending. Additionally,
as a part of the company's refinancing, New Constellis will have
$35 million in incremental debt the company can access as new
contracts become secured. The company's nearest debt maturity
relates to it ABL facility and occurs in September 2026. Though we
expect operations to improve, we do not expect the company to reach
significant positive free cash flow before the maturity, causing
elevated refinance risk. We expect New Constellis will continue to
burn cash through 2024, largely due to the slower pace of contract
awards and slow runoff of legacy contracts with less favorable
economics.
"The negative outlook reflects our view that though the company has
improved its immediate liquidity and cash flow positions, the pace
of new contract awards has been slower than anticipated while the
managed exit of contracts with unfavorable economics is expected to
remain a drag on credit metrics for the next year or so. We expect
leverage to remain elevated, at least 8.0x into 2025, as the
company draws on new incremental debt allocate toward working
capital needs as the company secures new contract awards.
"We could lower our rating on New Constellis within the next 12
months if the company's liquidity becomes more constrained than we
anticipate due to lower revenue or significant cash outflows. We
could also lower the rating if we believe there is an increased
likelihood it will engage in a debt exchange or restructuring that
we would view as distressed."
S&P could revise its outlook on New Constellis to stable within the
next 12 months if:
-- Free operating cash flow improves to levels at least breakeven
on a sustained basis,
-- Liquidity remains adequate, and
-- The company improves its leverage closer to levels S&P views as
sustainable.
OCEANWIDE PLAZA: Updates Unsecured Claims Pay Details
-----------------------------------------------------
Oceanwide Plaza LLC submitted a Second Amended Disclosure Statement
describing Liquidating Plan of Reorganization.
The sale of the Property is crucial to the consummation of the
plan. On June 12, 2024, the Court entered an Order Granting
Debtor's Motion to (I) Approve Auction and Bid Procedures for the
Sale of Property; (II) Scheduling an Auction and Approving the Form
and Manner of Notice Thereof; and (III) Granting Related Relief
(the "Bid Procedures Order").
The First Modified Bid Procedures Order 1) extended the deadline to
select a Stalking Horse Bidder from July 1, 2024, to July 3, 2024;
2) extended the deadline for the Debtor to file a notice of
selection of Stalking Horse Bidder to July 16, 2024; and 3)
continued a hearing on a proposed Stalking Horse Bidder and Bid
Protections from July 10, 2024 at 1:00 p.m. to July 23, 2024 at
3:00 p.m. On July 3, 2024, the Debtor selected a proposed stalking
horse bidder subject to the Debtor's continued due diligence.
However, Debtor was not satisfied with the results of this due
diligence and did not proceed with that party as the stalking horse
bidder at that time.
The deadline for interested parties to submit bids is August 15,
2024 (the "Bid Deadline") and an auction is scheduled for September
19, 2024. After the bidder with the highest and best bid, or the
second highest and best bid as applicable (the "Winning Bidder") is
identified, through the auction or otherwise, Debtor will then seek
approval of the sale through the process set forth in it's
liquidating Chapter 11 Plan, pursuant to the Court's Order
confirming that plan.
The closing of the sale of the Property will occur on or before the
Effective Date. Debtor anticipates using the amount received from
the Winning Bidder, or the Back-Up Bidder, as the case may be,
after all costs and expenses are deducted from the gross proceeds
arising from the sale of an asset, or a deduction of $200,000 (the
"Post-Confirmation Reserve"), (the "Sale Proceeds") to fund the
administrative expenses for the Liquidating Trust which will
administer this Plan following the Effective Date (the "Liquidating
Trust"), to satisfy creditors as set forth in Section III.
The Plan is a liquidating plan that contemplates the sale of
substantially all of Debtor's assets. After the Plan is fully
administered, Debtor will be dissolved. The Plan provides for the
closing of the sale of Debtor’s Property, (the "Sale"), on or
before the Effective Date.
Class 7 consists of General Unsecured Claims. Debtor believes that
there are approximately $176,700,000 in unsecured claims, excluding
intercompany loans, in this estate. Debtor anticipates making a
distribution to unsecured creditors. The ultimate recovery of
Holders of General Unsecured Claims will depend on the Sale
Proceeds generated by the Sale. Debtor believes that such recovery
could be high as 100% of the amount of General Unsecured Claims
asserted.
However, the Holders of General Unsecured Claims could receive no
distribution, depending on the final amount of the Sale Proceeds.
If any General Unsecured Claim is disputed, in whole or in part,
then such General Unsecured Claim will be subject to the Disputed
Creditor Reserve Treatment, as defined in Section 9(C)(4) and will
only be paid as provided for in that Section, unless the parties
otherwise agree. To the extent that any claims initially included
in Class 7 are recharacterized and Allowed as equity interests,
they will be instead by included in Class 10.
Class 8 consists of Intercompany Claims. Debtor owes a total of
approximately $219,300,000 in Intercompany Loan Claims. Debtor
intends to pay Allowed Intercompany Loan Claims in pari passu with
the General Unsecured Claims outlined in Class 7. If any
Intercompany Claim is disputed, in whole or in part, then such
Intercompany Claim will be subject to the Disputed Creditor Reserve
Treatment, as defined in Section 9(C)(4) and will only be paid as
provided for in that Section, unless the parties otherwise agree.
To the extent that any claims initially included in Class 8 are
re-characterized and Allowed as equity interests, they will be
instead by included in Class 10.
Class 9 shall consist of all Claims that is subject to (a)
subordination under Section 510(b), or (b) equitable subordination,
as the Bankruptcy Court determines in a Final Order ("Subordinated
Claims"). To date, no Claims scheduled or filed in this matter are
Subordinated Claims under this Class 9. If any Subordinated Claim
is disputed, in whole or in part, then such Subordinated Claim will
be subject to the Disputed Creditor Reserve Treatment, as defined
in Section 9(C)(4) and will only be paid as provided for in that
Section, unless the parties otherwise agree.
Class 10 consists of Equity Holders. The equity structure of Debtor
will remain unchanged as a result of the Plan and the Confirmation
Order. In the event that the Sale Proceeds are sufficient to pay
the claims of Classes 1 to 9, any such remaining Sale Proceeds
shall be distributed to Equity Holders, in accordance with their
interest in Debtor. Class 10 will be entitled to vote on the
Liquidating Chapter 11 Plan.
The sources of the payments to be made by the Liquidating Trustee
under the Plan will be from (i) the Sale Proceeds; (ii) the
liquidation of all of Debtor's assets not sold to the Winning
Bidder, except for Sale Proceeds; (iii) Cash on hand; and (iv) any
Causes of Action, less any amounts required to be remitted to the
Liquidating Trustee to wind up the estate ("Plan Administration
Assets").
The Debtor asserts that it will be able to pay its Unclassified
Claims, and Classes 1 through 6 if proceeds of the sale of the
Property exceeds $430 million. The waterfall distribution to each
class of creditors will change depending on the final amount of
proceeds realized from the Property.
A full-text copy of the Second Amended Disclosure Statement dated
September 5, 2024 is available at https://urlcurt.com/u?l=qf0MCE
from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Sharon Z. Weiss, Esq.
Bryan Cave Leighton Paisner LLP
120 Broadway, Suite 300
Santa Monica, CA 90401-2386
Telephone: (310) 576-2100
Facsimile: (310) 576-2200
Email: sharon.weiss@bclplaw.com
Jarret P. Hitchings, Esq.
One Wells Fargo Center
301 S. College Street, Suite 2150
Charlotte, NC 28202
Telephone: (704) 749-8999
Facsimile: (704) 749-8990
About Oceanwide Plaza LLC
An involuntary bankruptcy petition against Oceanwide Plaza LLC in
Los Angeles CA, for Chapter 11 protection (Bankr. C.D. Cal. Case
No. 24-11057) on February 13, 2024.
Judge Deborah J Saltzman oversees the case.
Bryan Cave Leighton Paisner, LLP as counsel to the Debtor. Bradley
D. Sharp as chief restructuring officer. GlassRatner Advisory &
Capital Group LLC, d/b/a B. Riley Advisory Services, as financial
advisor and expert witness.
OUTCOMES GROUP: Moody's Hikes CFR to B2 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings upgraded the ratings of Outcomes Group Holdings,
Inc., parent company of Paradigm Acquisition Corp. ("Paradigm"),
including the Corporate Family Rating to B2 from B3, Probability of
Default Rating to B2-PD from B3-PD, and ratings on the 1st lien
senior secured term loan and 1st lien senior secured revolving
credit facility to B2 from B3. The outlook was revised to stable
from positive.
The ratings upgrade reflects Paradigm's recent deleveraging and
Moody's expectation that this trend will continue. Debt/EBITDA has
improved from approximately 7.5x at the time of the 2018 LBO and
6.5x following the April 2022 dividend recapitalization, to
approximately 5.0x at June 30, 2024. Moody's expect continued
deleveraging with debt/EBITDA trending into the mid 4.0x range over
the next 12-18 months barring additional debt-funded distributions
and acquisitions. Moreover, Moody's expect that liquidity will
remain very good, with continued strong free cash flow generation.
The stable outlook reflects Moody's view that Paradigm's operating
performance will remain robust, and that leverage will remain below
6.0x. The stable outlook also reflects Moody's expectation that
Paradigm will maintain very good liquidity.
RATINGS RATIONALE
Paradigm's B2 rating is constrained by its moderately high
financial leverage. Leverage was approximately 5.0x at June 30,
2024 and Moody's expect continued deleveraging into the mid 4.0x
range over the next 12 to 18 months absent M&A and/or additional
debt-funded shareholder returns. The rating also reflects the
company's relatively high customer concentration with the largest
four customers accounting for more than a third of revenue. The
rating is supported by the company's leading market position, high
barriers to entry and solid earnings growth prospects as it expands
its service offerings. Further, Paradigm has a good track record of
organic revenue growth (even during the pandemic) and managing the
underwriting risk within its contracts. Moody's expect that the
company will generate solid free cash flow despite its moderately
high debt/EBITDA.
Moody's expect Paradigm will maintain very good liquidity over the
next 12 to 18 months with annual free cash flow of at least $50
million over this period. Paradigm had $83 million of cash and full
availability on its $100 million revolving credit facility that
expires in 2029 at June 30, 2024. There are no near-term debt
maturities and mandatory debt amortization is modest, at 1% of the
first lien term loan, or $7 million per year. There is a springing
covenant on the revolver (8.25x first lien net leverage) triggered
upon 35% revolver utilization.
Paradigm's CIS-4 indicates the rating is lower than it would have
been if ESG risk exposure did not exist. Paradigm has exposure to
both social risks (S-4) and governance considerations (G-4). The
social risk largely reflects the company's exposure to both labor
pressures and wage inflation given its workforce of skilled
practitioners. Paradigm's exposure to governance considerations
reflects the company's aggressive financial policy under private
equity ownership that tends to favor shareholders over creditors as
evidenced by the company's high leverage and debt funded
distribution to shareholders in 2022.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if the company's operating
performance deteriorates, if it becomes increasingly aggressive
with respect to dividends or acquisitions or if liquidity weakens.
Ratings could also be downgraded if company sustains debt to EBITDA
above 6.0x.
The ratings could be upgraded if the company achieves greater scale
and customer diversification while maintaining very good liquidity.
Further, if the company uses free cash flow to repay debt or
earnings grow such that debt to EBITDA is sustained below 4.5x,
Moody's could upgrade the ratings.
Paradigm is a national provider of outsourced catastrophic worker's
compensation case management services. Under both risk-based and
fee-based contracts, the company provides services to insurance
companies and self-insured employers to improve medical outcomes
and reduce the costs associated with low frequency, high severity
work-related injuries. The company is privately owned by Ontario
Municipal Employees Retirement System ("OMERS") and generates
roughly $1.3 billion in revenue.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
PEGASUS RESTAURANT: Unsecureds to Get 15% of Claims over 60 Months
------------------------------------------------------------------
Pegasus Restaurant Group, LLC filed with the U.S. Bankruptcy Court
for the Eastern District of Virginia a Plan of Reorganization under
Subchapter V dated September 5, 2024.
The Debtor is a Limited Liability Corporation organized and
chartered in 2020 with its principal place of business in the City
of Leesburg, Virginia. It is owned by Rebecca Metzgar (60%) and
Nalyana Penprachum (40%)and is managed by Rebecca Metzgar's son,
the designee in this case, Neil Metzgar.
The Debtor operates two popular Asian restaurants, one in Leesburg
and the other in Middletown, Virginia. While the Debtor's trade was
affected by the pandemic, it is now returning to its pre pandemic
level. At the same time, the Debtor used some of its profits
generated in the preceding years for investments which did not turn
out as expected.
During the pandemic, and until the filing of this petition, the
Debtor fell increasingly behind in paying its Federal payroll taxes
and its Virginia Sales Tax. To make matters worse, the Debtor took
out several high interest loans, styled as merchant cash advances,
which only pushed it further into debt and drained its resources
though their automatic withdrawals from its operating account.
The Debtor anticipates that it will be able to make all of the
payments provided for both inside and outside this Plan, as well as
cover its normal operating expenses from its net surplus over the
Plan term. The Debtor further submits that it is devoting all of
its net surplus during the prosed term to the payments provided for
under this Plan.
The Debtor's Plan proposes monthly payments over sixty months
totaling $1,020,000.00 and a contribution from Neil Metzgar of
$375,000.00. It is estimated that this combined funding will allow
for a distribution to unsecured creditors in the amount of %15 of
their claims.
Class 5 includes all remaining unsecured claims without priority
and totals $271,357.39. These claimants will receive a pro rata
distribution (without interest) over sixty months from the monthly
Plan payments not needed to pay (pro rata) the claims of Classes 1,
2, and 3. The Debtor anticipates, but cannot guarantee, that based
on the best information available to it at the time this Plan is
filed, that the Class 5 creditors will receive a distribution of
not less than approximately 15% of their claims.
Class 6 includes the Debtor's equity security holders, Rebecca
Metzgar and Nalyana Penprachum. The claimant in this class shall
retain their equity security interests, but shall receive no other
distribution under the Plan.
The term of the Plan shall be sixty consecutive months from the
month following the effective date of the Plan. It is anticipated
that the debtor's income shall be sufficient to make all payments
required aside from the bonus payment made by Neil Metzgar. The
Debtor shall act as its own disbursing agent if such is permissible
under Section 1194 of the Bankruptcy Code.
A full-text copy of the Subchapter V Plan dated September 5, 2024
is available at https://urlcurt.com/u?l=Xi9TLr from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Richard G. Hall, Esq.
Law Office of Richard G. Hall
601 King Street Suite 301
Alexandria, VA 22314
Telephone: (703) 256-7159
About Pegasus Restaurant
Pegasus Restaurant Group, LLC, operates two popular Asian
restaurants, one in Leesburg and the other in Middletown, Virginia.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 24-11072) on June 12,
2024, with $50,001 to $100,000 in assets and $500,001 to $1 million
in liabilities.
Richard G. Hall, Esq., represents the Debtor as legal counsel.
PRAIRIE KNOLLS MHP: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina granted, on an interim basis, the motion by Prairie Knolls
MHP, LLC to use the cash collateral of its secured creditors.
The company can use the cash collateral to pay its ordinary
business expenses, which are estimated at $24,584.01.
Prairie Knolls may exceed individual expense categories by up to
10% or more, provided the total excess does not surpass 10% of the
aggregate authorized expenditures.
As protection, secured creditors will receive replacement liens on
the company's assets, with the same priority as their
pre-bankruptcy liens.
About Prairie Knolls MHP
Prairie Knolls MHP, LLC is a company that owns and operates a
mobile home park. It provides residential spaces for mobile homes,
offering community living environments for individuals and
families.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03432) with $10
million to $50 million in both assets and liabilities. The petition
was signed by Neil Carmichael Bender, II as manager.
Judge Pamela W. Mcafee oversees the case.
The Debtor is represented by:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, FL 33431
Telephone: 561-443-0800
Email: bss@slp.law
REALD INC: $60MM Bank Debt Trades at 33% Discount
-------------------------------------------------
Participations in a syndicated loan under which RealD Inc is a
borrower were trading in the secondary market around 66.7
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $60 million Term loan facility is scheduled to mature on
November 30, 2024. The amount is fully drawn and outstanding.
RealD Inc. is a private company known for its RealD 3D system,
which is used for projecting films in stereoscopic 3D using
circularly polarized light.
RED RIVER: Brown Rudnick, Otterbourg & Stutzman Advise Coalition
----------------------------------------------------------------
The law firms of Brown Rudnick LLP, Otterbourg P.C. and Stutzman,
Bromberg, Esserman & Plifka, PC ("SBEP" and together with Brown
Rudnick and Otterbourg, "Counsel") filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 case of Red River Talc LLC, the
law firms represent the Coalition of Counsel for Justice for Talc
Claimants.
The Coalition formed to advance the common interests of the member
law firms, including obtaining fair and equitable compensation for
all ovarian cancer claimants. The law firm members of the Coalition
include members of the mass tort plaintiffs' bar who have led the
talc litigation for over a decade, including counsel to several
members of the Official Committee of Talc Claimants in the two
prior bankruptcy cases brought by the Debtor's predecessor, LTL
Management, LLC.
Counsel has been retained to represent the Coalition and does not
represent the individual members of the Coalition or the Clients.
Each member of the Coalition has consented to Counsel's
representation.
Counsel represents only the Coalition and does not represent or
purport to represent any persons or entities other than the
Coalition in connection with the Debtor's Chapter 11 Case.
Co-Counsel For The Coalition Of Counsel For Justice For Talc
Claimants:
STUTZMAN, BROMBERG, ESSERMAN & PLIFKA, PC
Sander L. Esserman, Esq.
Peter C. D’Apice, Esq.
2323 Bryan Street, Ste. 2200
Dallas, TX 75201-2689
Telephone: (214) 969-4900
Facsimile: (214) 969-4999
Email: esserman@sbep-law.com
dapice@sbep-law.com
-and-
BROWN RUDNICK LLP
David J. Molton, Esq.
Jeffrey L. Jonas, Esq.
Eric R. Goodman, Esq.
Gerard T. Cicero, Esq.
Susan Sieger-Grimm, Esq.
Seven Times Square
New York, NY 10036
Telephone: (212) 209-4800
Facsimile: (212) 209-4801
Email: dmolton@brownrudnick.com
jjonas@brownrudnick.com
egoodman@brownrudnick.com
gcicero@brownrudnick.com
ssieger-grimm@brownrudnick.com
-and-
Melanie L. Cyganowski, Esq.
Adam C. Silverstein, Esq.
Sunni P. Beville, Esq.
Jennifer S. Feeney, Esq.
230 Park Avenue
New York, NY 10169
Telephone: (212) 661-9100
Facsimile: (212) 682-6104
Email: mcyganowski@otterbourg.com
asilverstein@ otterbourg.com
sbeville@ otterbourg.com
jfeeney@otterbourg.com
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 July
26, 2024. 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.
RED RIVER: Paul Hastings & Parkins Represent Ad Hoc Committee
-------------------------------------------------------------
The law firms Paul Hastings LLP and Parkins & Rubio LLP filed a
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure to disclose that in the Chapter 11 case of Red
River Talc LLC, the law firms represent the Ad Hoc Committee of
Supporting Counsel (the "AHC of Supporting Counsel").
The AHC of Supporting Counsel has formed to advance the common
interests of the law firms who support the Amended Prepackaged Plan
of Reorganization of the Debtor, filed on September 20, 2024.
The law firms on the AHC of Supporting Counsel contain members of
the mass tort plaintiffs' bar who have led the talc litigation for
over a decade, including two former members of the Official
Committee of Talc Claimants in the first bankruptcy case brought by
the predecessor of the Debtor. The AHC of Supporting Counsel's
clients include the vast majority of talc claims, who voted
overwhelmingly to support the Initial Plan, and about 50% of those
talc claimants with claims filed in federal and state courts.
As of the time of this filing, Counsel does not represent any
individual Client. To the extent Counsel subsequently is retained
to represent one or more individual Clients, Counsel will file a
supplement to this Verified Statement.
Counsel represents only the AHC of Supporting Counsel and does not
represent or purport to represent any persons or entities other
than the AHC of Supporting Counsel in connection with the Debtor's
Chapter 11 Case.
Each member of the AHC of Supporting Counsel has consented to
Counsel's representation.
Counsel to AHC of Supporting Counsel:
PAUL HASTINGS LLP
Schlea M. Thomas, Esq.
600 Travis Street, 58th Floor
Houston, Texas 77002
Telephone: (713) 860-7300
Facsimile: (713) 353-3100
Email: schleathomas@paulhastings.com
-and-
Kristopher M. Hansen, Esq.
Kenneth Pasquale, Esq.
Ryan Montefusco, Esq.
200 Park Avenue
New York, New York 10166
Telephone: (212) 318-6000
Facsimile: (212) 319-4090
Email: krishansen@paulhastings.com
kenpasquale@paulhastings.com
ryanmontefusco@paulhastings.com
-and-
Matthew M. Murphy, Esq.
71 S. Wacker Drive, Suite 4500
Chicago, Illinois 60606
Telephone: (312) 499-6000
Facsimile: (312) 499-6100
Email: mattmurphy@paulhastings.com
– and –
PARKINS & RUBIO LLP
Lenard M. Parkins, Esq.
Charles M. Rubio, Esq.
700 Milam, Suite 1300
Houston, TX 77002
Telephone: (713) 715-1660
Email: lparkins@parkinsrubio.com
crubio@parkinsrubio.com
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 July
26, 2024. 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.
ROLLING ACRES: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Rolling Acres MHC, LLC received interim approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to use
cash collateral.
The company can use the cash collateral of its secured creditors
for ordinary business expenses, which are estimated at $24,584.01.
It may exceed individual expense categories by up to 10% or more,
provided the total excess does not surpass 10% of the aggregate
authorized expenditures.
The interim order granted secured creditors replacement liens on
the company's assets, with the same priority as their
pre-bankruptcy liens.
About Rolling Acres MHC
Rolling Acres MHC, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03433) on
September 20, 2024, with $1 million to $10 million in both assets
and liabilities.
Judge Pamela W. Mcafee oversees the case.
The Debtor is represented by:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, FL 33431
Telephone: 561-443-0800
Email: bss@slp.law
SALEM POINTE: Case Summary & 15 Unsecured Creditors
---------------------------------------------------
Debtor: Salem Pointe Capital, LLC
403 Rarity Bay Parkway
Vonore, TN 37885
Chapter 11 Petition Date: September 29, 2024
Court: United States Bankruptcy Court
Eastern District of Tennessee
Case No.: 24-31702
Judge: Hon. Suzanne H Bauknight
Debtor's Counsel: James R. Moore, Esq.
MOORE & BROOKS
6223 Highland Place Way
Ste 102
Knoxville, TN 37919-4035
Tel: (865) 450-5455
Fax: (865) 622-8865
Email: jmoore@moore-brooks.com
Debtor's
Special
Counsel: Thomas M. Hale, Esq.
KRAMER RAYSON, LLP
Debtor's
Certified
Public
Accountant: Heath Hammett
INTEGRITY TAXES AND ACCOUNTING SERVICES, PLLC
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Michael Ayres as member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/46VUHZQ/Salem_Pointe_Capital_LLC__tnebke-24-31702__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 15 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Bank of America Credit Card $17,424
PO Box 15019 Purchases
Wilmington, DE 19886
Tel: (757) 677-4701
2. Beard Equipment Company Services/Supplies $2,300
2480 East I-65
Service Road North
Mobile, AL 36617
Tel: (251) 452-2309
3. Fisher Russell PLLC Prof. Services $32,928
10265 Kingston Pike,
Suite C
Knoxville, TN 37922
Tel: (865) 322-9998
4. Golfco International Services/Supplies $801
6311 143rd Avenue NE
Redmond, WA 98052
Email: martin@golfcointl.com
5. JS Held LLC Prof. Services $59,908
50 Jericho
Quadrangle, Ste. 117
Jericho, NY 11753
Email: cashapps@jsheld.com
6. Kramer Rayson LLP Prof. Services $463,893
PO Box 629
Knoxville, TN 37901
Tom Hale
Email: tomhale@kramer-rayson.com
Phone: (865) 522-5723
7. Loudon Utilities Utilities $7,000
2360 TN-72
Loudon, TN 37774
Tel: (865) 458-6781
8. Mountain Commerce Bank Credit Card $15,000
PO Box 4521 Purchases
Carol Stream, IL 60197
Tel: (423) 262-5887
9. Rarity Bay Partners $3,766,098
c/o Wynne du M.
Caffey-Knight
Elmore, Stone & Caffey
5616 Kingston Pike,
Suite 301
Knoxville, TN 37919
Email: wcaffey@esc-law.com
Phone: (865) 766-0570
10. Short Mountain Silica Services $4,186
PO Box 1056
Sandersville, GA 31082
Tel: (276) 466-6139
11. Simplot Birmingham Trade Supplies $18,325
PO Box 841136
Los Angeles, CA 90084
Tel: (760) 837-0234
12. Tarver Distributing Services $260
8360 Hiwassee Street
Charleston, TN 37310
Tel: (423) 336-8103
13. Taylor Made Trade Supplies $16,000
5545 Fermi Court
Carlsbad, CA 92008
Email: taylormadegolfco@billtrust.com
14. Tennessee Turf Services LLC Services and $6,850
537 S Pawnee Drive Supplies
Springfield, TN 37172
Email: tnturfservices@gmail.com
15. US Foods Inc. Services and $13,246
P.O. Box 602224 Supplies
Charlotte, NC 28260
Tel: (865) 980-3161
SALEM POINTE: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
Salem Pointe Capital, LLC received interim approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to use cash
collateral to pay its operating expenses.
The company has no significant revenue sources other than the cash
collateral of its secured crediors, including ORNL Federal Credit
Union, the United States Small Business Administration, and
Kapitus. These creditors hold an interest in cash, deposit accounts
and accounts receivable, which constitute their cash collateral.
ORNL is owed approximately $6.5 million while the SBA and Kapitus
are owed around $118,000 and $250,000 respectively.
To protect the interests of secured creditors, the interim order
authorized the company to grant its secured creditors a replacement
lien in post-petition cash, deposit accounts, and other assets
equivalent to their pre-bankruptcy liens.
In addition, the court order includes provisions for a carve-out
for professional fees incurred by bankruptcy professionals,
ensuring they will be compensated during the company's
restructuring.
The final hearing is scheduled for Oct. 24. Objections are due by
Oct. 21.
About Salem Pointe Capital
Salem Pointe Capital, LLC is a financial services company that
typically focuses on investment and capital management. Its
operations include providing financing solutions, investment
opportunities, and asset management to various sectors.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-31702) on Sept. 29,
2024, with $10 million to $50 million in both assets and
liabilities.
Judge Suzanne H. Bauknight oversees the case.
The Debtor is represented by:
James R. Moore, Esq.
Moore & Brooks
6223 Highland Place Way, Suite 102
Knoxville, TN 37919-4035
Telephone: 865-591-3432
Email: jmoore@moore-brooks.com
SALUS MEDICAL: Get Interim OK to Use Cash Collateral
----------------------------------------------------
Salus Medical, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Arizona to use the cash
collateral of its secured creditors.
The company said it needs access to cash collateral to continue
operations, purchase inventory, and pay essential pre-bankruptcy
employee wages.
The creditors holding pre-bankruptcy liens on the company's assets
include Comerica Bank, Smart Source and the U.S. Small Business
Administration, which assert $200,000, $10,861 and $868,552,
respectively.
To protect the interests of secured creditors, the interim order
provides for adequate protection measures, including replacement
liens and the potential for monthly payments of $6,000 to the SBA
after the final hearing.
About Salus Medical
Salus Medical, LLC, a company in Phoenix, Ariz., filed Chapter 11
petition (Bankr. D. Ariz. Case No. 24-08193) on September 27, 2024,
listing $500,000 to $1 million in assets and $1 million to $10
million in liabilities. The petition was signed by Hernan H.
Alvarez as manager.
M. Preston Gardner, Esq., at Davis Miles, PLLC represents the
Debtor as bankruptcy counsel.
SANDVINE CORP: Investcorp Marks $5.2MM Loan at 38% Off
------------------------------------------------------
Investcorp Credit Management BDC, Inc has marked its $5,284,642
loan extended to Sandvine Corporation to market at $3,250,055 or
62% of the outstanding amount, according to a disclosure contained
in Investcorp's Form 10-K for the Quarterly Period Ended June 30,
2024, filed with the Securities and Exchange Commission.
Investcorp is a participant in a First Lien Senior Secured Debt
(2%) to Sandvine Corporation. The loan matures on June 28, 2027.
Investcorp, is a Maryland corporation formed in May 2013, is a
closed-end, externally managed, non-diversified management
investment company that has elected to be regulated as a business
development company under the Investment Company Act of 1940, as
amended, and has elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code for U.S.
federal income tax purposes. Investcorp is an investment company
and accordingly follows the investment company accounting and
reporting guidance of the Financial Accounting Standards Board
Accounting Standard Codification Topic 946 Financial
Services-Investment Companies.
Investcorp is led by Suhail A. Shaikh, Director, President and
Chief Executive Officer; and Walter Tsin, Chief Financial Officer.
The fund can be reach through:
Suhail A. Shaikh
Investcorp Credit Management BDC, Inc
Maryland, 280 Park Avenue 39th Floor
New York, NY, 10017
Tel: (212) 257-5199
Sandvine Corporation, headquartered in Waterloo, Ontario, Canada,
and owned by funds affiliated with Francisco Partners, provides
network and application intelligence solutions to mobile, fixed,
cable, satellite and Wi-Fi service providers, and governments
globally.
SANO RACING: Unsecureds Will Get 1% to 5% of Claims in Plan
-----------------------------------------------------------
Sano Racing Stables, LLC submitted a Third Amended Plan of
Reorganization dated September 5, 2024.
This Plan proposes to pay Allowed Claims no less than the value of
Sano Racing's Projected Net Disposable Income for a period of 36
months. The Plan provides for 5 Classes of creditor claims
(including priority, secured, critical unsecured and general
unsecured) and one Class of Equity interests.
Class 2 consists of Allowed Secured Claims. The principal amount of
Allowed Secured Claims will be determined pursuant to Section
506(a) of the Bankruptcy Code and receive the present day value of
their respective Allowed Claims amortized as follows:
* Allowed Secured Claim of JPMorgan Chase Bank, N.A. JP Morgan
Chase Bank, N.A. has a perfected blanket lien on substantially all
of the assets of the Debtor pursuant to a filed UCC-1 financing
statement, which lien it will retain until its Allowed Claim is
satisfied. Accordingly, as of the Effective Date, the Chase Secured
Claim will be allowed in the amount of $84,258.38, amortized over
60 months and bearing 5% interest per annum and payable in 60
monthly installments of $1,590.05.
* Allowed Secured Claim of TD Bank. TD Bank has a has a
perfected blanket lien on substantially all of the assets of the
Debtor pursuant to a filed UCC-1 financing statement which lien it
will retain until its Allowed Claim is satisfied. Accordingly, as
of the Effective Date, the TD Bank Secured Claim will be allowed in
the amount of $152,186.15 plus post-petition interest and
reasonable attorneys' fees (as allowed by the Court) amortized over
60 months and bearing 9.5% interest per annum and payable in 60
monthly installments of approximately $4,100.00.
* Allowed Secured Claim of the SBA. The SBA has a perfected
blanket lien on substantially all of the assets of the Debtor
pursuant to a filed UCC-1 financing statement, which is junior in
priority to the liens of Chase and TD Bank, respectively. The value
of the SBA's Claim is determined pursuant to Section 506(a) of the
Bankruptcy Code. As such, the SBA shall have an Allowed Secured
Claim up to the value of the Debtor's assets. The Debtor believes
the extent of the SBA's Secured Claim is $26,100.00 as of the
Petition Date. Accordingly, as of the Effective Date, the SBA
Secured Claim will be allowed in the amount of $26,100.00,
amortized over 60 months and bearing 3.75% interest per annum and
payable in 60 monthly installments of $478.00. The balance of the
SBA's claim, to wit, $138,004.70 will be included in Class 3 and
will participate pro rata with all distributions made to Class 4.
Class 3 consists of the Allowed Critical Unsecured Claims. The
Debtor has designated certain unsecured creditors as "critical" by
virtue of their respective impact on enterprise value. The
liquidated, undisputed, noncontingent, claimholders in this Class
are comprised of entities that have provided services, through the
Debtor, for the exclusive benefit of owners of horses in the care
of the Debtor. If the holders of Allowed Claims in this Class
pursued their respective remedies against the Debtor's clients, the
risk of losing said clients would be disastrous for the Debtor,
directly impacting revenue and enterprise value.
The treatment in Class 3 applies only to holders of Allowed Claims
in this Class who forbear pursuing collection of their respective
Allowed Claims from Debtor's clients that are included as part of
their Allowed Claims. In the event that said holders do not forbear
(and absent Debtor's default), then said Allowed Claims will
receive treatment in Class 4. In addition to any sums available
under Articles 3.3.5 and 3.3.6, so long as the Allowed Claimholders
forbear from pursuing the Debtor's clients directly, the
Reorganized Debtor will make a pro rata payments pursuant to the
following schedule:
Months 7 and 12 $7,500
Months 18, 24, 30, and 36, 42, and 48 $50,000
Months 54 and 60 $44,463
Class 4 consists of the Allowed General Unsecured Claims. The
Reorganized Debtor will make a pro rata distribution in the
approximate aggregate sum of $25,000.00 (plus any sums available
pursuant to Articles 3.3.5 and 3.3.6 to holders of timely-filed
Allowed Claims or claims that were scheduled by the Debtor as
"liquidated, noncontingent, and undisputed" and are not included in
Class 3 pursuant to the following terms:
Year 1 $2,000
Year 2 $4,000
Years 3 and 4 $4,500
Year 5 $10,000
In addition to the foregoing, the Reorganized Debtor will
contribute 50% of every dollar collected from the Retained Causes
of Action (after payment of legal fees and costs) to be split
equally between Classes 3 and 4 toward prepayment of any amounts
due thereunder. For example, if the Debtor recovers $100,000 (after
payment of legal fees and costs), each of Class 3 and 4,
respectively, will receive a prepayment of $25,000. As such, the
Debtor estimates that Holders of Allowed Class 3 Claims will
receive a distribution of 100% and Allowed Class 4 will receive
between 1%-5%, subject to resolutions of claims objections,
resolution of Retained Causes of Action, and Plan voting.
If Debtor's "Gross Purse Earning", according to Equibase.com, for
any 6-month period of the plan, exceeds the average for the same
6-month period in the prior calendar year by an amount greater than
25%, then the Debtor will pay 50% of such "excess" to be split
equally between Classes 3 and 4 toward prepayment of any amounts
due thereunder along with the next regularly scheduled plan
payment. Upon written request of a creditor, the Debtor shall
provide such creditor in writing with the Gross Purse Earnings and
any "excess" for the applicable period within 10 days of such
request.
The Plan proposes to pay Allowed Claims to be paid under the Plan
from Projected Net Disposable Income, recovery of Retained Causes
of Action, and Excess Gross Purse Earnings.
A full-text copy of the Third Amended Plan dated September 5, 2024
is available at https://urlcurt.com/u?l=9jbau7 from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Jacqueline Calderin, Esq.
Agentis PLLC
45 Almeria Avenue
Coral Gables, FL 33134
Telephone: (305) 722-2002
Email: jc@agentislaw.com
About Sano Racing Stables
Sano Racing Stables, LLC is a Florida limited liability company
based out of Gulfstream Park, located at 901 S. Federal Highway,
Hallandale, Florida 33099. The business of the Debtor is the
raising and training of race horses, through the company's owner,
Salvador A. Sano.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr,. S.D. Fla. Case No. 24-12298-SMG) on March
11, 2024. In the petition signed by Salvador A. Sano Formica,
manager, the Debtor disclosed up to $50,000 in both assets and
liabilities.
Judge Scott M. Grossman oversees the case.
Jacqueline Calderin, Esq., at Agentis PLLC, represents the Debtor
as legal counsel.
SC-GA OPERATOR HOLDINGS: Files Subchapter V Bankruptcy Case
-----------------------------------------------------------
SC-GA Operator Holdings Inc. filed Chapter 11 protection in the
Northern District of Georgia. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About SC-GA Operator Holdings Inc.
SC-GA Operator Holdings Inc., formerly known as South Atlantic
Health Care, sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-60573) on October
4, 2024. In the petition filed by Katie Goodman, as CRO, the Debtor
reports estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by:
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
SEA LATCH INN: Foreclosure Auction Set for October 17
-----------------------------------------------------
Keenan Auction Company will hold a real estate foreclosure auction
on Oct. 17, 2024, at 2:00 p.m., for the the sale of Sea Latch Inn,
an 82-room Ocean View Lodging Complex, located at 277 Long Beach
Avenue, and a 2.55 +/- Acre Development Parcel, 11 Webber Road,
across from Long Sand Beach in York Beach, Maine.
For the terms and a property information package visit
https://keenanauction.com or call (207) 885-5100 and request by
auction number 24-120/121. Richard J. Kennan.
SKYLOCK INDUSTRIES: Has Until Oct. 16 to Address Stay in L&J Suit
-----------------------------------------------------------------
Judge Vernon S. Broderick of the United States District Court for
the Southern District of New York directed each party in the case
captioned as L&J INVESTMENT HOLDINGS LLC, Plaintiff, -against-
SKYLOCK INDUSTRIES INC., Defendant, Case No. 23-CV-135 (VSB)
(S.D.N.Y.), to submit a letter outlining its position regarding the
applicability of a stay under Section 362 of the Bankruptcy Act to
the instant case by October 16, 2024.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=1csMsk
About Skylock Industries
Skylock Industries Inc. is a California-based aircraft parts
manufacturer.
Skylock Industries sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Calif. Case No. 24-17820) on
Sept. 26, 2024, with $10 million to $50 million in both assets and
liabilities.
Judge Sheri Bluebond handles the case.
The Debtor is represented by Jeffrey S. Shinbrot, Esq., at The
Shinbrot Firm.
SM WELLNESS: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating on
SM Wellness Holdings, Inc. and subsidiaries WDT Acquisition Corp.
and WRA Management, Inc. (collectively, Solis) at 'B-'. Fitch has
also affirmed instrument ratings of 'B' with a Recovery Rating of
'RR3' on the first-lien senior secured debt and 'CCC'/'RR6' on the
second-lien senior secured debt. The Rating Outlook is Stable.
Solis' 'B-' IDR reflects its solid position as a leading provider
of breast imaging and its strength in partnering with leading
hospital systems in attractive urban markets, offset by Fitch's
expectation of Solis continuing to pursue an aggressive,
debt-financed expansion strategy. Its sizable exposure to its
largest joint venture (JV) partner, its narrow focus on mammography
and geographic concentration are other sources of risk.
Key Rating Drivers
Attractive Niche with Strong Volume Growth and Recurring Revenue:
Solis is the largest independent U.S. provider of mammograms,
operating 137 centers specializing in 3D breast imaging. Revenue
grew 9% in 2023 (on an 'as if' fully-owned basis to reflect its JV
centers), driven by 9% volume growth, including 5% same-facility
growth. Revenue growth also accelerated to over 20% in 1H24, driven
by expansion center investments with its JV hospital system
partners, and 4%+ same-facility volume growth.
Solis' patient convenience/comfort-centered model and focus on
annual screening compliance has driven same-facility volume growth
of 4%-5% in recent years. An update to breast cancer screening
guidelines in 2023, reiterated in 2024, reduced the recommended
screening age to 40 from 50, reinforcing volume growth prospects.
Lastly, Solis' core mammography exams benefit from modest but
stable pricing, robust insurance coverage and a clear value
proposition to patients and payors alike.
Leverage Elevated Amid High-Growth Strategy But Improving:
PE-backed expansion strategies invariably entail execution and
integration risks, and Solis is clearly pursuing aggressive
expansion. After adding about 50 centers in the 2016-2022 period,
Solis invested over $30 million to add 17 centers in 2023 and is on
track to invest about $40 million to add about 25 centers in 2024.
Fitch-defined EBITDA leverage declined from 9x at YE 2022 to just
under 8x at YE 2023 and is expected to be just over 7x at YE 2024,
reflecting an increasing EBITDA contribution from the company's
historical growth investments.
While the more recent investments noted above were largely
debt-financed, Fitch expects leverage to decline within the range
of 6.0x-7.0x in 2024-2025, with continuing same-store volume
growth, stable reimbursement rates and volume from new investments
propelling a high-teens CAGR in Fitch-defined EBITDA. While new
investments could stall deleveraging, for example if Solis were to
stretch on deal volume or pursue weaker transactions, Fitch expects
limited friction with deal multiples unlikely to exceed 8.0x-10.0x.
However, absent Solis raising matching levels of equity and debt
capital to fund growth as it did in 2023, Fitch could ultimately
see deleveraging settle in the 5.0x-6.0x range.
Transitioning to Positive FCF; Favorable Maturity Profile: Fitch
forecasts Solis transitioning to modestly positive FCF by YE 2024
and improving thereafter. Fitch notes, however, that its FCF
measure does not deduct cash used for JV investments, which
comprise a material part of the company and its growth strategy.
Annual debt repayments are limited to $5 million, which is
manageable within $66 million of liquidity as of June 30, 2024,
including $41 million of cash and full availability under an
undrawn $25 million revolver.
Fitch expects external funding will be needed to fund a robust
pipeline of growth investments, with $40 million of delayed draw
term loan borrowings assumed funded in 2H24, and $25 million of
incremental term loans assumed funded in each of 2026 and 2027.
This reflects Fitch's assumption that Solis could devote a total of
$50 million annually to acquisitions of, and JV investments in,
expansion centers. Fitch understands that no material JV-level debt
is outstanding and, save for any draw on the revolver that would
mature in 2026, Solis faces no material debt maturities until its
term loans come due in 2028 (first-lien) and 2029 (second-lien).
Limited Diversification: As a small provider with about two-thirds
of its centers operated via JVs with larger hospital system
partners, Solis offers limited diversification given its narrow
focus on breast imaging, potentially increasing the volatility of
its financial results. Despite having a number of hospital system
JV partners, its exposure to its largest JV partner (HCA) is high,
accounting for nearly half of JV revenues.
Fitch expects that Solis' JVs are likely to continue to benefit
from HCA's leading outpatient growth for years to come and expects
the risk of HCA moving to unwind its JVs with Solis in the
near-term is low-single-digit at most, given strong recent results
(net income +20% in 2023) and significant ongoing expansion plans.
Solis is also geographically concentrated, with over 50% of its
centers in the state of Texas alone, increasing exposure to
potential risks ranging from adverse judicial or legislative
developments to potential climate or social shocks.
JV Model Entails Mixed Implications: Solis is somewhat unique in
that over two-thirds of its locations are operated via JVs with
hospital systems. Fitch views the operating characteristics of
these JVs favorably, especially with hospital systems focused on
capturing demand shifting to outpatient settings. The JV model
aligns the interests of the partners and generates growth
opportunities for Solis as its partners expand in existing markets
and new markets alike. While the JV structure may also be favorable
in spreading the risk of growth investments, it adversely adds
accounting complexity, obscures peer comparisons, and reduces the
predictability of recovery in default.
Labor Inflation Under Control: Consistent with the broader
healthcare services landscape, imaging center operators generally
have absorbed elevated labor costs in recent years, with
constraints on the supply of technologists driving up wages and
forcing operators to hire high-cost temporary staff. While these
pressures have eased materially in 2023-2024, Solis has benefitted
over this time from years of investment in training newcomers to
the clinical workforce, which it continues to do today. The
pleasant environment, convenience and predictability of Solis'
centers have reduced its exposure to the labor pressures outlined
above, with management calling out only one market (Washington
D.C.) where labor costs remain problematic. Volume growth, if
sustained as Fitch expects, could boost margins as well.
Derivation Summary
While Fitch recognizes Solis' leading position in mammography and
breast imaging services and its favorable position in partnering
with leading health systems in attractive urban markets, the 'B-'
Long-Term IDR also reflects risk factors including high exposure to
its largest hospital system JV partner (HCA), a narrow business
focus, significant geographic concentration, and Fitch's
expectation that Solis is likely to sustain elevated leverage while
transitioning to positive FCF amid its ongoing expansion. Solis
also competes in its local markets with numerous multi-modality
imaging centers, some of whom are owned and operated by much
larger, better-capitalized companies.
Solis is rated below healthcare provider peers including Prime
Healthcare Services, Inc. (B/Stable) and Tenet Healthcare Corp.
(B+/Positive), which are more diversified by service offerings,
have lower leverage (by about 2.0x-3.0x) and benefit from greater
liquidity. Solis is, however, rated above Community Health Systems,
Inc. (CCC+), which is more diversified by geography and service
offerings, has modestly higher leverage and benefits from greater
liquidity. Community has pursued several high-multiple divestitures
to support deleveraging, in contrast to Solis raising debt and
equity capital to supplement solid same-facility growth with de
novo- and acquisition-driven expansion.
Based on Fitch's Parent and Subsidiary Linkage Criteria, Fitch
concludes that the credit profile of the subsidiary is stronger
than that of the parent due to open legal ring-fencing and open
access and control. Fitch therefore equalizes the Long-Term IDRs of
SM Wellness Holdings, Inc., WDT Acquisition Corp. and WRA
Management, Inc. No notching applies and the credit profile is
viewed on a consolidated basis.
Key Assumptions
Rating Case
- GAAP Revenue increases at mid-single-digit levels, with Non-GAAP
revenue increasing at low double-digit levels, driven by
investments in and acquisitions of expansion centers, as well as
low- to mid-single-digit same-facility volume growth;
- GAAP EBITDA margins (before equity in JVs) expand steadily from
11% in 2023 within the low double-digit range over the forecast
horizon, with annual cash distributions from JV partners increasing
from just under $50 million in 2023 to $60 million in 2024 and $69
million in 2025, then increasing to $75 million to $85 million over
the 2026-2027 period, again driven primarily by growth
investments;
- GAAP CapEx of $10 million annually; FCF turning modestly positive
($3 million) in 2024 and increasing steadily over the forecast
period to $16 million in 2025, $24 million in 2026 and $34 million
in 2027;
- $40 million of delayed draw first-lien term loans assumed drawn
in 2H24, and $25 million of incremental first-lien loans funded in
each of 2026 and 2027; no voluntary debt repayment;
- EBITDA Leverage declining from 7.9x at YE 2023 to 7.1x by YE 2024
and 6.2x by YE 2025, with further declines thereafter to 5.5x by YE
2027, with EBITDA Interest Coverage improving to 1.4x at YE 2024
and 1.7x at YE 2025, increasing to levels near 2.0x thereafter;
and
- Interest expense is also driven by SOFR, which is assumed to be
4.5% in 2025, 4.0% in 2026 and 3.5% in 2027, offset somewhat by the
benefits of interest rate swaps.
Recovery Analysis
Debt Notching Considerations: The 'B'/'RR3' ratings on the
first-lien senior secured revolver and term loans reflect Fitch's
expectation of 51%-70% recoveries on these debt instruments, while
the 'CCC'/'RR6' rating on the second-lien senior secured term loans
reflects an expectation of a 0%-10% recovery, in each case under a
bankruptcy scenario.
Recovery Analysis: Fitch's recovery calculations are based on a
going concern (GC) enterprise value (EV) assumption reflecting an
estimate of $52 million of post-reorganization GC EBITDA (including
NCI distributions). This in turn reflects Fitch's view that EBITDA
around these levels is likely to result in Solis defaulting or
restructuring, with negative FCF, high leverage and refinancing
risk.
Fitch's $52 million GC EBITDA estimate reflects a scenario in which
historically positive volume trends turn negative, potentially due
to an economic downturn driving declines in the ranks of the
commercially-insured patients that Solis largely serves, compounded
by an adverse renegotiation of Solis' management services agreement
with largest JV partner, reducing a key source of the revenue
offsetting JV-related overhead costs at the parent level.
The $2 million increase in GC EBITDA from $50 million one year ago
to $52 million today reflects the addition of 20 centers in 1H24
with PF EBITDA of $4 million, from which Fitch deducts PF add-backs
and haircuts by 30% representing assumed operating declines
preceding bankruptcy.
The GC enterprise value is estimated by multiplying $52 million of
GC EBITDA by a 6.0x EV multiple, the latter marking the midpoint of
historical industry EV/EBITDA multiples of 5.0x-7.0x, below the
6.5x-8.0x range of the company's historical acquisitions and less
than half of the multiple at which its sponsor purchased Solis in
2018. Fitch thus calculates net GC EV of $312 million and then
deducts 10% for administrative claims to arrive at distributable
value of $281 million.
This in turn provides first-lien debt (assumed at $446 million)
with a recovery in the 51%-70% range receiving an 'RR3' recovery
rating, placing the first lien debt rating at 'B', one notch above
Solis' 'B-' IDR. The second-lien debt ($125 million) thus sees a
0%-10% recovery, receiving an 'RR6' recovery rating and thus a
'CCC' rating, two notches below the B- IDR.
Its assumed debt reflects outstanding amounts as of June 30, 2024,
plus an assumed full draw on the $40 million delayed draw
first-lien term loan facility established with via the third
amendment to the credit agreement in March 2024.. As this facility
is intended to fund JV investments, committed acquisitions and
capital expenditures to add centers, Fitch expects it is likely
that Solis will draw the remaining $40 million on the facility by
YE 2024. d. Lastly, Fitch assumes that Solis will fully draw its
$25 million revolver in a bankruptcy scenario, and thus also
includes this amount in the claims waterfall.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch's expectation of Solis sustaining EBITDA Leverage below
6.0x;
- Fitch's expectation of Solis sustaining EBITDA Interest Coverage
above 2.0x;
- Fitch's expectation of Solis sustaining CFO-CapEx /Debt above
2.5%;
- New equity contributions that meaningfully boost liquidity and
reduce leverage; and
- Increased diversification in the contribution of its JV partners
and its geographic footprint.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of EBITDA Interest Coverage sustained at or
below 1.5x;
- Fitch's expectation of Solis generating sustained negative
CFO-CapEx /Debt; and
- Sponsor dividends or acquisitions that significantly weaken the
credit profile.
Liquidity and Debt Structure
Adequate Liquidity: Fitch forecasts Solis transitioning gradually
to positive FCF in 2024-2025, with CFO-CapEx /Debt improving from
1% forecasted for 2024. Annual debt repayments are under $5 million
are quite manageable in the context of liquidity as of June 30,
2024, which included $41 million of cash on hand, $25 million in
availability under its undrawn $25 million revolver, and $40
million of untapped and available delayed draw term loans (assumed
drawn in 2H24). An equity contribution of $50 million in 2023,
matching $50 million of term loan borrowings, helped strengthen
Solis' liquidity profile and provided additional flexibility for
expansion.
Favorable Maturity Profile: Fitch expects external funding will be
needed to fund a robust pipeline of growth investments, with $40
million of available delayed draw term loans assumed drawn in 2H24
and $25 million of term loan borrowings assumed in each of 2026 and
2027 to fund further expansion. Fitch understands that there is no
material JV-level debt outstanding and, save for any revolver
borrowings that would mature in 2026, Solis faces no material debt
maturities until its term loans come due in 2028 (first-lien) and
2029 (second-lien).
Issuer Profile
Acquired by its sponsor for $580 million or about 14x EBITDA in
2018, Solis is a leading provider of 3D mammography with 137
centers in 14 states as of mid-2024. Solis benefits from its
attractive payor mix, with nearly 75% of revenue attributable to
commercial payors and minimal Medicaid and self-pay.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
WRA Management, Inc. LT IDR B- Affirmed B-
senior secured LT B Affirmed RR3 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
SM Wellness
Holdings, Inc. LT IDR B- Affirmed B-
senior secured LT B Affirmed RR3 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
WDT Acquisition
Corp. LT IDR B- Affirmed B-
senior secured LT B Affirmed RR3 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
SMILE KRAFTERS: Unsecureds to Get Litigation & Asset Sale Proceeds
------------------------------------------------------------------
Smile Krafters, PC, filed with the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania a Subchapter V Plan of
Reorganization dated September 5, 2024.
The Debtor operates a clinical dental practice located at 1247
South Cedar Crest Boulevard, Suites 300 and 303, Allentown,
Pennsylvania (the "Premises"). The Debtor leases the Premises
pursuant to respective nonresidential real property leases
(collectively, the "Lease").
The Debtor's Chapter 11 filing was necessitated by certain pre
petition litigation initiated by the Debtor's landlord, Cedar Crest
Professional Park VII, L.P. (the "Landlord"), which obtained
respective judgments by confession against the Debtor for money
damages and for possession of the Premises, as well as an
indictment returned by the United States Attorney for the Eastern
District of Pennsylvania on January 18, 2023 against the Debtor's
principal and other individuals (but not the Debtor itself), which
has rendered the Debtor's professional staff ineligible to perform
dental services as Medicaid providers.
Pursuant to the Plan, the Debtor intends to engage in a dual-track
process, including (a) the marketing and orderly sale of its
business and assets as a going concern (the "Going Concern Track")
to Franklyn Scott, DDS, LLC (the "Purchaser") in accordance with
the letter of intent (the "Purchaser LOI"), or (b) the liquidation
of its furniture, fixtures, equipment and other assets (the
"Liquidation Track") in one or more non-going concern sale
transactions in the event that the condition set forth in the
Purchaser LOI concerning the execution of a new lease between the
Purchaser and the Landlord is not satisfied.
All such sales will be free and clear of liens, claims,
encumbrances and interests (collectively, "Encumbrances") and
shall, to the extent applicable, be exempt from transfer tax
pursuant to section 1146(a) of the Bankruptcy Code.
Because the Purchaser LOI is, by its terms, subject to the
Purchaser's execution of a new lease with the Landlord for the
Premises, the determination whether to proceed with the Going
Concern Track or the Liquidation Track will depend on the
Landlord's willingness to enter into a new lease with the
Purchaser, thereby satisfying the Purchaser's condition to
acquiring the Debtor's business and assets. In connection with
either the Going Concern Track or the Liquidation Track, the Debtor
will reject the Lease.
Class 2 consists of Allowed General Unsecured Claims. Allowed
General Unsecured Claims will be paid Pro Rata from the proceeds
resulting from the sale of the assets and from litigation
recoveries. This Class is impaired.
Class 3 consists of Equity Interest holder. The Equity Interest
holder will retain his Equity Interest, but will otherwise receive
nothing under the Plan.
The Plan will be implemented through the sale of the Debtor's
assets in one or more transactions. Whether the sale of such assets
is effectuated through the Going Concern Track or the Liquidation
Track depends upon the Purchaser's ability to negotiate and enter
into a new lease of the Premises with the Landlord. The outside
date for the sale of the assets and/or the Debtor's business shall
be ninety days from the Effective Date, unless extended by Order of
the Bankruptcy Court for cause. The sale of the assets shall be
free and clear of Encumbrances, with all such Encumbrances
attaching exclusively to the sale proceeds.
Upon Confirmation of the Plan, all property of the Debtor, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert in the Debtor, free and clear
of all Claims, Encumbrances and equitable interests, except as
provided in the Plan. The Debtor expects that the proceeds
resulting from the sale of the assets, net of closing costs, will
be sufficient to make the distribution required under the Plan.
A full-text copy of the Subchapter V Plan dated September 5, 2024
is available at https://urlcurt.com/u?l=Q8hw3b from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Jeffrey Kurtzman, Esq.
Kurtzman | Steady, LLC
2 Kings Highway West, Suite 102
Haddonfield, NJ 08033
Telephone: (856) 428-1060
Facsimile: (609) 482-8011
About Smile Krafters
Smile Krafters, PC operates a dental center in Fort Washington,
Pa.
Smile Krafters filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
24-12256) on June 30, 2024, with $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. Dr. Bhaskar
Savani, president, signed the petition.
Judge Patricia M. Mayer presides over the case.
Jeffrey Kurtzman, Esq., at Kurtzman | Steady, LLC, represents the
Debtor as legal counsel.
SONRAVA HEALTH: $552.5MM Bank Debt Trades at 33% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Sonrava Health
Co-Borrower LLC is a borrower were trading in the secondary market
around 67.1 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $552.5 million Term loan facility is scheduled to mature on
August 18, 2028. The amount is fully drawn and outstanding.
Sonrava Health is a national family of health and wellness
companies united by a singular dedication to delivering
high-quality, convenient, and affordable care through innovative
provider models, health coverage and product offerings.
STAR AIRCONDITIONING: Gets OK to Use Cash Collateral Until Nov. 14
------------------------------------------------------------------
Star Airconditioning & Heating, LLC received interim approval from
the U.S. Bankruptcy Court for the Middle District of Florida to use
cash collateral to pay its operating expenses through Nov. 14.
The interim order authorized the company to use the cash collateral
of the U.S. Small Business Administration, the company's secured
creditor, in accordance with a court-approved budget.
The SBA will receive a replacement lien on its cash collateral with
the same validity and priority as its pre-bankruptcy lien.
The court's ruling includes provisions allowing the company to
request approval for additional expenses, subject to creditor
consent. Creditors have the right to request modifications or
further protections regarding the use of the cash collateral.
The next hearing is scheduled for Nov. 14.
About Star Airconditioning & Heating
Star Airconditioning & Heating, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-04147) on August 8, 2024, with $50,001 to $100,000 in assets and
$500,001 to $1 million in liabilities. Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., serves as Subchapter V
trustee.
Judge Grace E. Robson presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as bankruptcy counsel.
SUCCESS VILLAGE: Court Dismisses Chapter 11 Bankruptcy Case
-----------------------------------------------------------
Judge Julie A. Manning of the United States Bankruptcy Court for
the District of Connecticut granted the motion filed by the City of
Bridgeport, the Town of Stratford, The Southern Connecticut Gas
Company, and The United Illuminating Company to dismiss Success
Village Apartments, Inc.'s Chapter 11 bankruptcy case.
On September 9, 2024, the City of Bridgeport, the Town of
Stratford, The Southern Connecticut Gas Company, and The United
Illuminating Company filed a Joint Motion to Dismiss, or in the
alternative, Determine that the Automatic Stay Does Not Apply and
for Relief from the Automatic Stay. The Movants also filed an Ex
Parte Motion for Order to Shorten and Limit Notice on the Motion to
Dismiss.
On September 19, 2024, the hearing on the Motion to Dismiss was
held. At the conclusion of the hearing, certain relief was granted
to the Movants and the remaining relief requesting dismissal of the
Debtor's case was taken under advisement.
The Movants assert that the Debtor's Chapter 11 Petition was filed
in bad faith. The Court agrees.
In addition to bad faith, the Court agrees with the Movants that
enumerated examples of cause also exist to dismiss the Debtor's
case. Under section 1112(b)(4), "cause" includes: "(A) substantial
or continuing loss to or diminution of the estate and the absence
of a reasonable likelihood of rehabilitation; (B) gross
mismanagement of the estate; [and] (C) failure to maintain
appropriate insurance that poses a risk to the estate or to the
public."
The Court says the Debtor's failure to appropriately insure its
assets poses a continuing risk to the Debtor's stakeholders,
including the Debtor's residents, the Movants, and the citizens of
the City of Bridgeport and the Town of Stratford. Accordingly, the
Court concludes cause exists to dismiss the Debtor's case in
accordance with section 1112(b)(4)(A)–(C).
Any pending motions, applications, or other pleadings seeking
relief are denied as moot.
A copy of the Court's decision dated is available at
https://urlcurt.com/u?l=tOwgAH
Counsel for Movants, the City of Bridgeport and the Town of
Stratford, Creditors:
Matthew K. Beatman, Esq.
ZEISLER & ZEISLER, P.C.
10 Middle Street, 15th Floor
Bridgeport, CT 06604
E-mail: mbeatman@zeislaw.com
- and -
Richard J. Buturla, Esq.
Bryan L. LeClerc, Esq.
BERCHEM MOSES PC
75 Broad Street
Milford, CT 06460
E-mail: rbuturla@berchemmoses.com
bleclerc@berchemmoses.com
Counsel for Movants, The Southern Connecticut Gas Company and The
United Illuminating Company, Creditors:
D. Cameron Moxley, Esq.
James R. Morrissey, Esq.
Anthony J. Boccamazzo, Esq.
BROWN RUDNICK LLP
185 Asylum Street
Hartford, CT 06103
E-mail: cmoxley@brownrudnick.com
jmorrissey@brownrudnick.com
aboccamazzo@brownrudnick.com
Counsel for Respondent, Success Village Apartments, Inc., Debtor:
Mark M. Kratter, Esq.
LAW OFFICES OF MARK M. KRATTER, LLC
71 East Avenue, Suite K
Norwalk, CT 06851
About Success Village Apartments
Success Village Apartments Inc. -- https://www.svanow.com/ -- is an
apartment complex in Bridgeport, Connecticut. Success Village
Apartments Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 24-50624) on Sept. 6,
2024. In the petition filed by Tyreke Bird, as president, the
Debtor estimated assets and liabilities between $1 million and $10
million each.
The Honorable Bankruptcy Judge Julie A. Manning oversees the case.
The Debtor is represented by Andre Cayo, Esq.
SYNAPSE FINANCIAL: Case Trustee Seeks Nov. 15 Auction of Assets
---------------------------------------------------------------
Jelena McWilliams, the chapter 11 trustee of Synapse Financial
Technologies Inc., will seek approval from the Honorable Martin
Barash of the U.S. Bankruptcy Court for the Central District of
California, San Fernando Valley Division, at a hearing on November
20, 2024, to sell substantially all of the Debtor's assets, free
and clear of all liens, claims, encumbrances, and other interest,
in an auction.
The Chapter 11 trustee will sell the Assets to the winning bidder
or bidders and the winning back-up bidder or bidders at the Auction
to be held November 15, 2024. The Debtor has proprietary technology
and software that essentially allows financial technology platforms
called "fintechs" to provide certain financial products and
services to the fintechs' customers -- referred to as end users --
through certain banking and financial service providers.
Early in the case, the Debtor had a deal to sell its Assets to
TabaPay Holdings LLC for $9.7 million. The Debtor also sought
approval of a settlement reached with Evolve Bank & Trust, one of
its Partner Financial Institutions.
However, the Debtor's agreement with Evolve had not been
consummated due to disputes over Evolve funding a settlement
payment, prompting the buyer to discontinue the purchase.
The Chapter 11 Trustee's financial advisor GlassRatner Advisory &
Capital Group LLC has set the timetable of the Auction to achieve
the highest and best price for the Debtor's Assets:
October 16, 2024 at 4:00 p.m. (prevailing Pacific time) - File
and Serve Notice of Bidding Procedures and Sale Deadline
October 25, 2024 at 4:00 p.m. (prevailing Pacific time) -
Initial Indication of Interest Deadline
November 1, 2024 at 4:00 p.m. (prevailing Pacific time) -
Initial Bid Deadline
November 5, 2024 at 4:00 p.m. (prevailing Pacific time) - File
and Serve Cure Notice Deadline
November 15, 2024 commencing at 10:00 a.m. (prevailing Pacific
time) - Auction to be held via videoconference. In the event that
bids received by the Trustee indicate that distinct assets of the
Debtor's estate should be sold pursuant to separate Auctions, more
than one Auction may be held for those distinct assets.
November 18, 2024 at 4:00 p.m. (prevailing Pacific time) -
Cure Notice Objection Deadline
November 20, 2024 at 10 a.m. (prevailing Pacific time) - Sale
Hearing
November 27, 2024 - Sale Closing Deadline, which is the
outside date by when the Winning Bidder at the Auction is required
to close its purchase of the Purchased Assets unless the Winning
Bidder and the Trustee jointly agree to extend the date.
About Synapse Financial
Headquartered in San Francisco, Calif., Synapse Financial
Technologies, Inc. provides banking-as-a-service platform for
embedded finance solutions worldwide.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22, 2024. In the
petition signed by Sankaet Pathak, chief executive officer, the
Debtor disclosed up to $50 million in assets and liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P.,
is the Debtor's legal counsel.
Jelena McWilliams has been appointed as Chapter 11 Trustee. She
has tapped GlassRatner Advisory & Capital Group LLC d/b/a B. Riley
Advisory Services as her financial advisor; and Cravath, Swaine &
Moore LLP and Keller Benvenutti Kim LLP as counsel.
TANTUM COMPANIES: Continued Operations to Fund Plan Payments
------------------------------------------------------------
Tantum Companies, LLC and BYB Leasing, LLC filed with the U.S.
Bankruptcy Court for the Western District of North Carolina a
Disclosure Statement to the Amended Plan of Reorganization dated
September 6, 2024.
The Debtors are two separate and privately-held limited liability
companies: (i) Tantum Companies, LLC and (ii) BYB Leasing, LLC.
Tantum is the sole member of BYB Leasing. Tantum Holdings, LLC is
the sole member of Tantum Companies, LLC.
Tantum is the franchisor of "Back Yard Burgers" ("BYB"), a quick
service/fast casual restaurant chain doing business primarily in
the Southeast United States. For over three decades, Back Yard
Burgers has established a strong brand presence across its markets
predicated on offering guests high-quality flame-grilled burgers
and sandwiches.
BYB is a pioneer in the "Better Burger" category with a rich
history rooted in the idea of offering consumers one-of-a-kind
homemade burgers using the highest quality ingredients prepared in
a way that tastes just as good as a family could prepare in their
own back yard.
The Plan provides that Tantum will continue to operate its business
as a Reorganized Debtor, and Mark Cote, the current Chief Executive
Officer, will continue in that position for the Reorganized Debtor.
Tantum will assume the non-residential real property leases for
three of its stores that remain open and any executory contracts
that are necessary for the continued operation of the Reorganized
Debtor. Tantum will pay any arrearages or other costs required by
the Bankruptcy Code to assume and/or take assignment such leases
and those executory contracts necessary for the Reorganized
Debtor's post-confirmation operations (the "Cure Amounts") on the
Effective Date, except as otherwise agreed by Tantum and the
counterparty to such contract.
Tantum will pay Allowed Administrative Expense Claims and the GFS
PACA Claim in full on the Effective Date or upon such other
mutually acceptable terms as the parties may agree.
Any and all priority taxes due and owing to the Internal Revenue
Service, or any other state, county or city taxing authority shall
be paid in full as set forth more fully in the Plan.
The Reorganized Debtor will pay the Claim of the Prepetition
Secured Lender $500,000.00 in full satisfaction of the Prepetition
Secured Lender's Claim, including any deficiency claim, and upon
payment of such Claim all liens securing the Prepetition Secured
Claim shall be deemed satisfied and released.
A Liquidating Trust shall be established for the benefit of Allowed
General Unsecured Claims to facilitate the proposed Plan treatment.
Payments totaling $1,100,000.00 shall be made over the life of the
Plan to the Liquidating Trust for the benefit of Allowed General
Unsecured Claims as follows: $250,000.00 to be provided by Axum
Capital Partners Fund I, L.P. (the "Axum Fund") shall be paid to
the Liquidating Trust by Axum on the Effective Date of the Plan;
and $850,000 shall be paid by the Reorganized Debtor monthly for 60
months starting the first full month after the Effective Date.
Under the Plan, in satisfaction of any pre-petition claims owing to
the Axum Fund, and its affiliates (together "Axum"), as well as all
post-petition capital contributions made by Axum prior to the
Effective Date, Axum or its designee will be issued 100% of the
membership interests in the Reorganized Debtor. The current
membership of Tantum Holdings in Tantum shall be extinguished.
Under the Plan, BYB Leasing shall assume and assign the Batesville
Lease to the Reorganized Debtor on the Effective Date. Any
creditors of BYB Leasing shall receive no distribution under the
Plan except for any distribution based upon allowed claims against
the Plan Debtor and/or any payments in relation to an assumed and
assigned lease to the Reorganized Debtor. Please take note that BYB
Leasing's assets and liabilities are not being substantively
consolidated with the assets and liabilities of Tantum for any
purpose under the Plan.
Class 5 consists of the Allowed General Unsecured Claims against
Tantum. Holders of Allowed General Unsecured Claims in Class 5
shall receive a pari passu distribution of the Liquidating Trust
Assets from the available cash on hand of the Liquidating Trust
after the payment of the Liquidating Trustee's fees and expenses,
the fees and expenses of any professionals retained by the
Liquidating Trustee, and any other costs, expenses or obligations
incurred by the Liquidating Trust. The Liquidating Trustee shall
have the right to make one or more interim distributions to the
holders of Allowed Class 5 Claims in his or her sole discretion.
Class 7 consists of all pre-petition Equity Security Interests. The
holder(s) of the Debtors’ pre-petition Equity Interests will not
receive or retain any property under the Plan on account of those
pre-petition Equity Security Interests.
On the Plan's Effective Date, the Liquidating Trust will be formed
as set forth below for the sole and exclusive benefit of the
holders of Allowed General Unsecured Claims classified in Class 5
of the Plan. The Liquidating Trust will be governed by the terms of
the Plan and the Liquidating Trust Agreement
The term "Liquidating Trust Assets" shall mean and refer to the
following assets:
* $24,008.01 currently held in trust by Moon Wright & Houston,
PLLC related to a prior preference settlement payment;
* $250,000.00 shall be provided by the Axum Fund to be paid to
the Liquidating Trust on the Effective Date;
* $850,000 shall be paid to the Liquidating Trust by the
Reorganized Debtor monthly for 60 months, with payments commencing
in the first full month after the Effective Date;
* All Chapter 5 Avoidance Actions; and
* All Causes of Action that accrue in the Liquidating Trust on
or after the Effective Date.
Tantum anticipates that all Allowed Administrative Claims and the
GFS PACA Claim will be paid in full from funds generated from
Tantum's post-petition operations, and to the extent necessary,
additional post-petition capital from the Axum Fund or its
affiliates. Tantum projects to be operationally solvent upon
emerging from bankruptcy as the Reorganized Debtor.
The Reorganized Debtor plans to continue its operations following
the confirmation of the Plan. Based on the projected financials of
the Reorganized Debtor, the operations contemplated in this Section
4 will generate sufficient operating revenue to fund all payments
required by the Reorganized Debtor under this Plan.
A full-text copy of the Disclosure Statement dated September 6,
2024 is available at https://urlcurt.com/u?l=d2feak from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Robert A. Cox, Jr., Esq.
Hamilton Stephens Steele + Martin, PLLC
525 North Tryon Street, Suite 1400
Charlotte, NC 28202
Telephone: (704) 344-1117
Facsimile: (704) 344-1483
Email: rcox@lawhssm.com
About Tantum Companies
Tantum Companies, LLC operates in the restaurant industry. The
company is based in Charlotte, N.C.
Tantum Companies and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D.N.C. Lead Case No.
23-30407) on June 26, 2023. In the petition signed by CEO Mark
Cote, Tantum Companies disclosed $1 million to $10 million in
assets and $10 million to $50 million in liabilities.
Judge Craig Whitley oversees the cases.
Robert A. Cox, Jr., Esq., at Hamilton Stephens Steele + Martin,
PLLC and Blystone and Donaldson serve as the Debtors' legal counsel
and financial advisor, respectively.
Moon Wright & Houston, PLLC represents the official committee of
unsecured creditors appointed in the Debtors' Chapter 11 cases.
THERAPY BRANDS: $235MM Bank Debt Trades at 18% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Therapy Brands
Holdings LLC is a borrower were trading in the secondary market
around 82.3 cents-on-the-dollar during the week ended Friday,
October 11, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $235 million Term loan facility is scheduled to mature on May
18, 2028. The amount is fully drawn and outstanding.
Therapy Brands, founded in 2013 and headquartered in Birmingham,
AL, is a provider of integrated software-as-a-service solutions
including, EHR (electronic health record), PMS (practice management
solutions) RCM (revenue cycle management) and payment solutions to
the mental health, behavioral health and rehabilitation markets.
The company is majority owned by Kohlberg Kravis Roberts & Co.
Inc.
(KKR), a New York based private equity firm, with a significant
minority ownership held by Providence Strategic Growth. Revenues
for last twelve months ended December 31, 2023 were $146 million.
TIRE RIMS & PARTS: Sec. 341(a) Meeting of Creditors on Nov. 15
--------------------------------------------------------------
Tires Rims and Parts LLC filed Chapter 11 protection in the Eastern
District of Pennsylvania. According to court documents, the Debtor
reports $2,860,566 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 15, 2024 at 9:30 a.m. at ALTERNATE TELEPHONIC CONFERENCE
(For Trustee Use Only).
About Tires Rims and Parts LLC
Tires Rims and Parts LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No.
24-13582) on October 4, 2024. In the petition filed by Jeff Myers
and Lisa Myer, as co-managing members, the Debtor reports total
assets of $313,877 and total liabilities of $2,860,566.
The Honorable Bankruptcy Judge Patricia M. Mayer handles the case.
The Debtor is represented by:
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
TMC BUYER: Moody's Affirms 'B2' CFR & Rates New Secured Loans 'B2'
------------------------------------------------------------------
Moody's Ratings affirmed the B2 corporate family rating and B2-PD
probability of default rating of TMC Buyer, Inc. (dba Terra
Millennium Corporation, or "TMC"). Moody's also assigned a B2
rating to the company's $75 million senior secured revolving credit
facility, $550 million senior secured term loan, and $50 million
senior secured delayed draw term loan. The rating outlook is
stable. The ratings are subject to review of final documents.
Proceeds from the proposed $550 million term loan due in 2030 will
be utilized to refinance the existing term loan and to fund an $80
million distribution to TMC's shareholders. Pro forma for the
proposed transaction, Moody's adjusted total leverage will increase
from 4.8x to 5.7x for the twelve months ended July 2024. The rating
on the existing credit facility will be withdrawn at the close of
the transaction.
RATINGS RATIONALE
TMC's credit profile is constrained by its limited scale, exposure
to cyclical end markets, elevated leverage profile post-dividend
recap transaction, and lack of consistent free cash flow
generation. TMC generates the majority of its revenues from
providing refractory, mechanical and specialty services to a number
of cyclical industrial sectors such as chemical, cement & lime,
energy and renewables, and metals and mining. Historical
performance through downturns suggests that turnaround and capital
projects can be subject to delays or scaling back; however, TMC's
track record of bouncing back from past recessions demonstrates
business model resilience and the relatively non-discretionary
nature of the services provided by TMC. The rating also factors in
risks associated with its private equity ownership, including
tolerance for higher leverage, potential for debt-funded
acquisitions and dividend recapitalization.
TMC's credit profile is supported by its base of mission-critical
maintenance and repair projects that make up 75%-80% of its
revenues and carry relatively low margin risks due to
variable-pricing contract structure. Fixed price projects, which
account for about 20%-25% of its revenues, present the opportunity
for higher margins, but entail higher execution risks. The rating
is also supported by its market leadership as the largest
refractory contractor in North America and long term relationships
with well-established blue chip customers, while its presence in
specialty and mechanical services provides cross-selling and
additional growth opportunities in the long run due to larger
addressable markets outside of core refractory services.
Marketing terms for the new credit facilities (final terms may
differ materially) include the following: Incremental pari passu
debt capacity up to the greater of an amount to be disclosed and
100% of Consolidated EBITDA, plus unlimited amounts subject to 5.1x
first lien net leverage ratio. There is no inside maturity
sublimit. A "blocker" provision restricts the transfer of material
intellectual property to unrestricted subsidiaries. The credit
agreement is expected to prohibit unrestricted subsidiaries from
holding debt, equity of or liens on any asset of the company.
Designations of and transfers (including investments in, sales,
dispositions and restricted payments) to unrestricted subsidiaries
are only permitted up to the unrestricted subsidiary investment
basket. The credit agreement is expected to provide some
limitations on up-tiering transactions requiring affected lender
consent for amendments, waivers and modifications that directly or
indirectly subordinate the debt and liens.
TMC's liquidity is adequate. Pro forma for the dividend recap
transaction, the company is expected to have approximately $33
million of cash on the balance sheet. The business has not
consistently generated free cash flow in the past and management's
focus on growth may continue to strain cash generation going
forward. However, the new $75 million revolver along with existing
cash on the balance sheet should provide sufficient liquidity for
the business in the foreseeable future. The new term loan requires
quarterly principal payment of approximately $1.4 million going
forward. The revolver has a springing First Lien Leverage Ratio
covenant set at 40% cushion to closing EBITDA, which will be tested
if more than 35% of the total commitment is drawn.
The B2 rating assigned to the senior secured first-lien credit
facilities, including $75 million revolver, $550 million term loan
and $50 million delayed drawn term loan, is commensurate with the
company's corporate family rating since it accounts for the
majority of the debt in the company's capital structure. Borrowings
under the credit facilities are secured by a first priority lien on
substantially all the company's assets.
Rating outlook
The stable outlook reflects Moody's expectations that TMC will
continue delivering positive financial performance and reduce
Moody's adjusted total leverage closer to 5.0x in the next 18-24
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to upgrade
An upgrade could be considered if the company substantially
increases its size, maintains stable margins, consistently
generates positive free cash flow, and sustains a leverage ratio
below 4.5x.
Factors that could lead to downgrade
Negative rating pressure could develop if deteriorating operating
results, debt-financed acquisitions or shareholder distributions
result in the leverage ratio being sustained above 5.5x. A
significant decline in profitability, or reduction in liquidity
could also result in a downgrade.
Profile
TMC Buyer, Inc. is a Delaware corporation that wholly owns Terra
Millennium Corporation ("TMC") and is also the borrower of the
senior secured first-lien credit facilities. Terra Millennium
Corporation, headquartered in Salt Lake City, Utah, is a leading
provider of industrial services, including refractory design and
maintenance, fireproofing, insulation, coatings, scaffolding and
mechanical maintenance and construction services for new and
existing industrial facilities. The company generated statutory
revenues of $760 million for trailing twelve months period ended
July 31, 2024. In 2022, funds affiliated with H.I.G. Capital
acquired TMC from Court Square Capital Partners.
The principal methodology used in these ratings was Construction
published in September 2021.
TOP PARK SERVICES: Gets Interim OK to Use Cash Collateral
---------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina granted, on an interim basis, the motion by Top Park
Services, LLC to use the cash collateral of its secured creditors.
The court authorized the company to use cash collateral to pay
ordinary business expenses, which were estimated at $24,584.01.
Top Park may exceed individual expense categories by up to 10% or
more, provided the total excess does not surpass 10% of the
aggregate authorized expenditures.
As protection, secured creditors were granted replacement liens on
the company's assets, with the same priority as their
pre-bankruptcy liens.
About Top Park Services
Top Park Services, LLC is a Fort Lauderdale-based company involved
in the management and operation of mobile home parks.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03434) with $10
million to $50 million in both assets and liabilities. The petition
was signed by Neil Carmichael Bender, II, as manager.
Judge Pamela W Mcafee oversees the case.
The Debtor is represented by:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, FL 33431
Telephone: 561-443-0800
Email: bss@slp.law
TOWN & COUNTRY WEST: Files for Chapter 11 Bankruptcy
----------------------------------------------------
Town & Country West LLC filed for Chapter 11 protection in the
Eastern District of California. According to court filing, the
Debtor reports between $10 million and $50 million in debt owed to
1 and 49 creditors. The petition states that funds will be
available to unsecured creditors.
About Town & Country West LLC
Town & Country West LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. § 101(51B)).
Town & Country West LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-24493) on October 7,
2024. In the petition filed by Waqar Khan, as manager, the Debtor
reports estimated assets and liabilities between $10 million and
$50 million each.
The Honorable Bankruptcy Judge Ronald H. Sargis oversees the case.
TPT GLOBAL: Settles Lease Payment Dispute With Vertical Bridge
--------------------------------------------------------------
TPT Global Tech, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Sept. 26, 2024, the
Company and Vertical Bridge entered into a settlement agreement and
mutual release to be paid $210,000 in three payments ending Aug.
30, 2026. Default under the Settlement Agreement and Mutual
Release falls under a Confession of Judgment for $210,000, or
lessor for any amounts previously paid.
TPT Global has been named in a lawsuit by Vertical Bridge and
several of its related entities. The claim derived from an
outstanding debt or unpaid tower lease payments. The Company was
communicating with opposing counsel for negotiations of the claims
which amounted to approximately $1,200,000, including payment due
for all future tower payments not yet incurred under various tower
lease agreements.
About TPT Global Tech
TPT Global Tech, Inc. -- http://www.tptglobaltech.com-- is a
technology holding company based in San Diego, California. It was
formed as the successor of two U.S. corporations, Ally Pharma US
and TPT Global, Inc. The Company operates in various sectors
including media, telecommunications, Smart City Real Estate
Development, and the launch of the first super App, VuMeLive
technology platform. As a media content delivery hub, TPT Global
Tech utilizes its own proprietary global digital media TV and
telecommunications infrastructure platform. They offer software as
a service (SaaS), technology platform as a service (PAAS), and
cloud-based unified communication as a service (UCaaS) solutions to
businesses worldwide. Their UCaaS services enable businesses of
all sizes to access the latest voice, data, media, and
collaboration features.
"Based on our financial history since inception, our auditor has
expressed substantial doubt as to our ability to continue as a
going concern. As reflected in the accompanying financial
statements, as of June 30, 2024, we had an accumulated deficit
totaling $115,233,454. This raises substantial doubts about our
ability to continue as a going concern," said TPT in its Quarterly
Report for the period ended June 30, 2024.
TRUE VALUE: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: True Value Company, L.L.C.
8600 West Bryn Mawr Ave.
Chicago, IL 60631
Business Description: The Debtors and their non-debtor affiliates
are hardlines wholesalers, serving
approximately 4,500 stores worldwide. A
globally recognized retail brand, the
Debtors provide customers in over 55
countries an expansive product set across
key categories such as Hardware Lumber &
Building, Outdoor Living & Tools, and
Plumbing & Heating.
Chapter 11 Petition Date: October 14, 2024
Court: United States Bankruptcy Court
District of Delaware
Eight affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
True Value Company, L.L.C. (Lead Case) 24-12337
TV Holdco II, L.L.C. 24-12338
TV TSLC, L.L.C. 24-12339
TV GPMC, L.L.C. 24-12340
True Value Retail, L.L.C. 24-12341
TrueValue.com Company, L.L.C. 24-12342
True Value Virginia, L.L.C. 24-12343
Distributors Hardware, L.L.C. 24-12344
Judge: TBA
Debtors'
Lead
Legal Counsel: Joseph O. Larkin, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
One Rodney Square
920 N. King Street
Wilmington, Delaware 19801
Tel: (302) 651-3000
Email: Joseph.Larkin@skadden.com
- and -
Ron E. Meisler, Esq.
Jennifer Madden, Esq.
320 South Canal Street
Chicago, Illinois 60606-5707
Tel: (312) 407-0705
Email: Ron.Meisler@skadden.com
Jennifer.Madden@skadden.com
- and –
Robert D. Drain, Esq.
Evan A. Hill, Esq.
Moshe S. Jacob, Esq.
One Manhattan West
New York, New York 10001
Tel: (212) 735-3000
Email: Robert.Drain@skadden.com
Evan.Hill@skadden.com
Moshe.Jacob@skadden.com
Debtors'
Conflicts
Counsel: GLENN AGRE BERGMAN & FUENTES LLP
Debtors'
Local &
Efficiency
Counsel: YOUNG CONAWAY STARGATT & TAYLOR, LLP
Debtors'
Investment
Banker: HOULIHAN LOKEY CAPITAL, INC.
Debtors'
Financial
Advisor: M3 ADVISORY PARTNERS, LP
Debtors'
Claims &
Noticing
Agent &
Administrative
Advisor: OMNI AGENT SOLUTIONS
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $500 million to $1 billion
The petitions were signed by William McGann as senior vice
president, chief financial officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RJYYB4I/True_Value_Company_LLC__debke-24-12337__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Stihl Inc Trade Payable $10,598,031
536 Viking Dr
Virginia Beach, VA 23452
Attn: Jeremy Krueger
Tel: 559-731-8473
Email: stihlcs@stihl.us;
Jeremy.Krueger@stihl.us
2. Hillman Group Trade Payable $7,308,357
1280 Kemper Meadow Dr
Parkdale, OH 45240
Attn: Eric England
Tel: 678-232-3590
Email: INFO@HILLMANGROUP.COM;
Eric.england@hillmangroup.com
3. Rpm International Trade Payable $6,417,494
2628 Pearl Rd
Medina, OH 44256
Attn: Kristin Schiro
Tel: 224-436-5892
Fax: 330-225-8743
Email: info@rpminc.com;
Kschiro@rustoleum.com
4. Mckinsey & Company Inc. Professional $5,900,000
3 World Trade Center Services
175 Greenwich St
New York City, NY 10007
Attn: Ben Mathews, Jay Halama
Tel: 216-253-6037; 973-652-0489
Email: ben_mathews@mckinsey.com;
maxence_vancauwenberghe@mckinsey.com
5. Stanley Black & Decker Inc Trade Payable $5,402,095
1000 Stanley Dr
New Britain, CT 06053
Attn: Matthew Reap
Tel: 914-447-7479
Email: Matthew.Reap@sbdinc.com
6. Ryder Integrated Logistics Trade Payable $5,326,222
2333 Ponce de Leon Blvd, Ste 700
Coral Gables, FL 33134
Attn: Al Pinto
Tel: 630-961-7300
Email: pintax@ryder.com
7. Reliance Water Heater Co Trade Payable $4,358,331
500 Tennessee Waltz Pkwy
Ashland City, TN 37015
Attn: Bill Cassidy
Tel: 615-972-1930
Email: bcassidy@hotwater.com
8. Carhartt Inc Trade Payable $3,163,883
5750 Mercury Dr
Dearborn, MI 48126
Attn: Ken Jenkins
Tel: 313-510-9286
Email: kjenkins@carhartt.com
9. Coleman Cable Trade Payable $3,059,751
1530 Shields Dr
Waukegan, IL 60085
Attn: Anna Martin, Dennis Sullivan
Tel: 817-422-7938
Email: anna.martin@southwire.com;
brad.silverstein@southwire.com
10. Legrand Pass & Seymour Trade Payable $2,955,956
4515 Enterprise Dr NW
Concord, NC 28027-6437
Attn: Alex Kimball, Joe Elliston
Tel: 508-517-2231
Email: alexandra.kimball@legrand.com;
susan.sterling@legrand.com
11. Charlotte Pipe Trade Payable $2,948,723
2109 Randolph Rd
Charlotte, NC 28207
Attn: Taylor Fraley
Tel: 704-348-6435
Email: tfraley@charlottepipe.com
12. General Electric Trade Payable $2,571,681
1 Neumann Way
Cincinnati, OH 45215
Attn: Mark Miller, Susan Sterling
Tel: 312-758-0542
Email: mark.miller@savant.com;
dennis.sullivan@savant.com
13. Minwax Company Trade Payable $2,545,737
101 Prospect Ave
Cleveland, OH 44115
Attn: Cecil McCurty
Tel: 321-200-7559
Email: cmccurty@valspar.com
14. Boise Cascade Bldg Mat Dist Trade Payable $2,489,721
P.O. Box 50
1111 W Jefferson St, Ste 300
Boise, ID 83702
Attn: Nathan Sikes
Tel: 214-213-0117
Email: nathansikes@bc.com
15. Apex Tool Group LLC Trade Payable $2,190,782
910 Ridgebrook Rd, Ste 200
Sparks, MD 21152
Attn: Kim Haste
Tel: 224-239-5245
Email: Kim.Haste@apextoolgroup.com
16. Ufp Retail, LLC Trade Payable $2,156,209
2801 East Beltline NE
Grand Rapids, MI 49525
Attn: Nick Kelly
Tel: 314-220-4028
Email: nkelly@ufpi.com
17. Midwest Fastener Corp Trade Payable $2,137,709
9031 Shaver Rd
Kalamazoo, MI 49024-6164
Attn: Ted Arnold
Tel: 800-444-7313 ext 124
Email: teda@mwf.net
18. Midwest Utility, Inc Purchase $1,920,070
15 W 700 N Frontage Rd Agreement
Burr Ridge, IL 60527
Attn: Patrick McGushin
Tel: 630-789-2700
Fax: 630-789-2754
Email: patm@midwestutility.com
19. Hexaware Technologies Ltd Information $1,888,921
152, Millenium Business Park Technology
Sector 3R, TTC Industrial Area Services
Mahape Navi, Mumbai MH 400710
India
Attn: Amit Agrawal
Tel: 720-236-2529
Email: amita7@hexaware.com
20. Quikrete Companies Trade Payable $1,841,167
5 Concourse Pkwy, Ste 1900
Atlanta, GA 30328
Attn: Todd Klingel
Tel: 614-885-4407
Email: Todd.klingel@quikrete.com
21. Beacon Roofing Supply Trade Payable $1,798,870
505 Huntmar Park Dr, Ste 300
Herndon, VA 20170
Attn: Josh Dickman
Tel: 502-396-3221
Fax: 703-437-1919
Email: beaconproplus@becn.com;
joshd@thedealerschoice.com
22. Berry Plastics Corp Trade Payable $1,736,422
101 Oakley St
P.O. Box 959
Evansville, IN 47710-1237
Attn: Jim Flannery, Brad Silverstein
Tel: 920-850-5249
Email: jimflannery@berryglobal.com;
jayhalama@berryglobal.com
23. Energizer Battery Inc Trade Payable $1,704,449
533 Maryville University Dr
St. Louis, MO 63141
Attn: Marcia McDonald
Tel: 314-985-1727
Email: marciac.mcdonald@energizer.com
24. Inliten LLC Trade Payable $1,671,013
2350 Ravine Wy,Unit 300
Glenview, IL 60025
Attn: Chip Bryant
Tel: 901-218-3505
Email: chip_bryant@inliten.com
25. UPS-United Parcel Service Trade Payable $1,670,451
55 Glenlake Pkwy NE
Atlanta, GA 30328
Attn: Sandi Doggett
Tel: 217-671-4477
Email: sdoggett@ups.com
26. Thermwell Product Company Trade Payable $1,654,378
420 Route 17 S
Mahwah, NJ 07430-2135
Attn: Vincent Giarratana
Tel: 201-314-0011
Email: vjg@frostking.com
27. Advanced Drainage Systems Trade Payable $1,651,666
4640 Trueman Blvd
Hilliard, OH 43026
Attn: Lee Davison
Tel: 972-310-9060
Email: lee.davis@adspipe.com
28. National Mfg Co Trade Payable $1,542,233
151 Old New Brunswick Rd
Piscataway, NJ 08854
Attn: Jeff Vaccaro, Scott Mackey
Tel: 225-603-8546
Email: jeff.vaccaro@assaabloy.com;
joe.elliston@assaabloy.com
29. Primesource Building Trade Payable $1,536,206
1321 Greenway Dr
Irving, TX 75038-2504
Attn: Elliott Tostrud
Tel: 817-913-5542
Email: tostrude@primesourcebp.com;
MackeyS@primesourcebp.com
30. Pension Benefit Guaranty Corp Pension Benefits Undetermined
Office of the General Counsel
445 12th St SW
Washington, DC 20024-2101
Attn: Morris Karen
Tel: 202-326-4020
Email: Morris.karen@pbgc.gov
TW AUTOMATION: Reaches Settlement with SBB, Files Amended Plan
--------------------------------------------------------------
TW Automation, LC, submitted a Second Amended Subchapter V Plan of
Reorganization dated September 5, 2024.
The Debtor will continue to operate its business. Initially, the
U.S. Small Business Administration ("SBA") (EIDL Loan) loaned funds
to the Debtor for the operation of its business and its debt was
secured with all of Debtor's assets.
Subsequently, The Debtor borrowed funds from the Small Business
Bank ("SBB"), which loan was an SBA guaranteed loan. Debtor also
pledged all of its assets to secure repayment of the SBB loan.
In the initial Plan, the SBA was to be paid in full to the extent
of the value of the collateral which is pledged to the SBA. This
was due to the fact that SBB had not filed its UCC-1 timely and had
failed to obtain a subordination agreement with the SBA. The SBB's
position was contemplated to be senior to the SBA.
The Debtor has reached a settlement with SBB whereby SBB has agreed
to modify the existing loan and to provide post-petition financing
in the amount of $75,000. SBB and the Debtor will request that SBA
subordinates its senior position to SBB. By doing this, SBB would
be paid as the senior secured lender and SBA would be treated as a
wholly unsecured creditor.
Contemporaneous with the filing of this Amended Plan, a Motion for
Approval of the PostPetition Debtor-in-Possession Funding and
Release Agreement is being filed. If the Court grants the Motion,
SBB shall have a full release of any and all claims held by the
Debtor and a first priority perfected and fully Allowed Secured
Claim for both notes against all assets of the Debtor.
If the SBA subordinates its claim to SBB, the SBA claim shall be
treated as part of the unsecured non-priority class.
The source of funding for the Plan will come from the revenues
generated in the operation of the Debtor's business and to a
limited extent, from the new funds loaned by SBB.
Class 3 consists of General Unsecured Claims. Once objections to
claims are resolved, the Allowed Unsecured Non-Priority Claims will
be paid a lump sum of $75,000, payable in quarterly payments of
$3,750 each, prorata to the Allowed Unsecured NonPriority Claims.
The payments will start six months following the Effective Date and
will be paid over a five-year period (which would end 5.5 years
after the Effective Date).
In addition, the Debtor will pay 50% of any net profit, for the
next 5 years, to this Class 3, calculated by May 1 of the following
year (i.e. 2024 calculated by May 1, 2025) and payable by May 31st
of the following year (i.e. by May 31, 2025). This Class is
impaired.
Presently, TFI LLC has filed an Adversary Complaint to challenge
the dischargeability of the debt set forth in the Proof of Claim
($387,221.11). Debtor filed a Motion to Dismiss the adversary and
that Motion is pending. Debtor has made an offer of settlement and
is hopeful that this matter can be settled. If not, Debtor intends
to continue to defend said Adversary Complaint and to pay TFI, LLC
as an unsecured non-priority claim as set forth in Class 3.
The Debtor shall make all payments required under this Plan with
its future income and to a limited extent, with the post-petition
funds loaned by Small Business Bank To the extent the Plan provides
for any balloon or lump sum payment, Debtor may seek financing to
satisfy these obligations.
A full-text copy of the Second Amended Subchapter V Plan dated
September 5, 2024 is available at https://urlcurt.com/u?l=FCovCX
from PacerMonitor.com at no charge.
The Debtor's Counsel:
Erlene W. Krigel, Esq.
KRIGEL & KRIGEL, PC
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: 816-756-5800
Fax: 816-756-1999
About TW Automation
TW Automation, LC, is an automation company in Lenexa, Kansas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Kan. Case No. 23-21184) on Oct. 5, 2023,
with $320,183 in assets and $1,473,191 in liabilities. Jason
Luzar, member, signed the petition.
Judge Robert D. Berger oversees the case.
Erlene W. Krigel, Esq., at Krigel & Krigel, PC, is the Debtor's
legal counsel.
ULTRA CLEAN: S&P Assigns 'B+' Rating on Repriced Term Loan B
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to Ultra
Clean Holdings Inc.'s (B+/Stable/--) repriced term loan B due 2028.
S&P also assigned its '3' recovery rating, reflecting its
expectation for meaningful recovery in the event of default. S&P
views this repricing transaction as leverage neutral and expect
that it will slightly reduce the firm's interest expense. S&P
expects Ultra Clean's performance will continue improving over the
next 12 months, as broader semiconductor and wafer fabrication
equipment (WFE) markets are trending positively. This supports a
reduction in the company's leverage below 4x by the end of 2024
with consistent free cash flow generation. Additionally, S&P
anticipates Ultra Clean will maintain adequate liquidity.
UNITED BELIEVERS: G. Matt Barberich Named Subchapter V Trustee
--------------------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed G. Matt Barberich,
Jr. of B. Riley Advisory Services as Subchapter V trustee for
United Believers Community Baptist Church.
Mr. Barberich will be paid an hourly fee of $300 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Barberich declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
G. Matt Barberich, Jr.
B. Riley Advisory Services
7101 College Boulevard, Suite 730
Overland Park, KS 66210
Phone: 913-389-9270
Email: mbarberich@brileyfin.com
About United Believers Community Baptist Church
United Believers Community Baptist Church is a religious
organization in Kansas City, Mo.
United Believers filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. W.D. Mo. Case No. 24-41363) on Sept.
24, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. Darron L. Edwards, United Believers
president, signed the petition.
Judge Brian T Fenimore oversees the case.
Evans & Mullinix, P.A. serves as the Debtor's legal counsel.
VORTEX OPCO: $1.60BB Bank Debt Trades at 28% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Vortex Opco LLC is
a borrower were trading in the secondary market around 72.4
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.60 billion Term loan facility is scheduled to mature on
December 15, 2028. The amount is fully drawn and outstanding.
Vortex Opco LLC, is a new subsidiary created by United Site
Services Inc. to issue new debt, which includes $431 million in
first-lien, first-out debt, $1.66 billion of first-lien, second-out
term loans, and $125 million of first-lien, third-out 8% senior
secured notes. USS provides portable sanitation and related site
services.
VOYAGER DIGITAL: 2 Execs. Gets Okay for $6.5M Deal With Holders
---------------------------------------------------------------
Martina Barash of Bloomberg Law reports that two Voyager Digital
Holdings Inc. executives' $6.5 million settlement with account and
digital token holders over the cryptocurrency company's implosion
merits final approval, a federal court ruled.
Judge P. Kevin Castel's order, docketed Wednesday in the US
District Court for the Southern District of New York, was followed
by his assent to $1.3 million in attorneys' fees, or 20% of the
total, in the class suit. But Castel declined to grant service
awards to the named plaintiffs because they hadn't shown that they
incurred costs.
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- ran a cryptocurrency platform.
Voyager claimed to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provided crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC, as financial advisor; Moelis
& Company as investment banker; Consello Group as strategic
financial advisor; Deloitte Tax, LLP as tax services provider; and
Deloitte & Touche, LLP, as accounting advisor. Stretto, Inc., is
the claims agent.
On July 19, 2022, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped McDermott Will & Emery, LLP as bankruptcy
counsel; FTI Consulting, Inc., as financial advisor; Cassels Brock
& Blackwell, LLP as Canadian counsel; and Epiq Corporate
Restructuring, LLC, as noticing and information agent.
The committee also tapped the services of Harney Westwood &
Riegels, LP, in connection with Three Arrows Capital Ltd.'s
liquidation proceedings in British Virgin Islands.
On July 6, 2022, the Debtors filed a joint Chapter 11 plan of
reorganization.
* * *
Following an auction process, the Debtors in September 2022
selected the bid submitted by FTX US' West Realm Shires Inc. as the
winning bid for the assets. But after a series of events, FTX
collapsed in November 2022, before the sale could be completed.
After reopening bidding, Voyager Digital selected the offer from
U.S. exchange BAM Trading Services Inc. (doing business as
"Binance.US") as the highest and best bid for its assets.
Binance's bid is valued at $1.022 billion.
In April 2023, Binance.US called off its deal to buy assets of
bankrupt crypto lender Voyager Digital, citing a "hostile and
uncertain regulatory climate."
WEATHERFORD INT'L: Fitch Hikes IDR to 'BB-', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded the IDRs of Weatherford International
plc and Weatherford International Ltd. (Bermuda) to 'BB-' from
'B+'. The Rating Outlook is stable. Fitch has also affirmed the
company's senior unsecured notes at 'BB-' and revised the Recovery
rating from RR3 to RR4. Fitch has withdrawn the issue-level
'BB+'/'RR1' rating of the revolving credit facility.
The upgrade reflects Weatherford's improved through-the-cycle
margin profile, significant diversification, size and scale,
enhanced liquidity, and a balanced capital allocation strategy. Key
restraints on the credit profile include the company's reduced but
material gross debt pile and the volatile nature of the oilfield
services industry.
The Stable Outlook reflects Fitch's expectation of balanced capital
allocation moving forward relative to normalizing OFS industry
conditions through the forecast period.
The issue-level rating of the revolving credit facility is being
withdrawn as it is no longer considered relevant to the agency's
coverage.
Key Rating Drivers
Improving Margins: Weatherford has achieved consistent
year-over-year EBITDA margin improvement post-bankruptcy. While
this has occurred during a period of improving OFS market
conditions, margin improvement has been realized even in years
where peers have observed margin decline. Management has targeted
organic synergies such as integrating back-office operations while
divesting and exiting from lower margin businesses. The company has
achieved average EBITDA margins of 17.8% from 2020-2023 compared to
9.9% pre-bankruptcy from 2016-2019. Fitch forecasts margins during
cyclical troughs to remain materially above pre-bankruptcy levels
in addition to seeing relative improvement to peers.
Increased Financial Flexibility: Weatherford's redemption of its
restrictive 2028 secured notes has reduced gross debt, improved
financial flexibility and removed a key constraint on the company's
credit profile. The 2028 secured notes included restrictive terms
which inhibited the company's financial flexibility, and their
redemption provides flexibility to management. Fitch expects
leverage to remain below its sensitivities through the forecast but
note the significant, though greatly reduced, gross debt burden may
lead to a leverage spike during downturns.
Diversified Operations: Weatherford's operations have significant
size and are well diversified across the globe with 20% of revenue
from North America and 80% from the rest of the world. The company
operates in three segments across 75 countries with offerings
including both products and services. The segments have similar
margin profiles, with Drilling & Evaluation having the highest
margins given its service focus. Contracts are generally long term
and visible for the sector with the exception of the U.S., which is
highly volatile.
While the company's scale and diversification are significant,
Fitch notes that Weatherford materially trails other industry peers
in this regard. While 5%-7% of revenue is sourced in Russia, this
business is declining and is being offset by growth in other
regions.
New Capital Allocation Strategy: Fitch views management's newly
announced capital allocation framework as balanced between balance
sheet management and shareholder returns. The strategy includes
stated goals of $1 billion of liquidity and EBITDA leverage below
1.0x through-the-cycle as well as $0.25/share quarterly dividend
and $500 million share repurchase authorization. Capex is targeted
between 3% and 5% of revenue, and Fitch expects management to
continue targeting capital toward gross debt reduction through the
forecast period.
Following the redemption of the 2028 senior secured notes, the
company has gross debt outstanding of $1.6 billion. Fitch expects
management will prioritize balance sheet health over shareholder
returns in a stress scenario.
Highly Cyclical Industry: The OFS industry remains highly cyclical
with issuers often being the first in the energy space to feel the
negative impacts of commodity price declines. This volatility
remains a key credit constraint for Weatherford as it is for other
issuers in the peer group. Weatherford's improving capital
structure and sustainable margin improvement should better support
the company through cyclical troughs and near-term industry
dynamics appear relatively favorable, somewhat offsetting negative
credit impacts.
Derivation Summary
Weatherford operates on a significantly larger scale than its
similarly rated peers. The company's operations are more
diversified than its peers both in terms of geography and service
and product offerings. Weatherford's margins lag those of offshore
focused Noble Corporation plc (BB-/Stable), Precision Drilling
Corporation (BB-/Stable), Seadrill Limited (B+/Stable) and Nabors
Industries LTD (B-/Stable), but are comparable or above those of
Enerflex Ltd. (BB-/Stable), Helix Energy Solutions Group, Inc.
(B+/Stable) and Valaris Limited (B+/Stable).
Weatherford has a significant international presence, similar to
Nabors, which allows for longer-term contracts than North American
focused OFS companies like Precision Drilling. Weatherford's gross
debt is materially higher than all of the above peers except
Nabors, increasing exposure to elevated leverage relative to peers
during cyclical downturns.
Weatherford's refinancing risk is relatively limited, while Nabors
is more elevated given material maturities within the forecast
period and uncertain access to capital markets.
Key Assumptions
Base Case:
- WTI of $75/bbl in 2024, $65/bbl in 2025, $60/bbl in 2026 and
2027, and $57/bbl thereafter;
- Stable global rig count growth in the low to mid-single digits
throughout forecast period;
- Capex in line with management expectations in 2024 and then
approaching 5% of revenue through the forecast;
- Excess cash flow balanced between shareholder returns and debt
reduction;
- Minor acquisitions assumed through forecast period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Further improvement in operating margin stability
through-the-cycle relative to peers;
- Sustained FCF generation targeted toward a reduction in gross
debt levels;
- Midcycle EBITDA leverage below 2.5x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deviation from a conservative financial policy particularly
during declining industry conditions;
- Declining margin profile relative to peers which indicates
structural weakness of company business segments;
- Midcycle EBITDA leverage above 3.5x.
Liquidity and Debt Structure
Improved Liquidity: Weatherford's $720 million revolving credit
facility reflects a material improvement in the company's liquidity
profile. The company has name plate borrowing capacity of $393
million with an additional $327 million in LC capacity. The company
had $862 million in readily available cash and $58 million in
restricted cash available at 2Q24.
Manageable Maturity Schedule: The company's senior notes mature in
2030. The 2030 senior notes represent a significant maturity wall,
but Weatherford has ample time to address the notes.
Issuer Profile
Weatherford International is an oilfield services company
headquartered in Houston, TX with operations in 85 countries around
the globe. Weatherford operates in three segments: Drilling and
Evaluation (D&E), Well Construction and Completion (WCC), and
Production and Intervention (P&I).
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Weatherford International Public Limited Company has an ESG
Relevance Score of '4' for Group Structure due to the companies
diversified operations and localized cash and collateral
requirements which has a negative impact on the credit profile, and
is relevant to the rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Weatherford
International
Public Limited
Company LT IDR BB- Upgrade B+
Weatherford
International
Ltd. (Bermuda) LT IDR BB- Upgrade B+
senior secured LT WD Withdrawn BB+
senior unsecured LT BB- Affirmed RR4 BB-
WW INTERNATIONAL: $945MM Bank Debt Trades at 74% Discount
---------------------------------------------------------
Participations in a syndicated loan under which WW International
Inc is a borrower were trading in the secondary market around 26.4
cents-on-the-dollar during the week ended Friday, October 11, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $945 million Term loan facility is scheduled to mature on April
13, 2028. About $942.6 million of the loan is withdrawn and
outstanding.
WW International Inc., formerly weight watchers international Inc.,
is a global company headquartered in the US that offers weight
loss.
Z BRAND GROUP: Case Summary & 15 Unsecured Creditors
----------------------------------------------------
Debtor: Z Brand Group Inc.
436 Seventh Ave., Suite 200
Pittsburgh, PA 15219
Chapter 11 Petition Date: October 14, 2024
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 24-22524
Debtor's Counsel: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
938 Penn Avenue, 5th Fl.
Suite 501
Pittsburgh, PA 15222
Tel: 412-232-0930
Fax: 412-232-3858
Email: dcalaiaro@c-vlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jeff Lizik as president.
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/I2GU4DQ/Z_Brand_Group_Inc__pawbke-24-22524__0001.0.pdf?mcid=tGE4TAMA
[*] Dec. 10 Snowmass Properties Public Sale Auction Set
-------------------------------------------------------
CBRE Inc., on behalf of KSL Capital Partners Co Trust II, offers
for sale at public auction on Dec. 10, 2024, at 10:00 a.m.
(Prevailing Eastern Time) at the offices of Gibson, Dunn & Crutcher
LLP located at 200 Park Avenue, New York, New York 10166, and also
being broadcast for remote participation via virtual
videoconference, in connection with a uniform commercial code sale,
100% of the limited liability company interests in Snowmass Resort
LLC ("pledged entity"), and all other collateral pledged by
Snowmass Mezz LLC ("debtor") under that certain pledge and security
agreement dated as of Dec. 14, 2023, made by the Debtor in favor of
the secured party.
Debtor directly owns the pledged entity, which in turn directly
owns certain real property commonly known as (i) The Westin
Snowmass Resort located at 100 Elbert Lane, Snowmass Village,
Colorado 81615, and (ii) Wildwood Snowmass located at 40 Elbert,
Snowmass Village, Colorado 81615.
Pursuant to that certain Mezzanine Loan Agreement dated as of Dec
14, 2020, by and between the Debtor and the Secured Party, a loan
was made to the Debtor in the original principal amount of up to
$35,545,049. In connection with the mezzanine loan, the Debtor has
granted to the secured party a first priority lien on the
collateral pursuant to the security agreement. The Secured Party
is offering the collateral for sale in connection with the
foreclosure on the pledge of the collateral. The pledged entity is
a borrower under a loan in the original aggregate principal amount
of up to $49,000,000, which is secured by, among other things, a
mortgage encumbering the premises.
As a condition to participating in the auction, each qualified
bidder must present a certified or bank check made payable to the
secured party in the amount of $250,000.
Further information concerning the collateral, the requirements for
obtaining information and bidding on the interests and the terms of
sale may be reviewed after executing the confidentiality agreement
at https://tinyurl.com/SnowmassUCC or by contacting
CBREUCCSales@cbre.com.
[*] York Beach Boutique Hotel Complex Up for Sale on Oct. 17
------------------------------------------------------------
Keenan Auction Company will hold a real estate foreclosure auction
on Oct. 17, 2024, at 11:00 a.m., for the sale of a 52-unit Boutique
Hotel Complex, in York Beach, Maine. Deposit to bid is at $100,000
certified funds, increased to 10% of the purchase priced within 5
business days of the public sale.
For terms of sale and additional information visit
https://www.keen-auction.com or call (207) 885-5100 and request by
auction #24-51.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
AA MISSION ACQ-A AAM US 0.6 (0.1) (0.7)
AA MISSION ACQUI AAM/U US 0.6 (0.1) (0.7)
ALCHEMY INVESTME ALCY US 124.6 (5.8) (0.7)
ALCHEMY INVESTME ALCYU US 124.6 (5.8) (0.7)
ALNYLAM PHARMACE ALNY US 4,009.6 (3.1) 2,117.6
ALPHAVEST ACQUIS ATMVU US 52.2 (0.9) (0.9)
ALTRIA GROUP INC MO US 34,387.0 (2,966.0) (4,242.0)
AMC ENTERTAINMEN AMC US 8,594.7 (1,696.6) (575.7)
AMERICAN AIRLINE AAL US 64,125.0 (4,746.0) (9,815.0)
AMNEAL PHARM INC AMRX US 3,509.9 (4.1) 371.1
ANNOVIS BIO ANVS US 5.0 (1.8) 1.0
APPIAN CORP-A APPN US 554.6 (45.7) 70.3
AQUESTIVE THERAP AQST US 117.6 (35.5) 90.1
AULT DISRUPTIVE ADRT/U U 0.8 (5.3) (2.6)
AUTOZONE INC AZO US 17,176.5 (4,749.6) (1,407.5)
AVEANNA HEALTHCA AVAH US 1,664.5 (119.0) (25.1)
AVIS BUDGET GROU CAR US 33,882.0 (482.0) (406.0)
BATH & BODY WORK BBWI US 4,948.0 (1,718.0) 169.0
BAUSCH HEALTH CO BHC US 26,495.0 (227.0) 842.0
BAUSCH HEALTH CO BHC CN 26,495.0 (227.0) 842.0
BELLRING BRANDS BRBR US 804.1 (243.2) 346.3
BEYOND MEAT INC BYND US 711.2 (590.0) 233.7
BIO ESSENCE CORP BIOE US 2.1 (1.7) (2.2)
BIOAGE LABS INC BIOA US - - -
BIOCRYST PHARM BCRX US 472.4 (475.6) 258.9
BIOTE CORP-A BTMD US 92.9 (141.7) 15.5
BOEING CO/THE BA US 142,720.0 (17,982.0) 17,809.0
BOMBARDIER INC-A BBD/A CN 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-A BDRAF US 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-B BBD/B CN 12,603.0 (2,144.0) 283.0
BOMBARDIER INC-B BDRBF US 12,603.0 (2,144.0) 283.0
BOOKING HOLDINGS BKNG US 28,541.0 (4,276.0) 3,087.0
BOWLERO CORP - A BOWL US 3,114.0 (49.9) (68.8)
BRIDGEBIO PHARMA BBIO US 794.4 (1,082.1) 481.9
BRIDGEMARQ REAL BREUF US 194.8 (54.9) (75.6)
BRIDGEMARQ REAL BRE CN 194.8 (54.9) (75.6)
BRIGHTSPHERE INV BSIG US 533.1 (18.8) -
CALUMET INC CLMT US 2,670.9 (320.8) (424.5)
CANTOR PA CEP US 0.0 (0.3) (0.4)
CARDINAL HEALTH CAH US 45,121.0 (3,212.0) (756.0)
CARTESIAN THERAP RNAC US 347.7 (101.5) 98.7
CHENIERE ENERGY CQP US 17,515.0 (756.0) (658.0)
CHILDREN'S PLACE PLCE US 921.4 (68.9) (71.2)
CHOICE HOTELS CHH US 2,518.9 (146.8) (3.9)
CINEPLEX INC CPXGF US 2,247.5 (14.1) (277.7)
CINEPLEX INC CGX CN 2,247.5 (14.1) (277.7)
CLIPPER REALTY I CLPR US 1,274.6 (4.7) -
COHEN CIRCLE ACQ CCIRU US - - -
COMMSCOPE HOLDIN COMM US 8,821.0 (2,124.5) 93.7
COMMUNITY HEALTH CYH US 14,411.0 (879.0) 1,027.0
COMPOSECURE IN-A CMPO US 213.4 (209.1) 87.5
CONSENSUS CLOUD CCSI US 608.5 (124.4) 3.5
CONTANGO ORE INC CTGO US 93.6 (37.9) (24.9)
COOPER-STANDARD CPS US 1,767.0 (160.9) 218.9
CORE SCIENTIFIC CORZ US 761.5 (1,083.9) 43.0
CPI CARD GROUP I PMTS US 321.4 (44.6) 110.8
CROSSAMERICA PAR CAPL US 1,164.7 (8.2) (39.8)
DELEK LOGISTICS DKL US 1,623.3 (51.3) 26.5
DELL TECHN-C DELL US 82,687.0 (2,797.0) (14,490.0)
DENNY'S CORP DENN US 459.9 (53.2) (60.9)
DIGITALOCEAN HOL DOCN US 1,536.8 (253.8) 323.6
DINE BRANDS GLOB DIN US 1,693.5 (231.7) (74.6)
DOMINO'S PIZZA DPZ US 1,775.1 (3,976.6) 361.7
DOMO INC- CL B DOMO US 197.8 (166.4) (95.8)
DROPBOX INC-A DBX US 2,718.5 (371.3) 47.4
ELUTIA INC ELUT US 41.9 (64.3) (9.5)
EMBECTA CORP EMBC US 1,267.5 (763.7) 410.4
EOS ENERGY ENTER EOSE US 248.8 (150.7) 115.1
ETSY INC ETSY US 2,448.1 (635.0) 794.5
EXCO RESOURCES EXCE US 1,032.7 (1,026.5) (421.2)
FAIR ISAAC CORP FICO US 1,708.8 (829.3) 293.9
FENNEC PHARMACEU FRX CN 63.2 (1.4) 54.4
FENNEC PHARMACEU FENC US 63.2 (1.4) 54.4
FERRELLGAS PAR-B FGPRB US 1,458.7 (298.3) 132.4
FERRELLGAS-LP FGPR US 1,458.7 (298.3) 132.4
FOGHORN THERAPEU FHTX US 328.6 (14.3) 238.8
GCM GROSVENOR-A GCMG US 543.9 (93.7) 125.0
GOAL ACQUISITION PUCKU US 4.0 (11.1) (13.4)
GOOSEHEAD INSU-A GSHD US 338.2 (19.7) 6.3
GRINDR INC GRND US 435.0 (41.7) 8.1
GUARDANT HEALTH GH US 1,609.3 (1.6) 1,088.4
HCM II ACQUISI-A HOND US 0.4 (0.0) -
HCM II ACQUISITI HONDU US 0.4 (0.0) -
HERBALIFE LTD HLF US 2,602.2 (1,037.2) 237.6
HILTON WORLDWIDE HLT US 15,737.0 (3,078.0) (1,537.0)
HP INC HPQ US 38,059.0 (1,392.0) (7,728.0)
HUMACYTE INC HUMA US 138.3 (28.3) 78.4
IMMUNITYBIO INC IBRX US 444.3 (697.4) 180.7
INSEEGO CORP INSG US 149.6 (101.8) (146.0)
INSPIRED ENTERTA INSE US 326.6 (77.4) 47.8
INTUITIVE MACHIN LUNR US 140.1 (10.4) (1.9)
IRONWOOD PHARMAC IRWD US 395.6 (321.7) 132.7
JACK IN THE BOX JACK US 2,745.2 (845.8) (249.2)
LAUNCH ONE ACQUI LPAAU US 0.2 (0.0) (0.3)
LAUNCH ONE ACQUI LPAA US 0.2 (0.0) (0.3)
LIFEMD INC LFMD US 63.8 (2.1) (6.6)
LINDBLAD EXPEDIT LIND US 858.3 (155.5) (99.0)
LOWE'S COS INC LOW US 44,934.0 (13,763.0) 4,091.0
M3-BRIGADE -A MBAV US 0.7 (0.0) (0.0)
M3-BRIGADE ACQUI MBAVU US 0.7 (0.0) (0.0)
MADISON SQUARE G MSGE US 1,552.7 (23.2) (286.7)
MADISON SQUARE G MSGS US 1,346.3 (266.3) (305.0)
MANNKIND CORP MNKD US 443.8 (225.8) 245.9
MARBLEGATE ACQ-A GATE US 7.0 (15.8) (0.4)
MARBLEGATE ACQUI GATEU US 7.0 (15.8) (0.4)
MARRIOTT INTL-A MAR US 25,740.0 (2,091.0) (4,783.0)
MARTIN MIDSTREAM MMLP US 535.1 (57.9) 26.3
MATCH GROUP INC MTCH US 4,368.9 (130.1) 773.6
MBIA INC MBI US 2,304.0 (1,985.0) -
MCDONALDS CORP MCD US 53,801.0 (4,824.0) 295.0
MCKESSON CORP MCK US 71,670.0 (1,381.0) (4,182.0)
MEDIAALPHA INC-A MAX US 198.2 (78.0) 11.5
METTLER-TOLEDO MTD US 3,249.2 (152.8) (102.9)
MSCI INC MSCI US 5,456.8 (734.5) (61.4)
NATHANS FAMOUS NATH US 58.5 (25.5) 30.8
NEW ENG RLTY-LP NEN US 383.7 (67.0) -
NOVAGOLD RES NG US 114.7 (37.8) 103.5
NOVAGOLD RES NG CN 114.7 (37.8) 103.5
NOVAVAX INC NVAX US 1,818.6 (431.7) 45.6
NUTANIX INC - A NTNX US 2,143.9 (728.1) 237.0
O'REILLY AUTOMOT ORLY US 14,393.2 (1,583.4) (2,443.7)
OMEROS CORP OMER US 356.3 (124.6) 143.5
OTIS WORLDWI OTIS US 9,858.0 (4,882.0) (1,657.0)
OUTLOOK THERAPEU OTLK US 47.1 (83.7) 3.1
PAPA JOHN'S INTL PZZA US 838.4 (445.2) (49.5)
PELOTON INTERA-A PTON US 2,185.2 (519.1) 580.8
PHATHOM PHARMACE PHAT US 319.4 (233.8) 257.8
PHILIP MORRIS IN PM US 65,782.0 (7,942.0) (1,388.0)
PITNEY BOWES INC PBI US 4,078.4 (427.9) (72.4)
PLANET FITNESS-A PLNT US 2,974.0 (319.8) 221.7
PRIORITY TECHNOL PRTH US 1,673.4 (64.6) 23.6
PRIORITY TECHNOL PRTHU US 1,673.4 (64.6) 23.6
PROS HOLDINGS IN PRO US 384.9 (83.0) 36.2
PTC THERAPEUTICS PTCT US 1,916.4 (963.7) 748.1
RAPID7 INC RPD US 1,526.6 (52.9) 95.8
RE/MAX HOLDINGS RMAX US 571.4 (69.2) 45.1
REALREAL INC/THE REAL US 407.4 (335.3) (4.4)
REDFIN CORP RDFN US 1,181.5 (12.8) 171.0
REVANCE THERAPEU RVNC US 494.8 (129.7) 256.5
RH RH US 4,376.4 (234.7) 208.7
RIGEL PHARMACEUT RIGL US 128.4 (29.9) 36.1
RINGCENTRAL IN-A RNG US 1,831.8 (328.8) 66.5
RUBRIK INC-A RBRK US 1,218.2 (499.3) 112.3
SABRE CORP SABR US 4,666.4 (1,476.9) 80.5
SBA COMM CORP SBAC US 9,786.2 (5,275.9) (1,999.6)
SCOTTS MIRACLE SMG US 3,489.3 (146.2) 684.0
SEAGATE TECHNOLO STX US 7,739.0 (1,491.0) 233.0
SEMTECH CORP SMTC US 1,368.0 (141.4) 317.1
SHOULDERUP TECHN SUACU US 9.6 (17.4) (4.6)
SIM ACQUISITI-A SIMA US 0.2 (0.0) -
SIM ACQUISITION SIMAU US 0.2 (0.0) -
SIRIUS XM HOLDIN SIRI US 11,185.0 (2,113.0) (1,458.0)
SIX FLAGS ENTERT FUN US 2,347.8 (682.1) (268.5)
SLEEP NUMBER COR SNBR US 883.6 (447.0) (723.2)
SPECTRAL CAPITAL FCCN US 0.1 (0.3) (0.3)
SPIRIT AEROSYS-A SPR US 6,858.6 (1,513.5) 870.9
SQUARESPACE IN-A SQSP US 1,000.9 (242.9) (140.4)
STARBUCKS CORP SBUX US 30,111.8 (7,937.4) (841.6)
STARDUST POWER I SDST US 1.9 (22.3) (11.4)
SYMBOTIC INC SYM US 1,558.4 379.3 323.2
TORRID HOLDINGS CURV US 487.5 (188.9) (28.4)
TOWNSQUARE MED-A TSQ US 579.6 (64.1) 26.4
TPI COMPOSITES I TPIC US 715.4 (274.3) 0.7
TRANSDIGM GROUP TDG US 21,828.0 (2,510.0) 5,210.0
TRAVEL + LEISURE TNL US 6,693.0 (884.0) 675.0
TRINSEO PLC TSE US 2,847.8 (413.8) 431.8
TRISALUS LIFE SC TLSI US 32.4 (24.1) 15.9
TRIUMPH GROUP TGI US 1,492.8 (119.6) 446.6
TUCOWS INC-A TC CN 758.2 (33.1) (15.2)
TUCOWS INC-A TCX US 758.2 (33.1) (15.2)
UNISYS CORP UIS US 1,867.8 (160.6) 315.7
UNITED PARKS & R PRKS US 2,756.9 (364.9) (92.7)
UNITI GROUP INC UNIT US 5,119.2 (2,492.4) -
VECTOR GROUP LTD VGR GZ 1,094.0 (713.3) 401.4
VECTOR GROUP LTD VGR QT 1,094.0 (713.3) 401.4
VECTOR GROUP LTD VGR US 1,094.0 (713.3) 401.4
VECTOR GROUP LTD VGR TH 1,094.0 (713.3) 401.4
VERISIGN INC VRSN US 1,505.1 (1,816.4) (430.1)
VERITONE INC VERI US 321.8 (5.7) (39.7)
VOYAGER ACQ CORP VACHU US 0.4 (0.1) (0.5)
VOYAGER ACQUISIT VACH US 0.4 (0.1) (0.5)
WAYFAIR INC- A W US 3,436.0 (2,760.0) (385.0)
WINGSTOP INC WING US 451.8 (437.5) 78.3
WINMARK CORP WINA US 44.7 (42.2) 21.5
WORKIVA INC WK US 1,242.7 (77.7) 426.2
WPF HOLDINGS INC WPFH US 0.0 (0.3) (0.3)
WYNN RESORTS LTD WYNN US 13,289.8 (902.0) 771.5
XPONENTIAL FIT-A XPOF US 475.2 (100.8) (6.1)
YUM! BRANDS INC YUM US 6,395.0 (7,630.0) 499.0
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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are $25 each. For subscription information, contact Peter A.
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*** End of Transmission ***