/raid1/www/Hosts/bankrupt/TCR_Public/241030.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, October 30, 2024, Vol. 28, No. 303
Headlines
1819 WEEKS AVE: Voluntary Chapter 11 Case Summary
A.M. ARTEAGA DDS: Case Summary & Three Unsecured Creditors
AFB RESTAURANTS: Seeks to Hire SF Bay Financial as Accountant
AIMBRIDGE HOSPITALITY: Lenders Get Moelis, Gibson Dunn
ALAN REDMOND: NBOA Loses Bid to Enforce Automatic Stay
AMERICAN TIRE: Gets Court Approval for $250M Loan
ARTEAGA DENTAL: Case Summary & Three Unsecured Creditors
ARTICO COLD STORAGE: Gets OK to Use Cash Collateral Until Nov. 2
AURORA MEDICAL: Seeks to Extend Plan Exclusivity to Jan. 10, 2025
AVINGER INC: Increases ATM Offering by $1.3MM for Corporate Use
B. RILEY: Raises $236-Mil. in Sale of Apparel, Brookstone Brands
BATTLE AXE: Case Summary & 20 Largest Unsecured Creditors
BAWT ENTERPRISES: Seeks to Tap BMC Group as Administrative Advisor
BERR LLC: Seeks to Hire Avrum J. Rosen as Bankruptcy Counsel
BIG LOTS: Gets Court Okay for Chapter 11 Auction on Oct. 30
BIG LOTS: Postpones Crucial Nexus Acquisition Hearing
CAMBRIDGE RIVERVIEW: Seeks to Tap The Prestige Group as Broker
CARDIFF LEXINGTON: Restates Q1 and Q2 2024 Reports for Errors
CHIC COUTURE: Sec. 341(a) Meeting of Creditors on Dec. 7
COACH USA: Seeks to Extend Plan Exclusivity to Jan. 7, 2025
COMMERCIAL FURNITURE: Hires Wright Cortesi & Gilbreath as Counsel
COMTECH TELECOM: Announces Transformation Strategy Update
COMTECH TELECOM: Magnetar, 3 Others Hold 40.06% Stake as of Oct. 17
COMTECH TELECOM: White Hat Entities Hold 9.99% Stake as of Oct. 17
CONVENTION CENTER: Seeks to Tap Alexis Fuentes-Hernandez as Counsel
CONVERGEONE: Court Won't Toss Chapter 11 Plan Appeal of Creditors
CREATIVE REALITIES: Registers 3.16M Shares for Resale by Slipstream
CROWNCO INC: Hires Goe Forsythe & Hodges as Bankruptcy Counsel
CUBITAC CORP: Voluntary Chapter 11 Case Summary
CURTIS HENDERSON: Taps Barry A. Friedman & Associates as Counsel
DOUBLE M RANCH: Amends Several Secured Claims Pay
DRIP MORE: Seeks to Hire Lighthouse Consultants as Bookkeeper
EIG MANAGEMENT: S&P Affirms 'BB' ICR, Outlook Stable
EMPLOY SOURCE: Seeks to Tap Crane Simon Clar & Goodman as Counsel
EVOKE PHARMA: Extends Lease for Solana Beach HQ to March 2027
EXPERTUS HEALTH: To Sell Hospital Property to Braden Health
FIRST QUANTUM: S&P Affirms 'B' Issuer Credit Rating, Outlook Neg.
FOUR WIND: Amends Paccar Financial Secured Claims Pay
FREE SPEECH: Court Wants Addt'l Clarity on Jones' Ch. 7 Asset Sales
FTX TRADING: Court OKs Multi-Million Settlement w/ Kroll, Emergent
FTX TRADING: Reaches $228 Million Lawsuit Settlement w/ Bybit
FULL HOUSE: Seeks to Tap Alexis Fuentes-Hernandez as Legal Counsel
GLOBAL WOUND: Gets Approval to Hire Verita Global as Claims Agent
GOL LINHAS AEREAS: Parent Closes $1.25B Refinancing in Ch.11
GOLDEN TRIANGLE: Seeks to Hire Alexis Fuentes-Hernandez as Counsel
GOLDENROD LLC: Voluntary Chapter 11 Case Summary
GOLF CARTS: Unsecureds to Split $15K in Consensual Plan
GREELEY FLATS: Trustee Seeks to Tap Colliers as Real Estate Broker
HAGEN CONSTRUCTION: Seeks to Hire Thomas M. Wilson as Accountant
HDC HOLDINGS: U.S. Trustee Appoints Creditors' Committee
HILLCREST FUND: Unsecureds Will Get 100% of Claims in Sale Plan
HORIZON INTERIORS: Unsecureds Will Get 20% of Claims over 5 Years
HOT CRETE: Seeks to Extend Plan Exclusivity to November 6
INFINERA CORP: To Receive $93-Mil. in CHIPS Act Funding
INSIGHT PHOTONIC: Seeks to Extend Plan Exclusivity to Dec. 6
INTEGRITY CHARTER SCHOOL: S&P Assigns 'BB-' Long-Term ICR
IVANKOVICH FAMILY: Plan Exclusivity Period Extended to Dec. 9
J-H EXPEDITING: Taps Swanson Sweet as General Bankruptcy Counsel
J.E. LUCAS: Seeks to Hire Cobb & Sabbagha Realty as Realtor
JVK OPERATIONS: Plan Exclusivity Period Extended to Nov. 30
K & M AMUSEMENT : Kicks Off Chapter 11 Bankruptcy Process
L.O.F. INC: Plan Exclusivity Period Extended to December 9
LA PKWY 2: Amends TVC Secured Claims Pay Details
LECAT TRINH: Seeks to Hire Ure Law Firm as Bankruptcy Counsel
LEFEVER MATTSON: Court Tosses Section 10(b) Claim in Hultman Suit
LEITMOTIF SERVICES: Case Summary & 20 Largest Unsecured Creditors
MARTINS INTERSTATE: To Sell Saint Matthews, SC Property
MASTIN LAABS: Starts Subchapter V Bankruptcy Process
MAWSON INFRASTRUCTURE: Issues Operational Update for September
MBMG HOLDING: Seeks to Hire Epiq as Claims and Noticing Agent
MBMG HOLDING: Seeks to Tap Berger Singerman as Bankruptcy Counsel
MFT RESOURCES: U.S. Trustee Appoints Creditors' Committee
MILFORD CRAFT: World of Beer in Lubbock, TX Unexpectedly Shuts
MISTY MOON: Case Summary & 20 Largest Unsecured Creditors
MOTORS ACCEPTANCE: Taps Chambless Math & Carr as Special Counsel
NECTARY LLC: Asset Sale Proceeds to Fund Plan Payments
NUZEE INC: Dai Xiangrong Holds 877,192 Common Shares as of Oct. 14
NUZEE INC: Yubo Yang Holds 11.27% Stake Via Dada Business Trading
OLYMPIA INVESTMENTS: Seeks to Extend Exclusivity to Feb. 3, 2025
PERFECTIONS INC: Taps Bilu Law and Jose A. Blanco as Legal Counsel
PETIQ INC: S&P Withdraws 'B' ICR on Acquisition by Bansk Group
PINEAPPLE ENERGY: Ends Office Lease, Estimates $480K in Savings
PINEAPPLE ENERGY: Implements 1-for-50 Reverse Stock Split
PORCHLIGHT HOLDINGS: Gets Interim OK to Use Cash Collateral
POWER BLOCK COIN: U.S. Trustee Appoints Creditors' Committee
PREPAID WIRELESS GROUP: Files for Chapter 11 Bankruptcy
PRESPERSE CORP: Future Claimants' Rep Taps Young Conaway as Counsel
PROPULSION ACQUISITION: S&P Withdraws 'B' Issuer Credit Rating
RED RIVER TALC: Asks Court to Reevaluate Venue
ROYALE ENERGY: Simplifies Capital Structure Amid Plans for Growth
SANO RACING: Updates Critical Unsecured Claims Pay
SANUWAVE: Executes Reverse Split, Raises $10.3MM in PIPE Offering
SEDALIA AESTHETICS: Files for Chapter 11 Bankruptcy
SEVEN SEAS: Seeks Approval to Tap Class Advisors as Bookkeeper
SHIELDS NURSING: Unsecureds Will Get 1% of Claims over 60 Months
SHIFTPIXY INC: Case Summary & 20 Largest Unsecured Creditors
SHIFTPIXY STAFFING: Case Summary & Five Unsecured Creditors
SHOMYA TELIFAH: Seeks to Hire Bronson Law Offices as Legal Counsel
SILVERGATE CAPITAL: Rejects Investor's Bid for Bankruptcy Examiner
SL BEVERAGE: Seeks to Extend Plan Exclusivity to Jan. 27, 2025
SMS LAKEWOOD LLC: Hits Chapter 11 Bankruptcy Protection
SMS LAKEWOOD: Gets OK to Hire Wadsworth Garber as Legal Counsel
SPECIALTY DENTAL: Cain & Skarnulis Represents Creditors
SPIRIT AIRLINES: Plans Layoffs, Cost-Cutting Measures
SPIRIT AIRLINES: Sells 23 Airbus to Raise Cash as Bankruptcy Nears
STARSHIP LOGISTICS: Case Summary & 20 Largest Unsecured Creditors
STEWARD HEALTH: Gets Court Okay to Sell Texas, Florida Hospitals
TAKEOFF TECHNOLOGIES: Plan Exclusivity Period Extended to Dec. 26
TONIX PHARMACEUTICALS: Receives First Contract Payment From DTRA
TRANSOCEAN LTD: Signs $193M 1-Year Contract for Deepwater Conqueror
TREMONT CHICAGO: Plan Exclusivity Period Extended to Nov. 18
TRUCK DYNASTY: Volvo Entitled to Summary Judgment, Court Rules
TRUE VALUE: U.S. Trustee Appoints Creditors' Committee
UETEK: Fine-Tunes Plan Documents
UPHEALTH HOLDINGS: Nears $115M Award Fight Settlement w/ Glocal
VECTOR UTILITIES: Updates Newtek Secured Claims; Amends Plan
VICTORY CLEAN: Reports $3.8-Mil. Net Loss in Q1 2024
WAYNE COUNTY, MI: Faces Class Action Over Inmates' Overdetention
WESCO AIRCARAFT: Gets Creditor Support for Chapter 11 Exit
WISA TECHNOLOGIES: Reports Up to $1.2-Mil. in Q3 2024 Revenue
WORKSPORT LTD: Gets Nasdaq Compliance Extension Until April 2025
WORKSPORT LTD: Implements Cost Cuts, Expects $1.5-Mil. in Savings
ZUORA INC: M&A Investigates Proposed Merger With Silver Lake
*********
1819 WEEKS AVE: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: 1819 Weeks Ave. Realty Corp.
47 Perry Street
New York, NY 10014
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-11855
Debtor's Counsel: Wayne M. Greenwald, Esq.
JACOBS P.C.
595 Madison Avenue FL 39
New York, NY 10022
Tel: 917-513-6246
Email: wayne@jacobspc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nancy Haber as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ZUNTNBA/Realty_Corp_1819_Weeks_Ave__nysbke-24-11855__0001.0.pdf?mcid=tGE4TAMA
A.M. ARTEAGA DDS: Case Summary & Three Unsecured Creditors
----------------------------------------------------------
Debtor: A.M. Arteaga, DDS, Inc.
228 W Baseline Rd.
Rialto CA 92376
Business Description: The Debtor is primarily engaged in the
private or group practice of general or
specialized dentistry or dental surgery.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-16442
Judge: Hon. Scott H Yun
Debtor's Counsel: Lewis Landau, Esq.
LEWIS R. LANDAU, ATTORNEY AT LAW
22287 Mulholland Hwy. 318
Calabasas CA 91302
Tel: (888) 822-4340
Email: lew@landaunet.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anamaria Arteaga as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/37SNYUA/AM_Arteaga_DDS_Inc__cacbke-24-16442__0001.0.pdf?mcid=tGE4TAMA
AFB RESTAURANTS: Seeks to Hire SF Bay Financial as Accountant
-------------------------------------------------------------
AFB Restaurants, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of California to employ SF Bay Financial,
Inc. to provide bookkeeping and related financial services.
The firm will charge $115 per hour for any bookkeeping services;
$165 per hour for any advanced accounting (Controller) services;
and $215 per hour for any advanced consulting services.
Scott Schambelan, CEO of SF Bay Financial, assured the court the
his firm holds no interest adverse to the estate and is a
disinterested person with the mean of 11 USC Sec. 327.
The firm can be reached through:
Scott Schambelan
SF Bay Financial, Inc.
201 Spear St # 1100
San Francisco, CA 94105
Phone: (415) 702-3545
About AFB Restaurants, Inc.
AFB Restaurants Inc., doing business as Manakash Oven & Grill, is a
celebrated Walnut Creek restaurant.
AFB Restaurants Inc. sought relief under Subchapter V Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41235) on
August 16, 2024. In the petition filed by Ferass Nabil bughan, as
CEO, the Debtor reported total assets of $32,470 and total
liabilities of $1,103,058.
The Debtor is represented by John G. Downing, Esq. of DOWNING LAW
OFFICES, P.C.
AIMBRIDGE HOSPITALITY: Lenders Get Moelis, Gibson Dunn
------------------------------------------------------
Reshmi Basu of Bloomberg News reports that a group of first-lien
lenders to Aimbridge Hospitality is collaborating with Moelis & Co.
and Gibson Dunn & Crutcher LLP for debt advisory services,
according to sources familiar with the matter.
Some of these lenders intend to sign non-disclosure agreements to
discuss the company's liquidity requirements, the sources
indicated. The Advent-backed hotel management firm has also
enlisted debt adviser Evercore Inc., as reported by Bloomberg this
week.
As of Thursday, its term loan due in 2026 was quoted at 90.25, a
decline from 95.375 on Monday, October 21, 2024, according to data
compiled by Bloomberg.
About Aimbridge Hospitality
Aimbridge Hospitality, LLC, operates as a property management
company.
ALAN REDMOND: NBOA Loses Bid to Enforce Automatic Stay
------------------------------------------------------
Judge Patricia M. Mayer of the United States Bankruptcy Court for
the Eastern District of Pennsylvania denied the motion filed by
National Brokers of America, Inc. for enforcement of the automatic
stay.
National Brokers of America, Inc. a health insurance brokerage
firm, was owned jointly by founder Alan Christopher Redmond and
Jason Scott Jordan. To say that the partnership between Redmond and
Jordan did not go well would be an understatement. After Redmond
forced Jordan out of NBOA, the pair sued and counter-sued each
other in a state court battle royale that concluded with a judgment
in Jordan's favor in the amount of $13 million. About one year
later, Jordan sued Redmond and others in state court, seeking,
inter alia, to pierce the corporate veil of Redmond's new company,
Bene Market, LLC.
The Debtor, protected by the automatic stay, is not an active party
to either of these lawsuits. Notwithstanding this critical fact,
NBOA filed a Motion for Enforcement of the Automatic Stay in this
Court, alleging that the automatic stay was violated in the two
state court actions. The Motion asks for various forms of relief,
including the voiding of the state court judgment, the extension of
the automatic stay to third parties, and the imposition of
sanctions against Jordan and his lawyers.
Judge Mayer concludes, "Because the Debtor, whose estate is being
administered by the chapter 7 trustee, is not itself threatened by
the pursuance or enforcement of litigation, it lacks standing to
seek certain relief sought in the Motion. In the alternative, the
facts and law do not support a finding that the stay has been
violated with regard to the Debtor or that the stay should be
extended to non-debtor parties. Therefore, the Motion will be
denied."
A copy of the Court's decision dated October 18, 2024, is available
at https://urlcurt.com/u?l=RHLE5f
Alan Christopher Redmond filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Pa. Case No. 24-13093) on
September 3, 2024, listing under $1 million in both assets and
liabilities. The Debtor is represented by Keith B., Esq.
AMERICAN TIRE: Gets Court Approval for $250M Loan
-------------------------------------------------
Ben Zigerman of Law360 reports that tire and wheel retailer
American Tire Distributors Inc. received interim approval from a
Delaware bankruptcy judge on Thursday, October 24, 2024, to access
a $250 million debtor-in-possession loan from its prepetition
lenders.
About ATD Corp/American Tire
Headquartered in Huntersville, North Carolina, ATD Corporation and
its subsidiaries -- https://www.atd-us.com -- are distributors of
replacement tires with more than 140 distribution centers and 1,400
delivery vehicles servicing a geographic region covering more than
90 percent of the replacement tire market for passenger vehicles
and light trucks in the United States. ATD offers the broadest
variety of products and value-added services that range from
premium-quality tires and popular custom wheels to business support
services and online platforms that cater to tire retailers and
their potential customers. ATD has its own proprietary
private-label and exclusive tire brands, such as Hercules and
Ironman, to supplement its supply of industry-leading brand-name
tires, including Continental, Michelin, Pirelli, Cooper, Nexen,
Toyo-Nitto, Hankook, Kumho, and Falken among others. The Debtors
and their non-Debtor subsidiaries currently employ approximately
5,500 people in the United States and Canada.
American Tire Distributors Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12391). In
its petition, the Debtor reports estimated assets and liabilities
between $1 billion and $10 billion each.
Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP serve as
bankruptcy counsel to the Debtors. Donlin, Recano & Company, Inc.,
is the claims agent.
ARTEAGA DENTAL: Case Summary & Three Unsecured Creditors
--------------------------------------------------------
Debtor: Arteaga Dental Corporation
494 S Rancho Ave
San Bernardino CA 92410
Business Description: The Debtor is primarily engaged in the
private or group practice of general or
specialized dentistry or dental surgery.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-16441
Judge: Hon. Wayne E Johnson
Debtor's Counsel: Lewis Landau, Esq.
LEWIS R. LANDAU, ATTORNEY AT LAW
22287 Mulholland Hwy. 318
Calabasas, CA 91302
Tel: (888) 822-4340
Email: lew@landaunet.com
Total Assets: $92,619
Total Liabilities: $2,087,016
The petition was signed by Anamaria Arteaga as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3VXIKVY/Arteaga_Dental_Corporation__cacbke-24-16441__0001.0.pdf?mcid=tGE4TAMA
ARTICO COLD STORAGE: Gets OK to Use Cash Collateral Until Nov. 2
----------------------------------------------------------------
Artico Cold Storage Chicago, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Illinois to use
the cash collateral of Wintrust Bank, N.A. through Oct. 15.
As of March 18, the company's pre-bankruptcy debt to Wintrust
stands at approximately $1.87 million.
Artico will be allowed to use cash collateral in accordance with
its budget. The total amount budgeted for cash collateral use
during this period is $126,600, which will be allocated across
various business expenses critical to maintaining the company's
operations.
The payments allowed within this budget include essential expenses
such as payroll, insurance, and utility bills. Any deviations from
the approved budget will require further approval from Wintrust
Bank and the court.
Wintrust Bank will receive certain protections in the form of
replacement liens on Artico's property, accounts receivable, and
any proceeds thereof, ensuring that Wintrust's secured position is
adequately protected while the bankruptcy proceedings continue.
The next hearing is scheduled for Oct. 30.
About Artico Cold Storage Chicago
Artico Cold Storage Chicago, LLC is a premier full-service public
refrigerated warehouse. It offers local and regional transportation
solutions. Strategically located in an approximately
220,000-square-foot building in Chicago's Stock Yards Industrial
Park, Artico offers a variety of services and employs the latest
technology to meet customer demands and increase accountability in
the cold chain.
The company has been in operation since April 2022, after acquiring
a 60-year-old operation. In May 2023, Artico transitioned to a new
warehouse management system, which did not operate as expected. The
transition disrupted operations, resulting in shipping delays and
errors and eventually the loss of several customers. Artico
estimates revenues declined by about 60% during this period. The
company has been diligently working to recover and restore business
operations but recovery has been slower than hoped.
Artico filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-04371) on March 26,
2024, with $1 million to $10 million in both assets and
liabilities.
Judge Deborah L. Thorne presides over the case.
William J. Factor, Esq., represents the Debtor as legal counsel.
AURORA MEDICAL: Seeks to Extend Plan Exclusivity to Jan. 10, 2025
-----------------------------------------------------------------
Aurora Medical Group Corp. asked the U.S. Bankruptcy Court for the
Middle District of Florida to extend its period to file disclosure
statement and chapter 11 plan of reorganization January 10, 2025.
The Debtor has an extensive accounts receivable (over
$2,000,000.00) and has recently met with a collection agent that is
specific to collecting medical debt from insurance companies and
individuals. An analysis of the receivables has been conducted by
the collection agent, and the analysis along with a proposed
agreement for collection of the receivables has been provided to
the Debtor.
The Debtor explains that the proposed agreement is contingency
based; however, it provides for a possible non-recourse purchase
offer to buy the entire portfolio after an initial 45-day
contingency period, which would also require Court approval. Based
on the variables, the Debtor cannot timely formulate its plan
before October 11, 2024, and requests an additional 90 days to on
or before January 10, 2025 to file its Disclosure Statement and
Plan of Reorganization.
The Debtor claims that the extension of the deadline will allow the
Debtor to obtain Court approval to formally engage the collection
agent, and after such engagement is commenced, allow for the 45-day
contingency period to run to determine if the Debtor should allow
an outright purchase of the receivables (requiring additional Court
approval), or if the Debtor should simply continue on a contingency
basis.
Aurora Medical Group Corp., is represented by:
Chad Van Horn, Esq.
Courtney Milam, Esq.
Van Horn Law Group, P.A.
500 NE 4th Street #200
Fort Lauderdale, FL 33301
Telephone: (954) 765-3166
Facsimile: (954) 756-7103
Email: Chad@cvhlawgroup.com
About Aurora Medical Group
Aurora Medical Group Corp. is a medical group that offers cosmetic
surgery including liposuction, J plasma renuvion, abdominoplasty,
brachioplasty, radiesse, fat transfer, vaginal rejuvenation, botox,
fillers, laser hair removal, facials, among other services.
Aurora Medical Group Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03353) on June
13, 2024. In the petition signed by Anisley Lanza Diaz, president,
the Debtor disclosed total assets of $2,348,816 and total
liabilities of $1,308,359.
Judge Roberta A. Colton oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, P.A. serves as the
Debtor's counsel.
AVINGER INC: Increases ATM Offering by $1.3MM for Corporate Use
---------------------------------------------------------------
As previously disclosed, on May 20, 2022, Avinger, Inc., entered
into an At the Market Offering Agreement with H.C. Wainwright &
Co., LLC, as sales agent, pursuant to which the Company may offer
and sell shares of the Company's common stock, par value $0.001 per
share, initially up to an aggregate offering price of $7,000,000,
from time to time in an at-the-market public offering. On August 3,
2022, the Company determined to suspend sales under the ATM
Agreement and terminated the continuous offering of the initial
aggregate offering price of $7,000,000. In March 2023, the Company
determined to resume sales under the ATM Agreement, up to an
aggregate offering price of $1,149,028. On September 18, 2023, the
Company increased the amount available for sale by up to an
additional aggregate offering price of $2,133,181; on September 20,
2023, the Company increased the amount available for sale by up to
an additional aggregate offering price of $1,074,690; on September
21, 2023, the Company increased the amount available for sale by up
to an additional aggregate offering price of $798,735; and on
September 22, 2023, the Company increased the amount available for
sale by up to an additional aggregate offering price of $320,507.
The Company has determined to increase the amount available for
sale under the ATM Agreement, up to an additional aggregate
offering price of $1,324,918. The Shares sold under the ATM
Agreement will be offered and sold pursuant to the Company's shelf
registration statement on Form S-3 (Registration No. 333-263922),
which was initially filed with the Securities and Exchange
Commission on March 29, 2022 and declared effective on April 7,
2022, and a prospectus supplement and the accompanying prospectus
relating to the at-the-market offering filed with the SEC on
October 17, 2024.
Because there is no minimum offering amount required pursuant to
the ATM Agreement, the total number of Shares to be sold under the
ATM agreement, if any, and proceeds to the Company, if any, are not
determinable at this time. The Company expects to use any net
proceeds primarily for working capital and general corporate
purposes. The Company has not yet determined the amount of net
proceeds to be used specifically for any particular purpose or the
timing of these expenditures. The Company may use a portion of the
net proceeds to acquire complementary products, technologies or
businesses or to repay principal on its debt; however, it
currently has no binding agreements or commitments to complete any
such transactions or to make any such principal repayments from the
proceeds of this offering, although it does look for such
acquisition opportunities. Accordingly, the Company's management
will have significant discretion and flexibility in applying the
net proceeds from the sale of these securities.
About Avinger Inc.
Headquartered in Redwood City, Calif., Avinger, Inc. --
http://www.avinger.com/-- is a commercial-stage medical device
company that designs and develops the first image-guided,
catheter-based system for the diagnosis and treatment of patients
with vascular disease in the peripheral and coronary arteries.
Avinger is dedicated to radically changing the way vascular disease
is treated through its Lumivascular platform, which currently
consists of the Lightbox series of imaging consoles, the Ocelot and
Tigereye family of chronic total occlusion (CTO) catheters, and the
Pantheris family of atherectomy devices for the treatment of
peripheral artery disease (PAD), estimated to affect more than 200
million people worldwide. Avinger is developing its first product
application for the treatment of coronary artery disease (CAD), an
image-guided system for CTO-crossing in the coronary arteries,
which provides the opportunity to redefine a large and underserved
market.
Avinger reported a net loss applicable to common stockholders of
$18.32 million for the year ended Dec. 31, 2023, compared to a net
loss applicable to common stockholders of $27.24 million for the
year ended Dec. 31, 2022. As of June 30, 2024, Avinger had $17.30
million in total assets, $9.54 million in total liabilities, and
$7.75 million in total stockholders' equity.
San Francisco, Calif.-based Moss Adams LLP, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 20, 2024, citing that the Company's recurring losses
from operations and its need for additional capital raise
substantial doubt about its ability to continue as a going concern.
B. RILEY: Raises $236-Mil. in Sale of Apparel, Brookstone Brands
----------------------------------------------------------------
B. Riley Financial Inc., said it has raised $236 million by
divesting rights to its stable of consumer brands, its second deal
in a month as part of its effort to raise cash and buy time to
address its debt load.
B. Riley said it has transferred and contributed its interests in
the assets and intellectual property related to the licenses of
several brands, including Hurley, Justice, Scotch & Soda, Catherine
Malandrino, English Laundry, Joan Vass, Kensie, Limited Too and
Nanette Lepore to a securitization vehicle, receiving $189 million
in net proceeds in connection with the financing transaction. The
Company also sold its interests in the assets and intellectual
property related to the licenses of the bebe and Brookstone brands
for $47 million in net cash proceeds also at the closing.
Hilco Global and TPG Angelo Gordon acquired the consumer brands
through a joint venture, according to a separate statement. Hilco
Global and TPG Angelo Gordon announced the formation of a new joint
venture that will identify, acquire, and finance consumer brands
and IP in partnership with Bluestar Alliance, LLC.
In Mid-October, B. Riley said it has struck a deal to sell its
appraisal and valuations unit, Great American, to asset-management
firm Oaktree Capital for close to $400 million.
Hilco Global is a diversified financial services firm based in
Northbrook, Ill, while TPG Angelo Gordon is a unit of TPG, an
alternative asset manager based in Fort Worth and San Francisco.
Moelis & Company LLC is the financial advisor to B. Riley, and
Sullivan & Cromwell LLP serves as its legal advisor.
About B. Riley Financial
B. Riley Financial -- http://www.brileyfin.com/-- is a diversified
financial services company that delivers tailored solutions to meet
the strategic, operational, and capital needs of its clients and
partners. B. Riley leverages cross-platform expertise to provide
clients with full service, collaborative solutions at every stage
of the business life cycle. Through its affiliated subsidiaries,
B. Riley provides end-to-end financial services across investment
banking, institutional brokerage, private wealth and investment
management, financial consulting, corporate restructuring,
operations management, risk and compliance, due diligence, forensic
accounting, litigation support, appraisal and valuation, auction,
and liquidation services. B. Riley opportunistically invests to
benefit its shareholders, and certain affiliates originate and
underwrite senior secured loans for asset-rich companies.
BATTLE AXE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Battle Axe Construction LLC
11435 Sebring Drive
Cincinnati, OH 45240
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 24-12499
Judge: Hon. Beth A Buchanan
Debtor's Counsel: Eric W. Goering, Esq.
GOERING & GOERING
220 West Third Street
Cincinnati, OH 45202
Tel: (513) 621-0912
Email: eric@goering-law.com
Total Assets: $1,686,405
Total Liabilities: $2,357,478
The petition was signed by Joseph D. Jackson as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/7NM7K5A/Battle_Axe_Construction_LLC__ohsbke-24-12499__0001.0.pdf?mcid=tGE4TAMA
BAWT ENTERPRISES: Seeks to Tap BMC Group as Administrative Advisor
------------------------------------------------------------------
BAWT Enterprises, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ BMC Group, Inc. as
administrative advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) if necessary, assist with the preparation of the Debtor's
schedules of assets and liabilities and statement of financial
affairs, and gather data in conjunction therewith; and
(d) provide such other processing, solicitation, balloting,
and other administrative services described in the Engagement
Agreement as may be requested from time to time by the Debtor, the
Court, or the Office of the Clerk of the Court.
The firm's hourly rates are as follows:
Clerical & Document Custody $35 - $45
Analysts/Case Support Associates $45 - $85
Technology/Programming $85 - $125
Consultants/Senior Consultants $85 - $125
Project Manager/Director $135 - $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a retainer of $8,500 from the Debtor.
`
Tinamarie Feil, president at BMC Group, disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Tinamarie Feil
BMC Group, Inc.
600 1st Avenue
Seattle, WA 98104
Email: tfeil@bmcgroup.com
About BAWT Enterprises
BAWT Enterprises LLC is the New Hampshire-based parent company of
climate data analytics firm Athenium Analytics. BAWT was originally
founded as weather Analytics LLC by William Pardue and two
colleagues in 2012 to create decision-support and data-retrieval
tools on top of a vast collection of proprietary atmospheric,
weather and topographical data.
Athenium, Inc., was founded in 1997 and proudly grew its reputation
as an innovative insurance software company. In 2018, Weather
Analytics acquired Athenium Inc., and created Athenium Analytics
LLC, now BAWT Enterprises LLC, and Athenium LLC, an operating
company.
BAWT Enterprises is a holding company whose two principal assets
consists of (a) its ownership interests in Grass Wall Holdings,
Inc., a wholly owned company which owns 17.98 percent of Athenium
LLC ("ALLC"), and (b) direct ownership interests in ALLC of 82.02
percent.
BAWT Enterprises LLC sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 24-12215) on Sept. 27,
2024. In the petition filed by CEO Bill Pardue, the Debtor
estimated assets and liabilities between $10 million and $50
million.
The Debtor tapped Culhane PLLC, formerly known as Culhane Meadows,
as counsel and BMC Group, Inc. as administrative advisor.
BERR LLC: Seeks to Hire Avrum J. Rosen as Bankruptcy Counsel
------------------------------------------------------------
BERR, LLC doing business as Masal Plus Cafe and Restaurant, seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
New York to employ the Law Offices of Avrum J. Rosen, PLLC as its
counsel.
The firm's services include:
(a) advise the Debtor of the rights and duties;
(b) oversee preparation of necessary reports to the courts or
creditors;
(c) conduct all appropriate investigation or litigation; and
(d) perform any other necessary duty in aid of the
administration of the estate.
The firm will be paid at these hourly rates:
Partners $670
Associates $570
Paraprofessional $200
Avrum Rosen, Esq., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Avrum J. Rosen, Esq.
Law Offices of Avrum J. Rosen PLLC
38 New Street
Huntington, NY 11743
Telephone: (631) 423-8527
About BERR LLC
BERR, LLC sought relief under Chapter 11 of the Bankruptcy Code
(Bankr. E.D.N.Y. Case No. 24-44292) on Oct. 17, 2024. In the
petition signed by Sal Masal, managing member, the Debtor disclosed
up to 500,000 in assets and up to $10 million in liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Avrum J. Rosen PLLC serves as the Debtor's
counsel.
BIG LOTS: Gets Court Okay for Chapter 11 Auction on Oct. 30
-----------------------------------------------------------
Rick Archer of Law360 reports that on October 25, 2024, a Delaware
bankruptcy judge approved discount retailer Big Lots Inc.'s plan to
go up for sale next week, following confirmation that the baseline
bidder had secured financing for its $760 million offer.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIG LOTS: Postpones Crucial Nexus Acquisition Hearing
-----------------------------------------------------
Jonathan Randles of Bloomberg News reports that Big Lots Inc.
postponed a significant court hearing on whether private equity
firm Nexus Capital Management should serve as the lead bidder in a
potential bankruptcy auction. This decision followed an earlier
announcement from Big Lots stating that Nexus still needed to
finalize an agreement with company lenders on approximately $750
million in financing.
Originally set for Thursday, October 24, 2024, in Delaware
bankruptcy court, the hearing aimed to discuss financial
protections for Nexus’ bid. However, the request was deferred to
allow Nexus more time to secure financing, which lawyers had
anticipated completing by Thursday's hearing.
The hearing is now rescheduled for Friday, coinciding with the
court-approved deadline for submitting rival bids for the discount
retailer. Nexus' bid, structured as a stalking horse offer, would
set the minimum price for Big Lots’ assets, pending any higher
offers.
Representatives for Big Lots and Nexus did not respond to requests
for comment on Thursday.
Big Lots disclosed the Nexus agreement when it filed for Chapter 11
on September 9. If the transaction receives court approval, the
company expects the deal to close by the fourth quarter of this
year. Nexus Managing Director Evan Glucoft had stated that the firm
aims to restore Big Lots "to its status as America’s leading
extreme value retailer."
The transaction would repay a significant portion of Big Lots' debt
and protect thousands of jobs, according to court documents.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
CAMBRIDGE RIVERVIEW: Seeks to Tap The Prestige Group as Broker
--------------------------------------------------------------
Cambridge Riverview, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for Middle District of Pennsylvania to employ
The Prestige Group, Inc. as real estate broker.
The Debtor needs a broker to market and sell its personal care
facilities
The firm will receive a commission of 4 percent of the facilities'
gross sales price.
Joseph Shallow, vice president of The Prestige, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joseph Shallow
The Prestige Group, Inc.
321 S. Valley Forge Rd.
Devon, PA 19333
Telephone: (610) 902-3900
About Cambridge Riverview
Cambridge Riverview LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No.
24-02216) on Sep. 16, 2024, listing up to $50,000 in both assets
and liabilities.
Judge Mark J. Conway presides over the case.
Ronald V. Santora, Esq., at Bresset and Santora represents the
Debtor as counsel.
CARDIFF LEXINGTON: Restates Q1 and Q2 2024 Reports for Errors
-------------------------------------------------------------
Cardiff Lexington Corporation disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the Board of
Directors of the Company, upon recommendation of the Audit
Committee and following discussions with management, determined
that the following previously issued financial statements should no
longer be relied upon:
* the Company's financial statements for the periods ended
March 31, 2024 and 2023 that were included in the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024;
and
* the Company's financial statements for the periods ended
June 30, 2024 and 2023 that were included in the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
The conclusion was based on the discovery that the previously
issued financial statements for the three months ended March 31,
2024 and 2023 should be revised to reflect a change in the
classification of credit loss expense to net revenue, and that the
previously issued financial statements for the three and six months
ended June 30, 2024 and 2023 should be revised to reflect a change
in the classification of credit loss expense to net revenue and a
related adjustment to the allowance for credit losses. For the
three months ended March 31, 2024, the Company will correct its
accounting for its credit loss expense of $339,834, which will be
reclassified to net revenue as variable consideration accounted for
under ASC 606. The Company's allowance for credit losses of
$122,190 did not require adjustment during the six months ended
June 30, 2024, and as a result, the Company will reverse its credit
loss expense associated with this adjustment. The remaining
$1,199,155 of credit loss expense for the six months ended June 30,
2024 will be reclassified to net revenue as variable consideration
accounted for under ASC 606.
The Audit Committee discussed these matters with the Company's
former independent auditors, Grassi & Co., CPAs, P.C., and
determined that the effect of such errors were material. As a
result, the Company has decided to restate its financial statements
for the periods ended March 31, 2024 and 2023 included in the
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2024 and for the periods ended June 30, 2024 and 2023 included
in the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2024. The financial statements noted above should no
longer be relied upon. Similarly, related reports, press releases,
earnings releases, and investor communications describing the
Company's financial statements for these periods should no longer
be relied upon.
The Company filed amendments to its Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2024 and June 30, 2024 in which
the financial statements for the quarters ended March 31, 2024 and
2023 and for the quarters ended June 30, 2024 and 2023,
respectively, and will be restated.
About Cardiff Lexington
Headquartered in Las Vegas, Nevada, Cardiff Lexington Corporation
is an acquisition holding company focused on locating undervalued
and undercapitalized companies, primarily in the healthcare
industry, and providing them capitalization and leadership to
maximize the value and potential of their private enterprises while
also providing diversification and risk mitigation for its
stockholders.
Jericho, New York-based Grassi & Co., CPAs, PC, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated March 27, 2024, citing that the Company has sustained
an accumulated deficit and negative cash flows from operations,
which raise substantial doubt about its ability to continue as a
going concern.
Cardiff reported a net income of $3,028,394 for the year ended
December 31, 2023, as compared to a net loss of $5,429,521 for the
year ended December 31, 2022. As of June 30, 2024, Cardiff had
$24,659,020 in total assets, $14,196,608 in total liabilities,
$4,625,000 in total mezzanine equity, and $5,837,412 in total
stockholders' equity.
CHIC COUTURE: Sec. 341(a) Meeting of Creditors on Dec. 7
--------------------------------------------------------
Chic Couture Online LLC filed Chapter 11 protection in the Southern
District of Florida. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 7, 2024 at 11:00 a.m. in Room Telephonically.
About Chic Couture Online LLC
Chic Couture Online LLC is a limited liability company.
Chic Couture Online LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20940)
on October 22, 2024. In the petition filed by Johane Porsenna, as
president, the Debtor estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Bankruptcy Judge Peter D. Russin handles the case.
The Debtor is represented by:
Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
1401 Forum Way
Suite 730
West Palm Beach, FL 33401
Tel: 561-478-2500
E-mail: briankmcmahon@gmail.com
COACH USA: Seeks to Extend Plan Exclusivity to Jan. 7, 2025
-----------------------------------------------------------
Coach USA, Inc., and its affiliated debtors asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to January 7, 2025 and March 10, 2025,
respectively.
The Debtors explain that they commenced these Chapter 11 Cases with
the paramount goal to maximize the value of their estates for the
benefit of the companies' creditor constituencies and other
stakeholders through the sale of substantially all of their assets.
Since the Petition Date, the Debtors and their advisors committed
all of their resources to maximizing value for the benefit of their
creditors and estates, including by contacting dozens of strategic
and financial potential buyers, providing access to a data room,
and answering diligence questions.
Ultimately, as a result of these efforts, the Debtors proposed four
value-maximizing Sales to the Court which recently or are soon to
be closed. With the Sales approved and substantially consummated,
the Debtors and their advisors are re-directing their attention to
the orderly winddown of their affairs.
The Debtors believe that, in light of the progress that the
Debtors, the Committee, and other professionals have made in these
Chapter 11 Cases over approximately the past four months, and the
Debtors' demonstrated efforts to work cooperatively with their
stakeholders, it is reasonable and appropriate that the Debtors be
granted an extension of the Exclusive Periods. Accordingly, the
Debtors submit that this factor weighs in favor of extending the
Exclusive Periods.
The Debtors assert that they have no ulterior motive in seeking an
extension of the Exclusive Periods. The Debtors have worked
diligently over the past few months to preserve the value of their
assets during the pendency of these Chapter 11 Cases and require
the extension sought by this Motion. The Debtors are not seeking an
extension to pressure creditors or other parties in interest.
The Debtors further assert that termination of the Exclusive
Periods would adversely impact the Debtors' efforts to preserve and
maximize the value of the estates and the progress of these Chapter
11 Cases. Terminating the Exclusive Periods would only serve to
foster a chaotic environment and only add the opportunity for
parties to engage in counterproductive behavior in pursuit of
alternatives that are simply not feasible under the circumstances
of these Chapter 11 Cases.
Counsel to the Debtors:
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Edmon L. Morton, Esq.
Sean M. Beach, Esq.
Joseph M. Mulvihill, Esq.
Timothy R. Powell, Esq.
Rebecca L. Lamb, Esq.
1000 North King Street
Rodney Square
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: emorton@ycst.com
sbeach@ycst.com
jmulvihill@ycst.com
tpowell@ycst.com
rlamb@ycst.com
- and –
ALSTON & BIRD LLP
J. Eric Wise, Esq.
Matthew K. Kelsey, Esq.
William Hao, Esq.
90 Park Avenue
New York, New York 10016
Tel: (212) 210-9400
Fax: (212) 210-9444
Email: eric.wise@alston.com
matthew.kelsey@alston.com
william.hao@alston.com
About Coach USA
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
COMMERCIAL FURNITURE: Hires Wright Cortesi & Gilbreath as Counsel
-----------------------------------------------------------------
Commercial Furniture Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to employ
Wright, Cortesi & Gilbreath as its bankruptcy counsel.
The firm's services include:
(a) advise and consult with the Debtor concerning (i) legal
questions arising in administering, reorganizing, and/or
liquidating its estate and (ii) its rights and remedies in
connection with estate assets, accounts receivable, and creditors'
claims;
(b) assist the Debtor in the investigation of its acts,
conduct, assets, and liabilities and any other matters relevant to
the case;
(c) investigate and potentially prosecute preference,
fraudulent transfer, and other causes of action arising under the
Debtor's avoidance powers;
(d) take all necessary legal action to preserve and protect
the Debtor's estate;
(e) prepare on behalf of the Debtor all necessary legal
documents that are required for the orderly administration of its
estate;
(f) aid the Debtor in the reorganization process; and
(g) perform all other legal services that the Debtor may
determine are necessary and appropriate to faithfully discharge its
duties.
The firm will be paid at these hourly rates:
Stephan R. Wright, Attorney $400
Charles W. Gilbreath, Attorney $315
Braxton B. Markle, Attorney $250
Paralegals $150
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a prepetition retainer of $27,000 from the
Debtor.
Mr. Wright disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Stephan R. Wright, Esq.
Wright, Cortesi & Gilbreath
2030 Hamilton Place Blvd., Ste. 240
Chattanooga, TN 37421
Telephone: (423) 826-6919
Facsimile: (423) 826-6929
Email: swright@wcglegal.com
About Commercial Furniture Services
Commercial Furniture Services, LLC offers office furniture
installation, asset management (safe storage) and logistics
services.
Commercial Furniture Services filed its voluntary petition for
Chapter 11 protection (Bankr. E.D. Tenn. Case No. 24-12642) on Oct.
18, 2024. In the petition signed by Jim McMenimen, co-managing
member, the Debtor disclosed up to $500,000 in assets and up to $10
million in liabilities.
Wright, Cortesi & Gilbreath serves as the Debtor's counsel.
COMTECH TELECOM: Announces Transformation Strategy Update
---------------------------------------------------------
Comtech Telecommunications Corp. announced that its Board of
Directors and management team are executing a strategy to transform
Comtech into a pure-play satellite and space communications company
and provided a capital structure update.
Ongoing and future actions supporting Comtech's transformation
strategy include:
* An exploration of strategic alternatives for the Company's
Terrestrial & Wireless Networks segment, which is well underway;
* The pursuit of further portfolio-shaping opportunities to
enhance profitability, efficiency and focus; and
* The implementation of additional operational initiatives to
align Comtech's go-forward cost structure with a pure-play focus on
satellite and space communications.
Comtech's Board of Directors noted, "Comtech is in the midst of a
transformational journey. Earlier this year, we enhanced our T&W
segment with a new management team to drive growth and improved
profitability. Given the strength and value we see in our T&W
segment, we initiated a process to explore strategic alternatives
for this business to unlock value for Comtech shareholders. We
believe the best path forward for shareholders is the creation of a
pure-play satellite and space communications company with a
simplified capital structure, streamlined operations and strong
balance sheet. This strategy is the product of months of careful
evaluation conducted with the assistance of management and
independent advisors. We look forward to providing an update on the
strategic alternatives process and broader strategy at key
milestones."
Strategic Alternatives Process
for the T&W Segment
Comtech's T&W business is a leading provider of next-generation 911
("NG911") infrastructure and solutions for state and local
governments and telecom carriers across North America. Enhanced by
the leadership of new executive management, in fiscal 2024, the T&W
segment has more than doubled its bookings of orders for
next-generation solutions. Additionally, as a result of a more
refined strategic focus and the achievement of certain
cost-containment and operational efficiency measures, T&W is on
track to delivering strong year-over-year bottom line performance.
Comtech's recent T&W wins and milestones include a long-term
competitive contract renewal for NG911 solutions in the
Commonwealth of Massachusetts; the buildout of Pennsylvania's NG911
statewide network; a mandate for the Toronto Police Service's NG911
solution; a long-term NG911 renewal with the North Central Texas
Emergency Communications District; a statewide NG911 solution in
the Northeast U.S. in partnership with Consolidated Communications;
and multi-province NG911 deployments in Canada. Demand for these
solutions is expected to continue growing following a July 2024
ruling by the U.S. Federal Communications Commission to advance the
nationwide transition to NG911.
The Board had previously retained independent financial advisors to
assist in its strategic review earlier this year and, in recent
months, commenced a strategic alternatives process for the T&W
business.
The Board added, "Comtech deeply values its T&W customers, who put
their trust in our best-in-class public safety solutions to keep
their communities and people connected in their most critical
moments. We expect to move forward with a partner who will focus on
this attractive business and its customers, talented team members
and valued service providers."
There can be no assurance that the exploration of strategic
alternatives will result in a transaction or other strategic
changes or outcomes. There is no timeframe for the conclusion of
the process, and the Company does not intend to comment further
regarding this matter unless and until further disclosure is
determined to be appropriate or necessary.
Pure-Play Satellite
and Space Communications Company
Comtech's Satellite & Space Communications segment is a U.S.-based,
leading provider of advanced modems and high-power amplifier
technologies, and a market leader in troposcatter technologies. The
S&S segment has an innovative portfolio of these mission-critical
technologies and serves some of the world's largest defense
contractors and allied foreign governments, as well as multiple
U.S. government agencies, including branches of the U.S. Armed
Forces, U.S. Department of Defense and U.S. Space Force, among
others.
The S&S business operates in large and growing end markets that
benefit from multiple tailwinds and demand-drivers, including
growing global geopolitical tensions, rising global defense
spending, and high barriers to entry. Further, these end markets
are undergoing technology upgrade cycles and modernization
initiatives that are expected to underpin demand for years to come.
Fueling these cycles are the USSF's Commercial Space Strategy and
the DoD's Joint All Domain Command and Control approach, which are
expected to generate strong demand for the S&S business'
next-generation digital solutions. Today, only a limited number of
companies, including Comtech, can serve the complex needs of the
U.S. and other governments and meet this demand.
Proceeds from the potential divestiture of T&W would enable Comtech
to substantially simplify its capital structure and strengthen its
balance sheet. Paired with additional targeted portfolio
optimization and a singular focus on satellite and space
communications, the go-forward company would be well-positioned to
capitalize on growth opportunities.
Portfolio-Shaping
and Operational Initiatives
In connection with the Board's transformative strategy, the Company
has undertaken a detailed evaluation of its S&S portfolio to
identify opportunities to divest, separate and/or rationalize
businesses or facilities that are not core to Comtech's go-forward
focus.
Consistent with this effort, in its fourth fiscal quarter, Comtech
made the decision to exit its subsidiary operations in Basingstoke,
United Kingdom. The U.K. operations were established in connection
with the prior management team's 2020 acquisition of CGC Technology
Limited, which primarily served customers in Europe. Following the
acquisition, Comtech continued to invest in the Basingstoke
facility to advance LEO constellation-based antenna technologies in
anticipation of a significant production order. Taking into
consideration the significant ongoing investment as well as
unfavorable contract terms on prospective antenna sales, the Board
concluded the U.K. business would not generate an attractive return
on invested capital and made the decision to exit these operations.
After anticipated restructuring charges associated with the exit of
the Basingstoke operations, Comtech expects to realize
approximately $10 million of annual cash savings.
In addition to its ongoing efforts to improve the cash conversion
cycle and manage the balance sheet, Comtech has been working with
independent advisors to identify opportunities to align the
Company's cost structure with its go-forward focus on satellite and
space communications.
Furthermore, over the past several months, Comtech has conducted an
intensive review of its product portfolio to focus future
investment on the Company's most strategic, high-margin revenue
opportunities within its S&S portfolio. While anticipated to
improve the Company's profitability in future periods, such actions
may result in near-term restructuring charges.
Amended Credit Agreement
and New Subordinated Term Loan Facility
On October 16, 2024, Comtech filed a Form 12b-25 with the
Securities and Exchange Commission noting that it is unable to file
its Annual Report on Form 10-K for the period ended July 31, 2024
within the prescribed time period without unreasonable effort or
expense, and that the Company anticipates reporting significantly
lower-than-expected performance, primarily in its S&S segment, in
the fourth fiscal quarter.
In light of this, the Company entered into an amendment to its
existing credit facility dated June 17, 2024. Among other things,
the amendment waives defaults or events of default in connection
with the Company's Net Leverage Ratio and Fixed Charge Coverage
Ratio covenants for the fourth fiscal quarter. To cure defaults,
maintain appropriate liquidity and support the Company's
transformation initiatives, Comtech entered into a new $25.0
million subordinated unsecured term loan facility with the existing
holders of the Company's convertible preferred stock. Within the
terms of the amended credit facility, this new subordinated
unsecured term loan allows the Company to maintain a consistent
level of borrowing capacity.
Additional information related to the Company's credit facilities
can be found in a Form 8-K filed with the SEC at:
https://tinyurl.com/yc3ksaww
Imperial Capital, LLC is acting as financial advisor for the T&W
strategic alternatives process. Sidley Austin LLP and Paul, Weiss,
Rifkind, Wharton & Garrison LLP are serving as legal counsel.
About Comtech Telecommunications
Headquartered in Huntington, New York, Comtech Telecommunications
Corp. is a global provider of next-generation 911 emergency systems
("NG-911") and secure wireless and satellite communications
technologies. This includes the critical communications
infrastructure that people, businesses, and governments rely on
when durable, trusted connectivity is required, no matter where
they are - on land, at sea, or in the air - and no matter what the
circumstances - from armed conflict to a natural disaster.
As of April 30, 2024, Comtech had $991 million in total assets,
$414.33 million in total liabilities, $170.25 million in
convertible preferred stock, and $406.42 million in total
stockholders' equity.
Going Concern
"Based on our current business plans, including projected capital
expenditures, we believe our current level of cash and cash
equivalents, excess availability under our revolver loan and
liquidity expected to be generated from future cash flows will be
sufficient to fund our operations over the next twelve months
beyond the issuance date. However, such a determination is
dependent on several factors including, but not limited to, general
business conditions and our ability to reduce investments inworking
capital (such as unbilled receivables). If we are unable to
maintain our current level of cash and cash equivalents, excess
availability under our revolver loan or generate sufficient
liquidity from future cash flows, our business, financial condition
and results of operations could be materially and adversely
affected. Such conditions and events raise substantial doubt about
our ability to continue as a going concern as of the date of this
Quarterly Report on Form 10-Q. Although we have completed the
refinancing of our Prior Credit Facility and are actively pursuing
other strategies to mitigate these conditions and events and
alleviate such substantial doubt about our ability to continue as a
going concern, there can be no assurance that our plans will be
successful," the Company said in its Quarterly Report on Form 10-Q
for the period ended April 30, 2024.
COMTECH TELECOM: Magnetar, 3 Others Hold 40.06% Stake as of Oct. 17
-------------------------------------------------------------------
Magnetar Financial LLC disclosed in a Schedule 13G/A Report filed
with the U.S. Securities and Exchange Commission that as of October
17, 2024, the firm and its affiliated entities -- Magnetar Capital
Partners LP, Supernova Management LLC, and David J. Snyderman,
Manager of Supernova Management, the General Partner of Magnetar
Capital Partners -- beneficially owned 19,291,965.67 shares of
Comtech Telecommunications Corp.'s common stock issuable upon
conversion of 144,346.04 shares of Series B-2 Convertible Preferred
Stock, at an initial conversion price of $7.99 per share, without
giving effect to the Ownership Cap, representing 40.06% of the
shares outstanding.
The terms of the Series B-2 Convertible Preferred Stock restrict
the conversion of such shares to the extent that, upon such
conversion, the number of shares of Common Stock then beneficially
owned by the holder and its affiliates and any other person or
entities with which such holder would constitute a Section 13(d)
"group" would exceed 9.99% of the total number of shares of Common
Stock then outstanding. Accordingly, notwithstanding the number of
shares reported, the reporting person disclaims beneficial
ownership of the shares of Common Stock issuable upon conversion of
Series B-2 Convertible Preferred Stock to the extent that upon such
conversion the number of shares beneficially owned by all reporting
persons hereunder, in the aggregate, would exceed the Ownership
Cap.
A full-text copy of Magnetar Financial's SEC Report is available
at:
https://tinyurl.com/34b8u7hz
About Comtech Telecommunications
Headquartered in Huntington, New York, Comtech Telecommunications
Corp. is a global provider of next-generation 911 emergency systems
("NG-911") and secure wireless and satellite communications
technologies. This includes the critical communications
infrastructure that people, businesses, and governments rely on
when durable, trusted connectivity is required, no matter where
they are - on land, at sea, or in the air - and no matter what the
circumstances - from armed conflict to a natural disaster.
As of April 30, 2024, Comtech had $991 million in total assets,
$414.33 million in total liabilities, $170.25 million in
convertible preferred stock, and $406.42 million in total
stockholders' equity.
Going Concern
"Based on our current business plans, including projected capital
expenditures, we believe our current level of cash and cash
equivalents, excess availability under our revolver loan and
liquidity expected to be generated from future cash flows will be
sufficient to fund our operations over the next twelve months
beyond the issuance date. However, such a determination is
dependent on several factors including, but not limited to, general
business conditions and our ability to reduce investments inworking
capital (such as unbilled receivables). If we are unable to
maintain our current level of cash and cash equivalents, excess
availability under our revolver loan or generate sufficient
liquidity from future cash flows, our business, financial condition
and results of operations could be materially and adversely
affected. Such conditions and events raise substantial doubt about
our ability to continue as a going concern as of the date of this
Quarterly Report on Form 10-Q. Although we have completed the
refinancing of our Prior Credit Facility and are actively pursuing
other strategies to mitigate these conditions and events and
alleviate such substantial doubt about our ability to continue as a
going concern, there can be no assurance that our plans will be
successful," the Company said in its Quarterly Report on Form 10-Q
for the period ended April 30, 2024.
COMTECH TELECOM: White Hat Entities Hold 9.99% Stake as of Oct. 17
------------------------------------------------------------------
White Hat Strategic Partners LP disclosed in a Schedule 13D/A
Report filed with the U.S. Securities and Exchange Commission that
as of October 17, 2024, along with its affiliated entities -- White
Hat SP GP LLC, White Hat Strategic Partners II LP, White Hat SP GP
II LLC, White Hat Capital Partners LP, Mark R. Quinlan, and David
J. Chanley -- they beneficially owned 4,479,793 shares of Comtech
Telecommunications Corp.'s common stock. This includes 4,132,154
shares issuable upon the conversion of Series B-2 Convertible
Preferred Stock. Due to a Blocker provision, the actual number of
shares beneficially owned, after giving effect to the Blocker,
represents 9.99% of the shares outstanding.
On October 17, 2024, the White Hat Funds entered into an
Subscription and Exchange Agreement with Comtech and the other
investors listed on the signature pages attached thereto pursuant
to which the parties agreed to change certain terms of the Series
B-1 Convertible Preferred Stock. The changes:
(i) altered the date on which preferred holders can opt to
have the Issuer repurchase their Series B-2 Convertible Preferred
Stock in certain circumstances,
(ii) provided for increases to the dividend rate in certain
circumstances and provided for an option for the preferred holders
to elect to receive dividends in cash (to the extent permitted by
law), and
(iii) clarified the preferred holders' existing consent rights,
among other things.
To effect the changes:
(i) WHSP exchanged 24,071.05 shares of Series B-1 Convertible
Preferred Stock for 24,071.05 shares of Comtech's newly issued
Series B-2 Convertible Preferred Stock, par value $0.10 per share,
with an initial liquidation preference of $1,067.87 per share (the
per share liquidation preference of the Series B-1 Convertible
Preferred Stock as of October 16, 2024) (the "Series B-2
Convertible Preferred Stock"),
(ii) WHSP II exchanged 6,240.27 shares of Series B-1
Convertible Preferred Stock for 6,240.27 shares of Series B-2
Convertible Preferred Stock,
(iii) WHSP acquired 481.41 shares of Series B-2 Convertible
Preferred Stock as October Additional Shares and
(iv) WHSP II acquired 124.81 shares of Series B-2 Convertible
Preferred Stock as October Additional Shares. The transactions
contemplated by the Subscription and Exchange Agreement closed on
October 17, 2024.
A full-text copy of White Hat Capital's SEC Report is available
at:
https://tinyurl.com/42byrbh6
About Comtech Telecommunications
Headquartered in Huntington, New York, Comtech Telecommunications
Corp. is a global provider of next-generation 911 emergency systems
("NG-911") and secure wireless and satellite communications
technologies. This includes the critical communications
infrastructure that people, businesses, and governments rely on
when durable, trusted connectivity is required, no matter where
they are - on land, at sea, or in the air - and no matter what the
circumstances - from armed conflict to a natural disaster.
As of April 30, 2024, Comtech had $991 million in total assets,
$414.33 million in total liabilities, $170.25 million in
convertible preferred stock, and $406.42 million in total
stockholders' equity.
Going Concern
"Based on our current business plans, including projected capital
expenditures, we believe our current level of cash and cash
equivalents, excess availability under our revolver loan and
liquidity expected to be generated from future cash flows will be
sufficient to fund our operations over the next twelve months
beyond the issuance date. However, such a determination is
dependent on several factors including, but not limited to, general
business conditions and our ability to reduce investments inworking
capital (such as unbilled receivables). If we are unable to
maintain our current level of cash and cash equivalents, excess
availability under our revolver loan or generate sufficient
liquidity from future cash flows, our business, financial condition
and results of operations could be materially and adversely
affected. Such conditions and events raise substantial doubt about
our ability to continue as a going concern as of the date of this
Quarterly Report on Form 10-Q. Although we have completed the
refinancing of our Prior Credit Facility and are actively pursuing
other strategies to mitigate these conditions and events and
alleviate such substantial doubt about our ability to continue as a
going concern, there can be no assurance that our plans will be
successful," the Company said in its Quarterly Report on Form 10-Q
for the period ended April 30, 2024.
CONVENTION CENTER: Seeks to Tap Alexis Fuentes-Hernandez as Counsel
-------------------------------------------------------------------
Convention Center Parking, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez, Esq., an attorney practicing in San Juan,
Puerto, to handle its Chapter 11 case.
The attorney will be paid at his hourly rate of $250 plus
reimbursement for expenses incurred.
The attorney also received a retainer of $15,000.
Mr. Fuentes-Hernandez disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Alexis Fuentes-Hernandez, Esq.
P.O. Box 9022726
San Juan, PR 00901
Telephone: (787) 722 5216
Facsimile: (787) 722 5206
Email: fuenteslaw@icloud.com
About Convention Center Parking
Convention Center Parking, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04516) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $1 million in
assets and $45,229,691 in liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
Alexis Fuentes-Hernandez, Esq., represents the Debtor as counsel.
CONVERGEONE: Court Won't Toss Chapter 11 Plan Appeal of Creditors
-----------------------------------------------------------------
Clara Geoghegan of Law360 reports that a Texas federal judge has
declined to dismiss an appeal by a group of secured creditors
claiming they were unfairly excluded from a new equity offering
pool for ConvergeOne.
The judge noted that the group's challenge would not disrupt the
confirmed Chapter 11 plan for the reorganized information
technology services company or adversely affect third parties.
About ConvergeOne Holdings
ConvergeOne Holdings Inc. operates as a holding company. The
Company, through its subsidiaries, provides managed cloud, cyber
security, enterprises networking, data center, application and
software development, security infrastructure, and hosted
collaboration solutions.
ConvergeOne Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90194) on April 4, 2024, with $1 billion to $10 billion in
assets and liabilities.
Judge Christopher M. Lopez presides over the cases.
White & Case LLP is the Debtors' legal counsel. Evercore Group LLC
is the Debtors' investment banker, and AlixPartners, LLP, is the
restructuring advisor. EPIQ Bankruptcy Solutions is the claims
agent.
Porter Hedges LLP, and Gibson, Dunn & Crutcher LLP advise the first
lien lenders.
CREATIVE REALITIES: Registers 3.16M Shares for Resale by Slipstream
-------------------------------------------------------------------
Creative Realities, Inc. filed a prospectus on Form S-3 relating to
the proposed resale or other disposition from time to time of up to
3,156,984 shares of common stock, $0.01 par value per share, of the
Company by the selling shareholders, Slipstream Funding, LLC and
Slipstream Communications, LLC. The Company is not selling any
shares of common stock under this prospectus and will not receive
any of the proceeds from the sale or other disposition of common
stock by the selling shareholders.
The selling shareholders and their pledgees, assignees or
successors-in-interest may offer and sell or otherwise dispose of
the shares of common stock described in this prospectus from time
to time through public or private transactions at prevailing market
prices, at prices related to prevailing market prices or at
privately negotiated prices. The selling shareholders will bear all
commissions and discounts, if any, attributable to the sales of
such shares. The Company will bear all other costs, expenses and
fees in connection with the registration of such shares.
Its common stock is listed on The NASDAQ Capital Market under the
symbol "CREX." The last reported per share price for its common
stock was $4.61, as quoted on The NASDAQ Capital Market on October
16, 2024.
A full-text copy of the prospectus is available at:
https://tinyurl.com/yck3n3m5
About Creative Realities
Creative Realities, Inc. -- http://www.cri.com/-- provides
innovative digital signage and media solutions to enhance
communications in a wide-ranging variety of out-of-home
environments, key market segments, and use cases, including Retail;
Entertainment and Sports Venues; Restaurants, including quick-serve
restaurants; Convenience Stores; Financial Services; Automotive;
and Medical and Healthcare Facilities.
Louisville, Kentucky-based Deloitte & Touche LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 21, 2024, citing that the Company is
experiencing difficulty in generating sufficient cash flow to
service its debt and contingent consideration obligations, which
raises substantial doubt about its ability to continue as a going
concern.
Creative Realities reported a net loss of $2.94 million for the
year ended Dec. 31, 2023, compared to net income of $1.87 million
for the year ended Dec. 31, 2022. As of June 30, 2024, Creative
Realities had $69.6 million in total assets, $41.3 million in total
liabilities, and $28.2 million in total stockholders' equity.
CROWNCO INC: Hires Goe Forsythe & Hodges as Bankruptcy Counsel
--------------------------------------------------------------
Crownco, Inc. seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ Goe Forsythe & Hodges LLP
as general bankruptcy counsel.
The firm will render these services:
(a) advise and assist the Debtor with respect to compliance
with the requirements of the United States Trustee;
(b) advise the Debtor regarding matters of bankruptcy law;
(c) advise the Debtor regarding assumption and rejection of
executory contracts and leases;
(d) represent the Debtor in any proceedings or hearings in the
Bankruptcy Court where its rights under the Bankruptcy Code may be
litigated or affected;
(e) conduct examinations of witnesses, claimants, or adverse
parties and to prepare and assist in the preparation of reports,
accounts, and pleadings related to this Chapter 11 case;
(f) advise the Debtor concerning the requirements of the
Bankruptcy Court and applicable rules as the same affect it in this
proceeding;
(g) assist the Debtor in negotiation, formulation,
confirmation, and implementation of a Chapter 11 plan of
reorganization;
(h) make any bankruptcy court appearances on behalf of the
Debtor; and
(i) take such other action and perform such other services as
the Debtor may require of the firm in connection with this Chapter
11 case.
The firm's counsel and staff will be paid at these hourly rates:
Robert Goe, Attorney $650
Marc Forsythe, Attorney $650
Ronald Hodges, Attorney $650
Brian Van Marter, Of Counsel $625
Greg Preston, Of Counsel $625
Jeffrey Broker, Of Counsel $595
Dixon Gardner, Attorney $565
Reem Bello, Attorney $550
Mike Neue, Attorney $550
Charity Manee, Attorney $535
Ryan Riddles, Attorney $465
Taylor DeRosa, Of Counsel $450
Arthur Johnston, Paralegal $210
Britney Bailey, Paralegal $210
Kerry Murphy, Paralegal $225
Lauren Gillen, Paralegal $195
The firm received a pre-petition retainer of $40,000 from the
Debtor.
Mr. Goe disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert P. Goe, Esq.
Goe Forsythe & Hodges LLP
17701 Cowen, Lobby D, Suite 210
Irvine, CA 92614
Telephone: (949) 796-2460
Facsimile: (949) 955-9437
Email: rgoe@goeforlaw.com
About Crownco Inc.
Crownco Inc. provides construction solutions for the building
community, including production services, warranty services or
SB800 repair services. The Company has developed innovative systems
that ensure every job is completed in the utmost time efficient
manner with the highest level of precision and service.
Crownco Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-16205) on Oct. 16, 2024. In the
petition filed by Charles E. Morrison, chief executive officer, the
Debtor reports total assets of $896,358 and total liabilities of
$5,175,883.
Judge Scott M. Grossman oversees the cases.
Goe Forsythe & Hodges LLP serves as the Debtor's counsel.
CUBITAC CORP: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Cubitac Corp
4 Bell Road
Ridgefield, NJ 07657
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-20659
Debtor's Counsel: Timothy P. Neumann, Esq.
BROEGE NEUMANN FISCHER & SHAVER, LLC
25 Abe Voorhees Drive
Manasquan NJ 08736
Tel: (732) 223-8484
Email: timothyneumann25@gmail.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joel Weiss as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/AJ673JQ/CUBITAC_CORP__njbke-24-20659__0001.0.pdf?mcid=tGE4TAMA
CURTIS HENDERSON: Taps Barry A. Friedman & Associates as Counsel
----------------------------------------------------------------
Curtis Henderson Enterprise, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Alabama to employ
Barry A. Friedman & Associates, PC as counsel.
The firm will render these services:
(a) take appropriate action with respect to secured and
priority creditors;
(b) take appropriate action with respect to possible voidable
preferences and transfers;
(c) prepare on behalf of the Debtor necessary legal papers and
to try before the court whatever issues are deemed necessary;
(d) investigate the accounts of the Debtor and the financial
transactions related thereto; and
(e) perform all other legal services for the Debtor which may
be deemed necessary.
Barry Friedman, the primary attorney in this representation, will
be paid at his hourly rate of $350 plus expenses.
` `
Mr. Friedman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Barry A. Friedman, Esq.
Barry A. Friedman & Associates, PC
P.O. Box 2394
Mobile, AL 36652
Telephone: (251) 439-7400
About Curtis Henderson Enterprise
Curtis Henderson Enterprise, LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 24-12375) on
Sept. 19, 2024, listing under $1 million in both assets and
liabilities.
Judge Henry A. Callaway oversees the case.
Barry A. Friedman & Associates, PC serves as the Debtor's counsel.
DOUBLE M RANCH: Amends Several Secured Claims Pay
-------------------------------------------------
Double M Ranch & Farms, LLC, submitted a Modified Plan of
Reorganization dated September 15, 2024.
The Plan, as modified, relies on a Lease Agreement between the
Debtor and El Indio Energy, LLC which will fund the Debtor's Plan
going forward, providing for monthly rental payments of $15,000 per
month. The Debtor has deposited $35,000.00 with the Sub V Trustee
to be used for Plan purposes upon confirmation of the Modified
Plan.
The Debtor has also paid the priority secured claims of the taxing
entities such that Class 1 has been fully paid and paid the secured
claims of AJ Buildings the Class 2 claimholder, such that it has or
will release its claims. In addition, because claims were paid by
El Indio Energy, LLC, the Plan classifies El Indio Energy, LLC as a
subordinated claim to be paid after all unsecured claims are paid
in full.
Class 1 consists of the ad valorem tax claims of Maverick County
which have been paid in full through and include the 2023 ad
valorem taxes. The 2024 ad valorem taxes will be paid in full on or
before January 31, 2025. The ad valorem tax claims of Eagle Pass
ISD through and including the 2023 taxes, have been paid in full by
El Indio Energy, LLC. The 2024 ad valorem taxes will be paid on or
before January 31, 2025. The ad valorem tax claims have been paid
by El Indio Energy, LLC.
Class 4 consists of the secured claims to CNH Industrial Capital
America, LLC. The claim is secured by a 2019 Case IH 100C Tractor,
a 2020 Case IH DC-103 Round Bailer, a 2020 Case IH RB 465 Basket,
Mower Conditioner, and a 2021 Polaris Ranger 500. The Debtor
initially estimated CNH’s claim is in the amount of $100,000.00.
On July 8, 2022, CNH filed its secured Proof of Claim in the amount
of $99,884.21. On July 6, 2024, Williamson County Equipment Co.,
Inc. ("WCEC") filed a Proof of Claim in the amount of $101,145.44.
After communications with counsel for WCEC, the CNH note was full
recourse to WCEC, and a UCC-1 was filed transferring the security
interest of CNH to WCEC. Further, the Note was entered into between
Michael Hayes and CNH. The Debtor is not a maker or a guarantor on
the Note. The equipment is not owned by the Debtor. WCEC or CNH is
directed to pick up its collateral and pursue any claims against
Michael Hayes.
Class 5 consists of the secured claims of Hermosa Vista Ventures.
Hermosa may file a potential deficiency claim for the surrender
lots limited to the May 2022 Note payments and the legal fees
related to the lift stay Motion. Based upon the equity in the
tracts surrendered, Debtor will oppose any deficiency claim
asserted by Hermosa. The Debtor agreed to repay Hermosa on the 322
acre and 95 acre tracts as follows:
* Principal and interest on the 322 acre tract is $797,124.76
as of the confirmation hearing to be paid over 300 months at eight
percent interest or $6,152.33 through equal monthly payments;
* Principal and interest on the 95 acre tract is $253,756.79
as of the confirmation hearing to be paid over 300 months at eight
percent interest or $1,958.53 through equal monthly payments.
The Debtor fell behind on its payments to Hermosa since
confirmation of the Plan on December 7, 2022. The Debtor is in
arrears to Hermosa in the amount of $40,932.47 through July 31,
2024. The arrearage to Hermosa will be cured as follows: $40,932.47
will be paid in full on or before the confirmation of this Modified
Plan. The normal monthly payments in the amount of $8,110.81 will
restart in October 2024 and continue monthly thereafter.
El Indio Energy, LLC made a payment in the amount of $35,000.00 to
Michael G. Colvard with the amount of $20,000.00 of the cure to
Hermosa Vista, and other creditors under the Plan, but such amount
remains with Michael G. Colvard until such time as directed to
distribute funds. El Indio Energy, LLC directly paid Hermosa Vista
$20,000 in the month of August 2024 to cure defaults under the
Plan. Accordingly, upon confirmation of the Modified Plan, the
amounts proposed herein will be paid to Hermosa on such date.
Release of Hermosa: Debtor shall provide Hermosa, its affiliates,
subsidiaries, agents, professionals, and attorneys, with a full
release of any and all claims/defenses, known or unknown, related
to the Notes as of the Effective Date of the Plan.
Class 9 consists of the secured claims of Hemmen Associates, Inc.
and Cuatro Field Services, LLC are to be treated as secured
creditors. Both creditors filed secured claims as follows: Hemmen
Associates, Inc. on July 8, 2022 in the amount of $48,484.52, plus
attorney's fees in an amendment to its claim in the total amount of
$5,932.81, for a total claim in the amount of $54,416.33 and Cuatro
Field Services, LLC on July 8, 2022 in the amount of $89,709.32,
plus attorney's fees in an amendment to its claim in the total
amount of $9,650.25, for a total claim in the amount of
$99,359.57.
Under the terms of the Confirmation Order these two claims were
required to be treated as fully secured creditors and repaid as
follows: Year 1 ($3,000.00) quarterly payments; years 2-3
($4,500.00) quarterly payments; year 4 and thereafter ($5,500.00)
quarterly payments until the end of five years. Interest is accrued
at the amount of five percent from confirmation for the initial
five-year period. The payments were begun on the first day of the
month following the Effective Date of the Plan. At the end of five
years, the balance due to Hemmen and Cuatro would be due in full
(balloon payment).
The Debtor defaulted in the payment of these claims as of the
fourth quarter of year two, and currently believes it owes
$13,500.00 in payments to Henmen and Cuatro. The Debtor or El Indio
Energy, LLC will pay such amounts, after confirming the balance
due, and the third quarter payment of $4,500, at the confirmation
of this plan, and will pay attorney's fees in an amount agreed to
based on invoices from Henmen and Cuatro's attorney. Henmen
Associates, Inc. and Cuatro Field Services, LLC both agree to cease
any and all future collection activities of any type against any
and all parties as long as the Debtor remains current under the
payment obligations set forth herein.
Like in the prior iteration of the Plan, the allowed unsecured
claims will be paid 100% of their claim through equal annual
payments on a pro rata basis, over a five-year term, with interest
at the rate of two percent. The estimated amount of the unsecured
creditors' claims is in the amount of $6,432.00.
The obligations under the Modified Plan will be funded by the
operation of the Reorganized Debtor's business. Presently, the
Debtor has entered into a lease with El Indio Energy, LLC, which
will generate $15,000.00/month and fully fund the Debtor's Plan.
The Debtor will also attempt to market and sell a portion of its
real property and may explore other options to generate funds to
pay Plan obligations.
A full-text copy of the Modified Plan dated September 15, 2024 is
available at https://urlcurt.com/u?l=rQTNuI from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
David D. Ritter, Esq.
Ritter Spencer Cheng PLLC
15305 Dallas Parkway, 12th Floor
Addison, TX 75001
Telephone: (214) 295-5078
Facsimile: (214) 329-4362
Email: dritter@ritterspencercheng.com
About D Double M Ranch & Farms
Double M Ranch & Farms LLC, a Texas-based family owned and operated
cattle ranch and agricultural farm, sought Chapter 11 bankruptcy
protection (Bankr. W.D. Tex. Case No. 22-50462) on May 2, 2022. In
the petition signed by Michael L. Hayes, managing member, the
Debtor disclosed up to $50,000 in estimated assets and up to
$100,000 in estimated liabilities.
Judge Craig A. Gargotta oversees the case.
David D. Ritter, Esq., at Ritter Spencer Cheng PLLC, is the
Debtor's counsel.
DRIP MORE: Seeks to Hire Lighthouse Consultants as Bookkeeper
-------------------------------------------------------------
Drip More, LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ Lighthouse Consultants
Inc. as its bookkeeper.
The firm will provide these bookkeeping clean up services:
(a) review credit card reconciliations;
(b) review bank reconciliations;
(c) prepare and review reconciliations for 11 loan accounts;
(d) reconcile payroll, sales, and rent against various filings
and agreements with the books;
(e) utilize 2020 retained earnings as reported on the tax
return as the starting balance, without adjustments to 2020 or
prior periods;
(f) review and update fixed assets based on book and tax
return data; and
(g) provide year-end balance statements for inventory,
accounts payable, accounts receivable, rent expeses, lease
agreements, payroll year-end forms, and sales tax forms.
The firm will be paid a flat fee of $15,000 for bookkeeping clean
up service and $9,000 flat fee for tax return preparation.
Chris Yau, a certified public accountant at disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Chris Yau, CPA
Lighthouse Consultants Inc.
511 South 1st Ave., Ste. C
Arcadia, CA 91006
Telephone: (626) 447-5342
Facsimile: (626) 462-9693
Email: chrisy128@lighthouse-cpa.com
About Drip More
Drip More LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-11703) on July 5, 2024. In the
petition filed by Brian Bereber, managing member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Scott C. Clarkson oversees the case.
The Debtor tapped Roksana D. Moradi-Brovia, Esq., at RHM Law LLP as
bankruptcy counsel; Steven J. Mirsky, Esq., at Mirsky Corporate
Advisors as special counsel; and Chris Yau, CPA, at Lighthouse
Consultants Inc. as bookkeeper.
EIG MANAGEMENT: S&P Affirms 'BB' ICR, Outlook Stable
----------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on EIG
Management Co. LLC and maintained the stable outlook. At the same
time, S&P affirmed its 'BB' rating on the company's term loan due
2029 and revised the recovery rating to '3' from '4'. The '3'
recovery rating indicates its expectation of meaningful (50%-70%;
rounded estimate: 60%) recovery in the event of a default.
S&P said, "In the near term, we expect earnings to grow, on
average, 2%-5% in 2024 and 2025 from 2023, but with the potential
for wider annual swings due to EIG's small and concentrated AUM.
By strategy, we expect strength in EIG's Strategic Income platform
and stability in its Direct Lending platform to offset fee-related
revenue declines in some of its older vintage Flagship Funds that
are returning capital to investors."
EIG is actively fundraising. S&P said, "The rating affirmation
reflects our expectation that EIG will successfully achieve our
base-case fundraising targets, which will support future earnings
following deployment; we project that deployment will ramp up over
the next few years. We expect its Senior Infrastructure Debt Fund
VI, its Middle East Infrastructure Transition Platform, and its
Energy Transition Fund II to be strong contributors to assets under
management (AUM) over the next several quarters, as well as its
recently launched Fidra Energy battery and energy storage Strategic
Investment."
S&P said, "We expect this AUM growth to offset declines in
fee-paying AUM resulting from the transition of the FS Energy and
Power fund (managed by FS/EIG Advisor LLC) to a specialty lending
fund. The change is a departure from the fund's original focus on
energy investments, and it comes in response to weak investment
performance and the historical volatility of the energy sector.
That said, a significant portion of the fund's AUM will remain in
energy investments over the near term, and the joint venture
between FS Investments and EIG will continue to advise the fund."
However, the fund targets a liquidity event within three years of
the strategy change effective date (Sept. 29, 2023).
S&P said, "We expect leverage to decline to the low end of the
2.5x-3.5x range for the current rating by year-end 2025, but
interest coverage will be at the low end of the significant (3x-6x)
range. Lower leverage alone would likely not change our view of
EIG's creditworthiness. We take into consideration the company's
long-term, locked-up AUM and management-fee-centric earnings, which
allow visibility into revenue; its long investing record; and its
above-average margins." However, these strengths are offset by the
company's sole focus on energy investing, small size, reliance on a
few key funds, concentrated investor base, and mixed investment
performance.
Recovery rating improvement is due to the firm completing a portion
of its mandatory prepayments on the Term Loan B due 2029. As part
of the refinancing agreement in May 2024, EIG agreed to make $75
million (it has repaid about $21 million as of Oct. 15, 2024) of
mandatory prepayments by Dec. 31, 2025.
The stable outlook reflects S&P Global Ratings' expectation that
EIG will maintain leverage of 2.5x-3.5x over the next 12 months
while AUM and earnings remain stable.
S&P said, "We could downgrade EIG if its leverage rises above 3.5x,
owing to the issuance of debt or lower-than-expected cash balances
or earnings. We could also downgrade the company if its
profitability deteriorates meaningfully, if fundraising lags
expectations, or if prospects in the energy sector deteriorate.
"We consider an upgrade unlikely over the next 12 months. However,
over the longer term, we could upgrade EIG if it sustains leverage
comfortably below 2.5x while showing solid investment performance,
fundraising, and AUM growth."
EMPLOY SOURCE: Seeks to Tap Crane Simon Clar & Goodman as Counsel
-----------------------------------------------------------------
Employ Source, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ Crane, Simon, Clar
& Goodman as counsel.
The firm will render these services:
(a) prepare necessary legal papers;
(b) advise the Debtor with respect to its rights and duties
involving its property, as well as its reorganization efforts
herein;
(c) appear in court and litigate whenever necessary; and
(d) perform any and all other legal services that may be
required from time to time in the ordinary course of the Debtor's
business during the administration of this bankruptcy case.
The firm received an advance payment retainer of $25,000 from the
Debtor.
Scott Clar, Esq., an attorney at Crane, Simon, Clar & Goodman,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Scott R. Clar, Esq.
Crane, Simon, Clar & Goodman
135 S. LaSalle, Ste. 3950
Chicago, IL 60603
Telephone: (312) 641-6777
Email: sclar@cranesimon.com
About Employ Source
Employ Source, Inc. is a boutique employment solutions partner
offering custom back-office solutions. Its team of employment
specialists provides expertise in human resources, compliance,
benefits, risk management, payroll and taxes, and staffing. It is
based in Naperville, Ill.
Employ Source filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-14212) on
September 25, 2024, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. Joel S. Randazzo, president,
signed the petition.
Judge Janet S. Baer presides over the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman represents the
Debtor as counsel.
EVOKE PHARMA: Extends Lease for Solana Beach HQ to March 2027
-------------------------------------------------------------
Evoke Pharma, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on October 16, 2024,
the Company entered into the Seventh Amendment to Lease with SB
Corporate Centre III-IV, LLC to amend the Office Lease Agreement,
dated as of December 19, 2016, by and between the Landlord and the
Company relating to office space located at 420 Stevens Avenue,
Suite 230, Solana Beach, California, which serves as the Company's
headquarters.
The Seventh Amendment extends the term of the Lease from October
31, 2024 to March 31, 2027. The Seventh Amendment provides that the
base monthly rent for the leased space will be $6,456.95 from
November 1, 2024 to October 31, 2025, $6,650.66 from November 1,
2025 to October 31, 2026 and $6,850.18 from November 1, 2026 to
March 31, 2027, and that the Company will be obligated to pay a
specified percentage of certain expenses paid by the Landlord. The
Company will also be granted a one-month rent abatement for
November 2024, provided there is no material default under the
Lease.
About Evoke Pharma
Headquartered in Solana Beach, California, Evoke Pharma, Inc. --
http://www.evokepharma.com-- is a specialty pharmaceutical company
focused primarily on the development of drugs to treat GI disorders
and diseases. The company developed, commercialized, and markets
GIMOTI, a nasal spray formulation of metoclopramide, for the relief
of symptoms associated with acute and recurrent diabetic
gastroparesis in adults.
San Diego, California-based BDO USA, P.C., the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated March 14, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations since
inception. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
Evoke Pharma reported a net loss of $7.79 million for the year
ended Dec. 31, 2023, compared to a net loss of $8.22 million for
the year ended Dec. 31, 2022. As of June 30, 2024, the Company had
$12,136,215 in total assets, $9,471,257 in total liabilities, and
$2,664,958 in total stockholders' equity.
EXPERTUS HEALTH: To Sell Hospital Property to Braden Health
-----------------------------------------------------------
Expertus Health LLC seeks permission from the U.S. Bankruptcy Court
for the Western District of Tennessee, Eastern Division, to sell
hospital property located in Perry County, Tennessee, free and
clear of all liens or other interest in the Property.
The Debtor seeks to transfer its interest in the Hospital Property
to Braden Health, LLC for $500,000. The proceeds of the sale will
be used to fund the implementation of the proposed plan of
reorganization of the Debtor.
The Property for sale is a commercial building and:
-- 6.8 acres located at 2718 Squirrel Hollow Dr., Linden, TN;
-- 1.19 acres located on Hwy #13 South, Linden TN 37096 (Map
084 Parcel 014.11); and
-- 3.3 acres located on Airport Rd., Linden TN 37096,
which are all located in Perry County, Tennessee.
The Debtor is a single member Tennessee limited liability company.
Jason Weil is the single member of the Debtor, who also owns
Expertus Laboratories, LLC.
As additional consideration of the sale, Braden Health has agreed
to pay the Debtor $200,000 to purchase certain personal property
assets located on or in the Hospital Property.
In a March 15, 2024 appraisal, Larry Snyder, MAI, Director with VMG
Health, indicated that the fair market value of the Property ranges
from a low of $580,000.00 to a high of $700,000.00 and Jordan Home
Solutions, a certified mold inspector, has determined that the cost
to remediate the mold in hospital building will be $1,084,216.
The Property is the former location of Perry Community Hospital,
however, it has been closed for almost four years, and Braden
desires to purchase the Property and reopen the hospital facility.
The Sale excludes 9.6 acres located on Highway 13 South, Linden TN
37096 and referred to as Map 101 Parcel 044.04.
The Debtor says several entities have an interest in the Property
including NCE Enterprise Ltd., Braden Health, LLC, McKesson Medical
Surgical, Inc., Blue Cross Blue Shield, Perry County Trustee, and
the Town of Linden.
The Debtor further discloses that Braden Health has agreed to
negotiate with the lienholders and satisfy all liens against the
Property and the excluded Property.
About Expertus Health LLC
Expertus Health owns a commercial building & 6.8 acres located at
2718 Squirrel Hollow Dr., Linden, TN, valued at $1.74 million. The
Debtor also owns three other properties in Linden, TN valued at
$80,100.
Expertus Health, LLC in Linden, TN, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tenn. Case No. 23-11673) on
December 20, 2023, listing $1,959,712 in assets and $678,813 in
liabilities. Jason Weil as single member/CEO, signed the petition.
Judge Jimmy L. Croom oversees the case.
C. Jerome Teel, Jr., at TEEL & GAY, PLC, serves as the Debtor's
legal counsel.
FIRST QUANTUM: S&P Affirms 'B' Issuer Credit Rating, Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit and issue ratings
on Canada-headquartered copper miner First Quantum Minerals Ltd.
(FQM).
The negative outlook reflects that S&P could lower the ratings if
the delays at Cobre Panama mine extended beyond the first half of
2025 and no other counteraction measures are taken.
S&P said, "Although further delays to the resolution at Cobre
Panama mine are lowering the company's base case, we do not see
these as material enough to be reflected in a lower rating at this
point. The Cobre Panama mine remains closed with no clear
resolution reached on the re-opening. Following the presidential
elections in May 2024, the new Panamanian government has expressed
that the resolution of the mine is a key priority, and it will
likely get more attention starting early 2025. When negotiations
conclude, we expect it will take at least six months for the mine
to ramp-up. In addition, FQM earlier this year launched a formal
arbitration against the Panamanian government with two processes in
place: an International Chamber of Commerce (ICC) with Miami
courts, which has been initiated, and a Canada Panama free trade
agreement notice of intent. The hearing date for the ICC, where the
company is claiming US$20 billion in damages, is September 2025
with the expectation that a final ruling will take place shortly
after. The notice of intent in Washington courts must be filed
within three years of the events giving rise to damages. The
company has until November 2026 to formally commence this
arbitration process. The arbitration decision is final and cannot
be challenged. This creates a strong incentive for the Panamanian
government to reach a resolution or a roadmap to a resolution in
the coming months. As part of our base-case scenario, we expect
that an agreement would be reached, and the asset would remain part
of FQM's portfolio."
Potential minority asset sales in FQM's Zambian mines would provide
additional headroom through the current stagnation of the Cobre
Panama mine. In the first nine months of 2024, the company
delivered better-than-expected volumes and guided the market that
annual production would be at the upper bound of its guidance
(400-420 tons of copper). S&P said, "Together with elevated copper
prices and lower group copper C1 cash cost, we expect EBITDA of
about $1.4 billion. At the same time, the recent drought in Zambia
may lead to low power supply in the country. FQM has managed to
procure 40% of its current and forecasted electricity requirements
to 2025, with options to extend in case of further reductions to
power supply. We expect the disruptions to translate into higher
energy costs of about $55 million. FQM is advanced in discussions
with third parties regarding a minority sale of their Zambian
assets." The potential substantial amount will allow the company to
pursue its growth capital expenditures (capex) in the country,
repay some of its debt, and increase its overall cash position.
The refinancing exercise earlier this year bought the company ample
headroom. As of Sept. 30, 2024, the company's adjusted debt was
about $6.7 billion with a very comfortable maturity table, after
completing a major refinance and an equity issue ($1.15 billion) in
the first quarter of the year. For the current rating, we expect
FQM to post an adjusted debt to EBITDA of about 4x under our
medium-term price assumptions (of about $9,000/ton-$9,500/ton). S&P
said, "Under lower copper prices of about $7,000/ton, we expect the
company should maintain adjusted debt to EBITDA of about 5x for the
current rating. These thresholds assume that the company generates
limited free operating cash flow. We may ease the thresholds if the
company reduces its absolute debt level to the medium-term target.
We don't expect the company to meet those thresholds in 2024,
although it might meet them in 2025 depending on actual ramp up and
copper prices (before including any proceeds from the Zambian
assets)."
S&P said, "The negative outlook reflects that we could lower the
ratings if the delays at Cobre Panama mine extend beyond the first
half of 2025 and no other counteraction measures are taken.
"We may downgrade FQM in the next six to nine months if we consider
that the restart of production at Cobre Panama is unlikely or is
significantly delayed beyond the first half of 2025, leading to
longer periods of EBITDA and cash flow pressure, along with
increased leverage.
"We might change the outlook to stable if there is more certainty
regarding the Cobre Panama restart. We note that a completion of
minority stake divestment in Zambia is less likely to lead to a
change in the outlook while the situation in Panama remains
unchanged."
FOUR WIND: Amends Paccar Financial Secured Claims Pay
-----------------------------------------------------
Four Wind Trucking, Inc., submitted a First Amended Plan of
Reorganization for Small Business.
This First Amended Plan of Reorganization proposes to pay creditors
of the Debtor from future revenues generated by the Debtor's
business.
The Plan provides that all administrative creditors will be paid in
full on the Effective Date of the Plan (which is 30 days after the
Order confirming the Plan is a final Order) unless otherwise
agreed. Priority tax claims will receive 100% of their allowed
claims over the period of the Plan term (5 years). Secured
Creditors will be paid 100% of their secured claims under Class 1
of the Plan.
Class 2 general unsecured creditors will receive a pro rata share
of the Unsecured Creditor Payment over a period of 5 years, which
shall equal approximately 2% distribution on their claims. Class 3
Claims of Equity Holders will not receive a distribution unless all
other classes of creditors receive payment in full.
Class 1(c) consists of the Secured Claim of Paccar Financial Corp.
Paccar Financial Corp. asserts a claim against the Debtor's estate
in the amount of $87,278.98 (the "Paccar Claim"), secured by a lien
on (a) a 2020 Kenworth truck (Asset 47.3 in the Debtor's
Schedules); and (b) a 2020 Kenworth Truck (Asset 47.9 in the
Debtor's Schedules) (the "Paccar Collateral"). The Debtor intends
to retain the Paccar Collateral.
The Debtor shall pay Paccar the sum of $87,278.98 (the "Paccar
Secured Claim") over a period of 30 months in equal monthly
payments of principal and interest at 6.45% per annum, in the
amount of $3,150 per month. Monthly payments shall commence on the
15th day of the month following the Effective Date of the Plan, and
shall continue on the 15th date of each month thereafter until the
Paccar Secured Claim is paid in full.
If the Paccar Collateral is retained, Paccar shall retain its liens
on and security interest in the Paccar Collateral until its Secured
Claim, as modified by the Plan, is paid in full. The Debtor may
pre-pay the Secured Claim of Paccar at any time during the Plan
term without penalty. The Debtor shall timely make all of its
payments and continue to insure and maintain the Paccar Retained
Collateral. All of the provisions, requirements, terms and
conditions contained in the loan documents entered into between
Paccar and the Debtor (the "Paccar Loan Documents") shall remain in
effect unless expressly waived or amended herein. The Debtor shall
have 15 days to cure any default under the Plan after written
notice thereof of the alleged default.
The Debtor shall commence adequate protection payments to Paccar as
of June 15, 2024, with all adequate protection payments to be
applied against the Paccar Secured Claim upon confirmation of the
Plan. Adequate protection payments shall be $684 per month and
shall continue until the Plan is confirmed, at which time the
Debtor shall commence payments to Paccar under the Plan. Class 1(c)
is not impaired.
Class 1(e) consists of Secured Claims of Anchor Acceptance Corp.
The Debtor intends to retain the Anchor Collateral. The Debtor
maintains that the Anchor Collateral has a value of $70,000,
specifically, 2017 Timpte trailer valued at $28,000 and 2021 Wilson
trailer valued at $42,000. The Debtor shall pay Anchor the sum of
$27,884.28 (the "Anchor Secured Claim 1-1") over a period of 60
months in equal monthly payments of principal and interest at 7.95%
per annum, in the amount of $564.73 per month.
The Debtor shall pay Anchor the sum of $42,000 (the "Anchor Revised
Secured Claim 2-1") over a period of 60 months in equal monthly
payments of principal and interest at 7.95% per annum, in the
amount of $850.60 per month. Monthly payments shall commence on the
15th day of the month following the Effective Date of the Plan, and
shall continue on the 15th date of each month thereafter until the
Anchor Revised Secured Claims are paid in full. The remainders of
the Anchor Secured Claim 2-1s ($2813.51) shall be treated as Class
2 general unsecured claims ("Anchor Unsecured Claim").
The First Amended Plan does not alter the proposed treatment for
unsecured creditors and the equity holder:
* Class 2 consists of Allowed Unsecured Claims. Holders of
allowed unsecured claims shall receive a pro rata share of the
Unsecured Creditor Payments on an annual basis for a period of 5
years beginning on the 1st anniversary of the Effective Date of the
Plan, and continuing yearly for another 4 years. The Unsecured
Creditor Payments shall equal $25,000 in the aggregate and each
yearly payment shall be $5,000 for 5 payments. Based upon the
unsecured claims (which includes deficiency claims of secured
creditors), the estimated distribution to unsecured creditors is
2%. No distribution will be made for unsecured claims which were
(i) scheduled as disputed; and (ii) no timely proof of claim was
filed.
* Equity security holders shall retain their interests in the
Debtor. In addition, the principal of the Debtor will be entitled
to a salary for his work on behalf of the Debtor.
The Debtor proposes to pay creditors of the Debtor from future
revenues generated by the Debtor's business.
A full-text copy of the First Amended Plan dated September 13, 2024
is available at https://urlcurt.com/u?l=Z1ErZF from
PacerMonitor.com at no charge.
Counsel to the Debtor:
David Freydin, Esq.
Law Offices of David Freydin PC
8707 Skokie Blvd, Suite 312
Skokie, IL 60077
Tel: (847) 972-6157
Fax: (866) 897-7577
Email: david.freydin@freydinlaw.com
About Four Wind Trucking
Four Wind Trucking, Inc., was started in 2014 as a logistics family
business by husband and wife, Bogdan and Paulina Czernecki.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-04983) on April 5,
2024, with $579,000 in assets and $1,636,891 in liabilities. Bogdan
Czernecki, president, signed the petition.
Judge Donald R. Cassling presides over the case.
David Freydin, Esq., at the Law Offices of David Freydin, is the
Debtor's bankruptcy counsel.
FREE SPEECH: Court Wants Addt'l Clarity on Jones' Ch. 7 Asset Sales
-------------------------------------------------------------------
Vince Sullivan of Law360 reports that a Texas bankruptcy judge has
postponed a decision on a motion from the Chapter 7 trustee in Alex
Jones's bankruptcy case to proceed with selling certain estate
assets. The judge indicated he wants to determine whether the
involved parties expect further litigation regarding the trustee's
authority to conduct the asset sales.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FTX TRADING: Court OKs Multi-Million Settlement w/ Kroll, Emergent
------------------------------------------------------------------
On Oct. 18, 2024, Kroll, a leading global provider of financial and
risk advisory solutions, announced that the U.S. Bankruptcy Court
in Delaware has approved a multi-million dollar settlement between
the liquidators of Emergent Fidelity Technologies, Ltd. and the FTX
Estate. The settlement enables the recovery of 56 million shares in
Robinhood Markets, Inc., which were acquired by Emergent in May
2022.
Emergent, an Antiguan company controlled by former FTX executives
Sam Bankman-Fried and Zixiao "Gary" Wang, had its liquidators,
Angela Barkhouse and Toni Shukla of Kroll, appointed as Receivers
to prevent assets from being sold and inaccessible to victims of
Bankman-Fried's fraudulent scheme. The U.S. Department of Justice
(DOJ) seized control of the assets, and Kroll's liquidators
collaborated with the DOJ to repurchase the shares, securing over
$626 million for the victims of the FTX fraud.
This settlement is part of the ongoing efforts to recover assets
for the victims of Bankman-Fried's fraudulent scheme.
"The settlement is a significant step in the liquidation of
Emergent Fidelity Technologies, Ltd., providing a fair and
efficient resolution for all parties. It underscores our commitment
to maximizing value and aims to resolve outstanding claims and
facilitate the equitable distribution of assets to creditors," said
Angela Barkhouse, Head of Offshore Restructuring at Kroll.
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: Reaches $228 Million Lawsuit Settlement w/ Bybit
-------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that FTX Trading Ltd. has agreed
to settle extensive litigation with Bybit Fintech Ltd. and its
affiliates in a deal valued at around $228 million, allowing FTX to
retrieve assets from Bybit's cryptocurrency exchange.
On Thursday, FTX requested approval from the U.S. Bankruptcy Court
in Delaware for the settlement, which followed months of
negotiation. The deal allows FTX's estate to recover $175 million
in digital assets held on Bybit's platform and to sell BIT tokens
to Mirana Corp., Bybit's investment arm, for roughly $53 million.
FTX initially filed the lawsuit last year, alleging that Mirana had
used special access to withdraw $327 million from Sam
Bankman-Fried’s platform before its collapse in November 2022,
while other users faced restrictions.
Under the agreement, parties that withdrew funds just before
FTX’s bankruptcy will receive creditor claims amounting to 75% of
their account balance as of the filing date, resulting in
"significant net savings for the debtors' estates," according to
FTX.
"The Settlement Agreement allows the Debtors to secure nearly all
they aimed to recover, ensuring a substantial return for
stakeholders without the expense and risk of further litigation or
enforcing an international judgment," FTX stated in its filing.
This settlement is one of several arranged by CEO John J. Ray III,
who took control of FTX and its entities after their bankruptcy
declaration two years ago. FTX recently gained court approval to
initiate a wind-down plan, promising to distribute at least $12.6
billion to customers with trapped digital assets.
FTX is represented by Sullivan & Cromwell LLP and Landis Rath &
Cobb LLP, while the defendants are represented by Norton Rose
Fulbright US LLP, Cooley LLP, Saul Ewing LLP, and Herbert Smith
Freehills LLP.
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.
FULL HOUSE: Seeks to Tap Alexis Fuentes-Hernandez as Legal Counsel
------------------------------------------------------------------
Full House Development, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez, Esq., an attorney practicing in San Juan,
Puerto, to handle its Chapter 11 case.
The attorney will be paid at his hourly rate of $250 plus
reimbursement for expenses incurred.
The attorney also received a retainer of $15,000.
Mr. Fuentes-Hernandez disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Alexis Fuentes-Hernandez, Esq.
P.O. Box 9022726
San Juan, PR 00901
Telephone: (787) 722 5216
Facsimile: (787) 722 5206
Email: fuenteslaw@icloud.com
About Full House Development
Full House Development, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04515) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $700,000 in
assets and $45,229,691 in liabilities.
Judge Edward A. Godoy oversees the case.
Alexis Fuentes-Hernandez, Esq., represents the Debtor as counsel.
GLOBAL WOUND: Gets Approval to Hire Verita Global as Claims Agent
-----------------------------------------------------------------
Global Wound Care Medical Group received approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Kurtzman Carson Consultants, LLC, doing business as Verita Global,
as its claims, noticing and solicitation agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtor's Chapter 11 case.
The firm will receive an advance payment in amount of $35,000 from
the Debtor.
Evan Gershbein, an executive vice president at Verita Global,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Evan Gershbein
Verita Global
222 N. Pacific Coast Highway, 3rd Floor
El Segundo, CA 90245
Telephone: (310) 823-9000
Facsimile: (310) 823-9133
Email: egershbein@kccllc.com
About Global Wound Care Medical Group
Global Wound Care Medical Group sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34908) on
Oct. 21, 2024. In the petition signed by Owen B. Ellington, M.D.,
president, the Debtor disclosed up to $500 million in both assets
and liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Casey W. Doherty, Jr., Esq., at Dentons US LLP serves as the
Debtor's counsel. Verita Global is the Debtor's notice, claims, and
balloting agent.
GOL LINHAS AEREAS: Parent Closes $1.25B Refinancing in Ch.11
------------------------------------------------------------
Yun Park of Law360 reports that Abra Group Limited, the parent
company of Avianca and GOL Linhas Aéreas Inteligentes, announced
it has completed $1.25 billion in refinancing transactions to
address the financial defaults associated with GOL's Chapter 11
filing earlier in 2024.
About Gol GOLL4.SA
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring Administration
LLC is the claims agent.
GOLDEN TRIANGLE: Seeks to Hire Alexis Fuentes-Hernandez as Counsel
------------------------------------------------------------------
Golden Triangle Realty, SE seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez, Esq., an attorney practicing in San Juan,
Puerto, to handle its Chapter 11 case.
The attorney will be paid at his hourly rate of $250 plus
reimbursement for expenses incurred.
The attorney also received a retainer of $15,000.
Mr. Fuentes-Hernandez disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Alexis Fuentes-Hernandez, Esq.
P.O. Box 9022726
San Juan, PR 00901
Telephone: (787) 722 5216
Facsimile: (787) 722 5206
Email: fuenteslaw@icloud.com
About Golden Triangle Realty
Golden Triangle Realty, S.E. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04514) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $19,811,659 in
assets and $47,255,382 in liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
Alexis Fuentes-Hernandez, Esq., represents the Debtor as counsel.
GOLDENROD LLC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Goldenrod LLC
6932 Grenville Ave #150
Dallas, TX 75231
Business Description: Goldenrod LLC is the fee simple owner of
two properties in Texas having a total
current value of $1 million.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-33392
Debtor's Counsel: Robert T. DeMarco, Esq.
DEMARCO MITCHELL, PLLC
12770 Coit Road, Suite 850
Dallas TX 75251
Tel: (972) 991-5591
Email: robert@demarcomitchell.com
Total Assets: $1,001,033
Total Liabilities: $587,876
The petition was signed by Daniel Ghebreyohannes as managing
member.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/DBMTTSI/Goldenrod_LLC__txnbke-24-33392__0001.0.pdf?mcid=tGE4TAMA
GOLF CARTS: Unsecureds to Split $15K in Consensual Plan
-------------------------------------------------------
Golf Carts On Line, Inc., filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Plan of Reorganization dated
September 13, 2024.
The Debtor is a Florida corporation that was formed in 2008. The
Debtor sells and services new and used golf carts.
The Debtor obtained a loan from the SBA in 2022 and then obtained
several merchant cash advance loans in 2022 and 2023. Due to a
downturn in business in 2023 the Debtor has been unable to pay the
loans to the SBA and the merchant cash advances. Several of the
merchant cash advance lenders have initiated collection actions,
including the filing of lawsuits against the Debtor in out of state
jurisdictions.
The Debtor's Projected Disposable Income is $14,409.
Class 2 consists of Allowed Unsecured Claims. This Class is
impaired.
* Consensual Plan Treatment: In full satisfaction of the
Allowed Class 2 Claims, each Holder of an Allowed Class 2 Claim
shall receive a pro rata share of $15,000.00. Payments will be made
in twelve equal quarterly payments of $1,250.00. Payments will
commence on the later of the 15th day of the month following the
Effective Date or the 15th day of the month after all objections to
claims have been resolved.
* Nonconsensual Plan Treatment: The Debtor's Projected
Disposable Income is $14,404.68 and the liquidation value of the
Debtor's assets is $0. If the Plan is confirmed as a nonconsensual
plan, then holders of Allowed Class 2 Claims will receive a Pro
Rata Share of $14,404.68 Payments will be made in twelve equal
quarterly payments of $1,200.39. Payments shall commence on the
later of the 15th day of the month following the Effective Date or
the 15th day of the month after all objections to claims have been
resolved.
Class 3 consists of Allowed Equity Claims. Holders of Allowed
Interests shall retain their full equity interest in the same
amounts, percentages, manner and structure as existed on the
Petition Date. No distributions will be made to holders of Allowed
Interests unless and until the holder of Allowed Class 1 Claims
have been paid in full.
The liability for and obligation to make the distributions required
under the Plan shall be assumed by the Debtor. Pursuant to Section
1190(2) of the Bankruptcy Code, the Plan commits all of that
Disposable Income to the payments under the Plan.
A full-text copy of the Plan of Reorganization dated September 13,
2024 is available at https://urlcurt.com/u?l=2VONBH from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Kenneth D. Herron, Jr., Esq.
HERRON HILL LAW GROUP, PLLC
Orlando, Florida 32802
Telephone: (407) 648-0058
Email: chip@herronhilllaw.com
elizabeth@herronhilllaw.com
About Golf Carts On Line
Golf Carts On Line, Inc., is a Florida corporation that was formed
in 2008. The Debtor sells and services new and used golf carts.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03018) on June 16,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Lori V. Vaughan presides over the case.
Kenneth D. Herron, Jr. Esq., at Herron Hill Law Group, PLLC, is the
Debtor's legal counsel.
GREELEY FLATS: Trustee Seeks to Tap Colliers as Real Estate Broker
------------------------------------------------------------------
Bryan Perkinson, the trustee appointed in the Chapter 11 case of
Greeley Flats, DST, seeks approval from the U.S. Bankruptcy Court
for the District of Colorado to employ Colliers, Bennet &
Kahnweiler, Inc., doing business as Colliers Denver, and in
conjunction with Colliers International AZ, LLC as real estate
broker.
Colliers will render these services:
(a) list and market the Debtor's property for sale as a seller
agent of the trustee;
(b) prepare confidential informational memoranda and marketing
materials regarding the property, and such other information as may
be appropriate for distribution to potential purchasers;
(c) assist the trustee in developing and managing a due
diligence process;
(d) assist the trustee in identifying and screening potential
buyers on a confidential basis and reviewing such list with the
trustee on an on-going basis;
(e) coordinate the execution of confidentiality agreements for
potential buyers wishing to review the information memorandum
and/or data room materials;
(f) solicit competitive offers from potential buyers of the
property;
(g) coordinate discussions with an arranging and participating
in meetings with potential buyers;
(h) assist in soliciting and evaluating offers from potential
buyers under any court approved bidding procedures;
(i) advertise and promote the sale of the property and provide
to owner periodic status updates;
(j) coordinate physical site visits for interested buyers;
and
(k) participate in conferences with the trustee and his
professionals to advise and assist him on all matters relating to a
potential sale, and for court appearances and provide testimony in
furtherance and support of a sale of the property, to the extent
necessary.
The firm will receive a commission of 2 percent of the property's
gross sale price.
Craig Stack, a senior vice president at Colliers Denver, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig Stack
Colliers, Bennet & Kahnweiler, Inc.
1200 17th Street, Suite 650
Denver, CO 80202
Telephone: (720) 833-4602
Email: craig.stack@colliers.com
About Greeley Flats
Greeley Flats, DST, filed a Chapter 11 bankruptcy petition (Bankr.
D. Colo. Case No. 24-11573) on April 3, 2024. At the time of
filing, the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge Kimberley H. Tyson oversees the case.
The Debtor tapped Tucker Ellis LLP as counsel.
On September 23, 2024, the Court appointed Bryan Perkinson as the
Chapter 11 trustee in this bankruptcy case.
HAGEN CONSTRUCTION: Seeks to Hire Thomas M. Wilson as Accountant
----------------------------------------------------------------
Hagen Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Oregon to employ Thomas M. Wilson EA,
Accounting & Tax as its accountant.
The firm's services include:
(a) give the Debtor accounting and tax advice with respect to
its duties in the operation of its business; and
(b) log, create, and publish financial statements, budgets and
other financial data from the Debtor's Deposit Account records.
The firm will be paid at these hourly rates:
Thomas Wilson, CPA $240
Accounting and Bill Pay Services $150
Mr. Wilson disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Thomas M. Wilson, CPA
Thomas M. Wilson E.A., Accounting & Tax
1241 S.E. Bay Blvd.
Newport, OR 97365
Telephone: (541) 265-8431
About Hagen Construction
Hagen Construction, LLC sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ore. Case No. 24-62115) on September 20,
2024, listing under $1 million in both assets and liabilities.
Judge Peter C. McKittrick oversees the case.
The Debtor tapped Holbrook Law LLC as counsel and Thomas M. Wilson
E.A., Accounting & Tax as accountant.
HDC HOLDINGS: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of HDC
Holdings II, LLC and its affiliates.
The committee members are:
1. The Recon Group LLP
Attn: Som Mukherjee
20200 W. Dixie Hwy #1005
Aventura, FL 33180
Phone: 754-236-5596
Email: smukherjee@gotrg.com
2. Minglewood Properties, Ltd.
Attn: Steve B. Carlile
P.O. Box
Marshall, TX 75671
Phone: 903-407-5723
Email: steve@stevebc.com
3. Academy Sports & Outdoors, Inc.
Attn: Dani Sanchez,
1800 North Mason Road
Katy, TX 77449
Phone: 281-944-6810
Email: dani.sanchez@academy.com
4. Nordstrom, Inc.
Attn: Greg Underwood
1600 7th Avenue #2500
Seattle, WA 9801
Phone: 503-453-3088
Email: greg.underwood@nordstrom.com
5. Concord USA LLC
Attn: Renee Siegel
509 2nd Avenue S
Hopkins, MN 55343
Phone: 917-653-4651
Email: renee.siegel@concordusa.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About HDC Holdings
HDC Holdings II, LLC, and its affiliates are providers of secondary
merchandise which serves a loyal customer base of treasure hunters
and value seekers in underserved secondary and tertiary retail
markets. The Debtors' brands include Dirt Cheap, Treasure Hunt,
and Dirt Cheap Building Supplies. Through these business lines,
the Debtors sell a variety of merchandise, including apparel and
footwear, building supplies, toys and electronics, furniture,
seasonal items, and health and beauty products, among others. The
Company focuses on addressing the retail needs of its consumer
customers through wholesale brick and mortar retail locations
located throughout the southern United States, primarily in
Mississippi and Louisiana.
In early September 2024, the Debtors retained Mosaic as turnaround
advisors and Young Conaway Stargatt & Taylor, LLP as restructuring
counsel. Shortly thereafter, Jeffrey Martin was appointed CRO.
HDC Holdings II LLC and its affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-12307) on Oct. 10, 2024. In the petition filed by Jeffrey
Martin, as chief restructuring officer, HDC Holdings estimated
assets and liabilities between $100 million and $500 million each.
Young Conaway Stargatt & Taylor, LLP is the bankruptcy counsel.
Epiq is the claims agent.
HILLCREST FUND: Unsecureds Will Get 100% of Claims in Sale Plan
---------------------------------------------------------------
Hillcrest Fund, LLC filed with the U.S. Bankruptcy Court for the
Central District of California a Disclosure Statement describing
Chapter 11 Plan dated September 16, 2024.
The Debtor is a California Liability Company established in 2022.
The only asset of the Company is real property located at 1053
North Hillcrest Road, Beverly Hills, CA 90210.
Hillcrest Fund LLC was established in 2022 by Jeff Javidzad and his
spouse based on the requirement of the secured lender NK Studio
City as the basis for the refinance of the subject property. Mr.
Jeff Javidzad and his wife have owned the subject property for over
15 years. Debtor made payments to the lender but fell behind when
Mr. Javidzad had some financial difficulties with his income.
The Debtor has tried unsuccessfully to extent the term of the loan
or obtain a new loan to refinance the loan with NK Studio City,
which is already matured. The lender initiated a foreclosure
process against the subject property and Debtor sought protection
of bankruptcy laws to stop the public auction scheduled.
The Debtor has one real property known as 1053 N Hillcrest Road,
Beverly Hills, CA 90210. Debtor's initial schedules had an
estimated value of $12,000,000.00. After consultation with real
estate professionals, the debtor has listed the property for sale
at $10,500,000.00. Debtor believes that the listed price will
facilitate a quick sale and will also seek overbids in any motion
for sale of real property that will be brought before this court.
Before the filing on the instant case, debtor spent a considerable
amount of time and resources in attempting to reorganize the debt
on its real property. The debtor's principal knows that the only
viable option at this time is to sell its real property in order to
preserve the equity that the property has gained and has begun the
process to put it up for sale and will request the necessary
authorizations from the court to be able to achieve this and be
able to pay all its obligations in a short term.
Class 4 consists of General Unsecured Claims. The Debtor's
unsecured debt is a claim from Franchise Tax Board (FTB) in the
amount of $585.93 as FTB proof of claim number 1-1 filed on
September 6, 2024. The allowed unsecured claims total $585.93. This
class shall be paid in full on the Effective Date. This Class will
receive a distribution of 100% of their allowed claims.
The interest holder, Debtor Hillcrest Fund, LLC. will retain Its
share ownership interest in the property but will not receive any
distributions, dividends, or payments with respect to its share
ownership interest until all payments have been made by the Debtor
on the Plan with respect to Class 3 and 4.
The Plan will be funded by the proceeds of the sale of the Debtor's
property.
A full-text copy of the Disclosure Statement dated September 16,
2024 is available at https://urlcurt.com/u?l=o799uV from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Onyinye N. Anyama, Esq.
Anyama Law Firm, A Professional Corporation
18000 Studebaker Road, Suite 325
Cerritos, CA 90703
Tel: (562) 645-4500
Fax: (562) 645-4494
Email: info@anyamalaw.com
About Hillcrest Fund
Hillcrest Fund, LLC, is a California Liability Company established
in 2022.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal.
Case No. 24-15607) on July 16, 2024. At the time of filing, the
Debtor estimated up to $50,000 in both assets and liabilities.
Judge Barry Russell presides over the case.
The Debtor hires Anyama Law Firm, A Professional Corporation as
bankruptcy counsel.
HORIZON INTERIORS: Unsecureds Will Get 20% of Claims over 5 Years
-----------------------------------------------------------------
Horizon Interiors, LLC, filed with the U.S. Bankruptcy Court for
the District of Massachusetts a Plan of Reorganization dated
September 13, 2024.
The Debtor operates an interior renovation and remodeling business
headquartered in Woburn, Massachusetts. The Debtor provides
interior construction and renovation services for commercial,
multifamily residential and assisted living facilities in and
around Eastern and Central Massachusetts.
The Debtor is managed by its majority member, Valentino Pitta, Jr.
The Debtor's minority member, Linda Pitta also works part-time for
the Debtor. In addition to Mr. and Mrs. Pitta, the Debtor currently
has five other employees. The Debtor also utilizes subcontract
labor for specialized services such as plumbing, heating and air
conditioning.
The loss of access to funds and continued business with
Willowbridge caused the Debtor to fall yet further behind on its
debt obligations and left it with insufficient operating capital
and no available credit. By May 2024, the Debtor determined that
seeking bankruptcy protection and reorganizing under Chapter 11 was
the only way for the Debtor to continue operating.
The Plan will be funded from the Debtor's cash on hand as of the
Effective Date of this Plan, from funds owed to it by Willowbridge
and from its future operating income. The Plan provides for payment
in full of the secured claims of the Align Credit Union and the
U.S. Small Business Administration and payment of priority claims
in equal monthly installments before June 16, 2029.
Finally, General Unsecured Claims shall be paid pro-rata dividend
of 20% to be paid in quarterly installments over a five-year period
beginning on the Effective Date of the Plan. The Debtor's
principals, Valentino Pitta, Jr. and Linda Pitta will retain their
equity interest in the Debtor.
Class 5 consists of General Unsecured Claims. The Debtor has
identified General Unsecured Claims totaling $471,825.96, including
the unsecured portion of Fox and Paldino's Claim. General unsecured
claims will receive a total payment of 20% of their claims.
Payments will be made quarterly on a pro-rata basis over a
five-year period beginning on the Effective Date. This Class is
impaired.
Class 7 consists of the Debtor's equity holders Valentino M. Pitta
and Linda Pitta. Mr. Pitta holds a 99% membership interest in the
Debtor and Mrs. Pitta holds the remaining l%. Mr. and Mrs. Pitta
will retain their ownership interest in the Debtor following
confirmation of the Plan and Mr. Pitta will continue in his role as
the Debtor's manager. This Class is unimpaired.
The Plan will be funded by the Debtor's cash on hand and its
anticipated future revenue as reflected in the Statement of
Financial Projections attached to this Plan. The Debtor anticipates
it will have approximately $50,000.00 cash on hand by the Effective
Date of the Plan.
A full-text copy of the Plan of Reorganization dated September 13,
2024 is available at https://urlcurt.com/u?l=fniQXQ from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Marques Lipton, Esq.
Lipton Law Group, LLC
945 Concord Street
Framingham, MA 01701
Telephone: (508) 202-0681
Email: marques@liptonlg.com
About Horizon Interiors
Horizon Interiors, LLC, operates an interior renovation and
remodeling business headquartered in Woburn, Massachusetts.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 24-11196) on June 17,
2024, with as much as $1 million in both assets and liabilities.
Stephen Darr of Huron Consulting Group serves as Subchapter V
trustee.
Judge Janet E. Bostwick oversees the case.
Marques Lipton, Esq., at Lipton Law Group, LLC, is the Debtor's
legal counsel.
HOT CRETE: Seeks to Extend Plan Exclusivity to November 6
---------------------------------------------------------
Hot Crete LLC asked the U.S. Bankruptcy Court for the Western
District of Texas to extend its exclusivity periods to file a plan
of reorganization and obtain acceptance thereof to November 6, 2024
and January 6, 2025, respectively.
Since the prior extension the Debtor, through its broker, has
liquidated most but not all of the assets and expects to have that
process completed shortly. Once those items are liquidated, they
will make up the bulk of the assured funds of the Debtor's estate.
The Debtor believes that a liquidating plan should and will be
approved in this matter. The controlled management of the assets of
the Debtor will unquestionably result in a more equitable higher
return to creditors than a liquidation of the Debtor under Chapter
7 or otherwise. Exclusivity to confirm a plan currently expires on
October 7. The Debtor seeks additional time to negotiate the terms
of a plan which will impact the insurance payout ratios, timing,
speed, and means of implementation.
The Debtor believes the relevant factors weigh in favor of
extending exclusivity.
* First, the Debtor has been progressing towards in this
bankruptcy case in good faith and proceeding towards an equitable
resolution in favor of all known constituents. The Debtor has been
communicating with its creditors and has begun the plan drafting
process.
* Second, the Debtor is paying its debts as they come due.
* Third, the Debtor believes it has reasonable prospects for
confirming a viable plan.
* Fourth, this is the Debtor's second request and the case has
only been pending for 189 days.
* Fifth, the Debtor is not filing the instant Motion as a
means of pressuring any creditors.
* Sixth, and most importantly, the Debtor seeks this extension
to allow time to negotiate with various constituents that will be
instrumental in presenting a plan with a process designed to
provide the most equitable recovery to the high number of
homeowners, as opposed to a first in time exhaustion of the
insurance policies. Accordingly, the Debtor believes the
exclusivity period should be extended.
Hot Crete LLC is represented by:
Todd Headden, Esq.
Charlie Shelton, Esq.
HAYWARD PLLC
7600 Burnet Road, Suite 530
Austin, TX 78757
Phone: (737) 881-7100
Email: theadden@haywardfirm.com
cshelton@haywardfirm.co
About Hot Crete LLC
Hot Crete LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10303) on
March 22, 2024, listing $1,000,001 to $10 million in both assets
and liabilities. The petition was signed by Edgar Castro as
president.
Todd Brice Headden, Esq. at Hayward PLLC, is the Debtor's counsel.
INFINERA CORP: To Receive $93-Mil. in CHIPS Act Funding
-------------------------------------------------------
Infinera and the U.S. Department of Commerce have signed a
non-binding preliminary memorandum of terms for the company to
receive up to $93 million in direct funding as part of the
bipartisan CHIPS and Science Act. This proposed direct funding,
when combined with investment tax credits available under the CHIPS
and Science Act, could result in more than $200 million in total
federal incentives as well as potential state and local
incentives.
This proposed funding would support the expansion and modernization
of both Infinera's semiconductor capabilities in Silicon Valley,
California and its advanced test and packaging capabilities in
Lehigh Valley, Pennsylvania, increasing the company's existing
domestic manufacturing capacity by an estimated factor of ten.
Combined proposed funding for these two projects could create up to
1,700 manufacturing and construction jobs while strengthening
America's supply chain, economic and national security.
"We are grateful for the bipartisan efforts under the CHIPS and
Science Act to increase semiconductor fabrication and packaging in
the U.S. and protect our national and economic security," said
David Heard, Infinera CEO. "The proposed CHIPS funding will enable
us to better secure our supply chain and compete more effectively
with foreign adversary nations. Our unique photonic semiconductors
address the increased demand for bandwidth from consumers while
opening new markets inside the data center driven by the explosive
growth in AI workloads."
Infinera's award of the proposed CHIPS funding would not have been
possible without bipartisan support and partnerships with local,
state and federal officials. This support is instrumental to the
long-term success of these projects and the growth of advanced
manufacturing in the U.S.
About Infinera Corp.
Headquartered in Sunnyvale, Calif., Infinera Corp. --
www.infinera.com -- is a semiconductor manufacturer and global
supplier of networking solutions comprised of networking equipment,
optical semiconductors, software and services. The Company's
portfolio of solutions includes optical transport platforms,
converged packet-optical transport platforms, compact modular
platforms, optical line systems, coherent optical engines and
subsystems, a suite of automation software offerings, and support
and professional services. Leveraging its U.S.-based compound
semiconductor fabrication plant and in-house test and packaging
capabilities, the Company designs, develops and manufactures indium
phosphide-based photonic integrated circuits for use in its
vertically integrated, high-capacity optical communications
products.
Infinera reported a net loss of $25.21 million for the year ended
Dec. 30, 2023, compared to a net loss of $76.04 million for the
year ended Dec. 31, 2022. As of June 29, 2024, Infinera had $1.52
billion in total assets, $604.45 million in total current
liabilities, $660.42 million in long-term debt, $14.52 million in
long-term accrued warranty, $21.98 million in long-term deferred
revenue, $1.69 million in long-term deferred tax liability, $44.79
million in long-term operating lease liabilities, $39.38 million in
other long-term liabilities, and $131.59 million in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on September 18, 2024, maintained its
'CC' foreign currency and local currency senior unsecured ratings
on debt issued by Infinera Corporation.
INSIGHT PHOTONIC: Seeks to Extend Plan Exclusivity to Dec. 6
------------------------------------------------------------
Insight Photonic Solutions, Inc. and Insight Lidar, Inc. asked the
U.S. Bankruptcy Court for the District of Colorado to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to December 6, 2024 and February 4, 2025,
respectively.
The Debtors request a modest 2-month extension of the exclusivity
period and a corresponding extension of the solicitation deadline.
Debtors has not requested any prior extension of the exclusivity
periods and Debtors have filed this Motion within the 120-day
exclusive period to file a plan, which expires October 4.
The Debtors claim that they were in close touch with its creditors
and equity security holders prior to the Petition Date in order to
obtain funds for operations during the postpetition period; so far,
Debtors have raised $500,000 to fund operations. Debtors anticipate
additional funding pending completion of the Intercreditor
Agreement. Further, Debtors have worked diligently on the plan, but
need additional time to finalize given the complex plan structure.
The Debtors demonstrate a reasonable prospect for a viable plan;
they are close to completing favorable negotiations with one of
their largest secured creditors, and other secured creditors have
indicated their support by either signing the Intercreditor
Agreement or agreeing to sign once negotiations have been completed
with the previously described major secured creditor. Debtors have
received funding and/or commitments from equity security holders
and other creditors to fund operations.
The Debtors explain that they are not seeking an extension to
pressure creditors. As noted, Debtors are seeking an extension to
allow for sufficient time to complete negotiations with its secured
creditors and complete the reorganization plan.
The Debtors assert that the requested 2-month extensions are in the
best interest of the creditors and the estate, and that good cause
exists for the granting such extensions. Extending the exclusive
periods for Debtors to file a plan and obtain plan acceptance will
permit Debtors to complete negotiations with their secured
creditors and concentrate on raising funds and completing a plan to
ensure future operations. Doing so without a competing plan of
reorganization is in the interests of efficiency, economy and
promoting Debtors' successful reorganization. Accordingly, the
extensions should be granted.
Counsel for the Debtors:
J. Brian Fletcher, Esq.
Alice A. White, Esq.
Onsager | Fletcher | Johnson | Palmer LLC
600 17th Street, Suite 425 North
Denver, CO 80202
Telephone: (720) 457-7059
Email: jbfletcher@OFJlaw.com
About Insight Photonic Solutions
Insight Photonic Solutions, Inc., in Broomfield, CO, filed its
voluntary petition for Chapter 11 protection (Bankr. D. Colo. Case
No. 24-13141) on June 6, 2024, listing $1 million to $10 million in
assets and $10 million to $50 million in liabilities. Michael
Minneman as chief executive officer, signed the petition.
Judge Michael E. Romero oversees the case.
ONSAGER | FLETCHER | JOHNSON | PALMER LLC serves as the Debtor's
legal counsel.
INTEGRITY CHARTER SCHOOL: S&P Assigns 'BB-' Long-Term ICR
---------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term rating to the
California School Finance Authority's (CSFA) series 2024 tax-exempt
charter school revenue bonds issued for Integrity Charter School
(ICS). The outlook is stable.
"The rating reflects our view of the school's very high leverage on
a pro forma basis, very small enrollment and operating base, weak
pro forma MADS coverage, construction risk with the new facility,
and inherent uncertainty, as with all charter schools, given the
final maturity on the school's bonds (2064) will be well beyond the
time horizon of the existing charter (2027), requiring multiple
charter renewals," said S&P Global Ratings credit analyst Amber
Schafer.
Total pro forma long-term debt equals $24.975 million, consisting
solely of the proposed issuance. The bonds are secured by revenue
of the school, in addition to fee simple interest on the financed
campus. The borrower is 241 National City Boulevard Fund, an LLC
created by the school and ICS is the sole member of the borrower.
ICS is the tenant, and the LLC is the landlord.
Proceeds from the fixed-rate series 2024 bonds (approximately
$24.975 million), in conjunction with a $10 million equity
contribution from the school, and $1.5 million CSFA grant, will be
used to finance the acquisition, construction, installation,
renovation, and equipping of an educational facility; refinance a
loan of about $1.9 million on the school's existing facility; pay
capitalized interest on the 2024 bonds; fund a debt service
reserve; and pay certain costs of issuance.
"The stable outlook reflects our expectation that ICS will meet its
enrollment targets, the proposed project will proceed as
anticipated, and despite the school's projected spend-down in cash
for the project, liquidity will remain solid for the rating," added
Ms. Schafer. Financial performance is expected to remain positive;
though pro forma MADS coverage is expected to remain weak.
IVANKOVICH FAMILY: Plan Exclusivity Period Extended to Dec. 9
-------------------------------------------------------------
Judge Laurel M. Isicoff of the U.S. Bankruptcy Court for the
Southern District of Florida extended Ivankovich Family LLC, and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to December 9, 2024 and February 5, 2025,
respectively.
As shared by Troubled Company Reporter, since filing this case,
have focused on preparing accountings of assets, marshaling
documents relating to the assets and investments of the Debtors,
and putting in place a potential plan of reorganization. While the
Debtors have succeeded in retaining appropriate professionals, the
accounting process is taking a little longer than originally
expected and the professionals have requested additional time to
prepare appropriate tax returns and financial statements on the
Debtors' investments.
The Debtors explain that neither the companies nor any other party
in interest will be in a position to build consensus for a Chapter
11 plan until after the Judicial Settlement Conference, anticipated
to be scheduled for November 2024, is completed because this case
revolves around the accountings and resolution of disputed claims.
The extension of the Exclusive Periods requested herein will enable
the Debtors to formulate a potentially consensual Chapter 11 plan
and present that plan to parties in interest after that date.
Accordingly, the Debtors should be granted a full and fair
opportunity to negotiate, propose and seek acceptance of a Chapter
11 plan. The Debtors are seeking a sixty-day extension of the
Exclusive Periods to afford the Debtors sufficient time to
incorporate any resolution from the Judicial Settlement Conference
into a potential consensual Plan. The Debtors believe that the
requested extension of the Exclusive Periods is warranted and
appropriate under the circumstances, particularly since the Motion
is the Debtors' first request for an extension.
Counsel for the Debtors:
Eyal Berger, Esq.
AKERMAN LLP
201 East Las Olas Boulevard, Suite 1800
Fort Lauderdale, FL 33301
Tel: 954-463-2700
Fax: 954-463-2224
Email: eyal.berger@akerman.com
-and-
Amanda Klopp, Esq.
AKERMAN LLP
777 South Flagler Drive
Suite 1100 – West Tower
West Palm Beach, Florida 33401
Tel: 561-653-5000
Fax: 561-659-6316
Email: amanda.klopp@akerman.com
About Ivankovich Family LLC
Ivankovich Family LLC and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead Case
No. 24-15755) on June 10, 2024, listing under $1 million in both
assets and liabilities. Steven Ivankovich and Anthony Ivankovich,
managers, signed the petitions.
Eyal Berger, Esq., at Akerman, LLP serves as the Debtors' counsel.
J-H EXPEDITING: Taps Swanson Sweet as General Bankruptcy Counsel
----------------------------------------------------------------
J-H Expediting Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Wisconsin to hire
Swanson Sweet LLP as general bankruptcy counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as Debtor in possession and the continued management and operation
of its business and property;
b. assisting the Debtor with the commencement of DIP
operations, including the initial debtor interview, section 341
meeting of creditors and monthly reporting requirements; and
c. advising the Debtor and taking all necessary action to
protect and preserve the Debtor’s estate, including prosecuting
actions on behalf of the Debtor, defending any action commenced
against the Debtor, and representing the Debtor’s interests in
negotiations concerning litigation in which the Debtor is
involved;
d. preparing bankruptcy schedules, statements of financial
affairs, and all related documents;
e. assisting with the preparation of a disclosure statement
and plan of reorganization and the related negotiations and
hearings;
f. preparing pleadings in connection with the chapter 11
cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtor’s estate;
g. analyzing executory contracts and unexpired leases, and the
potential assumptions, assignments, or rejections of such contracts
and leases;
h. advising the Debtor in connection with any potential sale
of assets;
i. appearing at and being involved in various proceedings
before this Court;
j. analyzing claims and prosecuting any meritorious claim
objections.
The firm will be paid at these rates:
John W. Menn, Partner $475 per hour
Michael C. Jurkash, Associate $310 per hour
Cynthia A. Krutke, Paralegal $195 per hour
Swanson Sweet received a retainer of $10,000 on Oct. 8, 2024.
John Menn, Esq., a partner at Swanson Sweet, disclosed in a court
filing that the firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
John W. Menn, Esq.
SWANSON SWEET LLP
107 Church Avenue
Oshkosh, WI 54901
Telephone: (920) 235-6690
About J-H Expediting Services
J-H Expediting Services, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wis.
Case No. 24-25439) on Oct. 12, 2024, listing up to $50,000 in
assets and $100,001 to $500,000 in liabilities. John W. Menn, Esq.
at Swanson Sweet LLP represents the Debtor as counsel.
J.E. LUCAS: Seeks to Hire Cobb & Sabbagha Realty as Realtor
-----------------------------------------------------------
J.E. Lucas Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the District of South Carolina to employ Cobb & Sabbagha
Realty as realtor.
The firm will list and sell the Debtor's property located at 230
Ermine Road, W. Columbia, South Carolina, 29619.
The firm will received a commission equal to 6 percent of the gross
sales price.
Cobb & Sabbagha is a "disinterested person" as defined in 11 U.S.C.
101(14), according to court filings.
The realtor can be reached through:
Jackson L. Cobb
Cobb & Sabbagha Realty
1126 Pinecroft Dr
West Columbia, SC 29170
Phone: (803) 794-5152
About JE Lucas Properties
J.E. Lucas Properties LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No.
24-03288) on Sept. 8, 2024, listing up to $10 million in both
assets and liabilities.
Judge Helen E. Burris oversees the case.
The Cooper Law Firm represents the Debtor as counsel.
JVK OPERATIONS: Plan Exclusivity Period Extended to Nov. 30
-----------------------------------------------------------
Judge Robert E. Grossman of the U.S. Bankruptcy Court for the
Eastern District of New York extended JVK Operations Limited and
JVK Operations Ltd. of NJ's exclusive periods to file a plan of
reorganization and obtain acceptance thereof to November 30, 2024
and January 31, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that
they have already reached out to their largest creditors
(including, without limitation, Dime, SBA, Santander, Navitas,
Pawnee, American Capital, Regions Bank, FLSA plaintiffs) to discuss
plan formulation.
The Debtor has also recently reached an agreement with its landlord
for its main location, 130 New Highway, Amityville, New York, for a
5-year extension of the existing lease which can be assumed before
or up to confirmation of a plan.
The Debtors estimate that a 60-day extension of the exclusivity
periods should be sufficient to allow for the Debtors' to complete
negotiations with creditors, discussions with prospective
buyers/investors, and to propose a feasible Plan.
The Debtors believe that it is essential and therefore beneficial
to the estate and their creditors that the Debtors be afforded the
time necessary in an environment where the Debtors are not
distracted with the concomitant threat of competing plans,
unproductive confrontations and the increasing administrative costs
associated therewith.
Counsel to the Debtors:
Robert J. Spence, Esq.
Spence Law Office, P.C.
55 Lumber Road, Suite 5
Roslyn, NY 11576
Tel: (516) 336-2060
Fax: (516) 605-2084
Email: rspence@spencelawpc.com
About JVK Operations Limited
JVK Operations Ltd. is a provider of linen and garments laundry
services for healthcare facilities on the East Coast. JVK was
founded in 2004 and has been servicing hospitals, nursing homes and
healthcare institutions. The Company's processing services include
sorting of the soiled linen, washing, drying, ironing packing and
delivery according to customer specifications.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-70800) on March 1,
2024. In the petition signed by Vinod Samuel, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Robert E. Grossman oversees the case.
Robert J. Spence, Esq., at SPENCE LAW OFFICE, P.C., represents the
Debtor as legal counsel.
K & M AMUSEMENT : Kicks Off Chapter 11 Bankruptcy Process
---------------------------------------------------------
K & M Amusement Center LLC filed Chapter 11 protection in the
District of Massachusetts. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
About K & M Amusement Center LLC
K & M Amusement Center LLC owns and operates an amusement park.
K & M Amusement Center LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-41064) on October
22, 2024. In the petition filed by Angelica Morales, as manager,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
Bankruptcy Judge Elizabeth D. Katz handles the case.
The Debtor is represented by:
Douglas Beaton, Esq.
BEATON LAW FIRM
800 Turnpike Street 300
North Andover MA 01845
Tel: 978-975-2608
E-mail: bankruptcy@douglasbeaton.com
L.O.F. INC: Plan Exclusivity Period Extended to December 9
----------------------------------------------------------
Judge Mindy A. Mora of the U.S. Bankruptcy Court for the Southern
District of Florida extended L.O.F., Inc.'s exclusive periods to
file a plan of reorganization and obtain acceptance thereof to
December 9, 2024, and February 7, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor explains that it
is working with its two largest secured creditors, Old National
Bank and Amazon Capital Services toward the feasibility of filing a
consensual Plan. As part of this Plan, there likely needs to be a
sale of collateral owned by a non Debtor third party who is also an
obligor on the Old National Bank loan. The Debtor hired a financial
professional in this case who has been diligently preparing
historical reports as well as future projections to support a
Plan.
The Debtor claims that it is not seeking this extension to delay
the administration of the case. The Debtor's request for an
extension of the Exclusive Periods is reasonable given the Debtor's
progress to date.
L.O.F., Inc., is represented by:
Craig I. Kelley, Esq.
Dana Kaplan, Esq.
Kelley Kaplan & Eller, PLLC
1665 Palm Beach Lakes Blvd. Suite 1000
West Palm Beach, FL 33401
Tel: (561) 491-1200
Fax: (561) 684-3773
Email: craig@kelleylawoffice.com
About L.O.F., Inc
L.O.F., Inc., was founded in 1968 in Northwest Indiana as a retail
Recreational Vehicle sales operation. In 2011, the Company changed
its focus to replacement automotive and industrial products under
its brands such as Best In Auto, TruckChamp, Red Hound Auto, and
Polar Whale.
Debtor: L.O.F., Inc. in Wellington, FL 33414, filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
24-13350) on April 8, 2024, listing $1,198,800 in assets and
$8,259,975 in liabilities. Laszlo Kovach as president, signed the
petition.
Judge Mindy A. Mora oversees the case.
KELLEY KAPLAN & ELLER, PLLC, serves as the Debtor's legal counsel.
LA PKWY 2: Amends TVC Secured Claims Pay Details
------------------------------------------------
La Pkwy 2 LLC submitted a First Amended Disclosure Statement
describing Chapter 11 Plan dated September 16, 2024.
The Debtor filed its Bankruptcy Petition on December 6, 2023 and
acts as a debtor-in-possession herein. The Court set bar dates for
filing Proof of Claims herein of February 14, 2024 for non
governmental creditors and June 3, 2024 for governmental entities.
Only one proof of claim has been filed in this matter, that being
the claim of the secured mortgage lender, TVC. The Court approved
Debtor's Motion to pay TVC adequate protection in the form of
monthly payments. As the Debtor is not income producing, the
proceeds for the monthly adequate protection are being contributed
by the Debtor's members. The Debtor also filed a Motion to Employ
CPA Patrick Gros.
The Debtor shall become the Reorganized Debtor herein and shall pay
outstanding creditors. The Debtor has listed the property for sale.
Until a sale of the property tales place at a dollar amount
acceptable by the Debtor, the Debtor will continue to make monthly
payments to TVC based upon income gifted to the Debtor by its
members by Ms. Stanton and Mr. Worthy.
While the Insurance Lawsuit is pending, the Debtor will rely upon
sale proceeds generated by members' investments to complete the
repairs and renovation of the units to the extend funds are
available. The Debtor believes that once renovated by the funds
gifted by its member, or renovated based upon funds generated from
the Insurance Lawsuit, the Property will be able to generate
sufficient cash flow to allow it to fund the required plan
payments.
Class 1 consists of the Secured Claim of TVC. TVC filed secured
proof of claim Number 1 in the amount of $420,355.00 secured by the
Debtor's Property and a personal guaranty of Ms. Stanton. As the
Debtor has not received any proceeds to repair the Property for
damage caused by Hurricane Ida, the Debtor's Members have been
personally funding the costs of the repair of the Property.
Additionally, the Debtor's Members have been self-funding donations
in the amount of the monthly adequate protection payments that have
been made to TVC in the amount of $2,800.00 per month.
As new value, the Debtor's Members will continue to donate the
monthly plan payments to TVC until such time as the property cash
flows or is sold. If the Debtor decides, in its sole discretion, to
sell the Property, the Net Sale Proceeds will first be used to
satisfy TVC's secured interest in the Property. Net Sale Proceeds
consists of the amount of the Sale Proceeds, less relator fees and
the ordinary costs of sale.
The Debtor has listed the Property for sale at $449,900.00. Should
the Debtor receive an offer to purchase the Property for this
amount in the next 12 months, the Debtor agrees to sell the
Property and the sale proceeds shall be used first to pay the
outstanding amount due on TVC's secured claim of $420,355.00. Until
such time as the Property is sold. TVC shall be paid a secured
claim of $420,355.00 plus 7.0% interest with a 20-year amortization
and a five-year balloon.
Monthly payments will be $3,260.00 and will begin on the 15th day
of the first full month following the Plan Effective Date.
Additionally, once the Property is repaired, rented and cash flows,
TVC will receive its monthly payment of $3,260.00 from the Property
Rental Proceeds and will also receive 50% of the monthly net rental
income. Net Rental Income is defined as the monthly rent received,
less Debtor's operating costs and the monthly plan payment to TVC.
Class 2 consists of General Unsecured Claims. No general unsecured
creditors filed claims herein. The Debtor listed two unsecured,
undisputed proofs of claim, that being the SBA for $14,000.00 and
Wallace Patterson (air conditioning service repair) for $7,461.00.
The Debtor shall pay each of these creditors a single lump sum
payment of 10% of their claim amount as listed on the Schedules.
This payment, totaling $2,146.00, will be made in a single lump sum
payment by the Debtor ten days after the Plan Effective Date.
These funds will be donated to the Debtor by the Debtor's Members
and shall constitute New Value for the members to retain their
equity interest in the reorganized Debtor. The 10% distribution to
unsecured creditors is more than such creditors would receive in a
Chapter 7 liquidation. Class 3 is impaired and is entitled to vote
on the Plan.
The Reorganized Debtor will have sufficient income to make the
required Plan payments until such time as insurance proceeds are
received and/or renovations are completed and the property can cash
flow.
A full-text copy of the First Amended Disclosure Statement dated
September 16, 2024 is available at https://urlcurt.com/u?l=OKF22m
from PacerMonitor.com at no charge.
Counsel to the Debtor:
Robin R. De Leo, Esq.
The De Leo Law Firm, LLC
800 Ramon St.
Mandeville, LA 70448
Tel: (985) 727-1664
Fax: (985) 727-4388
Email: lisa@northshoreattorney.com
About La Pkwy 2 LLC
La Pkwy 2 LLC was formed by related family members Diedra Stanton
and Jermaine Worthy for the sole purpose of owning, renovating, and
renting the real property located at 3435 Louisiana Parkway, New
Orleans, Louisiana (the "Property").
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. La. Case No. 23-12090) on
December 6, 2023, disclosing under $1 million in both assets and
liabilities. Robin R. De Leo, Esq. at THE DE LEO LAW FIRM, LLC, is
the Debtor's counsel.
LECAT TRINH: Seeks to Hire Ure Law Firm as Bankruptcy Counsel
-------------------------------------------------------------
LeCat Trinh, LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ Ure Law Firm as
counsel.
The firm will render these services:
(a) advise the Debtor regarding matters of bankruptcy law and
concerning the requirement of the Bankruotcy Code and Bankruptcy
Rules relating to the administration of this case and the operation
of its estate;
(b) represent the Debtor in proceedings and hearings in court
involving matters of bankruptcy law;
(c) assist in compliance with the requirements of the Office
of the United States Trustee;
(d) advise and assist the Debtor with respect to its powers
and duties in the continued operation of its business and
management of the estate's property;
(e) assist the Debtor in the administration of the estate's
assets and liabilities;
(f) prepare necessary legal documents on behalf of the
Debtor;
(g) assist in the collection of all accounts receivable and
other claims that the Debtor may have and resolve claims against
its estate;
(h) provide advice, as counsel, concerning the claims of
secured and unsecured creditors, prosecution and/or defense of all
actions; and
(l) prepare, negotiate, prosecute, and attain confirmation of
a plan of reorganization.
The firm's counsel and staff will be paid at these hourly rates:
Thomas B. Ure, Attorney $495
Associates $295
Law Clerks $195
Paralegals $95
`
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor agreed to pay the firm $10,000 as an initial deposit for
fees and expenses.
Mr. Ure disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Thomas B. Ure, Esq.
Ure Law Firm
8280 Florence Avenue, Suite 200
Downey, CA 90240
Telephone: (213) 202-6070
Facsimile: (213) 202-6075
Email: tom@urelawfirm.com
About LeCat Trinh
LeCat Trinh, LLC sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-11956) on August 5, 2024,
listing up to $10 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Thomas B. Ure, Esq., at Ure Law Firm serves as the Debtor's
counsel.
LEFEVER MATTSON: Court Tosses Section 10(b) Claim in Hultman Suit
-----------------------------------------------------------------
Judge Jon S. Tigar of the United States District Court for the
Northern District of California granted the defendants' motion to
dismiss the Section 10(b) claim in the case captioned as CHARLENE
HULTMAN, Plaintiff, v. KENNETH W. MATTSON, et al., Defendants, Case
No. 24-cv-03381-JST (N.D. Calif.).
Now before the Court is Defendants Kenneth W. Mattson and KS
Mattson Partners, LP's motion to dismiss, joined by Defendants
LeFever Mattson, Inc., and Specialty Properties Partners, LP.
Plaintiff Charlene Hultman is a 79-year-old woman who resides in
Brentwood, California. She was married to Robert Hultman until his
death in 2020.
LeFever Mattson is a real estate investment entity located in
Citrus Heights, California. In early 2011, while Kenneth W. Mattson
was LeFever Mattson's president and co-owner, he ersuaded the
Hultmans to invest a substantial portion of their net worth in a
real estate investment partnership called Divi Divi. In April 2011,
the Hultmans invested $380,000 into Divi Divi, with payment made to
LeFever Mattson and with Mattson as the "Investment Contact"
person.
On June 9, 2016, Mattson's assistant sent an email to Robert
Hultman explaining that LeFever Mattson had decided to use a new
custodian, Madison Trust Company, for the Divi Divi investment.
Accordingly, on June 29, 2016, Robert Hultman transferred the
investment in Divi Divi to Madison Trust Company.
As with their Divi Divi investment, Hultman and her husband also
invested in Specialty Properties through Mattson at his persuasion.
On May 6, 2013, Hultman and her husband made an investment in
Specialty Properties of $420,000.
Following Robert Hultman's death in 2020, Charlene Hultman became
the sole owner of both the Divi Divi and Specialty Properties
investments.
In April and May 2024, Hultman received communications from Tim
LeFever -- the other co-owner of LeFever Mattson -- and Madison
Trust Company informing her that (1) Mattson had resigned from his
positions as CEO and CFO of LeFever Mattson, and (2) Mattson had
engaged in a large number of unauthorized transactions relating to
his purported interest in Divi Divi. According to LeFever, the
unauthorized transactions included transactions in which Mattson
purportedly sold portions of his own interest in Divi Divi to
investors without actually executing the requisite purchase
agreements and without authorization by or approval of LeFever
Mattson's board of directors or shareholders. On May 9, 2024,
Madison Trust Company sent an email to Hultman stating that its
records indicated that her account balance had fallen to $458.92.
On June 5, 2024, Hultman filed this lawsuit seeking relief for the
following:
(1) violation of Section 10(b) of the Securities Exchange Act of
1934 and Securities Exchange Commission Rule 10b-5;
(2) Financial Abuse of an Elder under California Welfare and
Institutions Code Sec. 15610.30;
(3) fraud;
(4) breach of fiduciary duty;
(5) conversion; and
(6) constructive trust. She seeks compensatory and punitive
damages, declaratory relief, injunctive relief, and attorney's fees
and costs.
Kenneth W. Mattson and KS Mattson Partners, LP filed this motion to
dismiss on July 16, 2024.
On September 12, 2024, Defendants LeFever Mattson and Divi Divi
filed voluntary petitions for relief under chapter 11 of the
Bankruptcy Code with the United States Bankruptcy Court for the
Northern District of California. This proceeding is thus stayed as
to those two defendants under 11 U.S.C. Sec. 362(a)(1), (3).
Defendants move to dismiss Hultman's sole federal claim -- a claim
under Section 10(b) of the Securities Exchange Act of 1934 and SEC
Rule 10b-5. Section 10(b) prohibits the use of "any manipulative or
deceptive device or contrivance" "in connection with the purchase
or sale of any security."
Defendants argue that Hultman's Section 10(b) claim is barred by
the five-year statute of repose because the securities transactions
at issue here took place in 2011, 2013, and by 2016 at the latest,
and she filed her complaint in 2024. Hultman does not dispute that
she filed her complaint more than five years after she and her
husband purchased the securities at issue.
Hultman instead argues that her claim is nonetheless timely because
Defendants allegedly "had committed securities fraud within the
past five years in connection with the purchase of these
investments" by providing "false valuations of their investments in
the partnerships via account statements, as well as providing
monthly distributions to Plaintiff that fraudulently conveyed that
Plaintiff was actually invested in the two partnerships at issue --
both as recently as the first quarter of 2024."
Because Hultman has not alleged any wrongful acts giving rise to a
Section 10(b) claim within the five-year statute of repose of her
complaint, the Court finds that she has failed to state a claim
under Section 10(b) or Rule 10b-5.
Because the Court has dismissed Hultman's sole federal claim, the
Court declines to exercise supplemental jurisdiction over Hultman's
remaining state law claims and dismisses them without prejudice.
The case is stayed as to Defendants LeFever Mattson and Divi Divi
pending resolution of their bankruptcy proceedings.
A copy of the Court's decision dated October 21, 2024, is available
at https://urlcurt.com/u?l=9kTj1f
About LeFever Mattson
LeFever Mattson, a California corporation, manages a large real
estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns
50% of the equity in the company. Based in Citrus Heights, Calif.,
LeFever Mattson manages a portfolio of more than 200 properties,
comprised of commercial, residential, office, and mixed-use real
estate, as well as vacant land, located throughout Northern
California, primarily in Sonoma, Sacramento, and Solano Counties.
It generates income from the properties through rents and use the
proceeds to fund its operations.
LeFever Mattson and its affiliates filed voluntary
Chapter 11 petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on
September 12, 2024. At the time of the filing, LeFever Mattson
listed $100 million to $500 million in assets and $10 million to
$50 million in liabilities.
Judge Charles Novack oversees the cases.
Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the
Debtors as counsel. Kurtzman Carson Consultants, LLC is the
Debtors' claims and noticing agent.
LEITMOTIF SERVICES: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Leitmotif Services LLC
d/b/a Fluid Freeride LLC
7101 N. Miami Avenue Suite 103
Miami, FL 33150
Business Description: Leitmotif is a retailer of a wide selection
of electric scooters. The Debtor is based
in Miami, FL with a self operated service
center in Brooklyn, NY, and an expanding
network of service partners.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-21215
Judge: Hon. Laurel M Isicoff
Debtor's Counsel: Brett Lieberman, Esq.
EDELBOIM LIEBERMAN PLLC
2875 NE 191st St.
Penthouse One
Miami, FL 33180
Tel: 305-786-9909
Email: brett@elrolaw.com
Total Assets: $1,410,835
Total Liabilities: $2,584,500
The petition was signed by Julian Fernau as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/KLM5WJA/Leitmotif_Services_LLC__flsbke-24-21215__0001.0.pdf?mcid=tGE4TAMA
MARTINS INTERSTATE: To Sell Saint Matthews, SC Property
-------------------------------------------------------
Martins Interstate Properties LLC seeks permission from the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division, to sell Property located at 7605 Columbia Road, Saint
Matthews, SC 29135 subject to all liens, encumbrances, and
interests.
The Debtor is a Florida limited liability company that operates a
real estate business, wholly owned and managed by Roberto Martins.
The Debtor obtained a secured loan as well as other unsecured debt
over the course of the business operations for five years. It filed
a Chapter 11 petition as a result of its inability to continue to
service the debt related to its obligations.
The Debtor has entered into a sale agreement with Charles Emmett
Bozard, III, Licensed SC Salesman. The Buyer will deposit $10,000
as earnest money and then pay $500 per month until closing. The
total price of sale will be $40,000.
The real estate agent will be paid by the Buyer and the estate is
not expected to incur any real estate agent and/or broker's fees in
the transaction.
The Debtor has determined that the sale would result in an
efficient and cost-effective manner of disposing of the estate's
interest in the assets, while simultaneously creating a benefit to
the bankruptcy estate and creditors of the Debtor.
Martins Interstate Properties LLC
Martins Interstate Properties owns two properties in Edgewater,
Fla., and Matthews, S.C. having a total current value of $1.30
million.
Martins Interstate Properties, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 24-02516) on May 20, 2024, listing $1,296,406 in assets
and $910,980 in liabilities. The petition was signed by Roberto
Martins, Sr. as manager.
Judge Tiffany P. Geyer presides over the case.
Bryan K. Mickler, Esq., at The Law Offices of Mickler & Micker,
LLP, serves as the Debtor's counsel.
MASTIN LAABS: Starts Subchapter V Bankruptcy Process
----------------------------------------------------
Mastin Labs Holding LLC filed Chapter 11 protection in the Western
District of Texas. According to court documents, the Debtor reports
$1,669,932 in debt owed to 1 and 49 creditors. The petition states
funds will not be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 22, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: (866)711-2282. participant access code: 3544189#.
About Mastin Labs Holding LLC
Mastin Labs Holding LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11316)
on October 23, 2024. In the petition filed by Timothy D Delaforce,
as CEO, the Debtor reports total assets of $25,947 and total debts
of $1,669,932.
Bankruptcy Judge Shad Robinson oversees the case.
The Debtor is represented by:
Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Email: notifications@lanelaw.com
MAWSON INFRASTRUCTURE: Issues Operational Update for September
--------------------------------------------------------------
Mawson Infrastructure Group Inc. announced its unaudited business
and operational update for September 2024.
Rahul Mewawalla, CEO and President said, "We are excited to achieve
another month of strong results, including a 65% year-on-year
increase in overall monthly business revenue. In addition, we have
built and grown a significant enterprise-grade digital colocation
business that now represents a multi-million-dollar business across
multiple customers. We also are excited about advancing our recent
expansion into AI (artificial intelligence) and HPC
(high-performance computing) markets with our innovative and
solutions-driven approach to growing our overall business. We are
also extremely proud of our carbon-free and sustainable energy
approach, including nuclear, which we believe will be increasingly
critical to sustainable growth in global compute capacity,
particularly in the AI and HPC markets going forward."
Unaudited financial and operational highlights for September 2024:
* Total Monthly Revenue up 65% Y/Y from September 2023 to
about $4.15 million.
* Digital Colocation Monthly Business Revenue was $3.36
million, up from zero in Sep 2023 with diversified enterprise-grade
customers.
* Energy Management Monthly Business Revenue up 271% Y/Y to
$0.62 million and Self-mining Bitcoin Monthly Business Revenue of
$0.18 million.
* Signed lease extension at Midland, PA. facility to September
2027 with overall lease tenure through September 2036.
* Completed Phase 1 of construction including groundworks at
Perry County, OH facility, which is expected to increase Mawson's
Total Capacity to 153 MW upon completion.
* Mawson supports innovative, agile, efficient, and scalable
approaches to AI infrastructure and compute, invites AI/HPC
partners to discuss opportunities to collaborate on artificial
intelligence, high-performance and accelerated computing
solutions.
Mawson has available a Company Overview Presentation about the
company's strategic approach and its businesses at its corporate
website at https://www.mawsoninc.com
About Mawson
Headquartered in Midland, Pennsylvania, Mawson Infrastructure Group
Inc. is a digital infrastructure company. The Company has three
primary businesses — digital currency mining, co-location and
related services, and energy markets. The Company develops and
operates digital infrastructure for digital currency, such as
bitcoin, mining activities on the Bitcoin blockchain network. The
Company also provides digital infrastructure services for its
co-location services customers that use computational machines to
mine bitcoin through its data centers and the Company charges for
the use of its digital infrastructure and related services. The
Company also has an energy markets program through which it can
receive net energy benefits in exchange for curtailing the power it
utilizes from the grid in response to instances of high electricity
demand. As of March 29, 2024, the Company operates two data center
facilities in Pennsylvania, USA.
Boston, Massachusetts-based Wolf & Company, P.C., the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 29, 2024, citing that the Company has incurred
net losses since its inception, and had negative working capital
and will need additional funding to continue operations. This
raises substantial doubt about the Company's ability to continue as
a going concern.
For the year ended December 31, 2023, Mawson incurred a loss after
tax of $58.55 million. As of June 30, 2024, Mawson had $65,625,213
in total assets, $61,221,009 in total liabilities, and $4,404,204
in total stockholders' equity.
MBMG HOLDING: Seeks to Hire Epiq as Claims and Noticing Agent
-------------------------------------------------------------
MBMG Holding, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Epiq Corporate Restructuring, LLC as claims, noticing and
solicitation agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Chapter 11 case of the Debtor.
The firm will be paid at these hourly rates:
IT/Programming $65 - $80
Case Managers $95 - $165
Consultants/ Directors/Vice Presidents $175 - $185
Solicitation Consultant $185
Executive Vice President, Solicitation $185
Executives No Charge
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtors provided Epiq an advance in the amount of $25,000.
Brian Hunt, a consulting director at Epiq Corporate Restructuring,
disclosed in a court filing that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Brian Hunt
Epiq Corporate Restructuring, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
Tel: (646) 282-2532
About MBMG Holding
MBMG Holding, LLC and its affiliates 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.
MBMG Holding, LLC and its affiliates commenced voluntary Chapter 11
proceedings (Bankr. S.D. Fla. Lead Case No. 24-20576) on Oct. 13,
2024. In the petitions signed by Nicholas K. Campbell, chief
restructuring officer, MBMG Holding disclosed up to $50,000 in
estimated assets and up to $500 million in estimated liabilities.
Judge Corali Lopez-Castro oversees the cases.
The Debtors tapped Berger Singerman LLP as legal counsel; Meru, LLC
as restructuring advisor; and Oppenheimer & Co. Inc. as investment
banker. Epiq Corporate Restructuring, LLC is the claims agent.
MBMG HOLDING: Seeks to Tap Berger Singerman as Bankruptcy Counsel
-----------------------------------------------------------------
MBMG Holding, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Berger Singerman LLP as their counsel.
The firm will render these services:
(a) give advice to the Debtors with respect to their powers
and duties as debtors-in-possession and the continued management of
their business operations;
(b) advise the Debtors with respect to their responsibilities
in complying with the United States Trustee's Operating Guidelines
and Reporting Requirements and with the rules of the Court;
(c) prepare motions, pleadings, draft orders, applications,
adversary proceedings, and other legal documents necessary for the
efficient administration of these Chapter 11 Cases;
(d) protect the interests of the Debtors in all matters
pending before the Court; and
(e) represent the Debtors in negotiations with their
creditors, the purchaser of the Debtors' enterprise, and in the
preparation of a plan.
The current hourly rates for the attorneys at Berger Singerman
range from $415 to $850.
The following is provided in response to the request for additional
information set forth in Paragraph D.1 of the Guidelines:
a. Question: Did Berger Singerman agree to any variations from,
or alternatives to, Berger Singerman's standard billing
arrangements for this engagement?
Answer: No. The rate structure provided by Berger Singerman
is appropriate and comparable to (a) the rates that Berger
Singerman charges for non-bankruptcy representations and (b) the
rates of other comparably skilled professionals.
b. Question: Do any of the Berger Singerman professionals in
this engagement vary their rate based on the geographic location of
the Debtors' chapter 11 cases?
Answer: No.
c. Question: If Berger Singerman has represented the Debtors in
the 12 months prepetition, disclose Berger Singerman's billing
rates and material financial terms for the prepetition engagement,
including any adjustments during the 12 months prepetition. If
Berger Singerman's billing rates and material financial terms have
changed postpetition, explain the difference and the reasons for
the difference.
Answer: Berger Singerman's current hourly rates for services
rendered on behalf of the Debtors are set forth above. These rates
have been used since January 1 of this year.
d. Question: Have the Debtors approved Berger Singerman's budget
and staffing plan and, if so, for what budget period?
Answer: Yes. Berger Singerman has provided the Debtors with a
prospective budget and staffing plan setting forth the types of
timekeepers, numbers thereof, and applicable hourly rates it
expects during the chapter 11 cases, which have been approved by
the Debtors. The budget and staffing plan cover the period from the
Petition Date to Dec. 6, 2024.
Berger Singerman neither holds nor represents any interest adverse
to the Debtors and is a "disinterested person" within the scope and
meaning of section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Paul Steven Singerman, Esq.
BERGER SINGERMAN LLP
1450 Brickell Avenue, Ste. 1900
Miami, FL 33131
Telephone: (305) 755-9500
Facsimile: (305) 714-4340
Email: singerman@bergersingerman.com
About MBMG Holding
MBMG Holding, LLC and its affiliates 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.
MBMG Holding, LLC and its affiliates commenced voluntary Chapter 11
proceedings (Bankr. S.D. Fla. Lead Case No. 24-20576) on Oct. 13,
2024. In the petitions signed by Nicholas K. Campbell, chief
restructuring officer, MBMG Holding disclosed up to $50,000 in
estimated assets and up to $500 million in estimated liabilities.
Judge Corali Lopez-Castro oversees the cases.
The Debtors tapped Berger Singerman LLP as legal counsel; Meru, LLC
as restructuring advisor; and Oppenheimer & Co. Inc. as investment
banker. Epiq Corporate Restructuring, LLC is the claims agent.
MFT RESOURCES: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
David Asbach, Acting U.S. Trustee for Region 5, appointed an
official committee to represent unsecured creditors in the Chapter
11 cases of MFT Resources, LLC and White Properties & Development,
LLC.
The committee members are:
1. Burton Oil Service Operations
c/o Tina Mattingly
6115 New Copeland Rd, #240
Tyler, TX 75703
888-388-2350
tina.mattingly@BurtonOil.com
2. Environmental Rental Services
c/o Kim Owens
P.O. Box 192
Rockdale, TX 76567
888-822-7368
kim.owens@ersvacrent.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About MFT Resources and White Properties
MFT Resources, LLC and White Properties & Development, LLC filed
Chapter 11 petitions (Bankr. W.D. La. Lead Case No. 24-80523) on
Aug. 27, 2024. At the time of the filing, MFT Resources reported $1
million to $10 million in both assets and liabilities.
Judge Stephen D. Wheelis oversees the cases.
Thomas R. Willson, Esq., serves as the Debtors' legal counsel.
MILFORD CRAFT: World of Beer in Lubbock, TX Unexpectedly Shuts
--------------------------------------------------------------
Tanya Nguyen of everything Lubbock (Texas) reports that World of
Beer, situated at the West End Center in Lubbock, has unexpectedly
closed its doors, leaving local patrons surprised.
A Case Management Summary obtained by EverythingLubbock.com
disclosed that the restaurant and bar filed for joint Chapter 11
Bankruptcy in August 2024. Following this filing, numerous
locations nationwide, including the Lubbock franchise, shut down.
A notice letter affixed to the front door of World of Beer Lubbock
indicated that "the locks to their premises have been changed in
accordance with Section 93.002 of the Texas Property Code." The
notice further stated that the locks "should not be tampered with
without prior notice and approval from the landlord listed below."
The note stated, "If applicable, keys to these premises may be
obtained by contacting the property management company…"
EverythingLubbock.com attempted to contact World of Beer for a
comment, but the phone number was no longer in service.
About Milford Craft
Milford Craft, LLC, runs a franchise bar and restaurant called
"World of Beer" in Milford, Connecticut.
Milford Craft sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Conn. Case No. 17-30847) on June 6, 2017. James D.
Cecil, manager of New England WOB LLC, signed the petition.
On June 20, 2017, the Debtor filed an amended petition indicating
that it was a Small Business Debtor under 11 U.S.C. Sec. 101(51D)
as well as, inter alia, its Schedules and Statement of Financial
Affairs. The Debtor disclosed that it had assets totaling $408,506,
and total unsecured debts of $251,296.
Judge Ann M. Nevins presides over the case.
The Debtor hired Fleischer Law, LLC, as counsel, and the Law Office
of Randolph T. Lovallo, P.C., as special counsel.
MISTY MOON: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Misty Moon Transport 2 Inc.
873 Portland Rd., Unit 107
Saco, ME 04072
Business Description: Misty Moon is an independent service
provider for FedEx.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
District of Maine
Case No.: 24-20218
Judge: Hon. Peter G Cary
Debtor's Counsel: Tanya Sambatakos, Esq.
MOLLEUR LAW FIRM
190 Main St., 3rd Fl
Saco ME 04072
Tel: (207) 283-3777
Email: tanya@molleurlaw.com
Total Assets: $1,276,121
Total Liabilities: $3,043,852
The petition was signed by Morgan Morang as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/AGYGNOQ/Misty_Moon_Transport_2_Inc__mebke-24-20218__0001.0.pdf?mcid=tGE4TAMA
MOTORS ACCEPTANCE: Taps Chambless Math & Carr as Special Counsel
----------------------------------------------------------------
Motors Acceptance Corporation seeks approval from the U.S.
Bankruptcy Court for the Middle District of Georgia to employ
Chambless Math & Carr, PC as special counsel.
The firm's services include:
(a) assist with general corporate and other matters upon which
it is familiar with; and
(b) provide analytical and consulting services, if
appropriate.
The firm will be paid 33.3 percent of funds collected plus
reimbursement of fees and costs advanced.
Mary Beth Wyatt, a member at Chambless Math & Carr, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Mary Beth Wyatt, Esq.
Chambless Math & Carr, P.C.
5720 Carmichael Road
Montgomery, AL 36117
Telephone: (334) 272-2230
About Motors Acceptance
Motors Acceptance Corporation in Columbus, GA, filed its voluntary
petition for Chapter 11 protection (Bankr. M.D. Ga. Case No.
24-40483) on August 15, 2024, listing as much as $1 million to $10
million in both assets and liabilities. Shannon Arnette, vice
president, signed the petition.
Judge John T. Laney, III oversees the case.
The Debtor tapped Boyer Terry LLC as bankruptcy counsel; Robert R.
Lomax, LLC and Chambless Math & Carr, PC as special counsel; and
Fountain Arrington Bass Mercer & Lee, PC as accountant.
NECTARY LLC: Asset Sale Proceeds to Fund Plan Payments
------------------------------------------------------
The Nectary, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of California a Plan of Reorganization for Small
Business dated September 13, 2024.
The Debtor is a California limited liability company formed on
March 5, 2014. The Debtor owns and operates a juice and smoothie
bar at leased premises located at 7300 Healdsburg Avenue, Suite A,
Sebastopol, CA 95472.
The Debtor has not been able to overcome ongoing economic issues
and multiple natural disasters that affected the business (flood
destroyed the original location in 2019 and the Debtor had to
rebuild, fires in 2017-2020 and the global pandemic of 2020-2021
negatively affected the business, and forced re-location also
negatively impacted the business.
Non-priority unsecured creditors holding allowed claims will
receive distributions. The proponent of this Plan is unable to
quantify the distribution to non-priority unsecured creditors, as
it is dependent upon the results of the sale of the Debtor's
assets, but the Debtor estimates there will be no distribution to
non-priority unsecured creditors. This Plan also provides for the
payment of administrative and priority claims.
Class 3 consists of non-priority unsecured creditors. The Class 3
creditors will receive their pro rata share of the net proceeds
from the sale of the Debtor's business assets up to the amount
necessary for full payment. Absent an unforeseen substantial
overbid from the sale of the Debtor's business assets, the Debtor
does not anticipate any distribution to Class 3 non-priority
unsecured creditors. This Class is impaired.
Class 4 consists of equity security holders of the Debtor. The
equity security holder in the Debtor will retain her interest.
The Debtor will implement the Plan by closing a sale of the
Debtor's business assets to Jorge-Minnar Martinez Davila or his
assignee, or the prevailing overbidder in the event of an overbid.
A full-text copy of the Plan of Reorganization dated September 13,
2024 is available at https://urlcurt.com/u?l=kIbQMV from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Steven M. Olson, Esq.
Bluestone Faircloth & Olson, LLP
1825 4th Street
Santa Rosa, CA 95404
Telephone: (707) 526-4250
Facsimile: (707) 526-0347
Email: steve@bfolegal.com
About The Nectary
The Nectary, LLC owns and operates a juice and smoothie bar at
leased premises located at 7300 Healdsburg Avenue, Suite A,
Sebastopol, CA 95472.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-10333) on June 21,
2024, with $50,001 to $100,000 in assets and $500,001 to $1 million
in liabilities.
Judge Charles Novack presides over the case.
Steven M. Olson, Esq., at Bluestone Faircloth & Olson, LLP
represents the Debtor as legal counsel.
NUZEE INC: Dai Xiangrong Holds 877,192 Common Shares as of Oct. 14
------------------------------------------------------------------
Dai Xiangrong filed a Form 3 Report with the U.S. Securities and
Exchange Commission, disclosing direct beneficial ownership of
877,192 shares of Common Stock of NuZee, Inc. as of October 14,
2024. The filing indicates that Mr. Dai is a 10% owner of the
issuer.
A full-text copy of Mr. Dai's SEC Report is available at:
https://tinyurl.com/ept36w6z
About Nuzee Inc.
Headquartered in Vista, California, Nuzee, Inc. is a digital
marketing, sales, and distribution company for various consumer
products with focuses on food and beverages. Dedicated to reshaping
the digital marketing and distribution with technological
applications, the Company endeavors to create greater commercial
value for its business partners and therefore enhance its own
enterprise value and shareholders' value of their stake in the
Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve their connection, management, and operation of marketing
channels domestically and globally.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of June 30, 2024, Nuzee had $2.75 million
in total assets, $2.94 million in total liabilities, and a total
stockholders' deficit of $193,613.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single-serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses, and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The Company's continued existence is
dependent upon management's ability to develop profitable
operations and to raise additional capital for the further
development and marketing of the Company's products and business."
NUZEE INC: Yubo Yang Holds 11.27% Stake Via Dada Business Trading
-----------------------------------------------------------------
Yubo Yang disclosed in a Schedule 13G report filed with the U.S.
Securities and Exchange Commission that, as of October 14, 2024,
through her 100% ownership of Dada Business Trading Co., Limited,
she beneficially owns 877,192 newly issued shares of common stock
of Nuzee pursuant to a Securities Purchase Agreement entered into
on September 24, 2024. This represents 11.267% of the (i) 4,978,245
shares of common stock issued and outstanding (as of August 27,
2024), as set forth in the Company's current report on Form 8-K as
filed with the Securities and Exchange Commission on October 2,
2024; and (ii) 2,807,015 shares issued on October 14, 2024 pursuant
to the securities purchase agreement entered into on September 24,
2024 as part of the partial closing thereof, as set forth in the
Company's current report on Form 8-K filed with the Securities and
Exchange Commission on October 16, 2024.
Dada Business Trading Co., Limited is governed by its sole
director, Mr. Zheng Dai. As such, Mr. Dai has voting and investment
discretion with respect to the ordinary shares held of record by
Dada Business Trading Co., Limited and may be deemed to have
beneficial ownership of the shares held directly by Dada Business
Trading Co., Limited. Therefore, both Yubo Yang and Zheng Dai are
deemed to have shared voting power over the 877,192 shares.
A full-text copy of Yubo Yang's SEC Report is available at:
https://tinyurl.com/5362fzxx
About Nuzee Inc.
Headquartered in Vista, California, Nuzee, Inc. is a digital
marketing, sales, and distribution company for various consumer
products with focuses on food and beverages. Dedicated to reshaping
the digital marketing and distribution with technological
applications, the Company endeavors to create greater commercial
value for its business partners and therefore enhance its own
enterprise value and shareholders' value of their stake in the
Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve their connection, management, and operation of marketing
channels domestically and globally.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of June 30, 2024, Nuzee had $2.75 million
in total assets, $2.94 million in total liabilities, and a total
stockholders' deficit of $193,613.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single-serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses, and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The Company's continued existence is
dependent upon management's ability to develop profitable
operations and to raise additional capital for the further
development and marketing of the Company's products and business."
OLYMPIA INVESTMENTS: Seeks to Extend Exclusivity to Feb. 3, 2025
----------------------------------------------------------------
Olympia Investments, Inc. and Tsintolas Investments, Inc., asked
the U.S. Bankruptcy Court for the District of Columbia to extend
their exclusivity periods to file a plan of reorganization and
obtain acceptance thereof to February 3, 2025 and April 3, 2025,
respectively.
The Debtors claim that good cause exists to grant an extension of
the Exclusive Periods. Christofilos Tsintolas, Deborah Tsintolas,
and Fotini Tsintolas Economides Revocable Trust ("Movants")
objected to every application to employ and every other motion
filed by Debtors other than Debtors' motion seeking joint
administration. In essence, by their obstreperous strategy, the
Debtors have been prevented from moving forward with the sale of
the Property and a plan.
However, Movants have and continue to put up every conceivable
roadblock. Movants filed their Motion to Dismiss and have objected
to Debtors' employment of all professionals, including undersigned
counsel. Although the parties attempted to resolve their disputes
with the assistance of Judge Huennekens, those attempts were
unsuccessful. This unique procedural history supports an extension
to exclusivity to the extent such an extension is even needed at
this time.
The Debtors explain that only one type of plan may be confirmed in
this case, a liquidating plan. And as soon as Debtors can know that
their broker is employed and that Debtors remain as debtors
in-possession, marketing of the Property may occur, and a plan can
be filed and confirmed within a reasonable period of time. However,
in light of the roadblocks erected by Movants, Debtors should be
given additional time to propose and confirm a plan.
The Debtors note that assuming they can proceed as
debtors-in-possession, Debtors intend to work with their broker to
propose sale procedures and will file a motion to approve sale
procedures. However, presently, Debtors believe it will also make
the most sense to sell the Property through a confirmed plan to
take advantage of the provisions in Section 1146 of the Bankruptcy
Code. The goal would be to file a plan in time to logistically
conform to any approved sales procedures such that the Property may
be sold pursuant to a plan.
Counsel to the Debtors:
Stephen A. Metz, Esq.
OFFIT KURMAN, P.A.
7501 Wisconsin Ave, Suite 1000W
Bethesda, MD 20814
Tel: (240) 507-1723
Fax: (240) 507-1735
E-mail: smetz@offitkurman.com
About Olympia Investments
Olympia Investments, Inc., is primarily engaged in renting and
leasing real estate properties.
Olympia Investments, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case No.
24-00158) on May 7, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Efstratios Tsintolas as president.
Stephen A. Metz, Esq. at OFFIT KURMAN, P.A. represents the Debtor
as counsel.
PERFECTIONS INC: Taps Bilu Law and Jose A. Blanco as Legal Counsel
------------------------------------------------------------------
Perfections, Inc. of Boca seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ of Bilu Law,
PA and Jose A. Blanco, PA as its counsel.
The firms will render these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The hourly rates of Bilu Law's counsel and staff are as follows:
Partners $425
Associate Attorneys $395
Paralegal/Legal Assistant $225
In addition, the firm will seek reimbursement for expenses
incurred.
Jose A. Blanco, Esq., will be paid at his hourly rate of $425.
Nicholas Rossoletti, Esq., an attorney at Bilu Law, and Jose
Blanco, Esq., disclosed in court filings that their firms are
"disinterested persons" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firms can be reached through:
Nicholas G. Rossoletti, Esq.
Bilu Law, P.A.
2760 W. Atlantic Blvd.
Pompano Beach, FL 33069
Telephone: (954) 596-0669
Facsimile: (954) 427-1518
Email: nrossoletti@bilulaw.com
- and -
Jose A. Blanco, Esq.
Jose A. Blanco, PA
2446 Reedle Dr., Ste. 5
Silver Spring, MD 20902
Telephone: (240) 753-5202
About Perfections, Inc. of Boca
Perfections, Inc. of Boca filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-20614) on October 14, 2024, listing under $1 million in both
assets and liabilities.
Judge Scott M. Grossman oversees the case.
Nicholas Rossoletti, Esq., at Bilu Law, PA and Jose A. Blanco,
Esq., at Jose A. Blanco, PA serve as the Debtor's counsel.
PETIQ INC: S&P Withdraws 'B' ICR on Acquisition by Bansk Group
--------------------------------------------------------------
S&P Global Ratings withdrew all its ratings on PetIQ Inc.,
including its 'B' issuer credit rating and 'B' issue-level rating
on the company's senior secured first-lien term loan. At the time
of the withdrawal, S&P's outlook on PetIQ was stable.
The company requested the withdrawal following the close of the
acquisition by Bansk Group and retirement of its rated debt.
PINEAPPLE ENERGY: Ends Office Lease, Estimates $480K in Savings
---------------------------------------------------------------
As previously disclosed, Pineapple Energy Inc. had entered into an
operating lease on June 10, 2022 for 8,590 square feet of office
space for its corporate office location, located at 10900 Red
Circle Drive, Minnetonka, MN. Effective October 14, 2024, the
Company has terminated the Lease for its principal corporate
office.
The termination of the lease, which was set to expire in 2027, is
expected to save the Company approximately $17,500 per month, or
$210,000 a year, in associated rent expenditures. In connection
with the Lease termination, there is a one-time buyout fee in the
amount of $189,000 associated with the lease termination agreement,
which the Company will pay in fourteen (14) equal monthly
installments, as well as the Company waiving its right to its
original security deposit provided at entry into the original lease
in the amount of $35,434.
Taking into account the remaining years on the now terminated
lease, other related costs, and the effect of the buyout fee, total
savings are estimated at approximately $480,000.
About Pineapple Energy Inc.
Pineapple Energy Inc. is a growing domestic operator and
consolidator of residential and commercial solar, battery storage,
and grid services solutions. Its strategy is focused on acquiring,
integrating, and growing leading local and regional solar, storage,
and energy services companies nationwide. Pineapple is primarily
engaged in the sale, design, and installation of photovoltaic solar
energy systems and battery storage systems through its Hawaii-based
Hawaii Energy Connection and New York-based SUNation Solar Systems
entities.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
For the years ended December 31, 2023, and December 31, 2022,
Pineapple Energy reported net losses of $8.1 million and $10.4
million, respectively. As of June 30, 2024, Pineapple Energy had
$52,853,691 in total assets, $23,830,867 in total current
liabilities, $23,477,561 in total long-term liabilities,
$16,442,945 in mezzanine equity, and $10,897,682 in total
stockholders' deficit.
PINEAPPLE ENERGY: Implements 1-for-50 Reverse Stock Split
---------------------------------------------------------
Pineapple Energy Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that effective October 17,
2024, the Company amended its Fourth Amended and Restated Articles
of Incorporation to implement a one-for-fifty reverse stock split.
The Company's common stock began trading on a split-adjusted basis
when the market opened on October 17, 2024. The Board of Directors
of the Company approved the amendment to the Company's Articles of
Incorporation to meet the share bid price requirements of the
NASDAQ Capital Market. The Company's stockholders approved the
Articles of Amendment at its annual meeting held on July 19, 2024.
As a result of the reverse stock split, at 12:01 a.m. Central Time
on the Effective Date, every 50 shares of common stock then issued
and outstanding automatically were combined into one share of
common stock, with no change in par value per share. No fractional
shares were outstanding following the reverse stock split, and any
fractional shares that would have resulted from the reverse stock
split will be settled in cash. The total number of shares
authorized for issuance was reduced to 2,666,667 in proportion to
the reverse stock split. The text of the Articles of Amendment of
the Fourth Amended and Restated Articles of Incorporation of the
Company that effected the foregoing actions is attached hereto as
Exhibit 3.1 and incorporated herein by reference.
The trading symbol for the Company's common stock will remain
"PEGY." The Company was assigned a new CUSIP number (72303P404) in
connection with the reverse split. All options, warrants and other
convertible securities of the Company outstanding immediately prior
to the effectiveness of the Certificate of Amendment will be
adjusted in accordance with the terms of the plans, agreements or
arrangements governing such options, warrants and other convertible
securities and subject to rounding to the nearest whole share.
About Pineapple Energy Inc.
Pineapple Energy Inc. is a growing domestic operator and
consolidator of residential and commercial solar, battery storage,
and grid services solutions. Its strategy is focused on acquiring,
integrating, and growing leading local and regional solar, storage,
and energy services companies nationwide. Pineapple is primarily
engaged in the sale, design, and installation of photovoltaic solar
energy systems and battery storage systems through its Hawaii-based
Hawaii Energy Connection and New York-based SUNation Solar Systems
entities.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
For the years ended December 31, 2023, and December 31, 2022,
Pineapple Energy reported net losses of $8.1 million and $10.4
million, respectively. As of June 30, 2024, Pineapple Energy had
$52,853,691 in total assets, $23,830,867 in total current
liabilities, $23,477,561 in total long-term liabilities,
$16,442,945 in mezzanine equity, and $10,897,682 in total
stockholders' deficit.
PORCHLIGHT HOLDINGS: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky
issued its second interim order, allowing Porchlight Holdings, LLC,
and Porchlight Louisville, LLC to continue using cash collateral of
their secured creditors.
The interim order approved the use of cash collateral of
Huntington, Idea 247, Inc. and other secured creditors for the
period from Oct. 14 to Dec. 22 based on a 10-week budget.
As protection, the creditors were granted replacement liens on the
companies' post-petition property, excluding Chapter 5 causes of
action.
Secured creditors can withdraw consent for the use of cash
collateral if certain conditions are violated.
The next hearing is scheduled for Dec. 17.
About Porchlight Holdings
Porchlight Holdings, LLC and Porchlight Louisville, LLC sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.
Ky. Lead Case No. 24-32056) on Aug. 20, 2024.
At the time of the filing, Porchlight Holdings reported $100,001 to
$500,000 in assets and $1 million to $10 million in liabilities
while Porchlight Louisville reported $1 million to $10 million in
both assets and liabilities.
Judge Charles R. Merrill oversees the cases.
Niel C. Bordy, Esq., at Seiller Waterman, LLC serves as the
Debtors' legal counsel.
POWER BLOCK COIN: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 19 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Power Block
Coin, LLC.
The committee members are:
1. Jason Brown
132 Kristen Lane
McCormick, SC 29835
(878) 645-1782
polycryptoblog@gmail.com
2. David M. Carlson
2229 Blackstone Ct.
East Wenatchee, WA 98802
buzzdavenow@gmail.com
3. Chieli Dustin
653 West Dunning Ct.
Draper, UT 84020
4. Mark Robinson
Celsius LOC member
Markrobinson55@gmail.com
c/o Sam Hershey
White & Case LLP
1221 Avenue of the Americas
New York, NY 10020
5. Douglas J. Scribner
1717 North Bayshore Drive, Unit 2847
Miami, FL 33132
(612) 205-5858
doug@dougsoffice.com
6. Zhouyang (Mason) Song
Miami, FL
alphamineset@gmail.com
7. Daniel Spisso
Valencia, Carabobo, Venezuela
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Power Block Coin
Power Block Coin, LLC, a company in Orem, Utah, conducts business
as SmartFi. SmartFi is a unique monetary system, which combines
monetary policy with the freedoms of cryptocurrency to create a
self-sustaining open-lending platform, providing the holders of
SmartFi Token the opportunity to manage the system and become the
beneficiaries of the wealth creation that would otherwise accrue to
traditional banks.
Power Block Coin filed its voluntary petition for Chapter 11
protection (Bankr. D. Utah Case No. 24-23041) on June 20, 2024,
listing $10 million to $50 million in assets and $1 million to $10
million in liabilities. Aaron Tilton, officer, signed the
petition.
Judge Joel T Marker oversees the case.
The Debtor tapped Parsons Behle & Latimer as legal counsel and CFO
Solutions L.L.C., a Utah limited liability company, as accountant
and financial advisor.
PREPAID WIRELESS GROUP: Files for Chapter 11 Bankruptcy
-------------------------------------------------------
Prepaid Wireless Group LLC filed Chapter 11 protection in the
District of Maryland. According to court filing, the Debtor reports
between $10 million and $50 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Prepaid Wireless Group LLC
Prepaid Wireless Group LLC is a provider of wireless
telecommunications services.
Prepaid Wireless Group LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-18852) on October
21, 2024. In the petition filed by Paul Greene, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Debtor is represented by:
Irving Walker, Esq.
COLE SCHOTZ P.C.
1201 Wills Street
Suite 320
Baltimore, MD 21231
Tel: 410-303-8809
Email: iwalker@coleschotz.com
PRESPERSE CORP: Future Claimants' Rep Taps Young Conaway as Counsel
-------------------------------------------------------------------
Heather Barlow, the future claimants' representative (FCR) in the
Chapter 11 case of Presperse Corporation, seeks approval from the
U.S. Bankruptcy Court for the District of New Jersey to employ
Young Conaway Stargatt & Taylor, LLP as his counsel.
The firm's legal services include:
(a) advise with respect to the FCR's powers and duties;
(b) take any and all actions necessary to protect and maximize
the value of the Debtor's estate for the purpose of making
distributions to future claimants and represent the FCR in
connection with negotiating, formulating, drafting, confirming, and
implementing a plan(s) of reorganization, and perform such other
functions as are set forth in section 1103(c) of the Bankruptcy
Code or as are reasonably necessary to effectively represent the
interests of the future claimants;
(c) appear on behalf of the FCR at hearings, proceedings
before the court, and meetings and other proceedings in the Chapter
11 case, as appropriate;
(d) prepare and file, on behalf of the FCR, all legal papers
as may be necessary and as may be authorized by the FCR in
connection with the Chapter 11 case;
(e) represent and advise the FCR with respect to any contested
matter, adversary proceeding, lawsuit or other proceeding in which
the FCR may become a party or otherwise appear in connection with
the Chapter 11 case; and
(f) perform any other legal services and other support
requested by the FCR in connection with the Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Edwin J. Harron, Partner $1,335
Sharon M. Zieg, Partner $1,155
Other Partners $1,005 - $1,335
Associates $530 - $670
Paralegals $375
Mr. Harron disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Edwin J. Harron, Esq.
Young Conaway Stargatt & Taylor, LLP
1000 North King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Email: eharron@ycst.com
About Presperse Corporation
Presperse Corporation provides premium specialty ingredients to
formulators of skincare, sun care, hair care, color cosmetics, and
diverse areas of beauty and wellness.
Presperse Corporation sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 24-18921) on Sept. 9, 2024.
In the petition filed by CFO Mehul Shah, Presperse disclosed $10
million to $50 million in assets and $50 million to $100 million in
debt.
The Hon. Michael B Kaplan presides over the case.
Duane Morris LLP is the Debtors' general bankruptcy counsel.
Getzler Henrich is the Debtors' financial advisor. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The Talc Claimants' Committee retained Robinson & Cole as legal
counsel and GlassRatner, doing business as B. Riley, as financial
advisor, and Legal Analysis Systems to provide advice.
Value Extraction Services is the prepetition future claimants'
representative, and hired Young Conaway as counsel, Ankura
Consulting Group as consultant, and jointly retained, together with
the Talc Claimants' Committee, B. Riley as financial advisor.
Presperse's parent, Sumitomo Corporation of Americas, is providing
post-petition financing and is represented by lawyers at Lowenstein
Sandler.
PROPULSION ACQUISITION: S&P Withdraws 'B' Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew its 'B' issuer credit rating on
Propulsion Acquisition LLC (Belcan). At the time of the withdrawal,
its outlook on the company was stable. The withdrawal follows the
close of Cognizant's acquisition of Belcan.
RED RIVER TALC: Asks Court to Reevaluate Venue
----------------------------------------------
Evan Ochsner of Bloomberg Law reports that plaintiffs' attorneys
are calling for a reevaluation of Johnson & Johnson's recent court
victory that permits the company to continue its talc subsidiary's
bankruptcy proceedings in Texas. They argue that Red River Talc LLC
is not distinct from LTL Management LLC, which was previously in
bankruptcy in New Jersey.
In a filing submitted on Wednesday, October 23, 2024, to the US
Bankruptcy Court for the Southern District of Texas, the plaintiffs
stated that the Red River bankruptcy, similar to LTL's, seeks to
address tens of thousands of claims asserting that the company's
talc-based products, including baby powder, caused cancer.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
ROYALE ENERGY: Simplifies Capital Structure Amid Plans for Growth
-----------------------------------------------------------------
Royale Energy Inc. announced the successful completion of a series
of strategic financial transactions aimed at simplifying its
capital structure and more closely aligning the interests of its
diverse stakeholders. This series of transactions better positions
Royale to pursue future growth opportunities and continue on the
path toward relisting on a major exchange.
As part of this comprehensive effort, Royale Energy Inc. has
executed key agreements that include the issuance of common stock,
stock options, and Series 2024 Senior Unsecured Promissory Notes in
exchange for all of the outstanding Series B Preferred Stock. As a
result, Royale now has one class of equity outstanding, its common
stock. These transactions were conducted with former holders of
the Company's Series B Preferred Stock and other long-term
liability holders, effectively resolving over $24 million of Series
B Preferred liquidation preference value and approximately $3
million of pre-merger liabilities.
The recapitalization initiative involved the issuance of common
stock and promissory notes to settle outstanding claims, alongside
stock options granted as part of an exchange agreement. These
measures not only strengthen Royale's financial position but also
ensure that the interests of all stakeholders are more closely
aligned with the Company's long-term objectives.
"By simplifying our capital structure, we are positioning Royale to
pursue new opportunities that align with our growth strategy and
deliver enhanced value to our shareholders" said Chris Parada,
Chairman of Royale Energy Inc. "This important step will enable the
company to gain greater access to even more strategic opportunities
as well as access to more traditional sources of capital. I would
like to express my gratitude to the former preferred stockholders,
other stakeholders, and the Royale Board for their efforts to
conclude this transformational recapitalization."
Johnny Jordan, CEO of Royale Energy Inc., added, "Consolidating all
shareholders into a single class of stock demonstrates our
commitment to building shareholder value for everyone. This move
underscores our dedication to creating a unified and equitable
structure that benefits all of our investors."
Royale Energy Inc. remains committed to executing its strategic
vision and delivering value through disciplined financial
management and targeted growth initiatives. The successful
completion of these transactions marks a significant step forward
in the Company's ongoing efforts to streamline operations and
enhance shareholder value.
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/mxb7cjx7
About Royale
El Cajon, Calif.-based Royale Energy, Inc. -- http://www.royl.com
-- is an independent oil and natural gas producer. Royale's
principal lines of business are the production and sale of oil and
natural gas, acquisition of oil and gas lease interests and proved
reserves, drilling of both exploratory and development wells, and
sales of fractional working interests in wells to be drilled by
Royale.
Ridgeland, Mississippi-based Horne LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company has suffered recurring
losses from operations and its total liabilities exceed its total
assets. This raises substantial doubt about the Company's ability
to continue as a going concern.
Royale Energy reported a net loss of $1.83 million for the year
ended Dec. 31, 2023, compared to a net loss of $145,594 for the
year ended Dec. 31, 2022. As of June 30, 2024, Royale Energy had
$13,757,557 in total assets, $26,003,550 in total liabilities,
$24,664,543 in mezzanine equity, and $36,910,536 in total
stockholders' deficit.
SANO RACING: Updates Critical Unsecured Claims Pay
--------------------------------------------------
Sano Racing Stables, LLC, submitted a Fourth Amended Plan of
Reorganization dated September 13, 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 3 consists of 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 industry-specific goods and
services, through the Debtor as agent, for the exclusive benefit of
owners of horses in the care of the Debtor.
Some of the holders of these Allowed Claims have already filed
lawsuits against the Debtor's clients and maintain that they
possess a legal right to seek payment in full of their Allowed
Claims by virtue of contract law and Florida Racing Commission
Rules and Regulations. If the holders of Allowed Claims in this
Class continue to pursue 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.
Additionally, the holder of these Allowed Claims maintain that
their right to seek redress from the Florida Racing Commission
could impact the Debtor's racing license without being violative of
Section 362 of the Bankruptcy Code as a proper exercise of police
powers. 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, 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
Like in the prior iteration of the Plan, 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 General Unsecured
Claims in Class 4 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
On the Effective Date, all property of the Debtor not otherwise
disposed of under the Plan, shall vest with the Reorganized
Debtor.
The Plan proposes to pay Allowed Claims to be paid under the Plan
from Projected Net Disposable Income, recovery of Retained Causes
of Action, and Excess Gross Purse Earnings.
The Debtor's Projected Net Disposable Income has the meaning
ascribed to the term under Section 1191(d) of the Bankruptcy Code.
The Debtor has committed 100% of its Projected Net Disposable
Income for a period of 60 months.
A full-text copy of the Fourth Amended Plan dated September 13,
2024 is available at https://urlcurt.com/u?l=d4ahNn 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, is the Debtor's legal
counsel.
SANUWAVE: Executes Reverse Split, Raises $10.3MM in PIPE Offering
-----------------------------------------------------------------
Sanuwave Health, Inc. announced a reverse stock split, a
convertible note and warrant exchange, and the consummation of a
PIPE offering in the Company.
Effective at 12:01 a.m. Mountain Time on October 18, 2024, the
Company implemented a 1-for-375 reverse stock split of its
outstanding common stock. The Company's common stock will continue
to trade under the symbol "SNWV" on the OTCQB and is expected to
begin trading on a split-adjusted basis at the opening of the
market today, under a new CUSIP number, 80303D 305. For a period of
20 business days, a "D" will be placed on the Company's ticker
symbol to reflect the reverse stock split making the Company's
equity ticker "SNWVD" during that period.
Upon the effectiveness of the reverse stock split, all of the
holders of the Company's outstanding convertible notes and
associated warrants issued in August 2022, November 2022, May 2023,
December 2023, January 2024 and June 2024 were converted into
approximately 4.0 million shares of post-split common stock. In
addition, NH Expansion Credit Fund Holdings LP ("NH Expansion"),
the agent under the Company's Note and Warrant Purchase and
Security Agreement (the "NWPSA"), exercised all of its outstanding
warrants for 146,302 post-split shares of common stock. In
connection with this warrant exercise, the Company and NH Expansion
entered into a Consent and Limited Waiver to Note and Warrant
Purchase and Security Agreement, pursuant to which the Company
agreed to repay in full all amounts owed to HealthTronics, Inc.,
among other matters, after which the Company expects to regain full
compliance with the covenants under the NWPSA.
The Company also has sold approximately 1.3 million shares in a
PIPE offering priced at a post-split price of $8.25 per share. This
deal was led by certain institutional investors, including AWM
Investment Company, Inc., the investment adviser of the Special
Situations Funds, and included participation from Manchester
Management and Opaleye, LP, as well as other existing and new
investors. Gross proceeds were approximately $10.3 million, and the
Company did not engage a bank or agent in connection with the
offering. The use of proceeds will include working capital and
general corporate purposes and the repayment of certain
indebtedness, including the satisfaction of all amounts owed to
HealthTronics, Inc. for $1.4 million.
"The goal of these transactions is to simplify and rationalize
Sanuwave's cap table to put the company on a sound financial
footing to pursue growth and profitability," said CEO Morgan Frank.
"By reducing our share count and cap structure complexity and
regaining compliance with our debt covenants, our hope is to create
a company that can be valued for its business instead of its cap
stack and to allow us to focus our energy on accelerating our
growth rate and better serving the wound care market. It's an
exciting time at Sanuwave, and I'm grateful to the employees who
got us here and will take us yet further. I look forward to
providing further updates on the Company's progress soon."
About SANUWAVE Health
Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc. (OTCQB:
SNWV) -- http://www.SANUWAVE.com-- is an ultrasound and shock wave
technology company using patented systems of noninvasive,
high-energy acoustic shock waves or low-intensity, non-contact
ultrasound for regenerative medicine and other applications. The
Company's focus is regenerative medicine utilizing noninvasive,
acoustic shock waves or ultrasound to produce a biological response
resulting in the body healing itself through the repair and
regeneration of tissue, musculoskeletal, and vascular structures.
The Company's two primary systems are UltraMIST and PACE. UltraMIST
and PACE are the only two Food and Drug Administration (FDA)
approved directed energy systems for wound healing.
SANUWAVE Health reported a net loss of $25.81 million for the year
ended Dec. 31, 2023, compared to a net loss of $10.29 million for
the year ended Dec. 31, 2022.
New York, N.Y.-based Marcum LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
21, 2024, citing that the Company has incurred recurring losses and
needs to raise additional funds to meet its obligations, sustain
its operations, and resolve the events of default on the Company's
debt. These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
SEDALIA AESTHETICS: Files for Chapter 11 Bankruptcy
---------------------------------------------------
Sedalia Aesthetics LLC filed Chapter 11 protection in the Western
District of Missouri. According to court documents, the Debtor
reports $3,017,192
in debt owed to 100 and 199 creditors. The petition states that
funds will be available to unsecured creditors.
About Sedalia Aesthetics LLC
Sedalia Aesthetics LLC, doing business as The Beauty Bar, The
Beauty Bar of Jefferson City, and The Beauty Bar of Marshall, is
the owner of a building located at 9 North Lafayette, Marshall MO
valued at $110,000.
Sedalia Aesthetics LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 24-20453)
on October 21, 2024. In the petition filed by Michelle Bassett, as
managing member, the Debtor reports total assets of $311,684 and
total liabilities of $3,017,192.
Bankruptcy Judge Cynthia A. Norton oversees the case.
The Debtor is represented by:
Erlene W. Krigel, Esq.
KRIGEL, NUGENT + MOORE, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: 816-756-5800
Fax: 816-756-1999
SEVEN SEAS: Seeks Approval to Tap Class Advisors as Bookkeeper
--------------------------------------------------------------
Seven Seas Roasting Co., LLC and Seven Seas Roasting Oc., LLC seek
approval from the U.S. Bankruptcy Court for the Southern District
of California to employ Class Advisors as bookkeeper.
Prior to filing the case, the Debtors employed the firm to provide
basic bookkeeping services related to their day-to-day and monthly
operations and assist in the management of their books and records
for a monthly flat fee of $750 for Seven Seas Roasting, Co. and
$500 for Seven Seas Roasting, Oc.
In addition to above services, the firm will assist the Debtors in
the preparation of their monthly operating reports for the United
States Trustee, and any other bankruptcy-specific documentation
requiring its professional expertise, such as exhibits to the
Debtors' Chapter 11 Plan.
Mark Sellers, a tax and accounting manager at Class Advisors, will
be paid at the hourly rate of $200 for the completion of the
Debtors' United States Trustee reporting requirements.
Mr. Sellers disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mark W. Sellers
Class Advisors
About Seven Seas Roasting
Seven Seas Roasting Co. LLC is a San Diego-based specialty coffee
roaster with coffee sourced from micro lot farms from around the
world.
Seven Seas Roasting Co. LLC and Seven Seas Roasting Oc., LLC sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Cal. Case No. 24-02183) on June 14, 2024. In the petitions filed by
Eric Dobbs, managing member, Seven Seas Roasting Co. disclosed
total assets of $768,017 and total liabilities of $1,360,580 as of
May 31, 2024.
Judge Christopher B. Latham oversees the case.
The Debtor tapped Gregory T. Highnote, Esq., at Bankruptcy Legal
Group as counsel and Mark W. Sellers at Class Advisors as
bookkeeper.
SHIELDS NURSING: Unsecureds Will Get 1% of Claims over 60 Months
----------------------------------------------------------------
Shields Nursing Centers, Inc., filed with the U.S. Bankruptcy Court
for the Northern District of California a Disclosure Statement
describing Plan of Reorganization dated September 16, 2024.
The Debtor was formed in November 1978 and operates post-acute
skilled nursing facilities in Richmond, California and El Cerrito,
California, and serving the Contra Costa and surrounding counties.
The locations for the nursing facilities are 1919 Cutting Blvd.,
Richmond, California 94804 and 3230 Carlson Blvd., El Cerrito,
California 94530. The total capacity for the two facilities
combined is 125 beds, with 106 beds being currently occupied.
This is a reorganizing plan that provides for payment to holders of
allowed claims over time. The timing of the Plan payments to
particular creditor groups will depend upon their classification
under the Plan.
Class 2 consists of General Unsecured Claims. In the present case,
the Debtor estimates that there are approximately $9,072,483 in
allowed general unsecured claims. Holders of General Unsecured
Claims in Class 2 will receive their pro-rata share of $1,508.65
per month over 60 months of the plan. The payments will start on
the first day of the first month following within the effective
date occurs. Based on the proposed payments, the unsecured class
will receive approximately 1% of their claims. This Class is
impaired.
Class 2a consists of the claim of James Prasad as the landlord for
the Richmond Facility. As of the petition date, the Debtor owed
Prasad $41,4405 for pre-petition delinquent rent. Treatment of
Class 2a is pursuant to the Stipulation for Assumption of the Lease
and order approving stipulation. Pursuant to the Stipulation, the
Debtor shall cure the pre-petition amount owed to Prasad within 90
days of the entry of the order approving the stipulation as
follows: the first rent cure payment in the amount of $13,801.66
shall be paid by the 1st day of the month following the entry of
the order approving the stipulation; the 2nd and 3rd rent cure
payments, each in the amount of $13,801.66, shall be paid by the
1st day of the second and third month following the entry of the
order approving the stipulation.
Class 2b consist of the claim of El Cerrito Investment Group, LLC
as the landlord for the El Cerrito Facility. As of the petition
date, the Debtor owed El Cerrito Investment Group $44,681.70 for
pre-petition delinquent rent. Treatment of Class 2b is pursuant to
the Stipulation for Assumption of the Lease and order approving
stipulation. Pursuant to the Stipulation, the Debtor shall cure the
pre-petition amount owed to Landlord in the amount of $44,681.70
within 60 days of the entry of the order approving the stipulation.
The cure payments shall be $22,340.85 paid by the 1st day of the
month following the entry of the order approving the stipulation,
and the second cure payment in the amount of $22,340.85 shall be
paid by the 1st day of the second month following the entry of the
order approving the stipulation.
The Debtor will fund the Plan from the continued operation of its
business.
A full-text copy of the Disclosure Statement dated September 16,
2024 is available at https://urlcurt.com/u?l=XqteZo from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Michael Jay Berger, Esq.
Sofya Davtyan, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor,
Beverly Hills, CA 90212
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About Shields Nursing Centers
Shields Nursing Centers, Inc. owns and operates a skilled nursing
facility in Hercules, Calif., which offers rehabilitation programs
including physical, occupational and speech therapy.
Shields Nursing Centers filed its voluntary Chapter 11 petition
(Bankr. N.D. Calif. Case No. 23-41201) on Sept. 20, 2023, with
$1,726,970 in assets and $13,504,710 in liabilities. Judge Charles
Novack oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's
bankruptcy counsel.
Blanca E. Castro has been appointed as patient care ombudsman in
the Debtor's Chapter 11 case.
SHIFTPIXY INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: ShiftPixy, Inc.
4101 NW 25th Street
Miami, FL 33142
Business Description: ShiftPixy is a disruptive human capital
services enterprise, revolutionizing
employment in the Gig Economy by delivering
a next-gen platform for workforce management
that helps businesses with shift-based
employees navigate regulatory mandates,
minimize administrative burdens and better
connect with a ready-for-hire workforce.
With expertise rooted in management's more
than 25 years of workers' compensation and
compliance programs experience, ShiftPixy
adds a needed layer for addressing
compliance and continued demands for
equitable employment practices in the
growing Gig Economy.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-21209
Judge: Hon. Laurel M Isicoff
Debtor's Counsel: Isaac Marcushamer, Esq.
DGIM LAW PLLC
2875 North East 191st Street Suite 705
Aventura, FL 33180
Email: isaac@dgimlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Feldman as chief restructuring
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3SFQQFI/ShiftPixy_Inc__flsbke-24-21209__0001.0.pdf?mcid=tGE4TAMA
SHIFTPIXY STAFFING: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: ShiftPixy Staffing, Inc.
4101 NW 25th Street
Miami, FL 33142
Business Description: ShiftPixy is a Florida-based national
staffing enterprise which designs, manages,
and sells access to a disruptive,
revolutionary platform that facilitates
employment in the rapidly growing Gig
Economy.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-21212
Judge: Hon. Corali Lopez-Castro
Debtor's Counsel: Isaac Marcushamer, Esq.
DGIM LAW PLLC
2875 North East 191st Street Suite 705
Aventura, FL 33180
Email: isaac@dgimlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Feldman as chief restructuring
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/OHYAKQQ/ShiftPixy_Staffing_Inc__flsbke-24-21212__0001.0.pdf?mcid=tGE4TAMA
SHOMYA TELIFAH: Seeks to Hire Bronson Law Offices as Legal Counsel
------------------------------------------------------------------
Shomya Telifah, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Bronson Law
Offices, PC as counsel to handle its Chapter 11 case.
The firm's services include:
(a) assist in the administration of this Chapter 11
proceeding;
(b) prepare or review operating reports;
(c) set a bar date;
(d) review claims and resolve claims which should be
disallowed;
(e) defend lift stay motions;
(f) assist in drafting a plan of reorganization; and
(g) perform all other services necessary to confirm a plan in
bankruptcy or defend the bankruptcy.
The hourly rates of the firm's counsel and staff are as follows:
H. Bruce Bronson, Attorney $550
Paralegal or Legal Assistant $150 - $250
Prior to the petition date, the firm received a retainer of $19,500
from the Debtor.
Mr. Bronson disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
H. Bruce Bronson, Esq.
Bronson Law Offices P.C.
480 Mamaroneck Ave.
Harrison, NY 10528
Telephone: (914) 269-2530
Facsimile: (888) 908-6906
Email: hbbronson@bronsonlaw.net
About Shomya Tefilah LLC
Shomya Tefilah LLC is the owner of real property located at 17
Koritz Way, Spring Valley, NY 10977 having an estimated value of
$1.2 million.
Shomya Tefilah LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22765) on Sept. 9,
2024. In the petition filed by Jacob Rothschild, managing member,
the Debtor reports total assets of $1,200,000 and total liabilities
of $1,550,000.
Judge Sean H. Lane oversees the case.
Bronson Law Offices P.C. serves as the Debtor's counsel.
SILVERGATE CAPITAL: Rejects Investor's Bid for Bankruptcy Examiner
------------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the parent company of the
now-defunct Silvergate Bank pushed back against a recently elected
board member's "baseless" demand for a bankruptcy court examiner,
defending the integrity of an ongoing, independent investigation
into the crypto-friendly bank's failure.
While the US Bankruptcy Court for the District of Delaware could
appoint an examiner to investigate Silvergate Capital Corp. under
Chapter 11, the company argued in a Wednesday filing that the scope
of such an investigation should remain limited to avoid redundancy
with efforts already led by an independent director.
About Silvergate Capital
Silvergate Capital operates as a bank holding company. The Company,
through its subsidiary Silvergate Bank provides a banking platform
for innovators, especially in the digital currency industry, and
developing product and service solutions addressing the needs of
entrepreneurs. Silvergate Capital serves customers in the United
States.
On Sept. 17, 2024, Silvergate Capital and two affiliates sought
Chapter 11 protection (Bankr. D. Del. Case No. 24-12158) on Sept.
17, 2024. In its petition, Silvergate Capital estimated assets
between $100 million and $500 million and estimated liabilities
between $10 million and $50 million.
The Debtors tapped CRAVATH, SWAINE & MOORE LLP as counsel;
RICHARDS, LAYTON & FINGER, P.A., as local bankruptcy counsel; and
ALIXPARTNERS, LLP, as financial advisor. STRETTO, INC., is the
claims agent.
SL BEVERAGE: Seeks to Extend Plan Exclusivity to Jan. 27, 2025
--------------------------------------------------------------
SL Beverage Liquidation, LLC and its affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to January 27, 2025, and March 27, 2025,
respectively.
The Debtors have sought to coordinate with the DIP Agent and the
Committee regarding a potential chapter 11 plan of liquidation to
ensure payments can be made to unsecured creditors of the estates
following the pivot from a going concern sale of at least the Salt
Life Assets to a full liquidation of the Debtors' assets. The
Debtors anticipate that a plan of liquidation will be consummated
and go effective following completion of the Liquidation Sales and
Court-approval and consummation of the sales of the Real Estate.
The Debtors explain that the company and its professionals have
expended significant efforts to sufficiently market the Debtor's
assets for sale, conducted a successful Auction that resulted in
purchase prices well over and above the initial bids for the Salt
Life Assets and Soffe Assets as well as two additional bids for
assets, and have already obtained approval of and closed three of
the four Sales. The Debtors require additional time to further
negotiate a chapter 11 plan.
This is the Debtors' first request to extend the Exclusive Periods,
and only a 90-day extension has been requested. As set forth, in
the brief time since the Petition Date, the Debtors have
accomplished a great deal, including soliciting for and obtaining
bids in connection with the Sales, holding a successful Auction,
obtaining court approval of and closing three of the four Sales,
and hiring a liquidation agent to sell the Remaining Inventory and
FF&E, and retaining Stump to market the Real Estate for sale. The
short time that the Debtors have spent in chapter 11 to date weighs
in favor of extending the Exclusive Periods.
The Debtors claim that they are not seeking to extend the Exclusive
Periods to pressure or prejudice any of their creditors: they are
requesting the extension to allow them sufficient time to formulate
a liquidation plan with the highest possible likelihood of
confirmation without objection. The Debtors are engaged in
discussions with the Committee regarding the filing of a consensual
liquidation plan.
The Debtors explain that unresolved contingencies exist, including,
but not limited to, the completion of the Liquidation Sales and the
sales of the Real Estate, although the Debtors have made
significant progress in these Chapter 11 Cases thus far,
significant. Also, after the establishment and expiration of the
bar date, the Debtors will begin assessing the claims pool, which
is an essential element for an effective chapter 11 plan.
Counsel to the Debtors:
POLSINELLI PC
Christopher A. Ward, Esq.
222 Delaware Avenue, Suite 1101
Wilmington, Delaware 19801
Telephone: (302) 252-0920
Email: cward@polsinelli.com
-and-
Jeremy R. Johnson, Esq.
600 3rd Avenue, 42nd Floor
New York, New York 10016
Telephone: (212) 684-0199
Email: jeremy.johnson@polsinelli.com
-and-
Jerry L. Switzer, Jr., Esq.
150 N. Riverside Plaza, Suite 3000
Chicago, Illinois 60606
Telephone: (312) 819-1900
Email: jswitzer@polsinelli.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SMS LAKEWOOD LLC: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------------
On October 21, 2024, SMS Lakewood LLC filed Chapter 11 protection
in the District of Colorado. 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.
About SMS Lakewood LLC
SMS Lakewood LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
SMS Lakewood LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 24-16228) on October 21,
2024. In the petition filed by Richard Mittasch, as vice president,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
Honorable Bankruptcy Judge Michael E. Romero handles the case.
The Debtor is represented by:
Aaron J. Conrardy, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
E-mail: aconrardy@wgwc-law.com
SMS LAKEWOOD: Gets OK to Hire Wadsworth Garber as Legal Counsel
---------------------------------------------------------------
SMS Lakewood, LLC received approval from the U.S. Bankruptcy Court
for the District of Colorado to employ Wadsworth Garber Warner
Conrardy, PC as counsel.
The firm will provide these services:
(a) prepare on behalf of the Debtor all necessary legal papers
required in this Chapter 11 proceeding;
(b) perform all legal services for the Debtor which may become
necessary herein; and
(c) represent the Debtor in any litigation which it determines
is in the best interest of the estate whether in state or federal
court(s).
The firm's counsel and staff will be paid at these hourly rates:
David Wadsworth, Attorney $500
Aaron Garbe, Attorney $500
David Warner, Attorney $425
Aaron Conrardy, Attorney $425
Lindsay Riley, Attorney $325
Paralegals $125
The firm received a retainer of $25,000 plus a $1,738 filing fee.
Mr. Conrardy disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Aaron J. Conrardy, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 W. Main St., Ste. 200
Littleton, CO 80120
Telephone: (303) 296-1999
Email: aconrardy@wgwc-law.com
About SMS Lakewood
SMS Lakewood, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-16228) on Oct. 21,
2024. In the petition signed by Richard Mittasch, vice president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Michael E. Romero oversees the case.
Aaron J. Conrardy, Esq., at Wadsworth Garber Warner Conrardy, P.C.
serves as the Debtor's counsel.
SPECIALTY DENTAL: Cain & Skarnulis Represents Creditors
-------------------------------------------------------
The law firm of Cain & Skarnulis PLLC (C&S) filed a verified
statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure to disclose that in the Chapter 11 cases of Specialty
Dental Holdings, LLC and its affiliates, the firm represents Joseph
"J.P." Keane, Sadie Tamplin, Yashodhara Singh, James M. Usdan, and
Sing Orthodontics, P.C. (collectively, the Creditors).
The Creditors' address and the nature and amount of disclosable
economic interests held in relation to the Debtors are:
1. Joseph Keane
c/o Cain & Skarnulis PLLC
300 Colorado Street, Suite 2850
Austin, Texas 78701
* $98,091.99, unsecured
* $30,000.00, administrative expense Unliquidated,
indemnification claims
2. Sadie Tamplin
c/o Cain & Skarnulis PLLC
300 Colorado Street, Suite 2850
Austin, Texas 78701
* $22,085.80, unsecured
3. Yashodhara Singh
c/o Cain & Skarnulis PLLC
300 Colorado Street, Suite 2850
Austin, Texas 78701
* $11,328.14 Unliquidated, indemnification claims
4. James M. Usdan
c/o Cain & Skarnulis PLLC
300 Colorado Street, Suite 2850
Austin, Texas 78701
* $14,200.99, unsecured
5. Sing Orthodontics, P.C.
c/o Cain & Skarnulis PLLC
300 Colorado Street, Suite 2850
Austin, Texas 78701
* $837,210.07, unsecured
* $194,802.87, administrative expense
The law firm can be reached at:
Ryan E. Chapple, Esq.
CAIN & SKARNULIS PLLC
303 Colorado Street, Suite 2850
Austin, Texas 78701
512-477-5000
512-477-5011—Facsimile
Email:rchapple@cstrial.com
About Specialty Dental Holdings, LLC
Specialty Dental Holdings, LLC filed Chapter 11 petition (Bankr.
W.D. Texas Case No. 23-10498) on July 10, 2023, with as much as
$50,000 in assets and $500,001 to $1 million in liabilities. Judge
Shad Robinson oversees the case.
Stephen W. Sather, Esq., at Barron & Newburger, PC is the Debtor's
legal counsel.
Thomas Mackey is the patient care ombudsman appointed in the
Debtor's Chapter 11 case.
SPIRIT AIRLINES: Plans Layoffs, Cost-Cutting Measures
-----------------------------------------------------
Al Barbarino of Law360 reports that Spirit Airlines plans to reduce
costs by $80 million, which includes implementing layoffs.
Additionally, it has agreed to sell 23 Airbus planes to GA Telesis
for around $519 million. These actions come as the airline
reportedly re-enters talks about a possible acquisition by Frontier
Airlines.
About Spirit Airlines
Spirit Airlines Inc. is a major United States ultra-low cost
airline headquartered in Miramar, Florida, in the Miami
metropolitan area.
As of March 31, 2024, the Company had $9.5 billion in total assets,
$8.5 billion in total liabilities, and $1 billion in total
stockholders' equity.
* * *
In June 2024, S&P Global Ratings lowered its issuer credit rating
on Spirit Airlines Inc. to 'CCC' from 'CCC+'. S&P also lowered its
ratings on Spirit's enhanced equipment trust certificates (EETCs)
by one notch, in line with the lower issuer credit rating. The
negative outlook reflects the uncertainty around the company's
ability to address its upcoming 2025 maturities, the sustainability
of its capital structure over the longer term, and S&P's view that
a distressed exchange is likely.
In January 2024, Moody's Investors Service downgraded its ratings
of Spirit Airlines, including the corporate family rating to Caa2
from Caa1 and probability of default rating to Caa2-PD from
Caa1-PD. Moody's also downgraded the backed senior secured rating
assigned to Spirit IP Cayman Ltd.'s 8% senior notes, which are
secured by the company's loyalty program and brand IP, to Caa2 from
B2. The speculative grade liquidity rating remains unchanged at
SGL-3 and the rating outlook remains negative. The downgrade of
the
corporate family rating to Caa2 reflects Moody's belief that the
potential of a default has increased since Judge William Young
ruled in January that the agreed acquisition by JetBlue Airways
Corp. would be anti-competitive and a violation of the Clayton Act.
The downgrades of the CFR as well as of the senior notes secured by
Spirit's loyalty program IP and brand IP reflect the increased
potential of a default and less than a full recovery, whether in a
formal reorganization or if the senior secured notes are refinanced
or retired for less than face value. The Caa2 instrument rating
incorporates a negative one notch override of the LGD model to
reflect the potential for a more than nominal loss on the
instrument in a restructuring or exchange scenario. Following the
ruling on January 16, the market price of the notes fell to around
50 from the low to mid-70s since mid-November. The notes price has
increased to the low 60s following the announcement that Spirit and
JetBlue would appeal the District Court's ruling.
Moody's continues to expect Spirit's operations to generate an
operating loss in 2024 and again in 2025 on a reported basis.
Moody's forecasts about breakeven operating cash flow in 2024, an
improvement from its forecast for negative $150 million in 2023.
Moody's projects cash to fall from the $1.1 billion on hand on
September 30, 2023, towards $700 million by the end of 2024.
The Company's $300 million revolver expires on September 30, 2025.
Alternate sources of liquidity are very limited.
In September 2023, Egan-Jones Ratings Company maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Spirit Airlines, Inc.
SPIRIT AIRLINES: Sells 23 Airbus to Raise Cash as Bankruptcy Nears
------------------------------------------------------------------
Richard Clough of Bloomberg News reports that Spirit Airlines Inc.
has agreed to sell 23 Airbus SE aircraft for $519 million,
providing the budget airline with a critical cash infusion as it
faces a potential bankruptcy filing.
According to a regulatory filing on Thursday, net proceeds from the
sale, along with the removal of related debt from its balance
sheet, are expected to increase Spirit's liquidity by approximately
$225 million through the end of 2025. The airline plans to deliver
the aircraft to buyer GA Telesis LLC by February.
This deal comes amid Spirit's discussions with Frontier Group
Holdings Inc. about a potential bankruptcy filing to support a
takeover by the competing discount carrier.
About Spirit Airlines
Spirit Airlines Inc. is a major United States ultra-low cost
airline headquartered in Miramar, Florida, in the Miami
metropolitan area.
As of March 31, 2024, the Company had $9.5 billion in total assets,
$8.5 billion in total liabilities, and $1 billion in total
stockholders' equity.
* * *
In June 2024, S&P Global Ratings lowered its issuer credit rating
on Spirit Airlines Inc. to 'CCC' from 'CCC+'. S&P also lowered its
ratings on Spirit's enhanced equipment trust certificates (EETCs)
by one notch, in line with the lower issuer credit rating. The
negative outlook reflects the uncertainty around the company's
ability to address its upcoming 2025 maturities, the sustainability
of its capital structure over the longer term, and S&P's view that
a distressed exchange is likely.
In January 2024, Moody's Investors Service downgraded its ratings
of Spirit Airlines, including the corporate family rating to Caa2
from Caa1 and probability of default rating to Caa2-PD from
Caa1-PD. Moody's also downgraded the backed senior secured rating
assigned to Spirit IP Cayman Ltd.'s 8% senior notes, which are
secured by the company's loyalty program and brand IP, to Caa2 from
B2. The speculative grade liquidity rating remains unchanged at
SGL-3 and the rating outlook remains negative. The downgrade of
the
corporate family rating to Caa2 reflects Moody's belief that the
potential of a default has increased since Judge William Young
ruled in January that the agreed acquisition by JetBlue Airways
Corp. would be anti-competitive and a violation of the Clayton Act.
The downgrades of the CFR as well as of the senior notes secured by
Spirit's loyalty program IP and brand IP reflect the increased
potential of a default and less than a full recovery, whether in a
formal reorganization or if the senior secured notes are refinanced
or retired for less than face value. The Caa2 instrument rating
incorporates a negative one notch override of the LGD model to
reflect the potential for a more than nominal loss on the
instrument in a restructuring or exchange scenario. Following the
ruling on January 16, the market price of the notes fell to around
50 from the low to mid-70s since mid-November. The notes price has
increased to the low 60s following the announcement that Spirit and
JetBlue would appeal the District Court's ruling.
Moody's continues to expect Spirit's operations to generate an
operating loss in 2024 and again in 2025 on a reported basis.
Moody's forecasts about breakeven operating cash flow in 2024, an
improvement from its forecast for negative $150 million in 2023.
Moody's projects cash to fall from the $1.1 billion on hand on
September 30, 2023, towards $700 million by the end of 2024.
The Company's $300 million revolver expires on September 30, 2025.
Alternate sources of liquidity are very limited.
In September 2023, Egan-Jones Ratings Company maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Spirit Airlines, Inc.
STARSHIP LOGISTICS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Starship Logistics LLC
2711 E Dominguez St
Long Beach, CA 90810
Business Description: Starship offers freight transportation
arrangement services.
Chapter 11 Petition Date: October 28, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-18834
Debtor's Counsel: Susan K. Seflin, Esq.
BG LAW LLP
21650 Oxnard Street, Suite 500
Woodland Hills, CA 91367
Tel: (818) 827-9000
Fax: (818) 827-9099
Email: sseflin@bg.law
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Clarence Xu as chief executive officer
and managing director.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/DO3KXJQ/Starship_Logistics_LLC__cacbke-24-18834__0001.0.pdf?mcid=tGE4TAMA
STEWARD HEALTH: Gets Court Okay to Sell Texas, Florida Hospitals
----------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that bankrupt Steward
Health Care, which has been selling its medical centers to new
owners, received court approval to sell seven hospitals in Florida
and Texas to affiliates of American Healthcare Systems.
Judge Christopher Lopez announced Friday that he would approve the
sale of five Steward Health hospitals in South Florida and two in
Texas. This deal follows a July court approval for an American
Healthcare Systems affiliate to acquire a Steward Health hospital
in West Monroe, Louisiana.
The sales approved on Friday were part of a larger settlement
between Steward and its primary landlord, Medical Properties Trust
Inc.
About Steward Health Care
Steward Health Care System, LLC, owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the proceeding.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman has been appointed as patient care ombudsman in
the Debtors' Chapter 11 cases.
TAKEOFF TECHNOLOGIES: Plan Exclusivity Period Extended to Dec. 26
-----------------------------------------------------------------
Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the
District of Delaware extended Takeoff Technologies, Inc., and its
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to December 26, 2024, and February 24,
2025, respectively.
As shared by Troubled Company Reporter, the Court entered an order
(the "Bidding Procedures Order") that, among other things, approved
bidding procedures in connection with the sale of the Debtors'
assets (the "Sale") on July 12, 2024.
The Debtors explain that the sale and plan processes required (and
continue to require) negotiations and effort. At the conclusion of
the sale process, the Debtors and their advisors negotiated and
obtained entry of an order approving the Sale to the Purchaser,
which resolved certain objections of the Committee relating to the
Sale, allowing the Debtors, the Debtors' prepetition and
postpetition lenders, the Committee, the U.S. Trustee, and others
to forge a consensual path towards confirmation.
In addition to advancing toward confirmation, the Debtors and their
professionals will continue to focus on maximizing the value of
their estates by managing ongoing chapter 11 administrative tasks
for the benefit of their stakeholders. An extension of the
Exclusive Periods as requested herein will allow the Debtors to
finalize a chapter 11 plan that meets the requirements of the
Bankruptcy Code. Accordingly, the Debtors' efforts to date and the
tasks that remain to be completed justify the extension of the
Exclusive Periods.
Throughout the chapter 11 process, the Debtors have endeavored to
establish and maintain cooperative working relationships with its
primary creditor constituencies. Importantly, the Debtors are not
seeking the extension of the Exclusive Periods to delay
administration of these chapter 11 cases or to exert pressure on
its creditors, but rather to continue the orderly, efficient, and
cost-effective chapter 11 process. Thus, this factor also weighs in
favor of the requested extension of the Exclusive Periods.
Co-Counsel for the Debtors:
Justin Bernbrock, Esq.
Robert B. McLellarn, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
321 North Clark Street, 32nd Floor
Chicago, Illinois 60654
Tel: (312) 499-6300
Fax: (312) 499-6301
E-mail: jbernbrock@sheppardmullin.com
rmclellarn@sheppardmullin.com
- and -
Alexandria G. Lattner, Esq.
650 Town Center Drive, 10th Floor
Costa Mesa, California 92626
Tel: (714) 513-5100
Fax: (714) 513-5130
E-mail: alattner@sheppardmullin.com
Co-Counsel for the Debtors:
Joseph M. Mulvihill, Esq.
Shella Borovinskaya, Esq.
Kristin L. McElroy, Esq.
YOUNG, CONAWAY, STARGATT & TAYLOR LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: jmulvihill@ycst.com
sborovinskaya@ycst.com
kmcelroy@ycst.com
About Takeoff Technologies
Founded in 2016 by a group of former grocery executives, Takeoff
Technologies, Inc. and its affiliates operate one of the leading
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Takeoff
Technologies, Inc. and its affiliates. eGrocery, micro-fulfillment
solution companies in the world. The Debtors' business model
centers around the sale, subsequent maintenance, and support of the
equipment and software needed to operate micro-fulfillment centers
-- i.e. small, automated, robotic warehouses
calledmicro-fulfillment centers, either placed in grocery stores or
near the end-shoppers.
The Debtors filed Chapter 11 petition (Bankr. D. Del. Lead Case No.
24-11106) on May 30, 2024. At the time of the filing, Takeoff
Technologies reported $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Sheppard, Mullin, Richter & Hampton, LLP as lead
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as local
bankruptcy counsel; Huron Transaction Advisory, LLC as investment
banker; and Huron Consulting Services, LLC as financial and
restructuring advisor. John C. Didonato and Brett M. Anderson of
Huron Consulting Services serve as the Debtors' chief restructuring
officer and deputy chief restructuring officer, respectively. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Kilpatrick Townsend & Stockton, LLP and Ashby &
Geddes, P.A. as legal counsels; Eversheds Sutherland (US), LLP as
co-counsel; and Dundon Advisers, LLC as financial advisor.
TONIX PHARMACEUTICALS: Receives First Contract Payment From DTRA
----------------------------------------------------------------
Tonix Pharmaceuticals Holding Corp. received its first payment from
the Defense Threat Reduction Agency (DTRA), an agency within the
U.S. Department of Defense (DoD), to develop small molecule
broad-spectrum antiviral agents for the prevention or treatment of
infections to improve the medical readiness of military personnel
in biological threat environments. The previously announced award
from DTRA is for up to $34 million over five years.
"This award provides important validation and substantial
non-dilutive funding for our ongoing research to advance our
antiviral discovery program," said Seth Lederman, M.D., Chief
Executive Officer of Tonix Pharmaceuticals "With biological
adaptations and mutations happening to viruses rapidly across the
globe, this research will be crucial in order to protect lives in
the event biological threats are introduced onto the battlefield."
The $34 million five-year contract will help fund and accelerate
the development of the Company's broad-spectrum antiviral program,
which has the potential to reduce viral load and allow the adaptive
immune system to alert the other arms of the immune system to mount
a protective response. Tonix plans to leverage previous research on
phosphatase inhibitors, specifically compounds that target CD45, to
optimize lead compounds for therapeutic intervention of biothreat
agents and provide the government with a complete and
cost-effective solution for a broad-spectrum medical
countermeasure. Tonix's premise is that partial inhibition of CD45
will provide optimal antiviral protection while requiring lower
plasma drug concentrations, a lower dose, and a better safety
profile.
Tonix will utilize its state-of-the-art research laboratory
capabilities, including a Biosafety Level 3 (BSL-3) lab at its
research and development center (RDC) facility located in
Frederick, Md., as well as experienced personnel in-house. The RDC
is located in Maryland's 'I-270 biotech corridor' and is close to
the center of the U.S. biodefense research community.
About Defense Threat Reduction Agency
The Defense Threat Reduction Agency, an agency within the United
States Department of Defense is both a Defense Agency and Combat
Support Agency with two distinct yet highly integrated roles
countering Weapons of Mass Destruction and emerging threats. Its
origins stretch back to World War II and the Manhattan Project, but
today the agency encompasses a wide variety of strategic and
operational functions that deter, prevent, and ultimately prevail
against these unique threats. DTRA enables the Department of
Defense, the United States Government and international partners to
counter and deter weapons of mass destruction and emerging threats.
DTRA provides cross-cutting solutions to enable the Department of
Defense, the United States Government, and international partners
to deter strategic attack against the United States and its allies;
prevent, reduce, and counter WMD and emerging threats; and prevail
against WMD-armed adversaries in crisis and conflict. DTRA's
continued effort to enhance the combat support mission also
advances public health services by developing innovative
technologies that protect against biological threats. For more
information, visit www.dtra.mil.
About Tonix Pharmaceuticals
Chatham, N.J.-based Tonix Pharmaceuticals Holding Corp., through
its wholly owned subsidiary Tonix Pharmaceuticals, Inc., is a fully
integrated biopharmaceutical company focused on developing and
commercializing therapeutics to treat and prevent human disease and
alleviate suffering.
As of June 30, 2024, Tonix had $70.3 million in total assets, $28.2
million in total liabilities, and $42.1 million in total
stockholders' equity.
Going Concern
The Company cautioned in its Form 10-Q report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. The Company has suffered recurring
losses from operations and negative cash flows from operating
activities. As of March 31, 2024, the Company had working capital
of approximately $9.6 million and an accumulated deficit of
approximately $615.6 million. The Company held cash and cash
equivalents of approximately $7 million as of March 31, 2024.
During the fourth quarter of 2023, the Company engaged CBRE, an
international real estate brokerage firm, to potentially find a
strategic partner for or buyer of its Advanced Development Center
in North Dartmouth, Massachusetts, to align with its current
business objectives and priorities. As of March 31, 2024, the
Company does not have a commitment in place to sell the building.
The Company believes that its cash resources at March 31, 2024, and
the gross proceeds of $4.4 million raised from an equity offering
in the second quarter of 2024, will not meet its operating and
capital expenditure requirements through the second quarter of
2025.
TRANSOCEAN LTD: Signs $193M 1-Year Contract for Deepwater Conqueror
-------------------------------------------------------------------
Transocean Ltd. announced a one-year contract for the Deepwater
Conqueror with an undisclosed operator in the U.S. Gulf of Mexico.
The contract is expected to commence in October 2025 and contribute
approximately $193 million in backlog, including additional
services.
About Transocean
Transocean Ltd. is an international provider of offshore contract
drilling services for oil and gas wells. The Company specializes in
technically demanding sectors of the offshore drilling business
with a particular focus on ultra-deepwater and harsh environment
drilling services. As of Feb. 14, 2024, the Company owned or had
partial ownership interests in and operated 37 mobile offshore
drilling units, consisting of 28 ultra-deepwater floaters and nine
harsh environment floaters. Additionally, as of Feb. 14, 2024, the
Company was constructing one ultra-deepwater drillship.
Transocean reported a net loss of $954 million in 2023, a net loss
of $621 million in 2022, and a net loss of $591 million in 2021. As
of Dec. 31, 2023, the Company had $20.25 billion in total assets,
$1.39 billion in total current liabilities, $8.44 billion in total
long-term liabilities, and $10.42 billion in total equity.
* * *
As reported by the TCR on Sept. 28, 2023, S&P Global Ratings raised
its issuer credit rating on offshore drilling contractor Transocean
Ltd. to 'CCC+' from 'CCC'. S&P said, "The upgrade reflects improved
rig demand, higher day rates, and our view that there is reduced
near-term risk of a distressed debt exchange or balance sheet
restructuring."
TREMONT CHICAGO: Plan Exclusivity Period Extended to Nov. 18
------------------------------------------------------------
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for
the District of Delaware extended Tremont Chicago, LLC's exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to November 18, 2024 and January 17, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor owns and
operates the (i) Tremont Chicago Hotel (the "Hotel"), a 16-story,
122-room, boutique hotel located at 100 E. Chestnut Street between
the world renowned Magnificent Mile and Rush Street in Chicago, and
(ii) the adjoining property, located at 108 E. Chestnut Street,
which houses a restaurant space.
The Debtor has reached a short-term agreement with its senior
secured lender, LMREC IV Note Holder, Inc., which has resulted in
an interim "pencils down" approach to minimize administrative costs
while the Debtor pursues a refinancing of LMREC's loan. The success
of the refinance will dictate the Debtor's strategy for a plan
moving forward.
The Debtor claims that it has focused on various critical issues
related to its Chapter 11 Case during the first few months of the
Chapter 11 Case. Further, the refinance of the Debtor's secured
debt will largely dictate the direction of this case, and the
Debtor's plan prospects. Given the flux of the case at this time,
and until the refinance is completed, the Debtor asserts that there
is sufficient "cause" for an extension of the Exclusive Periods.
The Debtor explains that the extension of the Exclusive Periods
will afford the company and all other parties in interest an
opportunity to fully develop the grounds upon which a plan can be
based following the refinance of the secured debt. Terminating the
Exclusive Periods prematurely would defeat the very purpose of
section 1121 of the Bankruptcy Code, to afford the Debtor a
meaningful and reasonable opportunity to negotiate with creditors
and propose and confirm a consensual plan.
Tremont Chicago, LLC, is represented by:
GOLDSTEIN & MCCLINTOCK LLLP
Maria Aprile Sawczuk, Esq.
501 Silverside Road, Suite 65
Wilmington, DE 19809
Telephone: (302) 444-6710
Email: marias@goldmclaw.com
-and-
Matthew E. McClintock, Esq.
Ainsley G. Moloney, Esq.
Amrit S. Kapai, Esq.
111 W. Washington Street, Suite 1221
Chicago, IL 60602
Telephone: (312) 337-7700
Email: mattm@goldmclaw.com
ainsleym@goldmclaw.com
amritk@goldmclaw.com
About Tremont Chicago
Tremont Chicago, LLC, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-10844) on April
22, 2024. In the petition signed by Michael Collier, sole member of
Hotel Capital, LLC, Debtor's Manager, the Debtor disclosed up to
$50 million in both assets and liabilities.
Judge Laurie Selber Silverstein oversees the case.
Maria Aprile Sawczuk, Esq., at GOLDSTEIN & McCLINTOCK LLLP, is the
Debtor's legal counsel.
TRUCK DYNASTY: Volvo Entitled to Summary Judgment, Court Rules
--------------------------------------------------------------
Magistrate Judge Jane M. Virden of the United States District Court
for the Northern District of Mississippi granted the motion filed
by Volvo Financial Services for summary judgment in the case
captioned as VOLVO FINANCIAL SERVICES, a DIVISION OF VFS US LLC,
PLAINTIFF v. BRADLEY KARL LITTLE, ET AL. DEFENDANTS, Civil Action
No. 3:23-cv-244-JMV (N.D. Miss.).
The motion seeks summary judgment 1) against each of the
Defendants, Bradley Karl Little and Karl Kenard Little, jointly and
severally, as to all claims asserted in its Verified Complaint for
Breach of Contract (Guaranty Agreement), and 2) in favor of Volvo
Financial as against all claims, causes of action, or other
requests for relief, if any, asserted by Defendants against Volvo
Financial in Defendants Pro Se Argument Regarding Verified
Complaint for Breach of Contract (Guaranty Agreement), including
but not limited to dismissal with prejudice of all claims regarding
alleged "defects" in the tractor units involved in this litigation.
This is a debt collection action against individual Defendants who
personally guaranteed the payment of monetary obligations owed by a
corporate entity, Truck Dynasty Transportation Incorporated, to
Volvo Financial. Truck Dynasty is/was, at all times relevant
herein, a trucking company based in Olive Branch, Mississippi, of
which Defendants are the principals, and believed to be its sole
owners. Truck Dynasty is not a party to this action.
By this action, Volvo Financial seeks a final judgment against the
Defendants, jointly severally, in the amount of $283,410.94, with
said amount representing outstanding and unpaid monetary
obligations that Volvo Financial asserts are contractually owed by
Defendants to it, by virtue of a personal guaranty agreement
provided to Volvo Financial as part of the consideration for its
financing of Truck Dynasty's purchase of six (6) "Volvo" tractor
units through a series of transactions in 2022 from M & K Truck
Center of Sterling Heights, LLC, a truck dealership located
Sterling Heights, Michigan. M & K Truck Center, like Truck Dynasty,
is not a party to this action. All of the purchased tractor units
were manufactured by Volvo Trucks North America, a division of
Volvo Group North America, LLC. Volvo Trucks is not a party to this
action.
There is no dispute as to the existence of monetary payment
defaults in the underlying Truck Dynasty tractor purchase financing
transaction, as Defendants have admitted in their Answer that Truck
Dynasty failed to tender monetary payments owed to Volvo
Financial.
Judge Virden holds that though the Court is not unsympathetic to
what, in essence, are equitable arguments no doubt genuinely pled
by Defendants who are proceeding without the benefit of legal
counsel, it is nevertheless obligated in the interest of all those
engaged in business of commercial transactions and their financing,
to foster, to the extent feasible, predictability in the same by
enforcing the announced legal principles applicable to the terms
thereof, absent an established rule of law permitting otherwise.
Accordingly, she finds Volvo Financial is entitled to entry of a
Final Judgment against Defendants, jointly and severally, in an
amount of not less than $283,410.94, representing the amounts
currently due and owing pursuant to the Finance Documents, with
said Judgment Amount including all attorneys' fees, costs and
expenses reasonably incurred by Volvo Financial (as of August 22,
2024) and with said Judgment Amount to accrue at the contract rate
default interest (18.00% per annum) from and after the date of
entry of a final judgment in favor of Volvo Financial until such
time as said final judgment has been satisfied in full.
She concludes that Volvo Financial is entitled to entry of a final
judgment in its favor, dismissing with prejudice all claims, causes
of action, or other request for relief of any nature as addressed
by the Court as asserted by Defendants against Volvo Financial in
Defendant's Answer. This includes, but is not limited to,
dismissing with prejudice all claims regarding alleged 'defects' in
the tractor units at issue in this litigation.
A copy of the Court's decision dated October 15, 2024, is available
at https://urlcurt.com/u?l=WY5FsF
About Truck Dynasty Transportation Inc.
Truck Dynasty Transportation Inc. operates a
trucking/transportation company. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No.
23-11142) on April 14, 2023. In the petition signed by Bradley
Little, its president, the Debtor disclosed up to $50,000 in assets
and up to $10 million in liabilities.
Judge Jason D. Woodard oversees the case.
Toni Campbell Parker, Esq., at the Law Firm of Toni Campbell
Parker, represents the Debtor as legal counsel.
TRUE VALUE: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of True Value Company, LLC and its affiliates.
The committee members are:
1. STIHL Inc.
c/o: Robin Shearer
536 Viking Drive
Virginia Beach, VA 23452
Phone: (757) 785-1281
Fax: (757) 631-5738
Email: robin.shearer@stihl.us
2. The Hillman Group, Inc.
Attn: Dan Bauer
1280 Kemper Meadow Dr.
Cincinnati, OH 45240
Phone: (513) 851-4900
Email: daniel.bauer@hillmangroup.com
3. Rust-Oleum Corp.
11 E. Hawthorn Parkway
Vernon Hills, IL 60061
Phone: (847) 587-7832
Email: john.brodersen@rustoleum.com
4. Black & Decker (US), Inc.
Attn: Theodore Morris and Matthew Reap
1000 Stanley Drive
New Britain, CT 06053
Fax: (860) 827-3895 '
Email: ted.morris@sbdinc.com
matthew.reap@sbdinc.com
5. Ryder Integrated Logistics
Attn: Mike Mandell
2333 Ponce De Leon Blvd.
Coral Gables, FL 33134
Phone: (954) 439-4477
Email: mike_mandell@ryder.com
6. Carhartt, Inc.
Attn: Anna Inch
5750 Mercury Drive
Dearborn, MI 48126
Phone: (248) 943-2069
Email: ainch@carhartt.com
7. The Sherwin-Williams Co. d/b/a Minwax
c/o: Cecil McCurty
101 W. Prospect Ave.
1100 Midland Building
Cleveland, OH 44115
Phone: (321) 200-7559
Email: cmccurty@valspar.com
8. Pension Benefit Guaranty Corp.
Attn: Cynthia Wong
445 12th St. Southwest
Washington, D.C. 20024-2101
Phone: (202) 229-3033
Email: wong.cynthia@pbgc.gov
9. W.P. Carey Inc.
One Manhattan West
395 9th Ave., 58th Floor
New York, NY 10001
Phone: (212) 492-1195
Fax: (212) 492-8922
Email: chayes@wpcarey.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About True Value Company
True Value Company, LLC and its 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 and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on October 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
UETEK: Fine-Tunes Plan Documents
--------------------------------
UETEK submitted a Fifth Amended Subchapter V Plan of Reorganization
dated September 13, 2024.
This Fifth Amended Plan of Reorganization proposes to restructure
the debts of the Debtor.
The debt owed to East West Bank is secured by a first priority lien
against all of the Debtor’s assets. The $80,000 in vendor debt in
the table was generally current as of the petition date. All of the
MCA debt is disputed.
Adversary proceedings have been filed against four of the MCA
lenders seeking the disallowance of their claims, and where
applicable the recovery of the usurious interest payments and
preferential payments under 11 U.S.C. § 547. In three of these
adversary actions, the defendants have defaulted. In the fourth
adversary, an answer was filed, and this litigation is ongoing.
No additional actions will be filed against any creditor who has
filed a proof of claim in this case. However, the Debtor reserves
the right to file additional actions, within ninety days of the
Effective Date of the Plan, against any party who has not filed a
proof of claim.
Like in the prior iteration of the Plan, the holders of Allowed
Claims in Class 4 shall receive a pro rata distribution of the
Disposable Earnings UETEK projects it will generate during the
seventeen quarters following the Effective Date. This payment will
be made on the twentieth (20th) day of the month following each
quarter.
The Debtor expects to have sufficient cash on hand to make the
payments required on the Effective Date. However, if insufficient
cash is available, the Debtor’s Allowed Administrative Claims of
the Debtor's professionals will be paid over time pursuant to a
payment schedule agreed upon by and between the Debtor and these
professionals.
The Debtor's financial projections show the Debtor will have an
aggregate annual average cash flow, after paying operating
expenses, post-confirmation taxes and payments to secured claims
ranging from approximately $25,000 to $80,000 per year.
Plan payments to East West Bank will continue until January 15,
2030 in accordance with the payment schedule, when the balance owed
to this creditor will be all due and payable. The final Plan
payment to unsecured creditors is expected to be paid on January
20, 2029.
A full-text copy of the Fifth Amended Plan dated September 13, 2024
is available at https://urlcurt.com/u?l=dk5qGx from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Sean A. O'Keefe, Esq.
OKEEFE & ASSOCIATES LAW CORPORATION, P.C.
26 Executive Park, Suite 250
Irvine, CA 92614
Telephone: (949) 334-4135
Fax: (949) (949) 209-2625
Email: sokeefe@okeefelawcorporation.com
About Uetek
Uetek is a wholesaler of grocery and related products. The Debtor
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. C.D. Cal. Case No. 23-14201) on September 14, 2023. In the
petition signed by Hsiang Woodby, chief executive officer,
secretary, chief financial officer, the Debtor disclosed $779,202
in assets and $1,976,556 in liabilities.
Judge Wayne Johnson oversees the case.
Sean A. O'Keefe, Esq., at O'Keefe & Associates Law Corporation,
PC,represents the Debtor as legal counsel.
UPHEALTH HOLDINGS: Nears $115M Award Fight Settlement w/ Glocal
---------------------------------------------------------------
Yun Park of Law360 reports that Indian healthcare platform Glocal
and bankrupt digital health company UpHealth may be close to
settling their contentious dispute over a failed merger that led to
a $115 million arbitration award. Glocal informed an Illinois
federal court of the potential resolution in a recent request to
pause enforcement proceedings.
About UpHealth Holdings
UpHealth Holdings Inc. is a global digital health company
delivering technology platforms, infrastructure, and services to
modernize care delivery and health management.
UpHealth Holdings and its affiliates sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-11476) on
Sept. 19, 2023. In the petitions filed by Samuel J. Meckey, chief
executive officer, UpHealth Holdings disclosed up to $500 million
in both assets and liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Stuart M. Brown, Esq., at DLA Piper LLP (US) as
counsel; Morrison & Foerster LLP as litigation counsel; and FTI
Consulting, Inc. as financial advisor. Omni Agent Solutions is the
Debtors' claims agent and administrative agent.
VECTOR UTILITIES: Updates Newtek Secured Claims; Amends Plan
------------------------------------------------------------
Vector Utilities, LLC, and Rolando and Griselda Gaytan submitted a
Fourth Amended Disclosure Statement in support of Plan of
Reorganization dated September 13, 2024.
The Debtors have promulgated the Plan consistent with the
provisions of the Bankruptcy Code. The purpose of the Plan is to
pay all Creditors as much as possible and allow the Debtors to
survive.
This Fourth Amended Disclosure Statement is not intended to replace
a careful review and analysis of the Plan, including the specific
treatment of Claims under the Plan. It is submitted as an aid and
supplement to your review of the Plan to explain the terms of the
Plan.
The Debtors projected sixty months of income show that the Debtors'
plan is feasible. The Debtors May and June Monthly Operating
Reports showed losses of $23,017.00 and $17,088.00, respectively.
These losses are not indicative of the Debtors' future earnings.
Vector's July Monthly Operating Report shows a net profit of
$59,394.00. The Monthly Operating Reports after July should
continue to show robust profits. The Vector plan and the Gaytans'
plan call for a total of monthly plan payments of $24,833.00
($20,553.00 + $4,280.00 = $24,833.00).
The Debtors have not commenced any post-petition lawsuits, but two
adversary proceedings were filed in the case against the Gaytans.
Balboa Capital Corporation has sued Mr. and Mrs. Gaytan under Case
No. 23-05005, and Vulcan Construction has sued Mr. and Mrs. Gaytan
under Case No. 23-05007. Both of these adversaries have been
settled.
The Gaytan's have agreed to sell the truck that was the subject of
the Balboa adversary and pay Balboa a secured claim amount from the
sale of the Truck, and an agreed amount as a general unsecured
claim for the balance of the claim.
Vulcan and the Gaytans have conferred about the merits of the
claims and defenses available to them in the adversary, including
possible preferential claims against Vulcan. After weighing the
costs and risk of pursuing such claims and defenses, the parties
have agreed to dismiss the adversary with prejudice to either party
asserting any further claims related to the Vulcan claim. The only
other actions that are expected will be claim objections to the
secured status of creditors who liens and the amount of claims that
are not supported by adequate documentation or are otherwise not
enforceable as secured claims under the law.
The Debtors propose to sell or surrender assets that are not needed
for Vector's fiber optics work. The Debtors want to sell the
following assets to assist the Debtors to build up the business so
it can handle future expenses and ensure that there is sufficient
money to survive so it can pay its creditors.
Class 2 consists of the Allowed Fully Secured Real Estate Claim of
Newtek Small Business Finance, LLC. Newtek has a claim for
$1,306,759.29. The loan was made to Vector and is secured by: (1) a
lien perfected with the filing of a U.C.C. 1 on Number 20, 2020 on
all of Vector's assets; (2) a Deed of Trust lien on a warehouse
located at 8501 San Gabriel Drive, Laredo, Texas 78045 which is
owned by the Gaytans; and (3) the personal guaranties Mr. and Mrs.
Gaytan. The Newtek lien attaches to the $643,131.48 in the Vector
bank accounts and the $14,000.00 in account receivables on the
filing date.
The balance of the loan is $1,306,759.29. Debtors will pay the loan
in monthly payments equal to the payment required to pay the loan
in full over 360 months at an interest rate of 8.75% per annum.
Pursuant to this formula the monthly plan payment would be
$10,280.00. The monthly payment would be made from the net sales
proceeds from the sale of equipment and a monthly payment from
Vector. Vector is also obligated to pay $3,000.00 per month in rent
to the Gaytans under a lease agreement. The lease rentals have been
assigned to Newtek. Vector will pay these rentals to Newtek as part
of the $10,800.00 per month payment on this claim.
Like in the prior iteration of the Plan, Unsecured Non-Priority
Claims will be paid from the net proceeds from the sale of two
unencumbered pieces of real estate owned by the Gaytans, the
payment of the equity in a mortgaged 10.1-acre tract, and monthly
payments of $2,000.00 from the Gaytans and $2,000.00 from Vector.
The unsecured creditors will participate in the distribution of the
net sales proceeds from the following sales on a pro-rata basis.
The distribution of net sales proceeds will occur by the 30th
calendar day following the completion of each sale. The properties
to be sold and their estimated values are: a vacant lot at 601
Garfield in Laredo, Texas is currently valued at $141,600; and a
lot and mobile home at 1403 Taylor Street in Laredo, Texas
currently valued at $ 59,000.
Pursuant to the provisions of Sections 1141(b) and 1141(c) of the
Bankruptcy Code, all assets of the Debtors that remain will vest in
the Reorganized Debtors on the Effective Date free and clear of all
Claims, Liens, encumbrances, charges and other interests of the
holders of Claims and Equity Interests, except as otherwise
provided in the Plan.
Upon the Effective Date of the Plan, the Reorganized Debtors will
be free to conduct their business, manage their affairs, and enter
into transactions without restriction or limitation imposed under
any provision of the Bankruptcy Code, except to the extent
otherwise provided in the Plan. Except for provisions dealing with
payments to holders of Claims, the Plan does not contain any
limitations with respect to the Debtors' future operation of their
business(es).
A full-text copy of the Fourth Amended Disclosure Statement dated
September 13, 2024 is available at https://urlcurt.com/u?l=y0snq6
from PacerMonitor.com at no charge.
Attorney for the Debtor:
Margaret McClure, Esq.
909 Fannin, Suite 3810
Houston, TX 77010
Telephone: (713) 659-1333
Facsimile: (713) 658-0334
Email: margaret@mmmcclurelaw.com
About Vector Utilities
Vector Utilities, LLC, specializes in providing construction
services to the telecommunications industry it also provides heavy
construction services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-60040) on July 16,
2023. In the petition signed by Griselda C. Gaytan, managing
member, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge David R. Jones oversees the case.
Margaret M. McClure, Esq., at Law Office of Margaret M. McClure, is
the Debtor's legal counsel.
VICTORY CLEAN: Reports $3.8-Mil. Net Loss in Q1 2024
----------------------------------------------------
Victory Clean Energy, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $3,821,365 for the three months ended March 31, 2024,
compared to a net loss of $31,093 for the same period in 2023. The
Company had no revenue during the three months ended March 31, 2024
and 2023.
Historically the Company has experienced, and continues to
experience, net losses, net losses from operations, negative cash
flow from operating activities, and working capital deficits. The
Company has incurred an accumulated deficit of $5,520,967 through
March 31, 2024, and has a working capital deficit of $781,000 at
March 31, 2024. These conditions raise substantial doubt about the
Company's ability to continue as a going concern within the next 12
months.
The Company anticipates that operating losses will continue in the
near term as its management continues its efforts to raise
additional capital and pursue the development and implementation of
clean, sustainable low-cost energy solutions with applications
across various industries, including transportation, power
generation, and industrial processes. Based upon anticipated new
sources of capital, and cash flow from operations, it believes it
will have enough capital to cover expenses through at least the
next 12 months. The Company will continue to monitor liquidity
carefully, and in the event it does not have enough capital to
cover expenses, the Company will make the necessary and appropriate
reductions in spending to remain cash flow positive. While
management believes its plans, including the Merger, help mitigate
the substantial doubt that they are a going concern, there is no
guarantee that the Company's will be successful or if they are,
will fully alleviate the conditions that raise substantial doubt
that the Company is a going concern.
As of March 31, 2024, the Company had $76,631 in total assets,
$852,243 in total liabilities, and $775,612 in total stockholders'
deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/yskdczrh
About Victory Clean
Austin, Texas-based Victory Clean Energy, Inc. is a Green Hydrogen
energy company dedicated to developing and implementing clean,
sustainable low-cost energy solutions with applications across
various industries, including transportation, power generation, and
industrial processes.
Tampa, Fla.-based Accell Audit & Compliance, P.A., the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated May 15, 2024, citing that the Company has incurred net
losses and negative cash flow from operations since inception.
These factors and the need for additional financing in order for
the Company to meet its business plans raise substantial doubt
about the Company's ability to continue as a going concern.
For the years ended December 31, 2023, and 2022, the Company
reported net losses of $538,703 and $321,484, respectively. As of
December 31, 2023, the Company had $1,638,085 in total assets,
$5,725,408 in total liabilities, and $4,087,323 in total
stockholders' deficit.
WAYNE COUNTY, MI: Faces Class Action Over Inmates' Overdetention
----------------------------------------------------------------
WXYZ Detroit reports that the new Wayne County Jail is facing a
class action lawsuit alleging that some inmates have been detained
beyond the time they were ordered to be released.
The suit was filed by attorneys at Pitt McGehee Palmer Bonanni &
Rivers in Royal Oak and Dean Elliott of the Law Offices of Dean
Elliott PLC.
As part of their lawsuit, the attorneys say 22-year-old Liam
West-Campau was attested for a parole violation on October 5, 2024.
The attorneys say three days later, West-Campau was ordered
released on a $2,000 bond and a tether requirement. The attorneys
say West-Campau was then held for an additional six days.
We have not yet received comment from jail officials on the
lawsuit.
The new jail and Wayne County Justice Center have become subjects
of controversy since it opened last month, with reports of fights,
floods, and two suicides, as covered by 7 News Detroit Investigator
Ross Jones. [GN]
WESCO AIRCARAFT: Gets Creditor Support for Chapter 11 Exit
----------------------------------------------------------
Steven Church of Bloomberg News reports that aerospace supplier
Incora secured creditor support to exit bankruptcy, although senior
lenders and bondholders remain locked in a dispute over a
controversial 2022 distressed debt transaction that complicated the
company's capital structure.
During a court hearing on Thursday, October 24, 2024, Incora
announced a tentative settlement, presenting a statement from the
mediator overseeing negotiations in New York. The judge presiding
over Incora's bankruptcy expressed optimism about the mediator's
progress report and scheduled a court hearing next month to
evaluate the company's proposed bankruptcy exit plan.
About Incora
Incora -- http://www.incora.com/-- is the trade name for the group
of companies formed by Wesco Aircraft and Pattonair, a provider of
comprehensive supply chain management services to the global
aerospace and other industries. Beginning with a strong foundation
in aerospace and defense, Incora also utilizes its supply chain
expertise to serve industrial manufacturing, marine, pharmaceutical
and beyond. Incora incorporates itself into customers' businesses,
managing all aspects of supply chain from procurement and inventory
management to logistics and on-site customer services. The company
is headquartered in Fort Worth, Texas, with a global footprint that
includes 68 locations in 17 countries and more than 3,800
employees.
Wesco Aircraft Holdings, Inc., doing business as Incora, and 43
affiliates sought Chapter 11 protection (Bankr. S.D. Texas Lead
Case No. 23-90611) on June 1, 2023.
Wesco Aircraft estimated assets and debt of $1 billion to $10
billion as of the bankruptcy filing.
The Debtors tapped Milbank, LLP and Haynes and Boone, LLP as
bankruptcy counsels; PJT Partners, Inc. as investment banker;
Alvarez & Marsal North America, LLC as restructuring advisor; and
Quinn Emanuel Urquhart & Sullivan, LLP as special litigation and
conflicts counsel. Kurtzman Carson Consultants, 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 McDermott Will & Emery, LLP and Morrison Foerster,
LLP as its counsel; Piper Sandler & Co. as investment banker; and
Province, LLC as financial advisor.
WISA TECHNOLOGIES: Reports Up to $1.2-Mil. in Q3 2024 Revenue
-------------------------------------------------------------
WiSA Technologies, Inc. reported preliminary Q3 2024 revenue of
$1.0 million to $1.2 million, driven by sales of its WiSA
multichannel wireless audio technology.
"In Q3 2024, we expect WiSA to deliver over 200% sequential revenue
growth, driven by both WiSA HT and our new WiSA E IP being in
production with a multi-national licensee," said Brett Moyer, CEO
of WiSA Technologies. "This specific licensee, which is one of the
five current WiSA E licensees signed to date, has integrated our
WiSA E software into their source device and our WiSA E module in
their speakers. Activation of the WiSA E transmit functionality
triggers royalty payments back and generates additional revenue
from the sale of WiSA E-enabled receiver modules using a Realtek
Wi-Fi chip. We expect to build momentum with continued shipments to
this customer with additional deployments anticipated in 2025."
"To date, we've secured five WiSA E licensing agreements, with a
goal of reaching eight by the end of 2024. WiSA has effectively
licensed a significant portion of Android-based HDTVs and is
actively building an ecosystem of WiSA E-enabled speaker systems.
We're well-positioned to penetrate multiple end markets through
top-tier licensing partners, leading the industry by expanding
premium audio experiences and fostering a connected ecosystem that
enhances the way users enjoy sound across devices," added Moyer.
The Company plans to file its Form 10-Q for the third quarter ended
September 30, 2024, on November 14, 2024, and will host an investor
conference call the following morning.
About WiSA Technologies
WiSA Technologies Inc. -- www.wisatechnologies.com -- develops and
markets spatial audio wireless technology for smart devices and
home entertainment systems. The Company's WiSA Association
collaborates with consumer electronics companies, technology
providers, retailers, and industry partners to promote high-quality
spatial audio experiences. WiSA E is the Company's proprietary
technology for seamless integration across platforms and devices.
San Jose, California-based BPM LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company's recurring losses from
operations, a net capital deficiency, available cash, and cash used
in operations as factors raising substantial doubt about its
ability to continue as a going concern.
For the year ended December 31, 2023, WISA Technologies reported a
net loss of $18.7 million, compared to a net loss of $16.2 million
for the same period in 2022. As of June 30, 2024, WiSA Technologies
had $10.6 million in total assets, $4.2 million in total
liabilities, and $6.4 million in total stockholders' equity.
WORKSPORT LTD: Gets Nasdaq Compliance Extension Until April 2025
----------------------------------------------------------------
Worksport Ltd. announced that it has received written notice from
The Nasdaq Stock Market LLC informing the Company that Nasdaq has
determined that the Company is eligible for an additional 180
calendar day period, or until April 14, 2025, to regain compliance
with the minimum $1 bid requirement under Nasdaq Listing Rule
5550(a)(2).
"We are pleased to receive this extension from Nasdaq, which aligns
with our confidence in Worksport's strategic direction," said
Steven Rossi, CEO of Worksport Ltd. "As our revenues reach all-time
highs and we approach cash flow positivity in the near term, the
upcoming release of three innovative product lines positions us for
immense opportunity. We firmly believe Worksport is undervalued and
poised for significant growth. We are excited to unlock substantial
value for our shareholders during this pivotal time."
About Worksport Ltd.
West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries,
designs, develops, manufactures, and owns intellectual property on
a portfolio of tonneau cover, solar integration, portable power
station, and NP (Non-Parasitic), Hydrogen-based green energy
products and solutions for the automotive aftermarket accessories,
power storage, residential heating, and electric vehicle-charging
industries.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. As of March 31, 2024, the Company
had $3,536,980 in cash and cash equivalents. The Company has
generated only limited revenues and has relied primarily upon
capital generated from public and private offerings of its
securities. Since the Company's acquisition of Worksport in fiscal
year 2014, it has never generated a profit.
As of June 30, 2024, Worksport had $27,185,498 in total assets,
$8,039,405 in total liabilities, and $19,146,093 in total
stockholders' equity.
WORKSPORT LTD: Implements Cost Cuts, Expects $1.5-Mil. in Savings
-----------------------------------------------------------------
Worksport Ltd. announced the implementation of strategic
cost-saving measures designed to enhance operational efficiency and
drive long-term growth. The Company forecasts these actions will
result in $1.5 million in expense savings in 2025, along with an
additional $0.5 to $1 million in related savings, without
negatively impacting revenues or growth.
Key Highlights:
* Strategic Cost Savings: Initiatives begin immediately and
target a reduction of recurring expenses. These initiatives are
expected to improve margins and enhance cash preservation.
* Growth Focus: The Company aims for significant revenue
growth in 2025, targeting cash flow positivity by expanding its
tonneau cover business line and launching clean tech products. The
newly enacted cost saving initiatives are expected to expedite the
Company's progression to this goal.
* Product Launches on Schedule: No material delays are
expected for three new products, including the highly anticipated
AL4 Premium Tonneau Cover, the COR Portable Energy System, and the
SOLIS Solar Cover.
* Upcoming Catalysts: Immediate benefits are expected in Q4
2024, with further positive financial impact anticipated in Q1
2025.
CEO Commentary:
"We are taking proactive steps to optimize our operations and
position Worksport for sustainable growth," said Steven Rossi, CEO
of Worksport. "These strategic measures are expected to improve our
margins and strengthen our financial position without compromising
our commitment to innovation and product excellence. We remain
focused on executing our growth strategy and delivering value to
our shareholders."
Growth Initiatives
and Revenue Targets
Worksport is aggressively pursuing growth in its tonneau cover
business line, projecting:
* Cash Flow Positivity in 2025: Capitalizing on high-demand
products and expanding market share.
* Significant Revenue Growth: Targeting a multiple increase
over year-end 2024 revenues.
Product Launches
and Upcoming Catalysts
1. AL4 Premium Tonneau Cover:
* Expected Release: Late Q4 2024.
* Features: Innovative four-fold design offering enhanced
functionality and margins.
* Market Potential: Four-fold covers are seen as the most
in-demand models in the market, and this cover is expected to
propel Worksport toward nine-figure revenue in the short to
midterm.
2. Worksport COR Portable Energy System, and 3. SOLIS Solar Cover:
* Current Phase: Recently entered alpha release.
* Next Steps: Ongoing real-world testing, design optimization,
and media engagement leading to a pre-order campaign and larger
beta release.
* Manufacturing Partnerships: The Company is proud to announce
it is in advanced discussions with a globally recognized
manufacturer to produce these units.
Continued Commitment to Innovation
Worksport remains highly engaged in research and development, with
a focus on:
* Terravis Energy's Extreme Climate Heat Pump: The Company is
looking forward to sharing exciting advancements of this subsidiary
soon.
* Ongoing R&D Efforts: The Company recently provided an update
on 19 new models it has added to its product catalogue in just the
last 6 months, and it looks forward to sharing additional updates
as they occur.
CEO Steven Rossi added:
"Our upcoming product launches represent significant milestones for
Worksport. We are confident that the AL4 Premium Tonneau Cover and
our clean energy solutions like the COR Portable Energy System and
SOLIS Solar Cover will drive substantial growth. These innovations
reflect our dedication to meeting market demands and exceeding
customer expectations."
About Worksport Ltd.
West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries,
designs, develops, manufactures, and owns intellectual property on
a portfolio of tonneau cover, solar integration, portable power
station, and NP (Non-Parasitic), Hydrogen-based green energy
products and solutions for the automotive aftermarket accessories,
power storage, residential heating, and electric vehicle-charging
industries.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. As of March 31, 2024, the Company
had $3,536,980 in cash and cash equivalents. The Company has
generated only limited revenues and has relied primarily upon
capital generated from public and private offerings of its
securities. Since the Company's acquisition of Worksport in fiscal
year 2014, it has never generated a profit.
As of June 30, 2024, Worksport had $27,185,498 in total assets,
$8,039,405 in total liabilities, and $19,146,093 in total
stockholders' equity.
ZUORA INC: M&A Investigates Proposed Merger With Silver Lake
------------------------------------------------------------
Monteverde & Associates PC (the "M&A Class Action Firm"),
headquartered at the Empire State Building in New York City, is
investigating Zuora Inc. (NYSE: ZUO), relating to its proposed
merger with Silver Lake Group, L.C.C. Under the terms of the
agreement, all ZUO shares will be automatically converted into the
right to receive $10.00 in cash per share.
Click link for more information
https://monteverdelaw.com/case/zuora-inc/. It is free and there is
no cost or obligation to you.
NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you
should talk to a lawyer and ask:
1. Do you file class actions and go to Court?
2. When was the last time you recovered money for
shareholders?
3. What cases did you recover money in and how much?
About Monteverde & Associates PC
Our firm litigates and has recovered money for shareholders . . .
and we do it from our offices in the Empire State Building. We are
a national class action securities firm with a successful track
record in trial and appellate courts, including the U.S. Supreme
Court.
No company, director or officer is above the law. If you own common
stock in the above listed company and have concerns or wish to
obtain additional information free of charge, please visit our
website or contact Juan Monteverde, Esq. either via e-mail at
jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.
Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341 [GN]
*********
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
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however, be complete or accurate. The Monday Bond Pricing table
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then-ending.
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Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***