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T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, October 31, 2024, Vol. 28, No. 304
Headlines
220 FTL-LTPJ LLC: Hits Chapter 11 Bankruptcy in Florida
303 HIGHLINE: Seeks to Hire Frances M. Caruso as Bookkeeper
390-394 NORTH: Taps Coldwell Banker Realty as Real Estate Broker
47 BROOKLYN: Hires Morrison Tenenbaum PLLC as Bankruptcy Counsel
A&R CONSTRUCTION: Gets Interim Approval to Use Cash Collateral
ACCURIDE CORP: Hires Omni Agent Solutions as Administrative Agent
ACCURIDE CORP: Seeks to Hire Young Conaway Stargatt as Co-Counsel
ACCURIDE CORP: Taps Charles Moore of Alvarez & Marsal as CRO
ACCURIDE CORP: Taps Perella Weinberg Partners as Investment Banker
ADVANTAGE WEST: Seeks Chapter 11 Bankruptcy Protection
AFFLUENT MANAGEMENT: Gets Interim OK to Use Cash Collateral
AGEAGLE AERIAL: Three Board Members Resign, CFO Plans Departure
ALLSTATE REALTY: Seeks Cash Collateral Access
ALPHAONE EXTERIORS: Seeks to Hire Rike LLC as Accountant
APPLOVIN CORP: Moody's Ups CFR to Ba2 & Alters Outlook to Positive
ASPIRA WOMEN'S: Falls Short of Nasdaq's Bid Price Requirement
AUDACY INC: S&P Assigns 'B-' ICR on Emergence From Bankruptcy
AXENTIA CARD: To Dispose Toyota Vehicle for $43,000
AZORRA AVIATION: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
B&J EXPRESS: To Sell Medical Equipment
B-1208 PINE: Unsecureds to be Paid in Full in Liquidating Plan
BETTER CHOICE: Projects $235-Mil. Revenue Post-SRx Acquisition
BIG LOTS: Ollie's Bargain Acquires Additional 8 Store Locations
BIG LOTS: Secures $150M DIP Loan From Gordon Brothers
BIG LOTS: Set to Close Carson Store for Good
BLUE STAR: Fails to Meet Nasdaq's Minimum Bid Price Requirement
BON WORTH: Amends Saturn Five Claims Pay Details
BROWN GENERAL: Gets Interim OK to Use Cash Collateral
CAI RENO HOTEL: Case Summary & 20 Largest Unsecured Creditors
CAPSITY INC: Trustee Taps Pino & Associates as Bankruptcy Counsel
CGI FUND I: Public Sale Auction Set for December 19
CHERRY MAN: Court Extends Use of Cash Collateral to Dec. 17
CLARITY DIAGNOSTICS: U.S. Trustee Unable to Appoint Committee
COMMUNITY CHARTER SCHOOL: S&P Rates 2024 Revenue Bonds 'BB+'
CPC ERICSSON STREET: Sec. 341(a) Meeting of Creditors on Nov. 25
CREATIVE REALITIES: All Proposals Approved at Annual Meeting
DARE BIOSCIENCE: Inks $15MM Stock Purchase Deal With Lincoln Park
DAVID ALONSO MD: Unsecureds Owed $260K to Get 100% over 5 Years
DEVSAI LLC: Continued Operations to Fund Plan Payments
DIOCESE OF ROCKVILLE: Comm. Taps Hon. Bettinelli as Claims Reviewer
DOMAN BUILDING: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
DR. ERNIE F SOTO: Unsecureds to Split $2M over 3 Years
ELLIE LANE: Unsecureds Will Get 9.71% of Claims over 60 Months
ENDO INTERNATIONAL: Starts $23.3M Class A Units, Cash Distribution
EQUIPSOURCE LLC: Court OKs Temporary Use of Cash Collateral
EXACTECH INC: Case Summary & 30 Largest Unsecured Creditors
FAIR OFFER: Seeks to Hire Reach Realty Co. as Real Estate Agent
FAMILY SOLUTIONS: Hires Levy Tax Professionals as Accountant
FLANNERY LLC: Unsecureds Will Get 100% of Claims over 84 Months
GALLUS DETOX: Emerges From Ch. 11 After Reorganization Plan OK'd
GANNETT CO: Moody's Affirms 'B3' CFR, Outlook Remains Stable
GIRARD HOUSE: Seeks to Hire Chadwick Washington as Special Counsel
GREAT CANADIAN GAMING: S&P Rates New $400MM Sr. Secured Notes 'B+'
GREEN OUTDOOR: Seeks to Hire Natural State Law as Attorney
HELIX ENERGY: BlackRock Reports 15.4% Equity Stake as of Sept. 30
HYPERSCALE DATA: Raises $450K in Preferred Stock Offering
HYPERSCALE DATA: Reduces Stake in Algorhythm to 3.1% as of Oct. 18
ILUMIVU INC: Seeks to Hire GreerWalker LLP as Financial Advisor
INSULATED WALL: Unsecured Creditors to Split $300K over 3 Years
JEBB FOOD SERVICES: Kicks Off Subchapter V Bankruptcy Process
JOSE FUENTES: Seeks Hire Stanley A. Zlotoff as Legal Counsel
KBS REAL ESTATE: Extends Loan Maturity to Nov. 20
KYLE CHANDANAIS: Hires Dunham Hildebrand Payne Waldron as Counsel
LAKE RANCH: Hires Levene Neale Bender as Bankruptcy Counsel
LASER INNOVATIONS: Gets Interim OK to Use Cash Collateral
LIFTOFF MOBILE: S&P Affirms 'B-' ICR on Debt-Funded Dividend
LIVEONE INC: BlackRock Reports 5% Equity Stake as of Sept. 30
LUMEN TECHNOLOGIES: State Street Holds 5% Stake as of Sept. 30
LW RETAIL: Files Amendment to Plan Disclosures
LYTTON VINEYARD: Seeks OK to Use Cash Collateral Until Dec. 31
MACAR TRANS: Hires Moon Wright & Houston as Bankruptcy Counsel
MCCONNELL ROAD: Case Summary & Three Unsecured Creditors
METRO MATTRESS: Seeks to Hire Tiger Capital Group as Consultant
MY SISTERS: Seeks to Hire Calaiaro Valencik as Bankruptcy Counsel
MYOMO INC: Rosalind Advisors Holds 9.9% Stake as of Sept. 30
MYSTICAL STARS: Jack Shrum Represents Creditors
NEPTUNE BIDCO: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
NEWELL BRANDS: S&P Rates Unsecured Debt Issuances 'BB-'
NEWPORT VENTURES: Case Summary & Seven Unsecured Creditors
ONE TABLE RESTAURANT: Hires Stretto Inc as Administrative Advisor
ONONTIO LANDSCAPING: Gets OK to Use Cash Collateral Until Nov. 12
OPEN ARMS HEALTH: Hits Chapter 11 Bankruptcy Protection
OPTINOSE INC: Rosalind Advisors Holds 5.5% Stake as of Sept. 30
PARKER HEATING: Gets Interim OK to Use Cash Collateral
PINEAPPLE ENERGY: Enters $10-Mil. Sales Agreement With Roth Capital
PJP ENTERPRISES: Court Denies Bid to Use Cash Collateral
POET TECHNOLOGIES: Wins "Best in AI" Honors at Global Tech Awards
POTTSVILLE OPERATIONS: Hires Stretto Inc. as Administrative Agent
POTTSVILLE OPERATIONS: U.S. Trustee Appoints Creditors' Committee
QHSLAB INC: Posts 40% Revenue Growth, Plans Strategic Changes Ahead
QUAD/GRAPHICS INC: Moody's Rates Amended Credit Facilities 'B1'
RAVEN ACQUISITION: Moody's Rates New $1.3BB Sr. Secured Notes 'B3'
RECEPTION PURCHASER: S&P Hikes ICR to 'CCC+' on Debt Restructuring
REFRESHING USA: Seeks to Tap Tonkon Torp LLP as Bankruptcy Counsel
ROYAL CARIBBEAN: S&P Alters Outlook to Positive, Affirms 'BB+' ICR
ROYSTONE ON QUEEN: Files Amendment to Disclosure Statement
RUTHERFORD ENTERPRISES: Unsecureds to Split $10K Dividend in Plan
SAGINAW PREPARATORY: S&P Raises 2012 Revenue Bond Rating to 'BB-'
SANUWAVE HEALTH: Registers 1.4MM Shares Under 2024 Equity Plan
SCHULTE INC: Gets Interim OK to Use Cash Collateral Until Jan. 31
SDS COLCON: Reaches Settlement with Romspen; Amends Plan
SEVEN SEAS: Seeks Cash Collateral Access
SHEPHERD-HULDY DEVELOPMENT: Taps Kevin Michael Madden as Counsel
SM ENERGY: Fitch Hikes Long-Term IDR to 'BB', Outlook Stable
SOUTHERN WAY TRUCKING: Seeks Bankruptcy Protection in Mississippi
SPIRIT AIRLINES: Draws Down $300MM From Revolving Credit Facility
SPIRIT AIRLINES: Expects Over $1-Bil. in Liquidity by Year-End 2024
SPIRIT AIRLINES: Extends Maturity Dates in Card Processing Deal
TAYLOR G. WRIGHT: Seeks Bankruptcy Protection in Utah
TEGNA INC: BlackRock Reports 16.7% Equity Stake as of Sept. 30
THOMAS ROOFING: Case Summary & 15 Unsecured Creditors
TINY PIECES: Taps Regional Bankruptcy Center as Bankruptcy Counsel
TOS WHEELS: Gets Interim Approval to Use Cash Collateral
TREASURES AND GEMS: Taps Northgate Real Estate Group as Advisor
TW MEDICAL GROUP: Seeks Bankruptcy Protection in Utah
TY TRUCKING: Unsecureds to Get 100 Cents on Dollar in Plan
ULTRA SAFE: Case Summary & 30 Largest Unsecured Creditors
UNIVERSITY OF HARTFORD: S&P Affirms 'BB+' LT Rating on N/P Bonds
UPTOWN DENTAL: Kicks Off Subchapter V Bankruptcy
VERDE RESOURCES: Partners With Nature Plus to Establish VerdePlus
VERTIV GROUP: S&P Upgrades ICR to 'BB+' on Strong Performance
WAGYU RESTAURANT: Seeks to Hire Joel Schechter as Counsel
WAT TIMBER: Voluntary Chapter 11 Case Summary
WIN-SC LLC: Taps NAI CIR Commercial Real Estate Services as Realtor
WISCONSIN & MILWAUKEE: Lennhoff Real Estate as Expert Witness
WWEX UNI: Moody's Affirms B3 CFR & Rates New 1st Lien Term Loan B3
YH&R CONSTRUCTION: Hits Chapter 11 Bankruptcy Protection
Z BRAND: Seeks to Hire Calaiaro Valencik as Bankruptcy Counsel
[*] AcceptDebtPayments.com Launches Payment Solutions for Attys.
[*] Marshall & Stevens Acquires 7th Valuation Firm, Equitable Value
[*] Research Firm Reorg Rebrands to Octus
*********
220 FTL-LTPJ LLC: Hits Chapter 11 Bankruptcy in Florida
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220 FTL-LTPJ 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 3, 2024 at 9:30 a.m. in Room Telephonically.
About 220 FTL-LTPJ LLC
220 FTL-LTPJ LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21022) on October 24,
2024. In the petition filed by Irene Marciano, as authorized
signatory, the Debtor reports estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Peter D. Russin handles the case.
The Debtor is represented by:
Robert A. Stiberman, Esq.
STIBERMAN LAW, P.A.
2601 Hollywood Blvd.
Hollywood, FL 33020
Tel: 954-239-7464
Email: ras@stibermanlaw.com
303 HIGHLINE: Seeks to Hire Frances M. Caruso as Bookkeeper
-----------------------------------------------------------
303 Highline Corp., doing business as Hudson Market, seeks approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Frances M. Caruso as its bookkeeper.
Ms. Caruso will render these services:
a. prepare and review monthly operating statements and other
financial reports or statements required by the Court of the Office
of the United States Trustee, the Bankruptcy Code, the Bankruptcy
Rule or otherwise deemed to be necessary or beneficial to the
Debtor and/or its estate; and
b. render such other financial assistance or services as may
be necessary in the Chapter 11 case.
Ms. Caruso's normal hourly rate is $75. She will seek reimbursement
for all out-of-pocket disbursements.
Ms. Caruso requested for a retainer in the amount of $750.
Frances M. Caruso assures the court that she is a "disinterested
person" within the meaning of Secs. 101(14) and 327 of the
Bankruptcy Code.
Ms. Caruso can be reached at:
Frances M. Caruso
45 Popham Road, 4F
Scarsdale, NY 10583
About 303 Highline
303 Highline Corp., doing business as Hudson Market, owns a grocery
store in New York.
303 Highline sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11409) on August 15,
2024, with $207,164 in assets and $2,161,207 in liabilities. Hyeon
Jin Kim, president, signed the petition.
Douglas Pick, Esq., at Pick & Zabicki, LLP represents the Debtor as
legal counsel.
390-394 NORTH: Taps Coldwell Banker Realty as Real Estate Broker
----------------------------------------------------------------
390-394 North 5th Street LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to hire Coldwell
Banker Realty as its real estate broker.
The broker will list the vacant land located at 390-394 North 5th
Street, Newark New Jersey for marketing and sale, including the
marketing of the 24 units approved by the City of Newark for
construction at the site.
Coldwell Banker Realty will receive a commission equal to 3 percent
of the gross sales price.
As disclosed in the court filings, Coldwell Banker Realty, its
members and associates do not hold or represent any interest
adverse to that of the estate and that said firm is a disinterested
person within the meaning of 11 U.S.C. Section 101(14).
The firm can be reached through:
Paul Montalbano
Coldwell Banker Realty
375 Park Ave Ste 21
Fort Lee, NJ 07024
About 390-394 North 5th Street LLC
390-394 North 5th Street LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-15374)
on May 28, 2024, listing up to $50,000 in assets and $100,001 to
$500,000 in liabilities.
Avram D White, Esq. at Law Offices Of Avram D White, Esq.
represents the Debtor as counsel.
47 BROOKLYN: Hires Morrison Tenenbaum PLLC as Bankruptcy Counsel
----------------------------------------------------------------
47 Brooklyn Lofts LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire Morrison Tenenbaum
PLLC as counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as debtor-in-possession in the management of its estate;
b. assisting in any amendments of Schedules and other
financial disclosures and in the preparation/review/amendment of a
disclosure statement and plan of reorganization;
c. negotiating with the Debtor's creditors and taking the
necessary legal steps to confirm and consummate a plan of
reorganization;
d. preparing on behalf of the Debtor all necessary motions,
applications, answers, proposed orders, reports and other papers to
be filed by the Debtor in this case;
e. appearing before the Bankruptcy Court to represent and
protect the interests of the Debtor and the estate; and
f. performing all other legal services for the Debtor that may
be necessary and proper for an effective reorganization.
The firm will be paid at these rates:
Partners $550 to $695 per hour
Senior Counsel $495 per hour
Associates $380 per hour
Paraprofessionals $250 per hour
The firm received an initial retainer in the amount of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Lawrence F. Morrison, Esq., a partner at Morrison Tenenbaum PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Lawrence F. Morrison, Esq.
Morrison Tenenbaum PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
About 47 Brooklyn Lofts LLC
47 Brooklyn Lofts LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44146) on Oct. 4,
2024. In the petition filed by Daniel McCrossin, as authorized
signatory, the Debtor estimated assets and liabilities between $1
million and $10 million each.
The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by Lawrence Morrison, Esq.
A&R CONSTRUCTION: Gets Interim Approval to Use Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas granted
A&R Construction, LLC authority for interim use of cash
collateral.
The court authorized the company to use cash collateral to pay
operating expenses totaling $74,100.
A&R can use up to 110% of each individual expense as long as the
total cash collateral spent during the month does not exceed 5% of
the total budget.
Secured creditors with pre-bankruptcy liens were granted
replacement liens as adequate protection for the use of their cash
collateral.
The next hearing is scheduled for Nov. 6.
About A&R Construction
A&R Construction, LLC provides construction services specializing
in septic system installation, site development, excavation, and
demolition. The company is based in New Braunfels, Texas.
A&R Construction sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-52008) on Oct. 7,
2024, with $207,112 in assets and $1,060,874 in liabilities. Tyler
Mason, company owner, signed the petition.
Judge Craig A. Gargotta oversees the case.
Robert C. Lane, Esq., at The Lane Law Firm, PLLC serves as the
Debtor's bankruptcy counsel.
ACCURIDE CORP: Hires Omni Agent Solutions as Administrative Agent
-----------------------------------------------------------------
Accuride Corp. and its debtor-affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ Omni
Agent Solutions, Inc. as administrative agent.
The firm will provide these services:
a) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
b) provide a confidential data room;
c) 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, including, if applicable, brokerage firms,
bank back-offices, and institutional holders;
d) prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtors, the Court or the
Office of the Clerk of the Bankruptcy Court.
Omni has received an initial retainer of $72,895.
In addition, the firm will seek reimbursement for expenses
incurred.
Paul Deutch, the executive vice president of Omni Agent Solutions,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Paul H. Deutch
Omni Agent Solutions
5955 De Soto Avenue, Suite 100
Woodland Hills, CA 91367
Tel: (818) 906-8300
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
ACCURIDE CORP: Seeks to Hire Young Conaway Stargatt as Co-Counsel
-----------------------------------------------------------------
Accuride Corp. and its debtor-affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ Young
Conaway Stargatt & Taylor, LLP as co-counsel.
The firm's services include:
a. providing legal advice and services with respect to the
Debtors' powers and duties as debtors in possession in the
continued operation of their business, management of their
property, the Local Rules, practices, and procedures, and providing
substantive and strategic advice on how to accomplish the Debtors'
goals in connection with the prosecution of these chapter 11
cases;
b. pursuing confirmation of a chapter 11 plan for the
Debtors;
c. preparing, on behalf of the Debtors, necessary
applications, motions, answers, orders, reports, and other legal
papers;
d. appearing in Court and protecting the interests of the
Debtors before the Court; and
e. performing all other legal services for the Debtors that
may be necessary and proper in these proceedings as counsel to the
Debtors in these chapter 11 cases.
The firm will be paid as follows:
Joseph Barry, Partner $1,155
Kenneth J. Enos, Partner $995
Jared Kochenash, Associate $630
Andrew Mark, Associate $565
Chad Corazza, Paralegal $375
The firm received a retainer in the amount of $100,000.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
a. Young Conaway has not agreed to a variation of its standard
or customary billing arrangements for this engagement;
b. None of the Firm's professionals included in this
engagement have varied their rate
based on the geographic location of these chapter 11 cases;
c. Young Conaway was retained by the Debtors pursuant to an
engagement agreement dated August 8, 2024. The billing rates and
material terms of the prepetition engagement are the same as the
rates and terms described in this Application, except that a
customary increase of hourly rates may occur on January 1, 2025;
and
d. The Debtors have approved, or will be approving, a
prospective budget and staffing plan for Young Conaway's engagement
for the postpetition period as appropriate. In accordance with the
U.S. Trustee Guidelines, the budget may be amended as necessary to
reflect changed or unanticipated developments.
Joseph Barry, Esq., a partner at Young Conaway Stargatt & Taylor,
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Joseph Barry, Esq.
Young Conaway Stargatt & Taylor, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Email: jbarry@ycst.com
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
ACCURIDE CORP: Taps Charles Moore of Alvarez & Marsal as CRO
------------------------------------------------------------
Accuride Corp. and its debtor-affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Alvarez & Marsal North America, LLC to provide the Debtors with a
chief restructuring officer and certain additional personnel and
designate Charles Moore as
The firms services include:
a. performing a financial review of the Debtor, including but
not limited to a review and assessment of financial information
that has been, and that will be, provided by the Debtor to its
creditors;
b. assisting the Debtor with cash management, including the
development and maintenance of a weekly cash flow forecast, the
creation of a budget for debtor-in-possession financing and use of
cash collateral as necessary, and the preparation of reports and
analyses to manage cash commitments and disbursements;
c. assisting the Debtor with the development and
implementation of cash management strategies, tactics and
processes, and identifying and implementing both short-term and
long-term liquidity generating initiatives;
d. assisting the Debtor and its advisors in the identification
(and implementation) of cost reduction and operations improvement
opportunities;
e. assisting the Debtor with review and revision of its
business plan, and such other related forecasts as may be required
in negotiations or for other corporate purposes;
f. assisting the Debtor and other Debtor engaged professionals
in developing for the Debtor's independent director's review
possible restructuring plans or strategic alternatives for
maximizing the enterprise value of the Debtor's various business
lines;
g. assisting the Debtor with any potential M&A sale process
support;
h. assisting the Debtor and its counsel in the preparation of
motions, pleadings and other activities or court materials
necessary to implement a chapter 11 filing;
i. providing support to the Debtor's interim chief financial
officer, including in the areas of financial planning and analysis
and estimates for the bankruptcy disclosure statement and plan of
reorganization;
j. serving, in the case of the CRO, as the principal contact
with the Debtor's creditors with respect to the Debtor's financial
and operational matters;
k. providing tax advisory services in connection with the
Debtors' restructuring.
The firm will be paid at these hourly rates:
Managing Directors (including the CRO) $1,075 to 1,525
Directors $825 to 1,075
Associates $625 to 825
Analysts $425 to 625
The firm received $250,000 as a retainer in connection with
preparing for and conducting the filing of these Chapter 11 cases.
Charles Moore, managing director at Alvarez & Marsal, disclosed in
a court filing that his firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Charles Moore
Alvarez & Marsal Holdings, LLC
755 W. Big Beaver Rd, Suite 650
Troy, MI 48084
Telephone: (248) 936-0814
Facsimile: (248) 936-0801
Email: cmoore@alvarezandmarsal.com
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Debtor's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
ACCURIDE CORP: Taps Perella Weinberg Partners as Investment Banker
------------------------------------------------------------------
Accuride Corp. and its debtor-affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Perella Weinberg Partners LLP as investment banker.
The firm's services include:
General Financial Advisory and Investment Banking Services:
(a) familiarize itself with the business, operations,
properties, financial condition, and prospects of the Debtors;
(b) review the Debtors' financial condition and outlook;
(c) assist in the development of financial data and
presentations to, and be available to meet with, the Debtors' board
of directors, various creditors, and other parties;
(d) analyze the Debtors' financial liquidity and evaluate
alternatives to improve such liquidity;
(e) evaluate the Debtors' debt capacity and alternative
capital structures;
(f) participate in negotiations among the Debtors and their
creditors, suppliers, lessors, and other interested parties with
respect to any of the transactions contemplated by the Engagement
Letter;
(g) advise the Debtors and negotiate with lenders with respect
to potential waivers or amendments of the Debtors' various credit
facilities; and
(h) provide such other advisory services as are customarily
provided in connection with the analysis and negotiation of any of
the transactions contemplated by the Engagement Letter, as
requested by the Debtors and mutually agreed to by the parties.
Restructuring Services:
(a) analyze various Restructuring scenarios and the potential
impact of these scenarios on the value of the Debtors and the
recoveries of those stakeholders impacted by the Restructuring;
(b) provide strategic advice with regard to restructuring or
refinancing the Debtors' obligations;
(c) provide financial advice and assistance to the Debtors in
developing a Restructuring;
(d) in connection therewith, provide financial advice and
assistance to the Debtors in structuring any new securities to be
issued under a Restructuring; and
(e) assist the Debtors and/or participate in negotiations with
entities or groups affected by the Restructuring.
Financing Services:
(a) provide financial advice to the Debtors in structuring and
effecting a Financing, identify potential Investors and, at the
Debtors' request, contact and solicit such Investors; and
(b) assist in the arranging of a Financing, including
identifying potential sources of capital, assisting in the due
diligence process, and negotiating the terms of any proposed
Financing, as requested.
Sale Services:
(a) provide financial advice to the Debtors in structuring,
evaluating, and effecting a Sale , identify potential acquirers
and, at the Debtors' request, contact and solicit potential
acquirers; and
(b) assist in the arranging and executing of a Sale, including
identifying potential buyers or parties in interest, assisting in
the due diligence process, and negotiating the terms of any
proposed Sale, as requested by the Debtors.
The firm will be compensated for its services as follows:
(a) Monthly Retainer Fee. A monthly financial advisory fee of
$200,000 (the "Monthly Retainer Fee") for each month of the
Engagement, commencing on the Engagement Date and payable in
advance on each monthly anniversary of the Engagement Date, with
the first Monthly Retainer Fee due upon the execution of the
Engagement Letter; provided, that the Monthly Retainer Fee shall be
reduced to $175,000 starting on September 1, 2024; provided further
that 50 percent of the Monthly Fees paid (to the extent paid and
without duplication) over the course of the Engagement after the
first six Monthly Retainer Fees are fully paid shall be credited
one time against and subtracted from the first to occur of any
Transaction Fee, Wheel Ends Sale Fee, or Financing Fee that becomes
payable pursuant to Subparagraphs 2(b), 2(c), and 2(d) of the
Engagement Letter (but such subtraction shall in no event result in
a Monthly Retainer Fee of less than zero).
(b) Transaction Fee. In the case of a Restructuring or a Sale
(excluding a Wheel Ends Sale), a fee (the "Transaction Fee") in the
amount of $6,250,000 payable upon consummation of any Restructuring
or Sale.
(c) Wheel Ends Sale Fee. In the case of a Sale exclusively
involving any part of the Company's Wheel Ends business segment
(for the avoidance of doubt, such Sale may include any entity
owned, in whole or in part, by Transportation Technologies
Industries, Inc.) (a "Wheel Ends Sale"), a fee (the "Wheel Ends
Sale Fee") in the amount of $1,000,000, payable promptly upon
consummation of a Wheel Ends Sale directly from the proceeds of
such Sale.
(d) Financing Fee. In the case of a Financing, a fee (a
"Financing Fee") equal to (x) 1.5 percent of the face amount of any
senior secured debt raised (including, but not limited to,
debtor-in-possession financing), plus (y) 3.0 percent of the face
amount of any junior secured or unsecured debt raised, plus (z) 5.0
percent of the gross proceeds to the Debtors from any equity or
equity-linked capital raised, in each case payable promptly upon
consummation of any Financing; provided, however, that with respect
to any debtor in possession financing raised by PWP in these
chapter 11 cases, PWP shall only be entitled to a Financing Fee
associated with the "new money" component of such Financing.
Douglas McGovern, a partner of Perella Weinberg Partners LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Douglas McGovern
Perella Weinberg Partners LLP
767 Fifth Avenue
New York, NY 10153
Telephone: (212) 287-3200
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
ADVANTAGE WEST: Seeks Chapter 11 Bankruptcy Protection
------------------------------------------------------
Advantage West Investment Enterprises Inc. filed Chapter 11
protection in the Central District of California. According to
court documents, the Debtor reports between $1 million and $10
million in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
About Advantage West Investment Enterprises Inc.
Advantage West Investment Enterprises Inc., doing business as
Advantage West, Advantage West GPS, and Advantage West Government
Product Solutions, is a product wholesaler.
Advantage West Investment Enterprises Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-16356) on October 24, 2024. In the petition filed by Mitch
Anderson, as president, the Debtor reports estimated assets between
$50,000 and $500,000 and estimated liabilities between $1 million
and $50 million.
Honorable Bankruptcy Judge Wayne E. Johnson handles the case.
The Debtor is represented by:
Michael G. Spector, Esq.
LAW OFFICES OF MICHAEL G. SPECTOR
2122 N. Broadway
Santa Ana, CA 92706
Tel: 714-835-3130
Fax: 714-558-7435
Email: mgspector@aol.com
AFFLUENT MANAGEMENT: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------------
Affluent Management Group, LLC received interim court approval to
use the cash collateral of its secured lenders.
The interim order, signed by Judge Michelle Larson of the U.S.
Bankruptcy Court for the Northern District of Texas, approved the
use of cash collateral to pay the company's operating expenses as
set forth in its budget.
The secured lenders, Bayfirst National Bank, Itria Ventures and
OnRamp Funds Inc., assert liens on the company's personal property,
including cash and accounts which constitute their cash collateral.
To protect the interests of secured lenders, Affluent Management
Group was ordered to provide secured lenders with replacement liens
co-extensive with their pre-bankruptcy liens.
"This is an emergency matter since [Affluent] has no outside
sources of funding available to it and must rely on the use of cash
collateral to continue its operations," Joyce Lindauer, Esq., the
company's attorney, said.
About Affluent Management Group
Affluent Management Group, LLC is a wholesale beauty supply company
with a growing retail operation located in Dallas, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33298) on October
21, 2024, with up to $100,000 in assets and up to $1 million in
liabilities. Devante Sanders, company owner, signed the petition.
Judge Michelle V Larson oversees the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC,
represents the Debtor as bankruptcy counsel.
AGEAGLE AERIAL: Three Board Members Resign, CFO Plans Departure
---------------------------------------------------------------
AgEagle Aerial Systems Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on October
17, 2024 Thomas Gardner, Kelly Anderson, and Malcolm Frost informed
the board of directors of the Company of their decisions to resign
from the Board and all related Board committees, effective
immediately. Their resignations are not the result of any
disagreements or disputes with the Company regarding its
operations, policies, or practices.
Similarly, on October 18, 2024, Mark DiSiena, Chief Financial
Officer of the Company, also informed that he intends to resign
from his role at the Company, to be effective November 15, 2024.
Mr. DiSiena is expected to remain with the Company through the
Resignation Date to assist in the transition of his
responsibilities. Mr. DiSiena's resignation is not a result of a
disagreement or dispute with the Company on any matter regarding
its operations, policies or practices.
The Company has commenced a search for qualified candidates for
each of the three Board positions and for the CFO position.
About AgEagle
AgEagle Aerial Systems Inc. is headquartered in Wichita, Kansas,
and operates through its wholly-owned subsidiaries, focusing on
designing and delivering top-tier drones, sensors, and software to
address critical customer needs. Founded in 2010, AgEagle initially
pioneered proprietary, professional-grade, fixed-wing drones and
aerial imagery-based data collection and analytics solutions for
the agriculture sector. Today, the company is recognized as a
globally respected market leader, offering customer-centric,
advanced, autonomous unmanned aerial systems (UAS) that generate
revenue at the intersection of flight hardware, sensors, and
software across industries, including agriculture,
military/defense, public safety, surveying/mapping, and
utilities/engineering. AgEagle has achieved numerous regulatory
milestones, including government approvals for its commercial and
tactical drones to fly Beyond Visual Line of Sight (BVLOS) and/or
Operations Over People (OOP) in the United States, Canada, Brazil,
and the European Union. It has also received Blue UAS certification
from the Defense Innovation Unit of the U.S. Department of Defense.
More information can be found at www.ageagle.com.
Orlando, Florida-based WithumSmith+Brown, PC, the company's auditor
since 2020, issued a "going concern" qualification in its report
dated April 1, 2024, citing recurring losses from operations, cash
usage exceeding its current cash position, and an accumulated
deficit as factors raising substantial doubt about the company's
ability to continue as a going concern.
During the year ended December 31, 2023, the company incurred a net
loss of approximately $42.4 million. As of June 30, 2024, AgEagle
had $22,830,836 in total assets, $14,756,362 in total liabilities,
and $8,074,474 in total stockholders' equity.
ALLSTATE REALTY: Seeks Cash Collateral Access
---------------------------------------------
Allstate Realty Group, Inc. asked the U.S. Bankruptcy Court for the
Central District of California for approval to use the cash
collateral of its secured creditors.
The company requires the use of cash collateral to pay its business
expenses as set forth in its budget, with a 10% variance. The
budget shows total monthly expenses of $11,007.
Secured creditors Select Portfolio Servicing, Inc. and Shmuel Cohen
hold first lien and second lien, respectively, on the company's Los
Angeles property, which has an estimated value of $2 million. The
rental income generated from the property constitutes the secured
creditors' cash collateral.
The interests of both creditors are safeguarded by the value of
Allstate's asset and by the monthly payments proposed by the
company.
The company proposed to start making payments to SPS, effective
Nov. 1, and continue on a monthly basis until its Chapter 11 plan
is confirmed or a stipulation on plan treatment is entered into by
the company and SPS.
A court hearing is set for Nov. 19.
About Allstate Realty Group
Allstate Realty Group, Inc. filed Chapter 11 petition (Bankr. C.D.
Calif. Case No. 24-11555) on June 7, 2023, with $1 million to $10
million in both assets and liabilities. Joseph Kashki, chief
executive officer, signed the petition.
Judge Martin R. Barash oversees the case.
Onyinye N. Anyama, Esq., at Anyama Law Firm, A Professional
Corporation is the Debtor's bankruptcy counsel.
ALPHAONE EXTERIORS: Seeks to Hire Rike LLC as Accountant
--------------------------------------------------------
AlphaOne Exteriors LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Ohio to hire David Rike, CPA and
Rike LLC as accountants.
Rike will prepare of any necessary tax return for the estate and
other related services.
The standard hourly rate in 2023 ranges from $150 to $265 per
hour.
As disclosed in the court filings, Rike does not hold or represent
any interest adverse to the estate and is a disinterested person
within the meaning of 11 U.S.C. Sec. 101(14).
The firm can be reached through:
David Rike, CPA
Rike LLC
255 Regency Ridge Dr.
Washington Township, OH 45459
Phone: (937) 433-5925
About AlphaOne Exteriors LLC
AlphaOne Exteriors LLC sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-30371) on
March 1, 2024, listing $100,001 to $500,000 in both assets and
liabilities.
Judge Guy R Humphrey presides over the case.
Patricia J Friesinger, Esq. at Coolidge Wall Co., L.P.A. represents
the Debtor as counsel.
APPLOVIN CORP: Moody's Ups CFR to Ba2 & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Ratings upgraded AppLovin Corporation's corporate family
rating to Ba2 from Ba3 and ratings on the senior secured first-lien
bank credit facilities to Ba2 from Ba3, consisting of a term loan
maturing October 2028, a term loan maturing August 2030 and a
revolving credit facility (RCF) maturing June 2028. The probability
of default rating was upgraded to Ba2-PD from Ba3-PD and the
Speculative Grade Liquidity rating remains unchanged at SGL-1. The
outlook was revised to positive from stable.
RATINGS RATIONALE
The ratings upgrade reflects AppLovin's improved credit profile and
Moody's expectation for continued deleveraging and expanding free
cash flow (FCF) over the next 12-18 months, which will lead to
financial leverage declining below 2x and FCF to total debt
increasing to the 50%-60% range. AppLovin's Moody's adjusted EBITDA
margin of 42% at LTM June 30, 2024 has strengthened from 37% in
2023 and 35% in 2022 while debt protection measures have
demonstrated solid improvement with funds from operations (FFO)
expected to reach $2 billion in 2024. At LTM Q2 2024, leverage, as
measured by total debt to EBITDA, was 2.2x and FCF to total debt
was 37% (all metrics are Moody's adjusted). The upgrade also
reflects reduced governance risks driven by the decrease in KKR
ownership to the single-digit percentage range and Moody's
expectation for further reduction in sponsor ownership.
The positive outlook reflects Moody's expectation for continued
double-digit percentage top-line revenue growth over the next 12-18
months with Moody's adjusted EBITDA margins in the 45%-55% range.
The steady improvement in profit margins reflects robust mobile app
advertiser spending growth and greater EBITDA contribution from the
Software Platform leading to leverage declining to the
1.25x–1.75x range (Moody's adjusted).
Moody's expect AppLovin will continue to exhibit strong operating
performance momentum through 2025 similar to its recent
outperformance relative to public guidance. This growth is driven
primarily by the Software Platform's AppDiscovery technology as the
volume of installations continues to grow robustly due to the
ability to match mobile advertisers with owners of digital
advertising inventory at large-scale and microsecond-level speeds
via auctions. AppDiscovery is the company's real-time data-driven
programmatic advertising, an automated process that uses machine
learning and algorithms to deliver the appropriate ads to a
targeted audience at the right time.
AppLovin's Ba2 CFR reflects the company's scale as one of the
largest mobile marketing platforms with an improving business mix
and diversification across gaming and other industry verticals. The
company's higher margin Software Platform contributes a meaningful
share of total revenue (62% at LTM June 30, 2024) and EBITDA (88%)
with roughly 70% EBITDA margins (segment adjusted). Moody's
continue to forecast favorable growth trends for the in-game
advertising market, which is likely to grow at least 9% annually
over the next four years. Moody's expect AppLovin to grow faster
than the market as advertisers diversify their digital presence
away from the Big Tech walled garden publishers to
performance-based marketers with robust mobile marketing,
measurement and user-analysis technologies. Additionally, AppLovin
has successfully optimized the Apps portfolio by deliberately
reducing its studio footprint for a more focused investment
strategy. Margins are expected to continue to expand over the
medium-term as a result of the portfolio optimization and
investments in talent and technology. Liquidity is expected to
remain very good with solid cash balances and strong FCF generation
due to AppLovin's high margins and relatively modest capital
expenditures owing to the asset-lite model.
The Ba2 CFR is constrained by AppLovin's increased exposure to
highly cyclical advertising spend given that the Software Platform
contributes the lion's share of revenue and profitability, and
relies on mobile app advertisers who use the platform to grow and
monetize their apps. The CFR also reflects mobile gaming's intense
competition due to the proliferation of new online gaming formats
(e.g., skill-based social network, multiplayer esports, fantasy
sports and sports betting) with enhanced features, content and
incentives that players find appealing from a large number of
rivals, as well as increased privacy restrictions on third-party
platforms. Collectively, these factors may impact AppLovin's
ability to effectively scale the App's business and monetize its
games. While the Software Platform has been the company's core
since its founding, only last year has this segment grown to become
the largest revenue contributor primarily due the launch of its
next GenAI engine, Axon 2.0, in mid-2023, which is driving the
strong outperformance. The rapid growth in the Software business
has facilitated a strategic shift and re-prioritization of
investments as this segment continues to scale at a faster pace
than the Apps business, which will likely be de-emphasized going
forward as the company continues to evolve and develop a
sustainable long-term business strategy.
Given Moody's expectation for continued EBITDA growth and robust
FCF, AppLovin has the propensity to de-lever further. However,
incremental debt could be allocated to share repurchases and/or M&A
over the near-to-medium term. Despite this, Moody's forecast that
leverage will continue to decline, barring an outsized
debt-financed acquisition.
Over the next 12-18 months, Moody's expect AppLovin's liquidity
rating will remain very good supported by solid cash balances and
strong FCF. At June 30, 2024, cash-on-hand totaled about $460
million. The company's $610 million RCF remains undrawn. Moody's
expect that AppLovin will generate at least $1.5 billion of FCF in
FY 2024 rising to around $2 billion next year, with a sizable
amount allocated to share repurchases. Through H1 2024, the company
repurchased $752 million of its common stock with $500 million
remaining under the existing share repurchase program.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if revenue and profit growth lead to
adjusted total debt to EBITDA sustained comfortably below 2x,
AppLovin exhibits a consistent and sustainable business model
strategy and continues to demonstrate a commitment to conservative
financial policies. The company would also need to maintain very
good liquidity with growing cash balances, good conversion of
EBITDA to FCF, FCF to total debt consistently above 40% and annual
share repurchases sized within the company's excess cash flow
generation capacity (all metrics are Moody's adjusted).
Ratings could be downgraded if Moody's expect AppLovin's adjusted
total debt to EBITDA will be sustained above 3x (Moody's adjusted)
due to underperformance or cash distributions, share buybacks,
acquisitions or partnerships funded with debt. Ratings could also
be downgraded if organic revenue growth slows below the low-single
digit percentage range reflecting underperformance related to
execution or competitive pressures. Downward pressure on ratings
could also occur if liquidity deteriorates as evidenced by reduced
cash balances or revolver availability; adjusted FCF to total debt
declines to the low-single digit percentage range; or Moody's
expect more aggressive financial policies that would result in
higher financial leverage, cash distributions, share buybacks
and/or weakened adjusted FCF.
With headquarters in Palo Alto, CA, AppLovin Corporation provides a
software platform for mobile app developers to improve app
marketing and monetization. Founded in 2011, the company also owns
and operates a portfolio of free-to-play mobile games that it
develops through its own or partner studios. AppLovin is a publicly
traded controlled company with two company executives holding 62%
voting control. At LTM June 30, 2024, revenue totaled about $4
billion.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
ASPIRA WOMEN'S: Falls Short of Nasdaq's Bid Price Requirement
-------------------------------------------------------------
Aspira Women's Health Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the Company
received written notice from the Nasdaq Stock Market, LLC
indicating that the bid price for the Company's common stock, for
the 30 consecutive business days prior to October 17, 2024, had
closed below the minimum $1.00 per share and, as a result, the
Company is not in compliance with the $1.00 minimum bid price
requirement for the continued listing on the Nasdaq Capital Market,
as set forth in Nasdaq Listing Rule 5550(a)(2). The Notice has no
effect at this time on the Common Stock, which continues to trade
on the Nasdaq Capital Market under the symbol "AWH".
In accordance with the Nasdaq Listing Rule 5810(c)(3)(A), the
Company has a period of 180 calendar days, or until April 15, 2025,
to regain compliance with the minimum bid price requirement. To
regain compliance, the closing bid price of the Common Stock must
meet or exceed $1.00 per share for a minimum of ten consecutive
business days during this 180-day period.
If the Company is not in compliance by April 15, 2025, the Company
may qualify for a second 180 calendar day compliance period. If the
Company does not qualify for, or fails to regain compliance during
the second compliance period, or if it appears to Nasdaq that the
Company will not be able to cure the deficiency, then Nasdaq will
notify the Company of its determination to delist its Common Stock,
at which point the Company would have an option to appeal the
delisting determination to a Nasdaq hearings panel.
The Company intends to actively monitor the closing bid price of
its Common Stock and may, if appropriate, consider implementing
available options to regain compliance with the minimum bid price
under the Nasdaq Listing Rules.
There can be no assurance that the Company will be successful in
maintaining its listing of its common stock on the Nasdaq Capital
Market.
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. OvaWatch and
Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they
provide a comprehensive portfolio of blood tests to aid in the
detection of ovarian cancer for the 1.2+ million American women
diagnosed with an adnexal mass each year. OvaWatch provides a
negative predictive value of 99% and is used to assess ovarian
cancer risk for women where initial clinical assessment indicates
the mass is indeterminate or benign, and thus surgery may be
premature or unnecessary. Ova1Plus is a reflex process of two
FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian
malignancy in women planned for surgery.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raises substantial doubt
about its ability to continue as a going concern.
Aspira Women's Health reported a net loss of $16.69 million for the
year ended Dec. 31, 2023, compared to a net loss of $29.88 million
for the year ended Dec. 31, 2022. As of June 30, 2024, Aspira
Women's Health had $3.96 million in total assets, $7.67 million in
total liabilities, and $3.7 million in total stockholders' deficit.
AUDACY INC: S&P Assigns 'B-' ICR on Emergence From Bankruptcy
-------------------------------------------------------------
S&P Global Ratings assigned a 'B-' issuer credit rating to U.S.
radio broadcaster Audacy Inc. and its subsidiary Audacy Capital
LLC. At the same time, S&P assigned a 'B+' issue-level rating and
'1' recovery to the company's $25 million tranche A senior secured
term loan maturing in 2028.
S&P also assigned a 'B-' issue-level rating and '3' recovery rating
to the company's $225 million tranche B senior secured term loan
maturing in 2029.
The stable outlook reflects S&P's expectation that Audacy's S&P
Global Ratings-adjusted gross leverage will remain between
3.0x-3.2x over the next year with EBITDA coverage comfortably above
2x. It also incorporates our expectation that the company will be
able to offset expected declines in broadcast radio advertising
revenue with digital revenue growth.
The 'B-' issuer credit rating on Audacy primarily reflects the
company's reliance on broadcast radio advertising revenue, which is
cyclical and in secular decline due to competition from alternative
media (primarily online advertising). As a result, the company's
future growth is dependent on growing revenue from its digital
offerings. This is only somewhat offset by its relatively low
leverage and improved cash flow generation following its emergence
from bankruptcy.
While Audacy's financial profile has materially improved, secular
pressures continue to pose risk. S&P estimates Audacy's S&P Global
Ratings-adjusted gross leverage will be 3.0-3.2x over the next two
years, which is the lowest among its broadcast radio peers.
However, the company's cash flow and leverage could be volatile and
weaker than we expect if declines in broadcast radio advertising
revenue accelerate, or digital revenue growth does not materialize
as S&P expects. This could occur if macroeconomic conditions
deteriorate or remain weak for a prolonged period. In past economic
downturns (such as 2008 and 2020), the shift from traditional media
to digital advertising accelerated, resulting in a meaningful and
permanent reduction in broadcast radio advertising dollars.
S&P said, "The company's financial performance and credit metrics
could also be weaker than we expect if intense competition limits
an expected acceleration in the company's digital revenue growth.
We currently forecast 4%-5% declines in broadcast radio advertising
revenue will be offset by 10% digital revenue growth. We also
expect the company will continue to pursue material cost cuts over
the next couple of years to help mitigate expected declines in
broadcast radio advertising revenue, although we believe this could
potentially be challenging given Audacy has already taken out more
than $100 million of expenses over the last couple of years.
"We project about $10 million of reported free operating cash flow
(FOCF) in 2025, reflecting a $15 million increase in capital
spending (to $65 million) to invest in additional digital
capabilities to support revenue growth. The company has identified
several potential noncore asset sales that it could potentially use
to support these investments, although the timing of such
transactions is uncertain. We have not included voluntary debt
repayment in our forecast given uncertainty about the company's
financial policy following its change in ownership."
More than 65% of Audacy's total revenue comes from broadcast radio
advertising, which is cyclical and in secular decline. Audacy's
broadcast radio revenue has faced steep declines since 2020 due to
the COVID-19 pandemic, supply chain issues, elevated inflation, and
interest rates. In particular, S&P expects Audacy's broadcast radio
spot revenue (excluding political) will be about 63% of 2019
(prepandemic) levels in 2024 and will decline 4%-5% annually as
advertising dollars continue shifting online.
Despite the company's large footprint, it has a high percentage of
radio stations in large urban markets, which can behave more like
national markets than local markets and be more volatile. Radio
advertising has some of the shortest lead times in media, giving us
limited visibility into future performance. Still, Audacy has the
No. 1 or 2 radio cluster in 70% of its markets, and it has the
leading all-news and all-sports radio platforms.
Audacy's future growth is dependent on its ability to expand its
digital products. Audacy has made significant investments in its
digital capabilities over the past couple of years (such as its
audio streaming platform and podcasting), although it has yet to
earn fully commensurate revenues. S&P said, "We expect digital
profitability will improve over the next several years as the
company's digital revenue ramps but expect consolidated margins
will remain significantly lower than before the pandemic. We
forecast S&P Global Ratings-adjusted EBITDA margins of 14%-15% over
the next two years, compared with about 25% in 2019, given reduced
broadcast margins on lower broadcast revenue with a largely fixed
cost base and greater revenue contribution from lower-margin
digital offerings." Audacy is one of only a few radio companies
that have a scaled digital offering, with digital revenue currently
contributing about 23% of its total revenue. However, it generates
less than one quarter the amount of digital revenue than
iHeartMedia Inc. (the largest radio company in the U.S.).
S&P said, "The stable outlook reflects our expectation that
Audacy's S&P Global Ratings-adjusted gross leverage will remain
between 3.0x-3.2x over the next year with EBITDA coverage
comfortably above 2x. It also incorporates our expectation that the
company will be able to offset expected declines in broadcast radio
advertising revenue with digital revenue growth.
"We could lower the rating if we expect Audacy's EBITDA interest
coverage to decline to the low-1x area or we believe it cannot
generate sustainably positive FOCF, resulting in its capital
structure becoming unsustainable." This could occur if:
-- Digital revenue growth is less robust than expected; or
-- Secular declines in broadcast radio advertising accelerate.
While unlikely over the next year, S&P could raise the rating if:
-- The company maintains relatively stable revenue and EBITDA for
a sustained period by offsetting expected declines in broadcast
radio advertising revenue with digital revenue growth;
-- Leverage declines comfortably below 3x; and
-- FOCF to debt approaches 15%.
AXENTIA CARD: To Dispose Toyota Vehicle for $43,000
---------------------------------------------------
Axentia Card Solutions, LLC asks approval from the U.S. Bankruptcy
Court for the District of Kansas, Kansas City, to sell its 2021
Toyota 4 Runner for $43,000.
The Debtor believes that Lead Bank holds a valid security interest
in the vehicle and that the debt owed is approximately the same as
the value of the vehicle.
The Debtor believes that selling the 2021 Toyota 4 Runner would be
in its best interest, and intends to sell the vehicle for an amount
sufficient to pay Lead Bank in full.
The Debtor further indicates that if it cannot sell the vehicle for
an amount sufficient to pay Lead Bank in full, its principal, Paul
C. Miller, will pay the difference directly to Lead Bank.
The Debtor does not believe there will be any net proceeds from the
sale after Lead Bank is paid. However, if there are net proceeds,
the Debtor will hold the proceeds and inform the Court.
About Axentia Card Solutions, LLC
An involuntary petition was filed against Axentia Card Solutions
LLC (Bankr. D. Kan. Case No. 24-20686) on June 5, 2024.
Judge Robert D. Berger presides over the case. In an August 29,
2024 Order, Judge Berger held that the Debtor's Motion to Dismiss
Involuntary Bankruptcy or, in the Alternative to Convert to Chapter
11, is denied in part and granted in part. The Debtor's request
for dismissal of the involuntary bankruptcy is denied without
prejudice. The Debtor's request to convert the case to Chapter 11
of the Bankruptcy Code is granted.
Evans & Mullinix, P.A. represents the Debtor as counsel.
AZORRA AVIATION: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has assigned a final Long-Term Issuer Default Rating
(IDR) of 'BB-' to Azorra Aviation Holdings, LLC (Azorra). The
Rating Outlook is Stable. Concurrently, Fitch has assigned final
ratings of 'BB' to Azorra SOAR TLB Finance Limited's $464 million,
SOFR plus 350bps secured term loan B due in 2029 and a final rating
of 'BB-' to Azorra Finance Limited's $550 million of 7.75% senior
unsecured notes due in 2030.
The assignment of the final ratings follows the receipt of
documentation conforming to information already received and the
completion of the debt issuances, the proceeds of which were used
to pay down outstanding secured debt. The final ratings are the
same as the expected ratings assigned on Sept. 30, 2024.
Key Rating Drivers
Moderate Franchise; Ambitious Growth Plan: Azorra's ratings reflect
its moderate market position as a global, full-service lessor of
regional and small narrowbody aircraft, appropriate current and
targeted leverage, lack of meaningful near-term debt maturities and
solid liquidity metrics. The ratings also reflect senior
management's expertise and track record in managing aviation assets
and ownership benefits from Oaktree Capital Management, a
well-established alternative investment manager, which provides
aviation investment expertise and capital commitment to support
Azorra's fleet growth.
Rating Constraints and Risk: Rating constraints include execution
risk stemming from the company's ambitious growth targets and
accompanying financial objectives, which Fitch believes are
attainable. Other rating constraints include a limited standalone
operating track record, reliance on secured wholesale funding and
incremental residual value risks compared to traditional aircraft
lessors due to a portfolio focus on less-liquid, regional and small
narrowbody aircraft.
The firm also faces funding and placement risks from a sizeable
orderbook and key person risk linked to founder and CEO, John
Evans. Potential governance risk exists from Azorra's externally
managed business model, limited number of independent board
members, and majority ownership by fixed-life fund structures.
Moderate Portfolio Concentration: As of June 30, 2024, Azorra was
one of the largest global aircraft leasing platforms focused on the
regional and small narrowbody segment, holding a portfolio net book
value (NBV) of $1.9 billion and an orderbook of 60 aircraft.
Azorra's portfolio, more concentrated than peers, consisted of less
liquid tier 2 (87.7%) and tier 3 aircraft (12.3%), as categorized
by Fitch. The average age of the owned portfolio was 6.4 years,
with an average remaining lease term of 6.1 years, at June 30,
2024, consistent with the firm's strategy of owning younger
aircraft.
Opportunistic Business Strategy: The recently closed transaction in
December 2023, in which Azorra acquired 16 distressed aircraft from
Voyager Aviation Holdings, LLC, contributed to greater fleet
concentration with limited strategic alignment to the existing
portfolio. Management expects to manage down the exposure going
forward and has opportunistically sold certain aircraft with
reasonable gains on sale. Fitch does not envisage Azorra adding
noncore, widebody aircraft over the medium term.
Weaker Lessee Quality Than Peers: Given its target market segment,
which is typically serviced by tier two airlines, Azorra's exposure
to weaker credit quality lessees is incrementally higher than
peers. The company has adequate customer diversification, serving
33 customers in 26 countries, with no single customer representing
more than 9% of NBV, as estimated by Fitch. Asset quality metrics
have been strong since inception, with an impairment ratio of 0.2%
in 2Q24 and averaging 0.1% from 2022-2023. Azorra's ability to
purchase new aircraft at attractive prices and relatively
conservative depreciation policies, should reduce impairment risk
over time, which Fitch views positively.
Sizeable Orderbook: Azorra's orderbook represented a sizeable 52%
of NBV in 2Q24, which implies reliance on capital market funding.
Asset risk is well-mitigated in Fitch's view, given that as of 30
June, 2024 the orderbook is 63% placed to 2026 via long-term leases
with good quality counterparties.
Adequate Profitability: Azorra reported pre-tax income of $9.9
million in 1H24, down from $19.2 million a year ago. This
translates to pre-tax return on average assets of 1.8% for the TTM
ended June 30, 2024. This is modestly below the average of 2.5%
from 2022-2023. Net spread (lease yields - funding costs), was 8.6%
for the TTM in 2Q24, above the 7.3% average during 2022-2023. Fitch
expects net spreads to moderate in the coming years given the
firm's growing scale amid increased competition and higher funding
costs. However, spreads should remain within the 'bbb' benchmark
range of 5%-15% for aircraft lessors with a sector risk operating
environment (SROE) score in the 'bbb' category over the medium
term.
Appropriate Leverage: Fitch's calculated leverage (gross debt to
tangible equity), which treats Azorra's Series A preferred shares
as 100% equity, was 2.2x as of June 30, 2024. The company's
leverage target on a gross debt to equity basis is 2.0x-2.5x, which
is approximately 2.5x-3x, based on Fitch's core leverage benchmark
metric of gross debt to tangible equity. Fitch believes Azorra's
leverage target is appropriate relative to its fleet quality and
business profile evolution.
Reliance on Secured Funding: Azorra mainly relies on secured,
wholesale borrowings, with a 100% of its total debt currently
secured. The concluded $550 million senior unsecured debt issuance
increased unsecured debt to around 32% of total debt, proforma, at
June 30, 2024, as proceeds were used to paydown secured debt. This
funding mix aligns with Fitch's 'bb' category funding, liquidity
and coverage benchmark range of 20%-75% for balance sheet intensive
finance and leasing companies with a SROE in the 'bbb' category.
Sound Liquidity Position: Fitch anticipates that Azorra will have
solid near-term liquidity. Resources as of June 30, 2024, included
$71 million of unrestricted cash and $1.1 billion of available
capacity under its committed warehouse and revolving credit
facilities. Additionally, Fitch expects Azorra to generate
annualized operating cash flows of more than $200 million over the
next 12 months. Collectively, this provides 1.5x liquidity coverage
of $1.1 billion of contracted aircraft purchases and upcoming debt
maturities over the next 12 months.
However, liquidity coverage might reduce modestly over the year as
purchase opportunities are identified. Fitch believes there is
minimal refinancing risk, given the modest level of debt maturity
walls in the near term.
Stable Outlook Reflects Improved Funding Flexibility: The Stable
Outlook reflects Fitch's expectation for improved funding
flexibility. Fitch also expects Azorra to manage its balance sheet
and maintain sufficient headroom relative to its targeted leverage
range and Fitch's negative rating sensitivities over the Outlook
horizon. This is despite Fitch's expectation for higher for longer
interest rates and elevated inflation.
The Stable Outlook also reflects expectations for solid asset
quality metrics and stable operating cash flows. Additionally,
Fitch expects a sound liquidity position, especially given Azorra's
sizeable order book for regional and small narrowbody aircraft.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weakening of the company's projected long-term cash flow
generation, net spreads below 5%, and liquidity coverage falling
below 1.0x and/or a sustained increase in leverage above 3.0x;
- Macroeconomic and/or geopolitical driven headwinds that pressure
airlines and lead to lease restructurings, rejections, lessee
defaults and increased losses would also be rating negative;
- Azorra's ownership by fixed-life private funds could also
contribute to negative rating action if it leads to elevated
capital extractions, or if a forced sale of the company at fund
maturity impairs its financial profile, franchise or long-term
strategic direction;
- Any key person event involving CEO and Chairman John Evans would
not lead to an immediate downgrade of Azorra's ratings. However,
Fitch would evaluate the event's impact on the firm's strategic
direction and industry relationships before taking any rating
actions.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Solid execution of planned growth targets and long-term strategic
financial objectives, including maintenance of leverage within the
targeted range;
- The ratings could also benefit from enhanced scale, as exhibited
by lessee diversification, reduced exposure to weaker airlines,
maintenance of low impairment ratios, and reduction in the
proportion of tier 3 aircraft;
- An upgrade could also depend on achieving net spreads exceeding
7% over a sustained period, unsecured debt approaching or exceeding
35%, and liquidity coverage remaining above 1.2x;
- Any rating upgrade would also consider potential governance and
conflict of interest risks associated with Azorra's externally
managed business model, limited number of independent board members
and ownership by a fixed-life private fund structure.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior secured debt rating is one-notch above Azorra's
Long-Term IDR and reflects the aircraft collateral backing the
obligations, which suggest good recovery prospects.
The senior unsecured debt rating is equalized with Azorra's
Long-Term IDR and reflects expectations for average recovery
prospects in a stress scenario given the availability of
unencumbered assets.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior secured debt rating is primarily sensitive to changes in
Azorra's Long-Term IDR and secondarily to the relative recovery
prospects of the instruments.
The senior unsecured debt rating is primarily sensitive to changes
in Azorra's Long-Term IDR and secondarily to the relative recovery
prospects of the instruments. A decline in unencumbered asset
coverage, combined with a material increase in secured debt,
relative to Azorra's business plan, could result in the notching of
the unsecured debt down from the Long-Term IDR.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned in line with
the implied SCP.
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason (s): Concentrations; asset
performance (negative), Risk profile and business model
(negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Historical
and future metrics (negative).
The Capitalization & Leverage score has been assigned below the
implied score due to the following adjustment reason: Historical
and future metrics (negative).
The Funding, Liquidity & Coverage score has been assigned above the
implied score due to the following adjustment reason: Historical
and future metrics (positive).
Date of Relevant Committee
20 September 2024
ESG Considerations
Azorra has an ESG Relevance Score of '4' for Management Strategy
due to the execution risk associated with the operational
implementation of the company's outlined strategy. This has a
negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
Azorra has an ESG Relevance Score of '4' for Governance Structure
due to the potential governance and conflict of interests associate
with Azorra's externally-managed business model, and ownership by a
fixed-life private fund structure. This also reflects key man risk
related to its CEO and Chairman John Evans, who is leading the
growth and strategic direction of the company. This has a negative
impact on the credit profile and is relevant to the ratings in
conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Azorra Aviation
Holdings, LLC LT IDR BB- New Rating BB-(EXP)
Azorra Finance
Limited
senior unsecured LT BB- New Rating BB-(EXP)
Azorra SOAR TLB
Finance Limited
senior secured LT BB New Rating BB(EXP)
B&J EXPRESS: To Sell Medical Equipment
--------------------------------------
B & J Express Care Services, LLC seeks permission from the U.S.
Bankruptcy Court for the Middle District of Florida, Jacksonville
Division, to sell its tangible personal property, free and clear of
any interest.
The Debtor intends to sell certain tangible personal property
including CT Scanner, Siemens Medical Systems CT Scanner in the
amount of $7,000.00 to Amber Diagnostics. The Debtor seeks to sell
by auction any remaining tangible person property except for the
assets described in the Notice of Abandonment of Property the
Estate dated October 21, 2024.
The Debtor has hired SoldNow, LLC which does business as Tranzon
Driggers, to handle the auction that will take place simultaneously
with the auction of the real property owned by a related entity
known as B & J Property Management of Ocala, LLC which has filed
Case 3:24-bk-01976-JAB.
Ameris Bank holds a purchase money security interest in all
tangible personal property except for the assets included in the
Auction.
Other entities claiming liens of the Debtor's assets include New
Lane Finance Company, Blue Bridge Financial, Banleaco, Inc., J B &
B Capital LLC and Pinnacle Bank, CT Corporation, First Corporate
Solutions.
About B & J Express Care Services, LLC
B & J Express Care Services is medical group practice located in
Ocala, Florida.
B & J Express Care Services filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.:
24-01974) on July 11, 2024, listing total assets of $176,350 and
total liabilities of $2,099,971. The petition was signed by Gordon
Johnson as manager.
Judge: Hon. Jacob A Brown presides over the case.
Richard A. Perry, Esq., RICHARD A. PERRY P.A., serves as legal
counsel of the Debtor.
B-1208 PINE: Unsecureds to be Paid in Full in Liquidating Plan
--------------------------------------------------------------
B-1208 Pine, LLC, filed with the U.S. Bankruptcy Court for the
Western District of Washington a Disclosure Statement describing
Plan of Liquidation dated September 16, 2024.
The Debtor owns real property and multi-family improvements
commonly known as the Pivot Apartments, located at 1208 Pine Street
in Seattle (the "Project").
The Project is comprised of 95 residential units and almost 5,000
square feet of retail space, and is at approximately 95% occupancy.
Development and construction of the Project spanned seven years,
although vertical construction largely occurred during the COVID-19
pandemic.
In October 2022, the Debtor obtained a $32 million bridge loan (the
"Pivot Lender Loan") from Pivot Apartments Lender LLC ("Pivot
Lender"), to pay off the existing Senior Loan and Mezz Loan in a
single financing. On or about December 15, 2023, Pivot Lender
commenced a non-judicial foreclosure proceeding, scheduling a
trustee's sale for March 29, 2024.
Thereafter, December 19, 2023, Pivot Lender commenced litigation
against the Debtor in King County Superior Court, Pivot Apartments
Lender, LLC v. B-1208 Pine, LLC, Case No, 23-2-25097-4 SEA, seeking
appointment of a receiver to take possession and control of the
Property and its rents pending completion of the foreclosure. After
Pivot Lender declined to participate in any discussions with the
Debtor seeking an alternative course, this case was commenced to
preserve the Property as a source of recovery for all creditors.
As detailed in the Plan, the Plan provides for the sale of the
Property within twelve months following the Effective Date. Each
Allowed Claim in Classes 1–4 shall be paid in full from cash on
hand, Net Income and the Net Proceeds from a sale of the Property.
The Holders of the Equity Interests shall retain their interests
following Confirmation and, through their Manager, will continue to
own, manage and operate the Debtor and its property.
Real property and improvements comprising the Property, with a
scheduled value of $31,721,374.
Class 3 consists of the Unsecured Claims of Lessees (the "Class 3
Claims"). Each Holder of a Class 3 Claim shall receive from the
Debtor or Post-Confirmation Debtor the refund of its applicable
security deposit in accordance with the terms of the applicable
Lease, when and as due. Class 3 is unimpaired under the Plan.
Class 4 consists of all Unsecured Claims. Each Class 4 Claim shall
be allowed or disallowed, as the case may be, whether prior to or
following Confirmation, in such amount as to which the Debtor and
the claimant may agree or the Court may approve following Notice
and Hearing (each, a "Class 4 Allowed Claim"). The Debtor believes
that all Class 4 Claims total approximately $700,000, without
regard to any defenses, setoffs or counterclaims the Debtor may
hold as to any such Claims.
Each Holder of a Class 4 Allowed Claim shall be paid in twelve
equal monthly payments, commencing in the third full month
following the Effective Date. All payments due under the
subparagraph shall be made on or before the twenty-fifth calendar
day of each month in which a payment is due. Upon the occurrence of
a Sale Event, the remaining balance of all Class 4 Allowed Claims,
if any, shall be paid in full. No interest shall accrue on Class 4
Claims. Class 4 is impaired under the Plan.
Class 5 consists of Equity Interests. The Holders of Equity
Interests shall each retain such Equity Interests in the same
equity class and priority, if any, following the Effective Date as
existed as of the Petition Date. No distributions shall be made on
account of Equity Interests until all Allowed Claims are paid in
full in accordance with the Plan.
The Post-Confirmation Debtor shall sell the Property not later than
the Sale Deadline, the Net Proceeds from which shall be used to pay
Allowed Claims to the extent of the Net Proceeds. The Holder of the
Class 2 Claim shall also receive a cash payment following the
Effective Date from accumulated rents the Debtor presently holds.
Finally, all Causes of Action of the Debtor are specifically
preserved for the Post Confirmation Debtor and shall be assigned to
a Liquidating Agent for investigation and pursuit, the proceeds
from which shall be distributed.
The distributions to each of the Classes under the Plan shall be
made from cash on hand, Property Income and, ultimately, from the
Net Proceeds of a Sale Event. All expenditures and distributions of
funds from Property Income, whether to fund ongoing operations or
distributions required under the Plan, shall be free and clear of
any liens, claims, interests or encumbrances of any Person.
A full-text copy of the Disclosure Statement dated September 16,
2024 is available at https://urlcurt.com/u?l=ubDIC5 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
James L. Day, Esq.
Thomas A. Buford, Esq.
Richard B. Keeton, Esq.
BUSH KORNFELD LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Telephone: (206) 292-2110
Email: jday@bskd.com
tbuford@bskd.com,
rkeeton@bskd.com
About B-1208 Pine LLC
B-1208 Pine LLC is the owner of real property and improvements
thereon located at 1208 Pine Street, Seattle, WA 98122, commonly
known as the Pivot Apartments. The Property is valued at $31.72
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-10088) on January
16, 2024. In the petition signed by James H. Wong, manager, the
Debtor disclosed $32,134,497 in assets and $46,793,638 in
liabilities.
Judge Marc L Barreca oversees the case.
James L. Day, Esq., at Bush Kornfield, LLP, is the Debtor's legal
counsel.
BETTER CHOICE: Projects $235-Mil. Revenue Post-SRx Acquisition
--------------------------------------------------------------
Better Choice Company Chairman Michael Young, on October 18, 2024,
issued a letter to shareholders as the Company continues to make
progress towards the closing of its acquisition of SRx Health
Solutions Inc., a leading provider of innovative healthcare
solutions, in an all-stock transaction for approximately $125
million.
In the letter, Mr. Young stated,
Better Choice Shareholders,
We believe that our transformational acquisition of SRx Health will
position Better Choice as a leading global health and wellness
company, providing better products and solutions for pets, people,
and families. The combination of the two companies is expected to
generate significant cash flow, yield operational efficiencies, and
cost savings, while providing large growth opportunities that will
drive sustainable organic growth for each respective business. We
expect the transaction to close in late Q4 of this year or early Q1
of 2025.
To date, each business has generated steady sales growth and cash
flow.
Better Choice has established its premium pet food brand Halo
through our omni-channel distribution model. Gross sales of the
brand totaled approximately USD$49 million in 2023, approximately
half of which was e-commerce and 28% was international, driven by
growth in China. For the second quarter of 2024, Better Choice
generated close to break-even adjusted EBITDA of less than $(0.03)
million4, which reflects our success in stabilizing the business
and resetting it to profitable growth.
SRx Health generated approximately CAD$180 million in revenue and
generated positive adjusted EBITDA in 20235. Today, SRx operates
one of the largest specialty pharmacy networks in Canada with 36
specialty pharmacy locations, 40 specialty health/infusion clinics,
4 clinical trial sites, and 2 wholesale distribution facilities. As
one of only a few specialty pharma operators with a network that
extends across Canada, SRx Health is one of the most comprehensive
providers of specialty healthcare in the country.
The combined companies for the trailing twelve months have
generated USD$235 million in revenue, increasing approximately 25%
quarter-over-quarter.
From an operational perspective, we expect to achieve immediate
cost savings estimated to be approximately USD$1.7 million
annually, with potential for further upside as we continue to
integrate the two companies. There are also new verticals and
geographic expansion opportunities as a combined entity versus
stand alone. As an example, our plan is to expand into veterinary
medicine in 2025 with our new initiative Better Pet Rx. By
leveraging the expertise of SRx Health's management team, with
their pre-existing relationships in pharma, and their robust
infrastructure, Better Choice can complement the Halo portfolio of
premium and super-premium pet food products by expanding into this
new, large and growing market to support Halo's momentum forward.
Additionally, there are new markets that each respective business
has not yet explored, including the United States in the case of
SRx Health, and European Union and Asia-Pacific regions in the case
of both Better Choice and SRx Health, which regions represent new
and untapped large total addressable markets.
On a pro forma basis, we project 2025 combined revenue and EBITDA
to be over USD$270 million and over USD$10 million, respectively1.
Pro forma fully diluted shares outstanding including shares to be
issued to SRx Health is 22,911,334 shares, with insiders owning
approximately 75% of the outstanding shares. From a valuation
perspective, net tangible book value is $4.072 per share and net
current asset value per share is $3.943, both well below the
current price of our equity.
As we near the closing of the transaction in the coming months we
will ask the Better Choice and SRx Health shareholders to vote.
We sincerely appreciate your unwavering support and trust as we
strive to build a global health and wellness brand by 2025, paving
the way for a promising future together. Thank you.
About SRX Health
SRx operates as a Canadian healthcare service provider specializing
in the Specialty Pharmacy segment of the pharmaceutical industry.
Distinguishing itself as a National Specialty Pharmacy provider,
SRx concentrates on overseeing a patient's healthcare journey,
spanning from acute pharmaceutical needs to chronic and rare
disease management. This unique focus positions SRx to deliver a
more holistic and integrated solution, catering to the requirements
of both patients and key healthcare stakeholders. Our
all-encompassing end-to-end offerings include
wholesale/distribution facilities, patient support programs,
infusion clinics, retail pharmacies, co-designed clinical programs,
clinical trials, and diagnostic services.
About Better Choice
Better Choice Company Inc. is headquartered in Tampa, Florida, and
focuses on pet health and wellness. The company is known for its
premium pet products under the Halo brand, including Halo Holistic,
Halo Elevate, and the rebranded TruDog products.
BDO USA, P.C., based in Tampa, Florida, has been the company's
auditor since 2021. In its report dated April 12, 2024, BDO USA
issued a "going concern" qualification. The report highlighted that
the company has consistently incurred operating losses, had an
accumulated deficit, and failed to meet certain financial covenants
as of December 31, 2023. These factors raise substantial doubt
about Better Choice's ability to continue as a going concern for
the twelve months after the filing of the report.
For the year ended December 31, 2023, Better Choice reported a net
loss available to common stockholders of $22.8 million, a decrease
from $39.3 million in 2022. As of June 30, 2024, Better Choice
Company had $13.09 million in total assets, $9.15 million in total
liabilities, and $3.94 million in total stockholders' equity.
BIG LOTS: Ollie's Bargain Acquires Additional 8 Store Locations
---------------------------------------------------------------
Ollie's Bargain Outlet Holdings, Inc. announced that it was the
winning bidder in the latest bankruptcy sale process to acquire
eight additional former Big Lots store leases. The eight stores
were part of a bankruptcy auction for the second wave of Big Lots
store closures, which included 170 stores. The acquisition of the
eight additional store leases are subject to final bankruptcy court
approval and customary closing conditions. Including these eight
additional Big Lots locations, the Company has acquired a total of
15 former Big Lots store leases to date.
Eric van der Valk, President of Ollie's stated, "We are, once
again, very pleased to be the winning bidder on an additional eight
store locations in another round of the Big Lots store closures.
These stores line up very well with Ollie's in terms of size of the
stores, lease terms, customer demographics, and are located in
communities in our existing trade areas."
Mr. van der Valk continued, "With the ongoing nature of the Big
Lots store closure process, we will maintain a fluid store opening
program that optimizes productivity and pre-opening expenses
between the recently acquired Big Lots locations and our existing
real estate pipeline. In 2024, we are on track to open 50 new
stores, less two planned closures, and are evaluating the impact of
the acquired Big Lots leases on our future store openings and
cadence for the first half of fiscal 2025."
About Ollie's
We are America's largest retailer of closeout merchandise and
excess inventory, offering Real Brands and Real Bargain prices(R)!
We offer extreme value on brand name products in a variety of
departments, including housewares, food, books and stationery, bed
and bath, floor coverings, toys, health and beauty aids, and more.
We currently operate 545 stores in 31 states and growing! For more
information, visit http://www.ollies.us
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value. The
Company is dedicated to being the big difference for a better life
by delivering bargains to brag about on everything for the home,
including furniture, decor, pantry and more. It fulfills its
mission to help customers "Live BIG and Save LOTS" with sourcing
strategies to grow extreme bargains through closeouts,
liquidations, overstocks, private labels, and value-engineered
products. The Big Lots Foundation, together with the Company's
customers, associates, and vendors, has delivered more than $176
million of philanthropic support to critical needs in hunger,
housing, healthcare, and education. On the Web: http://biglots.com/
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC, is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus.
BIG LOTS: Secures $150M DIP Loan From Gordon Brothers
-----------------------------------------------------
Gordon Brothers, the global asset experts, has agented a $150
million debtor-in-possession term loan for Big Lots Inc.
The U.S. closeout retailer focused on value will use the DIP loan
during ongoing Chapter 11 bankruptcy proceedings to support the
going-concern sale and stalking horse bid.
"Having established a working relationship with Big Lots over the
last few years, and having previously provided a $200 million
delayed draw term loan, we continue to provide a full suite of
holistic services for a complete solutions-driven package," said
Kyle C. Shonak, Senior Managing Director, Transaction Team & Head
of North America Lending at Gordon Brothers. "As the liquidation
agent for the non-go forward store closures, distribution centers
and the furniture, fixtures and equipment, we'll continue to
support the company during the sale process."
Gordon Brothers provides both short- and long-term capital to
clients undergoing transformation. The firm lends against and
invests in brands, real estate, inventory, receivables, machinery,
equipment and other assets, both together and individually, to
provide clients liquidity solutions beyond its market-leading
disposition and appraisal services.
Gordon Brothers partners with management teams, private equity
sponsors, strategic buyers and asset-based lenders globally to
provide its expertise and additional capital in special situations.
The firm's tailor-made solutions provide clients additional capital
alongside traditional debt and equity, and its structures
complement senior asset-based lending facilities and include credit
and yield enhancements.
To learn more about Gordon Brothers and the firm's asset lending
and financing services, please visit:
https://www.gordonbrothers.com/services/financing-investment/.
About Gordon Brothers
Since 1903, Gordon Brothers has maximized liquidity through
realizable asset value by providing the people, expertise and
capital to solve business challenges. Our solutions-oriented
approach across asset services, lending, financing and trading
gives clients the insights, strategies and time to optimize asset
values throughout the business cycle. We work across the full
spectrum of assets globally with deep expertise in retail,
commercial, industrial, brands and real estate. We are
headquartered in Boston with over 30 offices across North America,
Europe, the Middle East and Africa, and Asia Pacific.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value. The
Company is dedicated to being the big difference for a better life
by delivering bargains to brag about on everything for the home,
including furniture, decor, pantry and more. It fulfills its
mission to help customers "Live BIG and Save LOTS" with sourcing
strategies to grow extreme bargains through closeouts,
liquidations, overstocks, private labels, and value-engineered
products. The Big Lots Foundation, together with the Company's
customers, associates, and vendors, has delivered more than $176
million of philanthropic support to critical needs in hunger,
housing, healthcare, and education. On the Web: http://biglots.com/
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC, is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus.
BIG LOTS: Set to Close Carson Store for Good
--------------------------------------------
Scott Neuffer of Business Weekly reports that following Big Lots
Inc.'s September 2024 announcement of its voluntary Chapter 11
reorganization, the Carson City Big Lots store is scheduled to
permanently close by December 22, a store spokesperson confirmed.
On Monday, October 21, 2024, signs inside and outside the store at
4215 S. Carson St. advertised the upcoming closure with discounts
on various items. While the store plans to remain open through much
of the holiday season, the spokesperson was unsure about the future
of the store's 15-25 employees after Christmas. Requests for
comment from the parent corporation were not immediately returned.
The Carson City Big Lots opened in the Southgate Shopping Center in
2010, offering "closeout deals" on items such as nonperishable
food, toys, seasonal décor, electronics, and furniture, according
to the Appeal archives.
The store had long been located next to Burlington Coat Factory,
which closed in April 2024. In August, Carson City Community
Development issued a permit to Hobby Lobby for tenant improvements
at the former Burlington location.
In a sign of potential struggles in the discount retail sector, 99
Cents Only, located off East William Street, also closed in June,
shortly after Burlington's departure. That location has since been
replaced by a Dollar Tree.
In a September 9 press release, Big Lots Inc. stated, "Since the
pandemic, Big Lots has accelerated strategic initiatives aimed at
boosting sales and improving long-term performance and
profitability." The company noted that, like many retailers, it has
been impacted by macroeconomic challenges, including high inflation
and interest rates. These economic pressures have affected Big Lots
particularly hard, as its core customers have cut back on
discretionary spending, especially in home and seasonal product
categories that contribute significantly to the company's revenue.
On September 11, 2024, Big Lots received court approval to initiate
steps toward selling assets and operations to Nexus Capital
Management LP. The court's interim relief also allows Big Lots to
continue paying employee wages and benefits and making payments to
essential vendors, maintaining regular operations. The company
expects to pay vendors in full under standard terms for any goods
or services provided post-filing.
In a restructuring fact sheet, Big Lots emphasized, "While we are
working to improve the profitability of all stores to continue
serving our customers, additional closures will be necessary to
ensure efficient business operations."
On October 1, USA Today reported that Big Lots would close over 340
stores nationwide, including Reno locations on Lemmon Drive and
South McCarran Blvd.
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.
BLUE STAR: Fails to Meet Nasdaq's Minimum Bid Price Requirement
---------------------------------------------------------------
Blue Star Foods Corp. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company received a
letter from the Listing Qualifications Department of The Nasdaq
Stock Market LLC notifying the Company that, based upon the closing
bid price of the Company's common stock, par value $0.0001 per
share, for the 30 consecutive business days prior to October 16,
2024, the Company is not currently in compliance with the
requirement to maintain a minimum bid price of $1.00 per share for
continued listing on The Nasdaq Capital Market, as set forth in
Nasdaq Listing Rule 5550(a)(2), which matter serves as a basis for
delisting the Company's securities from Nasdaq.
As previously reported on a Current Report on Form 8-K filed on
June 12, 2024, the Company is subject to a Mandatory Panel Monitor
for a period of one year, or until June 11, 2025. As such, the
Company is not eligible for a compliance period. The Company has
the opportunity to request a hearing with the Hearings Panel. The
hearing request will stay the suspension of the Company's
securities and the filing of the Form 25-NSE pending the Panel's
decision. The fee for the hearing is $20,000.
About Blue Star Foods Corp.
Blue Star Foods Corp., headquartered in Miami, Florida, is an
international seafood company that imports, packages, and sells
refrigerated pasteurized crab meat and other premium seafood
products. The Company's current source of revenue is from importing
blue and red swimming crab meat primarily from Indonesia, the
Philippines, and China, and distributing it in the United States
and Canada under several brand names such as Blue Star, Oceanica,
Pacifika, Crab & Go, First Choice, Good Stuff, and Coastal Pride
Fresh. The Company also distributes steelhead salmon and rainbow
trout fingerlings produced under the brand name Little Cedar Farms
for distribution in Canada. The Company sells primarily to food
service distributors, wholesalers, retail establishments, and
seafood distributors.
Blue Star reported a net loss of $4.47 million for the year ended
Dec. 31, 2023, compared to a net loss of $13.19 million for the
year ended Dec. 31, 2022. As of March 31, 2024, the Company had
$6.86 million in total assets, $4.28 million in total liabilities,
and $2.58 million in total stockholders' equity.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
BON WORTH: Amends Saturn Five Claims Pay Details
------------------------------------------------
Bon Worth Holdings, Inc., submitted a Second Amended Plan of
Reorganization dated September 16, 2024.
This Plan of Reorganization proposes to pay creditors of the Debtor
funded by cash on hand, a new value contribution by the Debtor's
principal Don Young in the sum of $60,000.00, and funds from future
operations.
This Plan provides for three classes of secured claims, one class
of unsecured claims, and one class of equity security holders.
General unsecured creditors are classified in Class 4 and will
receive a distribution of 15% of their allowed claims payable over
60 months. The Class 1 secured claim of Crossroads Funding II LLC
will receive monthly payments, pursuant to a new amended and
restated loan and secured agreement, in the amount of $18,000.00
per month with a balloon payment representing the balance due at
the end of the 60-month plan period, plus interest and fees and
expenses.
The Class 2 secured claim of Saturn Five Health LLC shall be paid
the amount of $80,000, which post-confirmation shall be an
unsecured obligation of the Debtor, and an unsecured claim for the
balance of the claim. Class 2 will receive a distribution of
$363,000.20 paid over 5 years. Class 3 consists of the secured tax
claims filed against the Debtor and Class 3 will also receive a 15%
distribution over 5 years, except that to the extent that all or
part of a claim is entitled to priority treatment, the priority
portion will be paid in full over 60 months.
Class 2 consists of the Claim of Saturn Five Health LLC. This claim
is allowed as a secured claim in the amount of $80,000 and an
unsecured claim in the amount of $1,886,668.00.
On account of the secured portion of the claim, claimant will
receive payments as follows:
Year 1: $0.00
Year 2: $1,000 per month
Year 3: $1,667 per month
Year 4: $2,000 per month
Year 5: $2,000 per month
Total: $80,000.
Post-confirmation, these shall be unsecured obligations of the
Debtor and shall not accrue interest.
On account of the unsecured portion of the claim, claimant will
receive a 15% distribution, payable monthly over 5 years (which
means monthly payments in the amount of $4,716.67 per month for 5
years, for a total of $283,000.20. No interest shall accrue on such
obligations.
The Debtor shall make distributions to creditors over time payable
over 60 months funded by a new value contribution by the Debtor's
principal Don Young and future income of the Debtor. The Debtor
shall be the disbursing agent under the Plan.
A full-text copy of the Second Amended Plan dated September 16,
2024 is available at https://urlcurt.com/u?l=7S9UjH from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Lawrence F. Morrison, Esq.
Brian J. Hufnagel, Esq.
Morrison-Tenenbaum, PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
Email: bjhufnagel@m-t-law.com
About Bon Worth Holdings
Bon Worth Holdings, Inc., operates a retail clothing business and
owns 28 brick and mortar stores and one online store and maintains
an office in Brooklyn, New York.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-43213) on Dec. 29,
2022. In the petition signed by Dan Young, its president, the
Debtor disclosed up to $50,000 in assets and up to $20 million in
liabilities.
Judge Jil Mazer-Marino oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum PLLC, is the
Debtor's legal counsel.
BROWN GENERAL: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Brown General Contractors, LLC received interim approval from the
U.S. Bankruptcy Court for the Eastern District of Kentucky to use
cash collateral to support its operations during Chapter 11
proceedings.
The interim order authorized Brown General Contractors to spend
funds according to its budget, with a 10% variance.
As adequate protection for secured creditors, the company was
ordered to make a monthly payment of $366 to the U.S. Small
Business Administration, $181.78 to Byzzfunder, $65.53 to Unique
Funding Solutions, and $277.50 to LG Funding.
The interim order provides a carve-out of $2,500 per week for
professional fees.
The final hearing is scheduled for Nov. 7.
About Brown General Contractors
Brown General Contractors, LLC is the owner of real property
located at 255 Coleman Ln, Georgetown, Ky., valued at $959,000.
Brown General Contractors filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Ky. Case No.
24-51313) on October 15, 2024, with total assets of $1,879,668 and
total liabilities of $2,628,660. Ryan Brown, a member of Brown
General Contractors, signed the petition.
Judge Douglas L. Lutz oversees the case.
The Debtor is represented by Michael B. Baker, Esq., at The Baker
Firm, PLLC.
CAI RENO HOTEL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: CAI Reno Hotel Partners LLC
9325 West Sahara Ave
Las Vegas, NV 89117
Business Description: CAI Reno is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
District of Nevada
Case No.: 24-15652
Debtor's
Local
Bankruptcy
Counsel: Candace C. Carlyon, Esq.
CARLYON CICA CHTD.
265 E. Warm Springs
Suite 107
Las Vegas, NV 89119
Tel: 702-685-4444
Email: ccarlyon@carlyoncica.com
Debtor's
Bankruptcy
Counsel: GREENBERG GLUSKER FIELDS CLAMAN & MACHTINGER LLP
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Keighley Mahoney-Keough as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/7KN5HNI/CAI_Reno_Hotel_Partners_LLC__nvbke-24-15652__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. AC Harvard LLC Intercompany Loans/ $634,433
9325 W Sahara Ave Advances
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
2. Bristlecone Intercompany Loans/ $295,858
Management LLC Advances
9325 W Sahara Ave
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
3. CAI Development LLC Development $9,011,647
9325 W Sahara Ave
Las Vegas, NV
89117
EMAIL: kelly@caicap.com
PHONE: 702-853-7906
4. CAI Investments Intercompany Loans/ $9,000
Coatesville Master Lesse Advances
9325 W Sahara Ave
Las Vegas, NV
89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
5. CAI Investments LLC Intercompany Loans/ $2,358,766
9325 W Sahara Ave Advances
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
6. CAI Real Estate Intercompany Loans/ $3,428
Income Fund I LLC Advances
9325 W Sahara Ave
Las Vegas, NV
89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
7. CAI Reno Hotel OZ Intercompany Loans/ $4,785,497
Fund LLC Advances
9325 W Sahara Ave
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
8. Credit Facility LLC Loans/Advances $941,900
1930 Village Center Circle
Suite 3-231
Las Vegas, NV 89134
EMAIL: Ella@lifeplrs.com
PHONE: 702-337-2312
9. IMEG Structural $34,600
623 26th Avenue Engineer
Rock Island, IL 61201
EMAIL: peter.d.monroe@imegroup.com
PHONE: 303-623-4927 ex 2203
10. Jeffer Mangels Legal Services $13,845
Butler & Mitchell LLP
1900 Avenue of the Stars
7th Floor
Los Angeles, CA 90067
EMAIL: GV1@JMBM.com
PHONE: 310-203-8080
11. LIVunLTD LLC Spa Design $10,000
107 Airport
Exercutive Park
Nanuet, NY 10954
EMAIL: mkezner@livunltd.com
PHONE: 212-784-2390 x.897
12. Luxe Industries LLC Project $396,126
57 Alerios St Management
Las Vegas, NV 89138
EMAIL: marytucker@gmail.com
13. McQuade Johnson PC Legal Services $1,873
12201 gayton Road
Suite 210
Henrico, VA 23238
EMAIL: Billing@McQuadeJohnson.com
PHONE: 804-857-0115
14. Moran Reeves & Legal Services $1,277
Conn PC
1211 E Caary Street
Richmond, VA 23219
EMAIL: Morgan.Smith@lockton.com
PHONE: 303-414-6216
15. Obermeier Sheykhet Architectural $3,015,083
Architecture Services
1635 Blake Street
Suite 100
EMAIL: noahr@osarchitecture.com
PHONE: 303-327-4600
16. Paul Schiada PC Legal Services $149,500
119 E. Palmer Avenue
Glendale, CA 91205
EMAIL: pschiada@schiadalaw.com
PHONE: 818-649-1131
17. Pegasus Project $12,993
Development LLC Management
10181 Park Run Drive
Suite 210
Las Vegas, NV 89145
EMAIL: art@pegasusbuild.com
PHONE: 702-833-0454
18. Pinnacle Fund Intercompany Loans/ $115,346
Management LLC Advances
9325 W Sahara Ave
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
19. Reno City Center LLC Intercompany Loans/ $11,000
9325 W Sahara Ave Advances
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
20. Silver State Realty & Intercompany Loans/ $11,500
Investments Advances
9325 W Sahara Ave
Las Vegas, NV 89117
EMAIL: jennifer@caicap.com
PHONE: 702-853-7902
CAPSITY INC: Trustee Taps Pino & Associates as Bankruptcy Counsel
-----------------------------------------------------------------
Lisa Holder, the trustee appointed in the Chapter 11 case of
Capsity, Inc., seeks approval from the U.S. Bankruptcy Court for
the Eastern District of California to hire Pino & Associates as
bankruptcy counsel.
The firm will render these services:
(a) identify, review, and recover potential assets and
undisclosed assets;
(b) negotiate, sell, or otherwise liquidate assets of the
estate;
(c) advise trustee regarding litigation matters related to the
bankruptcy case;
(d) analyze claims, exemptions, and motions in the bankruptcy
case under applicable Federal and California authorities;
(e) investigate the Debtor's financial affairs;
(f) prosecute and defend any other litigation or contested
matters that may arise relating to trustee's administration of the
bankruptcy case;
(g) prepare legal papers; and
(h) perform all legal services for trustee that may be
necessary and proper in furtherance of her duties as trustee in
this matter.
The hourly rates of the firm's counsel and staff are as follows:
Estela O. Pino $450
Associate $350
Law Clerk/Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
Estela Pino, Esq., an attorney at Pino & Associates, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Estela O. Pino, Esq.
Ramandeep Kaur Mahal, Esq.
Pino & Associates
1520 Eureka Rd., Suite 101
Roseville, CA 95661
Telephone: (916) 641-2288
Facsimile: (916) 244-0989
Email: epino@epinolaw.com
rmahal@epinolaw.com
About Capsity Inc.
Capsity, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-23940) on November
2, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Christopher D. Jaime presides over the case.
Gabriel E. Liberman, Esq., is the Debtor's legal counsel.
CGI FUND I: Public Sale Auction Set for December 19
---------------------------------------------------
CBRE Capital Markets Inc. ("CBRE"), on behalf of CRE Debt Fund TRS
LLC ("Secured Party"), offers for sale at a public auction on Dec.
19, 2024, at 1:00 p.m. (New York Time) conducted both via Zoom and
in-person at the offices of Gibson Dunn & Crutcher LLP, 200 Park
Avenue, New York, New York 10166, in connection with a Uniform
Commercial Code sale, 100% of the partnership interest in CGI Fund
I Biltmore LP ("mortgage borrower"), which is the sole owner of the
property located at 550 Biltmore Way, Coral Gables, Florida 33134.
The interests are owned by CGI Fund I Biltmore GP LLC ("GP
Pledgor") and CGI Fund Biltmore LP LLC ("LP Pledgor"), having their
principal place of business at 3480 Main Highway, Suite 200,
Coconut Grove, Florida 33133.
The secured party is the lender on a loan made to the mortgage
borrower ("loan"). In connection with the loan, the pledgor has
granted to the secured party a first priority lien on the interest
pursuant to that certain pledge and security agreement dated as of
May 5, 2021, made by pledgor in favor of the secured party. The
secured party is offering the interests for sale in connection with
the foreclosure on the pledge of such interests. The loan is also
secured by a mortgage on real property owned by the mortgage
borrower or otherwise affecting the property ("mortgage loan").
The secured party may, prior to the sale, assign all of its right,
title and interest in and to the loan and in the case of such
assignment the assignee will be considered the "Secured Party" for
all purposes hereunder.
All bids must be for cash, and the successful bidder must be
prepared to deliver immediately available good funds as required by
the terms of sale and otherwise comply with the bidding
requirements and terms of sale. Interested parties seeking
additional information concerning the interests, the requirements
for obtaining information and bidding on bidding on the interests
and terms of sale should execute the confidentiality agreement
which can be reviewed at https://tinyurl.com/BiltmoreUCC. For
questions and inquiries, contact CBREUCCSale@cbre.com.
CHERRY MAN: Court Extends Use of Cash Collateral to Dec. 17
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, approved a stipulation between Cherry Man
Industries, Inc.'s Chapter 11 trustee and Cathay Bank, extending
the use of cash collateral to Dec. 17.
The order authorized the company to use cash collateral subject to
the terms of the stipulation and its supplements, including
provisions for adequate protection.
The next hearing is scheduled for Dec. 17.
About Cherry Man Industries
Cherry Man Industries, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11471) on March
17, 2022, listing $100 million to $500 million in assets and $10
million to $50 million in liabilities. Frank Lin, president of
Cherry Man Industries, signed the petition.
El Segundo, Calif.-based Cherry Man was started in 2002 by Frank
Lin. It is one of the largest nationwide importers and distributors
of office furniture case goods. It has five distribution centers
across the United States.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
An official committee of unsecured creditors has been appointed in
the case. The Committee has retained Kelley Drye & Warren LLP as
counsel.
Hamid R. Rafatjoo has been appointed as Chapter 11 Trustee. The
Trustee is represented by David Golubchik, Esq., at Levene, Neale,
Bender, Yoo & Golubchik, LLP, as counsel.
Secured creditor Cathay Bank is represented by Frandzel Robins
Bloom & Csato, L.C.
CLARITY DIAGNOSTICS: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Clarity Diagnostics, LLC, according to court dockets.
About Clarity Diagnostics
Clarity Diagnostics, a company in Boca Raton, Fla., manufactures
point of care rapid diagnostic tests, diagnostic equipment, and
over-the-counter diagnostic tests that are targeted toward the
Continuum of Care, Alternative Care, Acute Care, Laboratory, and
OTC markets.
Clarity Diagnostics filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 24-18938) on August 30, 2024, with $1 million to $10
million in both assets and liabilities. Clarity Diagnostics
President Richard Simpson signed the petition.
Judge Erik P. Kimball presides over the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page, PA represents the
Debtor as legal counsel.
COMMUNITY CHARTER SCHOOL: S&P Rates 2024 Revenue Bonds 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term rating to the
Passaic County Improvement Authority, N.J.'s $16.0 million series
2024A and $600,000 series 2024B charter school revenue bonds,
issued for Morris Charter Inc. on behalf of Community Charter
School of Paterson (CCSP). The outlook is stable.
The proposed $16.6 million series 2024 bonds will be used to fund
the acquisition of the 8 Morris St property for $14.7 million,
which is currently leased, as well as a debt service reserve fund
of about $1.0 million. CCSP will also maintain its lease agreements
at 75 Spruce St., housing the elementary school, and at 32 Spruce
St., serving as administrative office space.
"We assessed the school's enterprise profile as adequate,
characterized by a healthy waitlist, solid student retention, and
knowledgeable management team, with some offset from the limited
ability to grow enrollment, which is restricted by the current
facility capacity," said S&P Global Ratings credit analyst Sadie
Mazzola. S&P said, "We assessed the school's financial profile as
vulnerable, characterized by a solid liquidity position and healthy
operations on a full-accrual basis, although we understand
financial performance will moderate as one-time relief funds
expire. We also view the school's pro forma debt metrics as
somewhat elevated relative to those of peers."
S&P said, "The stable outlook reflects our expectation that CCSP
will continue to maintain current enrollment and demand levels
while also generating at least positive operating margins on a
full-accrual basis and maintaining liquidity near current levels.
Additionally, we do not anticipate any additional debt plans for
CCSP over the outlook period."
CPC ERICSSON STREET: Sec. 341(a) Meeting of Creditors on Nov. 25
----------------------------------------------------------------
CPC Ericsson Street LLC filed Chapter 11 protection in the District
of Massachusetts. According to court documents, 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.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 25, 2024 at 1:00 p.m. in Room Telephonically.
About CPC Ericsson Street LLC
CPC Ericsson Street LLC is primarily engaged in renting and leasing
real estate properties.
CPC Ericsson Street LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-12129) on October 24,
2024. In the petition filed by Ryan P. Sillery, as authorized
signatory, the Debtor reports estimated assets between $10 million
and $50 million and estimated liabilities between $1 million and
$10 million.
Honorable Bankruptcy Judge Janet E. Bostwick handles the case.
The Debtor is represented by:
Gary W. Cruickshank, Esq.
GARY W. CRUICKSHANK
10 Post Office Square
Suite 800 South
Boston, MA 02109
Tel: 617-330-1960
Email: gwc@cruickshank-law.com
CREATIVE REALITIES: All Proposals Approved at Annual Meeting
------------------------------------------------------------
Creative Realities, Inc. held an annual meeting of shareholders in
Louisville, Kentucky. As of August 26, 2024, the record date for
the Annual Meeting, 10,446,659 shares of Common Stock of the
Company were issued and outstanding. Each share of Common Stock
entitled its holder to cast one vote. The items voted on at the
Annual Meeting and the results of such voting are:
(1) The Company's shareholders reelected David Bell, Donald A.
Harris, Richard Mills, and Stephen Nesbit as directors to serve on
the Board of Directors of the Company.
(2) The Company's shareholders approved the Company's 2023
Stock Incentive Plan. There were 4,403,436 votes cast for the
proposal and 705,203 votes cast against the proposal. 13,024 votes
abstained, and there were 2,672,011 broker non-votes.
(3) The Company's shareholders ratified the engagement of
Grant Thornton LLP as the Company's independent registered public
accounting firm for the fiscal year ending December 31, 2024. There
were 7,546,208 votes cast for the proposal and 241,696 votes cast
against the proposal. 5,770 votes abstained, and there were no
broker non-votes.
No other items were presented for shareholder approval at the
Annual Meeting.
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.
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.
DARE BIOSCIENCE: Inks $15MM Stock Purchase Deal With Lincoln Park
-----------------------------------------------------------------
Dare Bioscience, Inc. announced that it entered into a $15 million
common stock purchase agreement and registration rights agreement
with Lincoln Park Capital Fund, LLC, a Chicago-based institutional
investor.
Under the terms and conditions of the purchase agreement, Dare will
have the right, from time to time and at its sole discretion, to
sell up to $15 million of its stock to LPC over a 24-month period,
subject to a registration statement covering the resale by LPC of
shares issued and sold under the purchase agreement being filed and
declared effective by the Securities and Exchange Commission and
satisfaction of the other conditions in the purchase agreement.
Dare will control the timing and amount of any sales to LPC, and
LPC is obligated to make purchases in accordance with the purchase
agreement. LPC will purchase any common stock sold under the
purchase agreement at prices based on prevailing market prices of
Dare's common stock at the time Dare initiates each sale. There is
no upper limit to the per share price LPC may pay to purchase such
common stock.
"We are excited to once again enter into such a transaction with
LPC. Proceeds from our similar agreement with LPC in 2020 assisted
with the funding of our Phase 3 registration study of XACIATO™
(clindamycin phosphate) vaginal gel 2%, leading to an FDA approval,
and this transaction may similarly provide Dare with access to
capital at times that we control to help us advance our portfolio
of novel investigational products in women's health, including
importantly Sildenafil Cream, 3.6%, a potential first-in-category
treatment for female sexual arousal disorder, where we are in
ongoing discussions with the FDA regarding the Phase 3 design and
where we have estimated that a Phase 3 study will be approximately
$15 million in direct costs," said Sabrina Martucci Johnson,
President and Chief Executive Officer of Dare Bioscience.
As part of the agreement, LPC has agreed not to cause or engage in
any direct or indirect short selling or hedging of the Company's
common stock. No warrants are being issued in this transaction, and
there are no limitations on the Company's use of proceeds from
sales to LPC under the purchase agreement. Furthermore, the
purchase agreement does not contain any rights of first refusal,
participation rights, penalties or liquidated damages provisions in
favor of any party. The Company will issue shares of its common
stock to LPC in consideration for its commitment to purchase shares
under the purchase agreement. Dare may terminate the purchase
agreement at any time, in its sole discretion, with no additional
cost or penalty.
A description of the purchase agreement and registration rights
agreement is available in the Company's Current Report on Form 8-K
at: https://tinyurl.com/33kbadty
About Dare Bioscience
Dare Bioscience, Inc. is a biopharmaceutical company committed to
advancing innovative products for women's health. The Company's
mission is to identify, develop, and bring to market a diverse
portfolio of differentiated therapies that prioritize women's
health and well-being, expand treatment options, and improve
outcomes, primarily in the areas of contraception, vaginal health,
reproductive health, menopause, sexual health, and fertility.
Irvine, California-based Haskell & White LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has recurring losses
from operations, negative cash flow from operations, and is
dependent on additional financing to fund operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
As of June 30, 2024, Dare Bioscience had $23.6 million in total
assets, $20.9 million in total liabilities, and $2.7 million in
total stockholders' equity.
DAVID ALONSO MD: Unsecureds Owed $260K to Get 100% over 5 Years
---------------------------------------------------------------
David Alonso, MD Inc. submitted a First Amended Plan of
Reorganization dated September 16, 2024.
The Debtor's financial projections show that the Debtor will have
projected disposable income for the 60-month period of $905,633.
The final Plan payment is expected to be paid at the end of the
fifth year of the Effective Date.
The Debtor's projections show a substantial recovery to general
unsecured creditors and Debtor is confident the structure of the
Plan enables creditors to fare better than then they would in a
chapter 7 liquidation. The Plan provides for an estimated dividend
to unsecured creditors of 100% or $259,597 to allowed claims.
This Plan of Reorganization proposes to pay creditors of the Debtor
from future disposable income for a period of 60 months received
from Debtor's operation of its medical practice.
This Plan provides for four classes of secured non-priority claims;
one class of unsecured non-priority general claims and one class of
Debtor's equity holder's claim. This Plan also provides for the
payment of administrative claims and priority claims.
Class 2 consists of the claim of Kapitus LLC. The Class 2 Secured
Claim of Kapitus LLC is in the amount of $211,347.42 as provided in
proof of claim no. 13. Under this plan the Debtor shall pay the
full claim amount to Class 2 claimant over a sixty-month period
with interest accruing at an annual rate of 8.5% from the Effective
Date with payment commencing on the 10th of the month following the
Effective Date and continuing on the 10th of every subsequent month
in the amount of $4,336.12 until the Secured Class 2 Claim is
paid.
Any payments in excess of the aforementioned monthly payment after
the Effective Date shall be applied to the principal balance of the
Secured Class 2 Claim. Any payments made prior to the Effective
Date and post-petition shall be applied to the principal balance of
the Secured Class 2 Claim. The Class 2 claimant shall retain its
lien(s) encumbering Debtor's assets until the obligation is paid in
full.
Class 3 consists of the claim of Idea 247, Inc. The Class 4 Secured
Claim of Idea 247, Inc. is in the amount of $95,179.62 as provided
in proof of claim no. 6. By court order entered on August 23, 2024,
Debtor established, pursuant to section 506(a), that the value of
the collateral securing this claim is $0.00. This claim will be
treated as a general unsecured claim. Promptly following the
Effective Date, such claimant shall release and reconvey its
lien(s) encumbering Debtor's assets.
Class 4 consist of the claim of Emerald Group Holdings LLC dba
Vitalcap Fund. The Class 5 Secured Claim of Emerald Group Holdings
LLC dba Vitalcap Fund is in the amount of $78,390.86 as provided in
proof of claim no. 9. By court order entered on August 23, 2024,
Debtor established, pursuant to section 506(a), that the value of
the collateral securing this claim is $0.00. This claim will be
treated as a general unsecured claim. Promptly following the
Effective Date, such claimant shall release and reconvey its
lien(s) encumbering Debtor's assets.
Class 5 consists of Unsecured Nonpriority Claims. The Debtor
estimates that the total amount of general unsecured claims,
including the deficiency claims of Classes 3 & 4 to be
approximately $259,596.78. The Debtor shall pay $259,596.78 or 100%
of allowed unsecured claims over five years from the Effective Date
of the Plan.
On the first day of the month following the month in which the
Effective Date of the Plan occurs, the Debtor shall begin either
monthly or quarterly payments on the Class 5 Unsecured Nonpriority
Claims as provided in the General Unsecured Class Distribution
Table. Debtor may also make quarterly payments to Claimants. Debtor
reserves the right to disburse the total scheduled distribution
under the Plan to such claimants in lump sum payments following the
Effective Date.
The Debtor shall fund the Plan with the proceeds and profits from
operating its medical practice and servicing the general public.
A full-text copy of the First Amended Plan dated September 16, 2024
is available at https://urlcurt.com/u?l=fqR1si from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Gabriel E. Liberman, Esq.
Law Offices Of Gabriel Liberman, APC
1545 River Park Drive, Ste 530
Sacramento, CA 95815
Tel: (916) 485-1111
Fax: )916) 485-1111
Email: attorney@4851111.com
About David Alonso, MD Inc.
David Alonso, Md Inc. d/b/a North State Primary Care d/b/a Magnolia
Comprehensive Internal Medicine is a medical services provider
offering general well checks, consultations, and thorough
evaluations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-21517) on April 12,
2024, with $2,512,423 in assets and $4,311,212 in liabilities. Dr.
David Alonso, president, signed the petition.
Judge Christopher M. Klein presides over the case.
Gabriel E. Liberman, Esq. at the Law Offices of Gabriel Liberman,
APC.
DEVSAI LLC: Continued Operations to Fund Plan Payments
------------------------------------------------------
DevSai LLC filed with the U.S. Bankruptcy Court for the Northern
District of Georgia a Plan of Reorganization dated September 16,
2024.
On December 16, 2022, Debtor acquired the assets of Amaira Natural
SkinCare Solutions, Inc. for $2,865,000. Debtor funded the purchase
with a loan from MVB Bank, Inc. that is guaranteed by the Small
Business Administration (the "SBA") through MVB Bank (the "MVB
Loan").
The Debtor is the exclusive seller of, and only sells, the Amaira
Natural Skincare line (the "Business"). The sales are online only.
Thirty percent of Debtor's sales are through Amazon. Shopify is
Debtor's e-commerce platform. Debtor stores its inventory with
ShipBob in Texas and Pennsylvania. As orders are placed, Shopify
contacts Ship Bob to fulfil the purchase which is delivered to the
customer.
The Debtor continues to operate and manage its business as a debtor
in possession. While in this bankruptcy case, Debtor's net revenue
has not improved. Debtor intends to sell its current inventory in
stock which has a value of $1,000,000 over the next 12-15 months.
The expenses associated with the sale of the remaining inventory
are $850,000, which results in a net liquidation value of
$150,000.
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
Class 2 shall consist of General Unsecured Claims. If the Plan is
confirmed under Section 1191(a) of the Bankruptcy Code, General
Unsecured Creditors shall not receive any payments under the Plan.
The General Unsecured Creditors whose debts are guaranteed by Ms.
Desai shall be paid through the Morli Desai Plan of Reorganization
pursuant to the terms of that plan. If the Plan is confirmed under
Section 1191(b) of the Bankruptcy Code, Class 2 shall be treated
the same as if the Plan was confirmed under Section 1191(a) of the
Bankruptcy Code. The Claims of the Class 2 Creditors are Impaired
by the Plan.
Class 3 consists of Ms. Desai as the only equity interest holder of
Debtor. Ms. Desai shall retain her interest in Debtor as the 100%
owner of its outstanding membership interests.
Upon confirmation, Debtor will be charged with administration of
the Plan. Debtor will be authorized and empowered to take such
actions as are required to effectuate the Plan. Debtor will file
all post-confirmation reports required by the United States
Trustee's office or by the Subchapter V Trustee. Debtor will also
file the necessary final reports and may apply for a final decree
as soon as practicable after substantial consummation and the
completion of the claims analysis and objection process.
The source of funds for the payments pursuant to the Plan is
Debtor's continued business operations.
A full-text copy of the Plan of Reorganization dated September 16,
2024 is available at https://urlcurt.com/u?l=LnhJYG from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Ceci Christy, Esq.
Rountree, Leitman, Klein & Geer, LLC
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (678) 587 8740
Email: cchristy@rlkglaw.com
About DevSai LLC
DevSai LLC, doing business as Amaira Natural Skincare, claims to
offer a safe and effective solution for those seeking to enhance
their skin's radiance, while catering to the unique challenges
faced by individuals with varying skin tones and concerns.
DevSai LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56333) on June
18, 2024. In the petition signed by Morli Desai, as owner, the
Debtor reports estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
Bankruptcy Judge Barbara Ellis-Monro oversees the case.
The Debtor is represented by Will Geer, Esq. at Rountree, Leitman,
Klein & Geer, LLC.
DIOCESE OF ROCKVILLE: Comm. Taps Hon. Bettinelli as Claims Reviewer
-------------------------------------------------------------------
The official committee of unsecured creditors of The Roman Catholic
Diocese of Rockville Centre, New York, seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to retain
Hon. William L. Bettinelli as the abuse claims reviewer.
The reviewer will evaluate each Abuse Claim based on the criteria
in the Trust Allocation Protocol. He will make no determination
regarding the terms of the Plan or the funds available to
collectively pay the holder of an Abuse Claim. He will be an
independent evaluator who will review each Abuse Claim on the facts
presented as provided for in the Trust Allocation Protocol.
Judge Bettinelli will be compensated as follows:
a. Review of Abuse Claims: $1,000 per claim; and
b. Review of Abuse Claims seeking reconsideration after first
award: $1,000 per claim.
As disclosed in the court filings, Judge Bettinelli represents no
interest adverse to the Debtor, its estate, or its creditors, and
is a "disinterested person," as the Committee understands this term
to be defined, within the meaning of section 101(14), as modified
by section 1103(b), of the Bankruptcy Code.
Judge Bettinelli can be reached at:
William Lester Bettinelli
PO Box 293
Dillon Beach, CA 94929-0293
Phone: (415) 982-5267
About The Roman Catholic Diocese
of Rockville Centre, New York
The Roman Catholic Diocese of Rockville Centre, New York, is the
seat of the Roman Catholic Church on Long Island. The Diocese has
been under the leadership of Bishop John O. Barres since February
2017. The State of New York established the Diocese as a religious
corporation in 1958. The Diocese is one of eight Catholic dioceses
in New York, including the Archdiocese of New York. The Diocese's
total Catholic population is approximately 1.4 million, roughly
half of Long Island's total population of 3.0 million. The Diocese
is the eighth largest diocese in the United States when measured by
the number of baptized Catholics.
To deal with sexual abuse claims, the Roman Catholic Diocese of
Rockville Centre, New York, filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as
$500 million in both assets and liabilities. Judge Martin Glenn
oversees the case.
The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal
North America, LLC, as restructuring advisor, and Sitrick and
Company, Inc., as communications consultant. Epiq Corporate
Restructuring, LLC is the claims agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Diocese's Chapter 11 case. The
coxmmittee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin
Moscou Faltischek, PC as its bankruptcy counsel and special real
estate counsel, respectively.
Robert E. Gerber, the legal representative for future claimants of
the Diocese, is represented by the law firm of Joseph Hage
Aaronson, LLC.
DOMAN BUILDING: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Doman Building Materials Group Ltd. (DBM
or Doman) ratings, including its Long-Term Issuer Default Rating
(IDR) at 'B+' and unsecured notes at 'B+'/'RR4'. The Rating Outlook
is Stable. The affirmations follow DBM's acquisition of CM Tucker
Lumber Companies, LLC earlier this month for USD255 million in
cash.
This acquisition significantly expands DBM's scale and diversifies
its operations, complementing its existing central and west coast
presence. DBM now has a meaningful presence in ten new states in
the eastern part of the country. Additionally, the acquisition adds
to DBM's treating capacity and builds on its position as one of the
largest pressure-treated lumber producers in North America. CM
Tucker is a leading family-owned lumber and treated wood supplier
and producer of specialty value-added products in the eastern
United States.
Key Rating Drivers
Leverage Temporarily Outside Sensitivities: Fitch estimates EBITDA
leverage at 4.8x pro forma for the acquisition of CM Tucker. Fitch
expects DBM's leverage will remain elevated at around 4.7x at YE
2025, slightly above the negative sensitivity of EBITDA leverage
above 4.5x for the 'B+' IDR. Fitch's rating case assumes EBITDA
margin remains flat in 2025 at 5%-6%. Fitch expects EBITDA leverage
will decline to between 4.0x-4.5x by YE 2026 from a combination of
EBITDA growth and debt repayment. This deleveraging is consistent
with DBM's track record following a large acquisition, as it did
with the Hixson Lumber Sales acquisition in 2021, when it
aggressively paid down debt in 2022.
Susceptibility to Lumber Volatility: DBM's revenues are highly
concentrated in treated lumber sales, making up about 57% of pro
forma consolidated sales. This high exposure negatively impacts the
rating due to the commoditized nature and price volatility of
lumber. In 2023, revenues fell 18% primarily due to lower lumber
prices. Lumber pricing has remained volatile in 2024, falling in 2Q
after rising in 1Q. Fitch's rating case assumes relatively stable
lumber prices, with framing lumber settling between USD375 to
USD425 per thousand board feet in the coming years.
Low but Relatively Stable EBITDA Margins: DBM's profitability
metrics are weak compared to similar- and higher-rated peers but
align with its 'B' category IDR. The company reported an improved
EBITDA margin last year despite significant declines in lumber
prices. The Fitch-adjusted EBITDA margin (including capitalized
lease costs as operating expenses) was 6.8% in 2023, up from 5.8%
in 2022. Fitch expects the EBITDA margin to be between 5.5% and 6%
in 2024 as revenues slightly decline. For 2025, the EBITDA margin
is expected to settle between 5.5% and 6.5%, with modest revenue
improvement and the integration of CM Lumber, which has a higher
EBITDA margin, potentially benefiting DBM's future margins.
Limited Financial Flexibility: Fitch estimates that DBM's
availability under its CAD500 million ABL revolving credit facility
is approximately CAD80 million, pro forma for the recent notes
issuance and the draws under the ABL to fund the CM Tucker
acquisition. Fitch expects the company will generate FCF margins
(after dividends) of 1.0%-1.5% during the next few years and will
use FCF to pay down ABL borrowings. Capital intensity is low at
about 0.5% of revenues. Fitch's rating case assumes annual
dividends of about CAD50 million.
Capital Allocation: DBM has demonstrated a disciplined capital
allocation strategy, significantly reducing debt and lowering
leverage following a large acquisition. The company has shown a
willingness to protecting credit metrics through equity issuances
and dividend reductions, particularly during periods of
uncertainty. In 1Q24, DBM acquired two lumber pressure-treating
plants from Southeast Forest Products Treated, Ltd. for
approximately CAD62.3 million. This was followed by the 4Q24
acquisition of CM Tucker, funded with cash on hand and borrowings
under its ABL facility. Fitch's rating case assumes debt reduction
over the next few years, barring large acquisition opportunities.
Competitive Position: DBM's competitive position is weaker than
higher-rated building products manufacturers in Fitch's coverage
due to its position as a two-step distributor in the building
products supply chain, relatively low brand equity and mostly
commoditized product offerings. However, the company's scale and
standing as one of the largest producers of value-added treated
lumber in North America position it well within the two-step
distribution subsector. Fitch believes this scale and manufacturing
capacity provide modest competitive advantages relative to
distributors with only local presences and niche product
offerings.
Cyclical End-Market Exposure: Fitch expects housing and repair and
remodel demand to remain weak during the balance of 2024 and into
early 2025. The majority of DBM's sales are directed to the
Canadian and United States residential real estate markets.
Management estimates that about half of the company's distribution
sales are exposed to residential new housing and the other half
exposed to repair and remodel demand, which is less cyclical. The
company's wood pressure sales have modest exposure to agricultural
and industrial end-markets. DBM's pressure treated wood sales are
highly exposed to decking and fencing demand, which Fitch believes
experienced a pull forward in demand during the pandemic.
Derivation Summary
DBM credit metrics are modestly stronger than its closest
Fitch-rated peers, LBM Acquisition, LLC (B/Stable) and Park River
Holdings, Inc. (B-/Stable). Fitch view's LBM's business profile as
stronger than Doman's due to LBM's significantly lower exposure to
the volatile lumber market, its greater scale and higher EBITDA and
FCF margins. LBM's highly aggressive capital allocation strategy
weighs negatively on its credit profile when compared to DBM. Park
River has a stronger margin profile and less commoditized product
offering than DBM, but maintains much higher leverage levels.
Key Assumptions
- Revenues decline 1%-2% in 2024 and increase 3%-5% in 2025;
- EBITDA margin of 5.0%-5.5% in 2024 and 5.0%-6.0% in 2025;
- FCF margin of 0.5%-1.5% in 2024 and 2025;
- EBITDA leverage of 4.0x-4.5x in 2024 and 2025.
Recovery Analysis
- The recovery analysis assumes that DBM would be considered a
going-concern rather than liquidated in a recovery scenario;
- Fitch has assumed a 10% administrative claim;
- Fitch has assumed an EV multiple of 5.5x;
- Going concern EBITDA of CAD150 million (up from CAD110 million
from the last review).
Going Concern EBITDA Approach
Fitch's GC EBITDA estimate of CAD150 million projects a
post-restructuring sustainable cash flow, which assumes both
depletion of the current position to reflect the distress that
provoked a default, and a level of corrective action that Fitch
assumes would occur during restructuring. This is about 30% below
Fitch calculated Proforma LTM EBITDA.
Fitch assumes that a default would occur from a meaningful decline
in the residential housing market combined with lumber prices
sustained at below average levels. Fitch estimates revenues of
about CAD2.65 billion (about 15% below pro forma June 30, 2024 LTM
levels) and EBITDA margins of about 5.6% (about 120 bps lower than
pro forma LTM EBITDA margin) would result in the CAD150 million GC
EBITDA, which would capture the lower revenue base of the company
after emerging from the downturn in a lower lumber price
environment than 2020-2022, plus a sustainable margin profile after
right sizing.
Fitch previously used a GC EBITDA of CAD110 million prior to the CM
Tucker acquisition.
Fitch applied a 5.5x enterprise value (EV) multiple to calculate
the GC EV in a recovery scenario. The company purchased CM Tucker
at about a 5x multiple and Hixson Lumber Sales in June 2021 for
5.0x Fitch-calculated FY20 EBITDA. The 5.5x GC EBITDA multiple is
below the 6.0x multiple applied in the recovery analysis of LBM
Acquisition, LLC and Park River Holdings, mainly due to Doman's
relatively smaller scale, less diversified business and slightly
lower margins when compared to LBM.
The ABL revolver holds a priority claim over the unsecured notes.
Fitch assumes that the ABL revolving credit facility is fully
drawn, given the current usage and Fitch's expectation that the
company will continue to tap the ABL facility for working capital
needs during the early part of 2025. Remaining claims are recovered
by the unsecured debt holders, resulting in a recovery
corresponding to an 'RR4' for DBM's 2026 and 2029 unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The company significantly lowers its proportion of sales from
lumber or reduces exposure to the cyclical new home construction
market in order to reduce earnings and credit metric volatility
through lumber and housing cycles;
- Fitch's expectation that EBITDA leverage will be sustained below
3.5x;
- (CFO-capex)/debt consistently above 7%;
- EBITDA margin sustained in the high-single digits;
- FCF margin consistently in the mid-single digits.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation that EBITDA leverage will be sustained above
4.5x;
- (CFO-capex)/debt consistently below 3%;
- EBITDA interest coverage consistently below 3.5x;
- Fitch's expectation that FCF generation (after dividends)
sustained at neutral or negative levels.
Liquidity and Debt Structure
Limited Liquidity: Fitch estimates that DBM has about CAD80 million
of borrowing availability under its CAD500 million ABL revolver
following the acquisition of CM Tucker in early October. Fitch
expects some repayment of the ABL borrowings during 4Q24 from FCF.
The company extended the maturity of its ABL facility from December
2024 to April 2028. Its next maturity is in 2026, when $273 million
of senior notes become due. Fitch expects the company will
refinance its 2026 unsecured notes before its maturity.
Issuer Profile
Doman is a manufacturer and distributor of lumber products and
building materials in North America. Its operations include
distribution facilities, wood treatment plants, specialty sawmills,
planing mills, and post peeling facilities across North America, as
well as timber ownership and management of private timberlands.
Summary of Financial Adjustments
Fitch deducts lease amortization and lease interest expense from
EBITDA. Fitch's calculation of total debt includes the unsecured
bonds, ABL borrowings outstanding and bank overdrafts.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Doman Building
Materials Group Ltd. LT IDR B+ Affirmed B+
senior unsecured LT B+ Affirmed RR4 B+
DR. ERNIE F SOTO: Unsecureds to Split $2M over 3 Years
------------------------------------------------------
Dr. Ernie F. Soto, P.A. filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Subchapter V Plan dated
September 16, 2024.
Dr. Ernie F. Soto, D.D.S. ("Dr. Soto") and Soto PA opened their own
dental practice on or about October 17, 2016. Dr. Soto, through his
PA, offers a complete range of dental services, including
preventative dental care, orthodontics, and cosmetic dentistry
services.
Soto PA's chapter 11 filing was immediately precipitated by adverse
outcome in state court litigation spanning more than seven years
and the financial toll of years of litigation on the practice,
coupled with a decline in cosmetic dental procedures as a result of
the less favorable economic conditions facing most Americans. On
June 7, 2024, a jury entered a verdict in favor of SEFL Management,
LLC f/k/a Solomon Acquisitions Company, LLC in the amount of
$413,606.25 in contractual damages.
SEFL has filed a proof of claim asserting an unsecured claim in the
amount of $3,079,996.50, comprised of the contractual damages,
prejudgment interest, and attorney's fees and costs, including a
multiplier. As a result of these issues, the Debtor's financial
difficulties mounted such that this chapter 11 case became the best
alternative to allow the Debtor to restructure its obligations and
restructure its obligations and reorganize for the benefit of all
creditors.
The Debtor estimates its general unsecured claims, including SEFL's
claim and estimated deficiency claims, are approximately
$4,646,192.21, if all claims are allowed as filed. The Debtor
reserves the right to object to claims, and the amount of allowed
general unsecured claims may be less, to the extent that the Debtor
prevails on any objections to claim.
Class 9 consists of General Unsecured Claims. The holder(s) of
Allowed General Unsecured Claim(s) shall receive its pro rata share
of the Debtor's projected disposable income as defined by section
1191(d) of the Bankruptcy Code, after payment of Allowed
Administrative Expense Claims, Allowed Priority Tax Claims, Allowed
Priority Claims, and Allowed Secured Claims, for a three-year
period following the Effective Date. The pro rata share of any
distributions on account of any Allowed Class 9 Claim will be
calculated as a fraction of the amount of any such distribution,
the numerator of which shall be the Allowed amount of the Class 9
Claim and the denominator of which shall be the aggregate Allowed
amount of all Allowed Class 9 Claims.
The projected disposable income payments shall be made on January
15th, April 15th, July 15th, and October 15th of each year during
the Plan Duration Period (for example, if the Effective Date occurs
December 1, 2024, the first annual payment will be made on January
15, 2025, the second payment on April 15, 2025, the third payment
will be made on July 15, 2025, and so forth). The Debtor projects
that total distributions to the holders of Allowed Class 9 Claims
will be approximately $2,146,193.77 from projected disposable
income, plus any recoveries made on account of the Professional
Malpractice Claims. Class 9 is Impaired, and the holders of Allowed
Class 9 Claims are entitled to vote to accept or reject the Plan.
Class 10 consists of all Allowed equity interests. On the Effective
Date, the holders of equity interests in the Debtor shall be
entitled to retain all legal, equitable, and contractual rights in
such equity interests, and provided, however, holders shall not be
entitled to any distribution from the estate on account of such
equity interests until the satisfaction of all Allowed
Administrative Expense Claims. Class 10 is Unimpaired and,
therefore, is not entitled to vote to accept or reject the Plan.
Class 10 is presumed to accept the Plan.
The Plan will be funded by the Debtor's projected disposable
income. Allowed Class 9 General Unsecured Claims will receive their
pro rata share of any projected disposable income payments during
the 36-month period following the Effective Date, in addition to
the net proceeds, if any, from the Professional Malpractice Claims.
A full-text copy of the Subchapter V Plan dated September 16, 2024
is available at https://urlcurt.com/u?l=7VN8xk from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Kathleen L. DiSanto, Esq.
BUSS ROSS, P.A.
PO Box 3913
Tampa, FL 33601-3913
Tel: 813-224-9255
Email: kdisanto@bushross.com
About Dr. Ernie F Soto
Dr. Ernie F Soto, P.A. is a family and cosmetic dental clinic in
Plantation, Fla.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-15979) on June 17,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Dr. Ernie F. Soto, D.D.S., president and
director, signed the petition.
Judge Scott M. Grossman presides over the case.
Kathleen L. DiSanto, Esq., at Buss Ross, P.A., is the Debtor's
legal counsel.
The Subchapter V trustee can be reached at:
Tarek Kiem, Esq.
Kiem Law, PLLC
8461 Lake Worth Road, Suite 114
Lake Worth, FL 33467
Tel: (561) 600-0406
Email: tarek@kiemlaw.com
ELLIE LANE: Unsecureds Will Get 9.71% of Claims over 60 Months
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Ellie Lane Capital, LLC, d/b/a Your SolarMate, filed with the U.S.
Bankruptcy Court for the Southern District of California a Chapter
11 Plan of Reorganization dated September 16, 2024.
The Debtor is a limited liability corporation, organized under the
laws of the State of Delaware. Debtor has been in business since
approximately February, 2023.
The Debtor is in the business of providing PV and energy storage
interconnection processing services, rebate processing services,
and grant writing services for solar PV and energy storage
companies. This specifically includes providing administrative
functions as it relates to solar and other renewable energy
sources.
In February 2023, Debtor acquired the business assets of GCal
Services, LLC, dba Your SolarMate (the "Seller") and has been
operating since that time. Since the sale of these assets to
Debtor, it became clear that the Seller made a number of material
misrepresentations that significantly affected the value of the
assets Debtor purchased and its ability to be profitable.
Moreover, Debtor also became aware that one of the key terms of the
asset purchase agreement and note, a foregiveability clause if key
contracts, customers, or employees, were lost that would offset the
purchase price, was not included in the final executed
documentation. This gives rise to a possible malpractice claim
against Debtor's attorney who negotiated this deal (defined has the
"Malpractice Asset").
These difficulties have significantly affected Debtor's
profitability such that it cannot service the debt against it.
Accordingly, Debtor commenced the bankruptcy case to give it
breathing room and reorganize its affairs.
Class 4 consists of General Unsecured Claims. Monthly payments in
the amounts set forth in Debtor's projections, for a period of 60
months, which shall be made to each creditor in Class 4 pro rata.
Payments to this Class will also include the Malpractice Asset
Recovery and the Seller Dispute Asset Recovery, if any, to be made
pro rata within 60 days after any such recovery.
Total payments are estimated to be $749,379 (plus the Malpractice
Asset Recovery and the Seller Dispute Asset Recovery, if any). This
amount may be reduced if Debtor cannot pay all administrative
claimants in full on the Effective Date. If necessary, the payments
due to this Class 4 that will be paid monthly, will first be used
to pay administrative claimants in full. Debtor shall advise the
administrative creditors of feasibility of paying the fees in full
after all fee applications are filed, and Debtor will then provide
a notice to all creditors of how the fees will be paid. The allowed
unsecured claims total $7,718,309.41.
The claims in this Class will not receive interest. The payment in
this Class is equal to a payment of approximately 9.71% of the
claims in this Class. Because Debtor disputes the validity of claim
of the Sellers, the payments proposed below in Class 4 will be made
but set aside in a separate account held by the Debtor pending
resolution of the dispute. If the Sellers have a valid claim, the
payments will be distributed to them once that determination is
made. If they do not have a valid claim, the payments will be
returned to Debtor. If Debtor elects not to pursue its
counterclaims and gives notice of this, at that point, the claim of
the Sellers will no longer be disputed and payments will be made to
the Sellers.
Equity security holders will retain their interests.
The Plan will be funded by the Debtor's post-confirmation earnings
and any recovery from the Malpractice Asset and the Seller Dispute
Asset.
A full-text copy of the Plan of Reorganization dated September 16,
2024 is available at https://urlcurt.com/u?l=0p38sr from
PacerMonitor.com at no charge.
About Ellie Lane Capital
Ellie Lane Capital LLC, doing business as Your SolarMate, offers
solar PV or energy storage system installers and contractors
services that simplify the representative/applicant interconnection
and rebate processes. The Debtor acts as in order to complete all
applications required by the utility companies in order to quickly
receive permission to operate (PTO) letters and rebate approvals.
Ellie Lane Capital LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02207)
on June 17, 2024. In the petition signed by Katherine Dextraze,
president and partner representative, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
The Debtor is represented by:
Vanessa M. Haberbush, Esq.
HABERBUSH, LLP
444 West Ocean Boulevard
Suite 1400
Long Beach, CA 90802
Tel: (562) 435-3456
ENDO INTERNATIONAL: Starts $23.3M Class A Units, Cash Distribution
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Matthew Dundon, acting in his capacity as the GUC Trustee of the
Endo GUC Trust announced that it has commenced a distribution of
Class A Units of beneficial interests in the Trust and cash to
those former holders of second lien and unsecured notes issued by
Endo International plc and certain of its affiliates who have
timely tendered their escrow positions and complied with all other
requirements to receive the Class A Units pursuant to the Chapter
11 plan confirmed in the bankruptcy cases of the Debtors and the
Endo GUC Trust Agreement.
A maximum of 170 million Class A Units are issuable by the Trust.
Class A-1 Units are issuable to former holders of Notes who timely
certified that they are qualified institution buyers, and Class A-2
Units are issuable to former holders of Notes who timely certified
that they are accredited institutional investors, as those investor
statuses are defined in the Trust Agreement. Former holders of
Notes who certified that they are neither qualified institutional
buyers nor accredited institutional investors are eligible to
receive Class A-3 Units. All Class A Units entitle their holders to
the same distributions of cash from the Trust on a per unit basis.
The initial distribution of cash to holders of Class A Units is
approximately $0.1370588 per unit, for a total distribution of
approximately $23.3 million, less amounts deducted for unclaimed
distributions.
Distributions of the Class A-1 Units and the Class A-2 Units and
the initial cash distribution thereon were made beginning on
October 25, 2024 through customary Depository Trust Company
procedures. The CUSIP number for the Class A-1 Units is 29281F105
and the CUSIP number for the Class A-2 Units is 29281F113.
The Class A-3 Units represent the right to receive distributions
from the Trust, are non-transferrable and do not constitute
securities. Class A-3 Units will be reflected on a register
maintained by Equiniti Trust Company, LLC, the Trust's transfer
agent. Cash distributions on the Class A-3 Units will be made by
Stretto, Inc., the Trust's distribution agent, by wire transfer in
accordance with the banking information provided by the holders to
the Trust.
As the Class A-1 Units and Class A-2 Units are subject to
significant transfer restrictions, the Trust suggests any person
who desires to transfer or receive by transfer any Class A-1 Units
and Class A-2 Units consult with qualified advisers concerning
compliance with such restrictions. As noted, the Class A-3 Units
are non-transferable.
Further information regarding the Trust and documents related to
the Class A Units, including the Plan and the Trust Agreement, can
be found at www.EndoGUCTrust.com.
About Endo International PLC
Endo International plc (OTC: ENDPQ) is a generics and branded
pharmaceutical company. It develops, manufactures, and sells
branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas. On the Web:
http://www.endo.com/
Endo International and certain of its subsidiaries initiated
voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead
Case No. 22-22549) on Aug. 16, 2022.
On May 25, 2023, Operand Pharmaceuticals Holdco II Limited and
Operand Pharmaceuticals Holdco III Limited each filed a voluntary
Chapter 11 petition also in the U.S. Bankruptcy Court for the
Southern District of New York. On May 31, 2023, Operand
Pharmaceuticals II Limited and Operand Pharmaceutical III Limited
each filed a voluntary Chapter 11 petition also in the Southern
District of New York.
The Company's cases are jointly administered before the Honorable
James L. Garrity, Jr.
Endo initiated the financial restructuring process after reaching
an agreement with a group of its senior debtholders on a
transaction that would substantially reduce outstanding debt,
address remaining opioid and other litigation-related claims, and
best position Endo for the future. This would allow the Company to
advance its ongoing business transformation from a strengthened
financial position to create compelling value for its stakeholders
over the long term.
Endo's India-based entities are not part of the Chapter 11
proceedings. The Company has filed recognition proceedings in
Canada and expects to file similar proceedings in the United
Kingdom and Australia.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC, is the claims agent and administrative
advisor. A Website dedicated to the restructuring is at
http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP, as legal counsels, and Ducera Partners,
LLC, as investment banker.
EQUIPSOURCE LLC: Court OKs Temporary Use of Cash Collateral
-----------------------------------------------------------
EquipSource, LLC received temporary approval from the U.S.
Bankruptcy Court for the Western District of Arkansas to use the
cash collateral of Cadence Bank.
The order, signed by Judge Bianca Rucker, authorized EquipSource to
use cash collateral for ordinary business expenses, including
insurance, payroll, taxes, rent, utilities, and freight.
Any excess income from the use of cash collateral must be paid to
Cadence Bank monthly starting Nov. 1.
Cadence Bank's motion to prohibit the use of cash collateral was
temporarily denied.
The court will revisit the terms of cash collateral usage and
consider adequate protection payments at a scheduled hearing on
Dec. 12 as there was no evidence indicating a decline in the value
of Cadence Bank's collateral.
About EquipSource LLC
Equipsource, LLC, a company in Van Buren, Ark., manufactures
engines, inverters, generators, batteries, pressure washers, water
pumps, among other products.
Equipsource filed Chapter 11 petition (Bankr. W.D. Ark. Case No.
24-71543) with $1 million to $10 million in both assets and
liabilities. Larry cotton, member-manager, signed the petition.
Judge Bianca M. Rucker oversees the case.
The Debtor is represented by:
M. Sean Brister, Esq.
Brister Law Firm PLLC
800 Highway 71 North
P.O. Box 1451
Alma, AR 72921
Tel: 479-632-2446
Email: sean@bristerlawfirm.com
EXACTECH INC: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Exactech, Inc.
f/k/a Exactech U.S., Inc.
2320 NW 66th Court
Gainesville, FL 32653
Business Description: Founded in 1985, the Debtors, together with
their non-Debtor subsidiaries, are a global
medical device company that designs,
manufactures, and markets joint replacement
implants and related surgical instruments to
help surgeons worldwide make patients more
mobile. The Company's broad and innovative
products include hip implants, knee
implants, extremity implants, and
ExactechGPS systems, among others.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
District of Delaware
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Exactech, Inc. (Lead Case) 24-12441
Osteon Holdings, Inc. 24-12438
Osteon Intermediate Holdings I, Inc. 24-12439
Osteon Intermediate Holdings II, Inc. 24-12440
XpandOrtho, Inc. 24-12442
Judge: Hon. Laurie Selber Silverstein
Debtors'
General
Bankruptcy
Counsel: Ryan Preston Dahl, Esq.
Benjamin M. Rhode, Esq.
Luke Smith, Esq.
ROPES & GRAY LLP
191 N. Wacker Drive, 32 nd Floor
Chicago, Illinois 60606
Tel: (312) 845-1200
Fax: (312) 845-5500
E-mail: ryan.dahl@ropesgray.com
benjamin.rhode@ropesgray.com
luke.smith@ropesgray.com
Debtors'
Co-Bankruptcy
Counsel: Ryan M. Bartley, Esq.
Andrew A. Mark, Esq.
Elizabeth S. Justison, Esq.
Andrew A. Mark, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 North King Street
Rodney Square
Wilmington, Delaware 19801
Tel.: (302) 571-6600
Fax: (302) 571-1253
Email: rbartley@ycst.com
ejustison@ycst.com
amark@ycst.com
Debtors'
Investment
Banker: CENTERVIEW PARTNERS, LLC
Debtors'
Financial
Advisor: RIVERON RTS, LLC
Debtors'
Notice,
Claims,
Solicitation &
Balloting
Agent: KROLL RESTRUCTURING ADMINISTRATION LLC
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petitions were signed by Donna H. Edwards, general counsel and
senior vice president.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/CJOH7KY/Exactech_Inc__debke-24-12441__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Signature Orthopaedics Contract $1,819,697
7 Sirius Road Counterparty
Lane Cove West, NW
2066 AU
Accounts Receivable
Fax: +61 2 9428 5181
Email: ACCOUNTS@SIGNATUREORTHO.EU
2. Marle International Holdings Trade Creditor $1,039,100
Z.I. Rue Lavoisier B.P. 46
52800 Nogent, FR
Tina Tiongson
TEL: +33325318579
FAX: +33325316265
3. Blackhawk Industrial Trade Creditor $975,776
1501 SW Expressway Dr
Broken Arrow, OK 74012
US
Customer Service
TEL: 918‐610‐4700
FAX: 918‐994‐5483
4. Hogan Lovells US LLP Professional $918,861
Columbia Square 555
Thirteenth Street NW
Washington, DC 20004-
1109 US
PHONE: 202‐637‐5600
EMAIL: AR@HOGANLOVELLS.COM
5. Advata, Inc. Licensor $886,716
205 108th Ave NE, Ste 300
Bellevue, WA 98004 US
Luke Meyers
PHONE: 425‐443‐5246
EMAIL: LUKE.MEYERS@ADVATA.COM
6. Greenberg Traurig, P.A. Professional $770,424
Attorneys at Law
101 E. Kennedy Blvd
Tampa, FL 33602 US
TEL: 850‐222‐6891
FAX: 850‐681‐0207
EMAIL: ACCT‐CASHRECEIPTS@GTLAW.COM
7. Jarvis Surgical Inc. Contract $740,170
53 Airport Rd Counterparty
Westfield, MA 01085 US
Clayton Jarvis
TEL: 413‐562‐6659
FAX: 413‐562‐1988
8. Orchid MPS Holdings, LLC Trade Creditor $704,989
4600 East Shelby Drive
Suite 1
Memphis, TN 38118 US
Delight Wilson
TEL: 901‐433‐1990
FAX: 901‐433‐1989
9. Playfly, LLC Contract $650,000
22 Cassatt Ave Counterparty
Berwyn, PA 19312 US
10. Regeneration Techn, Inc. Contract $638,367
11621 Research Circle Counterparty
Alachua, FL 32615 US
PHONE: 386‐462‐3097 EXT4318
FAX: 386‐462‐3069
EMAIL: MNICHOLS@RTIX.COM
11. LIG Surgical Contract $600,000
5119 S. 110th E. Ave. Counterparty
Tulsa, OK 74146 US
Email: KBLUE@EXACTSURGICAL.COM
12. Methods Machine Tools, Inc. Trade Creditor $594,657
13607 South Point Blvd
Charlotte, NC 28273 US
Leslie Gipson
TEL: 704‐587‐0507
FAX: 704‐587‐0520
13. Caromed Orthopedics, LLC Contract $566,978
6258 Memorial Drive Counterparty
OH, US 43017
PHONE: 937‐470‐1318
14. VT Industries, Inc. Contract $551,533
1822 SE 12th St Counterparty
FL, US 34471
TEL: 712‐368‐4381; 800‐827‐1615
FAX: 712‐368‐4111
EMAIL: INFO@VTINDUSTRIES.COM
15. Linklaters LLP Professional $530,539
6501 Thirteenth Street
N.W. Ste 400 South
Washington, DC 20005 US
TEL: 202‐654‐9200
FAX: 202‐654‐9210
EMAIL: DEAN.MCCARTHY@LINKLATERS.COM
16. Titanium Industries, Inc. Trade Creditor $485,986
Mineapolis, MN 55485-4113 US
TEL: 904‐288‐8300
FAX: 904‐288‐0074
EMAIL: ACHWIRE@TITANIUM.COM
17. Dr. Joseph Zuckerman Contract $469,028
PHONE: 212‐598‐6171 Counterparty
EMAIL: ROBYN.SMOLEN@NYULANGONE.ORG
18. Healthtrust Purchasing Contract $460,110
Group, LP Counterparty
155 Franklin Road, Ste 400
Brentwood, TN 37027 US
TEL: 615‐344‐3416
FAX: 866‐739‐2219
EMAIL: VENDORBACKUP@HEALTHTRUSTPG.COM
19. Steven Szabo Contract $454,084
Counterparty
20. Federal Express Trade Creditor $452,484
P.O. Box 660481
Dallas, TX 75266-0481 US
PHONE: 901‐818‐7500
EMAIL: USEFT@FEDEX.COM
21. Hammill Manufacturing Co. Trade Creditor $415,990
360 Tomahawk Drive
Maumee, OH 43537 US
MARK BRAMMER
TEL: (419) 476‐0789
FAX: (419) 476‐7568
22. Autocam Medical Devices Trade Creditor $366,370
3607 Broadmoore
Southeast
Kentwood, MI 49512 US
Mike Lushin
TEL: 616‐541‐8080
FAX: 616‐698‐8876
EMAIL: TKEMPKER@AUTOCAM‐MEDICAL.COM
23. Trinity Surgical, LLC Contract $340,285
1467 Wando Landing St Counterparty
SC, US 29492
24. The Orthopaedic & Trade Creditor $320,000
Fracture Clinic
1431 Premier Drive
Mankato, MI 56001 US
TEL: 507‐386‐6600
25. Jody Swanson Contract $319,126
Counterparty
26. Donson Machine Co. Trade Creditor $298,818
12416 S. Kedvale Avenue
Alsip, IL 60803 US
JOSE VARGAS
TEL: 708‐388‐0880
FAX: 708‐388‐4308
27. Lightfoot, Franklin, Professional $289,400
White LLP
The Clark Building 400
2th Street North
Birmingham, AL 35203 US
PHONE: 205‐581‐0700
FAX: 205‐581‐0799
EMAIL: JMCKEEVER@LIGHTFOOTLAW.COM
28. In'tech Medical Trade Creditor $282,274
93-95 Avenue Du Champ De Gretz
Rang-Du-Fliers, 62180 FR
Nicolas Spriet
Tel: 901-606-3722
29. Broadspire, Inc. Trade Creditor $273,663
PO Box 404579
Atlanta, GA 30384-4579 US
PHONE: 800‐241‐2541
EMAIL: HEATHER.THEKAN@CHOOSEBROADSPIRE.COM
30. Wuxi Apptech Inc. Trade Creditor $267,756
2540 Executive Center Dr
St Paul, MN 55120 US
TEL: 651‐675‐2000 EXT. 4022
FAX: 651.675.2005
FAIR OFFER: Seeks to Hire Reach Realty Co. as Real Estate Agent
---------------------------------------------------------------
Fair Offer Cash Now, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ Joshua William
Pate and Reach Realty Co. as real estate agent.
The agent will market and sell the Debtor's real property located
at 5902 Springfield Blvd., Jacksonville, Florida 32208.
The agent will receive a commission equal to 6 percent of the gross
proceeds of the sale.
Mr. Pate assured the court that he and his firm are disinterested
persons as defined under 11 U.S.C. 101(14) .
The firm can be reached through:
Joshua William Pate
Reach Realty Co.
25912 W. Six Mile Rd.
Redford TWP, MI 48240
Telephone: (313) 766-4000
Facsimile: (313) 692 6067
About Fair Offer Cash Now, Inc.
The Debtor owns 27 properties all located in Alabama, Kentucky,
Missouri, Tennessee, Georgia and Mississippi having a total current
value of $4.94 million.
Fair Offer Cash Now, Inc. in Murfreesboro, TN, sought relief under
Chapter 11 of the Bankruptcy Code filed its voluntary petition for
Chapter 11 protection (Bankr. M.D. Tenn. Case No. 24-03495) on
Sept. 11, 2024, listing $4,942,400 in assets and $4,783,400 in
liabilities. Bradley Smotherman as president, signed the petition.
Judge Charles M Walker oversees the case.
LEFKOVITZ & LEFKOVITZ serve as the Debtor's legal counsel.
FAMILY SOLUTIONS: Hires Levy Tax Professionals as Accountant
------------------------------------------------------------
Family Solutions of Ohio, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ Levy Tax Professionals, Inc. as accountant.
The firm will provide general accounting and bookkeeping services.
Levy Tax Professionals shall bill at monthly flat rate of $1,500.
As disclosed in the court filings, Levy Tax Professionals does not
hold an interest adverse to the estate.
The accountant can be reached through:
Lawrence Levy
Levy Tax Professionals, Inc.
2881 S Federal Highway
Delray Beach, FL 33483
Phone: (800) TAX-LEVY
About Family Solutions of Ohio, Inc.
Family Solutions of Ohio, Inc. in Wake Forest, NC, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.C. Case No.
24-03043) on September 5, 2024, listing as much as $1 million to
$10 million in both assets and liabilities. John Hopkins Jr. as
vice president, signed the petition.
Judge Pamela W Mcafee oversees the case.
HENDREN, REDWINE & MALONE, PLLC serve as the Debtor's legal
counsel.
FLANNERY LLC: Unsecureds Will Get 100% of Claims over 84 Months
---------------------------------------------------------------
Flannery, LLC filed with the U.S. Bankruptcy Court for the Eastern
District of Arkansas a Combined Small Business Plan of
Reorganization and Disclosure dated September 16, 2024.
The Debtor operates a restaurant business, "Kohanna Asian
Restaurant". Thanh (Nikki) Flannery is the owner and managing
member of the Debtor.
The Company operates Kohanna Asian Restaurant in Conway, Arkansas.
The Company does not handle toxic or hazardous waste removal.
Debtor believes that the business will continue to operate at a
sufficient level to provide the funds necessary for an effective
reorganization over the life of Debtor's Plan.
The Debtor was organized by Thanh (Nikki) Flannery, and she has
always served as managing member of the Company. Flannery, LLC
started in 2021 and Kohanna Asian Restaurant opened for business in
Conway, Arkansas that same year. Flannery, LLC's financial problems
started when the owner of the debtor went through a divorce and
custody case in 2022. That event, alongside the economical decline
for small businesses since 2020, lead to the debtor's chapter 11
filing.
This Plan proposes to pay creditors of the Debtor from cash flow
from operations of its restaurant. Certain items of information and
disclosure are contained within this document and are offered by
the Debtor to provide the requisite level of disclosure to allow
conditional approval of this document, subject to final hearing.
This Plan is being proposed as 84-month Plan. The estimated total
amount of filed claims in the unsecured class is $32,397.00. The
Debtor estimates that there will be a dividend pool of
approximately 100% for distribution to allowed unsecured creditor
claims over the 84-month term of this Plan. Therefore, Debtor will
pay a dividend of approximately $32,397.00 percent (100%) percent
to allowed general unsecured creditors.
Class 3 consists solely of Debtor's general unsecured, nonpriority
claims in the approximate amount of $32,397.00, and will include
any amounts of secured claims that exceed the value of the
collateral securing the claim. Debtor estimates that total net
disposable income available under the Plan will generate a dividend
pool available for unsecured creditors over the 84 months of the
Plan in the amount of $386.00, or a 100% payout. Each allowed claim
in this class shall receive a distribution to be paid monthly. This
Class is impaired.
Class 4 consists of Equity Interest Holder of the Debtor. The sole
equity interest holder, Thanh (Nikki) Flannery shall retain his
full equity interest in the reorganized Debtor.
Upon Confirmation, Debtor shall be charged with administration of
the case. Debtor will continue to operate the current business of
the Debtor, and the payments called for in this Plan will be made
from cash flow from such business income and/or any other future
income. Debtor may maintain bank accounts under the confirmed Plan
in the ordinary course of business. Debtor may also pay ordinary
and necessary expenses of the administration of the Plan in due
course.
A full-text copy of the Combined Plan and Disclosures dated
September 16, 2024 is available at https://urlcurt.com/u?l=7pRYyl
from PacerMonitor.com at no charge.
Counsel to the Debtor:
Vanessa Cash Adams, Esq.
AR Law Partners, PLLC
Plaza West Building
415 N. McKinley Street, Suite 830
Little Rock, AR 72205
Telephone: (501) 710-6500
Facsimile: (501) 710-6336
Email: bk@arlawpartners.com
Email: vanessa@arlawpartners.com
About Flannery LLC
Flannery, LLC operates Kohanna Asian Restaurant in Conway,
Arkansas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-10014) on January 3,
2024, with up to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Richard D. Taylor oversees the case.
Carl W. Hopkins, Esq., represents the Debtor as legal counsel.
GALLUS DETOX: Emerges From Ch. 11 After Reorganization Plan OK'd
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Gallus Detox Centers, a leading provider of in-patient medical
detoxification and outpatient behavioral services for patients
suffering from drug and alcohol addictions, announced on October
28, 2024, that it has successfully emerged from Chapter 11 after
approval of its plan of reorganization by the United States
Bankruptcy Court for the District of Colorado.
"Our emergence from Chapter 11 is the culmination of the hard work
and dedication of our highly motivated senior leadership team who
are aligned and dedicated to the success of Gallus," said Warren
Olsen, Chairman and CEO. "For over a dozen years, the Gallus
organization has been committed to providing the highest possible
care for patients and we are emerging as an even stronger company
with our unwavering commitment to patient care."
About Gallus Detox Services
Gallus Detox Services, Inc. offers safe, effective, evidence based,
and highly personalized treatment for individuals struggling with
substance abuse and substance use disorders.
Gallus Detox Services and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead Case
No. 23-15280) on November 14, 2023. In the petition signed by its
chief executive officer, Warren Olsen, Gallus Detox Service
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC, represents
the Debtor as legal counsel.
GANNETT CO: Moody's Affirms 'B3' CFR, Outlook Remains Stable
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Moody's Ratings affirmed Gannett Co., Inc's B3 corporate family
rating and its B3-PD probability of default rating following the
company's closing of refinancing transactions. Gannett's
speculative grade liquidity (SGL) rating remains unchanged at
SGL-3, reflecting adequate liquidity. In connection with the
completion of the refinancing, Moody's downgraded the rating on the
backed senior secured notes of the company's subsidiary Gannett
Holdings, LLC to B2 from B1 and withdrew the B1 rating on the
senior secured term loan because the loan has been repaid in full
with the proceeds from a new credit facility. The outlooks remain
stable at both entities.
The rating actions follow Gannett's announcement [1] that it closed
on the previously announced refinancing. Gannett obtained a new
senior secured five-year term loan (unrated) from funds managed by
affiliates of Apollo, comprised of a term loan of $675 million and
a delayed draw term loan of approximately $225 million, of which
$175 million has been funded and $50 million remains available for
six months after the closing. Gannett used the net proceeds from
the new term loan to repay in full and at par the outstanding
principal of the senior secured term loan due 2026, to repurchase
the 2027 second lien convertible notes (unrated) with a $38 million
stub remaining at close, and to redeem the senior secured notes due
2026, leaving a small $3.9 million unexchanged stub of the notes
outstanding. Gannett exchanged the remaining half of the 2027
second lien convertible notes for new 6% senior secured convertible
notes due 2031 (unrated).
The one-notch downgrade of the senior secured notes to B2 reflects
the reduction in the share of second lien debt to approximately 23%
in the current capital structure from 45% before refinancing. The
second lien notes are effectively subordinated to the first lien
debt.
RATINGS RATIONALE
Gannett's B3 CFR continues to reflect the company's revenue
pressure because of the secular decline in its print advertising
and print focused activities and its high interest burden. Gannett
is transforming its business model by diversifying revenue sources
and focusing on growth from digital properties to offset the
secular decline in traditional print advertising and circulation.
Moody's expect that Gannett's pace of revenue decline will moderate
in the second half of this year and revenue growth will turn to
break-even to slightly positive in 2025.
Gannett garners credit strength from its position as the largest
owner of daily newspapers in the US and community newspapers in the
UK and management's focus on repaying debt. Gannett expects to
repay at least $110 million of debt in 2024 ($41 million was repaid
YTD June 30, 2024), from non-strategic asset sales and free cash
flow generation. However, the company's Debt/EBITDA (Moody's
adjusted, excluding EBITDA adjustments for integration,
restructuring and stock based compensation costs) remains high at
4.5x as of LTM Q2 2024 despite substantial debt repayments.
Excluding integration and reorganization cost add-backs to EBITDA
and a modest increase in debt from refinancing, Moody's estimate
that leverage will increase slightly by the end of 2024. However,
Moody's expect that Gannett will continue to prioritize free flow
for debt repayment, which should enable Moody's adjusted leverage
reduction to around 4x by the end of 2025.
The SGL-3 reflects Moody's expectation for adequate liquidity over
the next twelve months, supported by positive free cash flow over
the coming year and constrained by the lack of a revolving credit
facility. Moody's expect free cash flow in the $55 - $65 million in
the coming year. The company also reported a pipeline of real
estate and other assets with targeted sales proceeds of $45 - $55
million in 2024, with most taking place in the second half of this
year, which will further boost liquidity and enable debt repayment.
Gannett reported $99 million of cash on hand as of June 30, 2024.
Cash balances in excess of $100 million at the end of each fiscal
year will be required to be applied to debt repayment.
The company's amended term loan's amortization is $17 million per
quarter based on the current $850 million aggregate amount
outstanding. This could increase as the company draws down on the
remaining delayed draw term loan. Gannett's next material debt
maturities are in December 2027 when the $38 million unexchanged
stub of the convertible notes come due, followed by October 2029
maturity of the amended senior secured term loan facility ($850
million outstanding as of October 16, 2024). The amended credit
agreement requires that the company maintain at least $30 million
of qualified cash, as of the last day of each fiscal quarter.
The B2 ratings on the senior secured note due 2026 reflects the
B3-PD probability of default rating, an average expected family
recovery rate of 50% at default and the instruments' ranking in the
capital structure. The senior secured term loan facility due 2029
(unrated) and notes due 2026 are ranked ahead of the convertible
notes due 2027 and 2031 (both unrated) in Moody's priority of claim
waterfall. The senior secured convertible notes due 2027 and 2031
are secured by a second priority lien on the same collateral
package that secures the term loan and the notes.
Gannett's CIS-4 Credit Impact Score indicates that the rating is
lower than it would have been if ESG risk exposures did not exist.
The score reflects the company's exposure to social and demographic
as well as governance risks. Ongoing demographic and societal
shifts have led to secular declines in its print and advertising
focused activities and these trends are expected to continue.
Gannett's financial policy emphasizes debt repayment, but it has
also been tolerant of operating with leverage of over 4x (Moody's
adjusted), which Moody's consider high given the secular business
risks facing the company.
The stable outlook reflects Moody's expectations that Gannett's
revenue growth will turn to break-even to slightly positive as the
share of digital business grows over the next 12-18 months,
liquidity remains adequate and the company will continue to
prioritize free flow for debt repayment.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Moody's adjusted leverage
remains above 4x, or revenue and EBITDA continue to decline such
that cash flow generation or liquidity deteriorates.
The ratings could be upgraded if growth in digital revenue more
than offsets print revenue declines leading to overall organic
revenue and EBITDA growth, liquidity improves, the company sustains
positive free cash flow and maintains Moody's adjusted leverage
under 2x with a clearly articulated financial policy supporting
operating with low leverage.
The principal methodology used in these ratings was Media published
in June 2021.
Headquartered in New York, NY, Gannett is the largest owner of
daily newspapers in the US and community newspapers in the UK.
Gannett is also the owner of national USA publication. Gannett
generated LTM June 2024 revenue of approximately $2.6 billion.
GIRARD HOUSE: Seeks to Hire Chadwick Washington as Special Counsel
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Girard House Cooperative, LCA seeks approval from the U.S.
Bankruptcy Court for the District of Columbia to hire Chadwick,
Washington, Moriarty, Elmore & Bunn, PC as special counsel.
The firm will assist the Debtor in matters of governance,
management and in particular, enforcement of collections from unit
residents.
Chadwick, Washington would represent the Debtor on an hourly fee
basis, at rates of $135 per hour for paralegals and ranging from
$275 to $385 per hour for attorneys.
The firm will receive an annual retainer fee of $1200.
Anna Mancino, Esq., an associate at Chadwick Washington, assured
the court that the firm is a "disinterested person" within the
meaning of 11 U.S.C. 101(14).
The firm can be reached through:
Anna Mancino, Esq.
Chadwick, Washington, Moriarty, Elmore & Bunn, PC
3201 Jermantown Road, Suite 600
Fairfax, VA 22030
Telephone: (703) 352-1900
Facsimile: (703) 352-5293
About Girard House Cooperative, LCA
Girard House is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Girard House Cooperative, LCA filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.C. Case
No. 24-00260) on July 19, 2024, listing $1 million to $10 million
in both assets and liabilities. The petition was signed by Hilda
Ziegler, Board President.
Judge Elizabeth L Gunn presides over the case.
David E. Lynn, Esq. at DAVID E. LYNN, P.C. represents the Debtor as
counsel.
GREAT CANADIAN GAMING: S&P Rates New $400MM Sr. Secured Notes 'B+'
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S&P Global Ratings assigned its 'B+' issue-level rating and '2'
recovery rating to Great Canadian Gaming Corp.'s (GCGC) proposed
US$400 million senior secured notes due 2029. The '2' recovery
rating indicates our expectation for substantial recovery (70%-90%;
rounded estimate: 85%) in a simulated default scenario. The senior
secured notes rank pari passu with the company's recently launched
US$215 million revolver and US$665 million term loan B. S&P's 'B'
issuer credit rating and negative outlook on GCGC are unchanged.
The company will use the proceeds from the proposed refinancing,
along with borrowings from its recently announced term loan
facility, to repay existing debt.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario incorporates a default in 2027
following a prolonged period of weak macroeconomic conditions,
particularly in B.C. and Ontario, that leads to a sharp reduction
in gaming activity.
-- S&P said, "In the event of a default, we assume that GCGC would
be reorganized or sold as a going concern rather than liquidated.
We believe that if the company were to default, there would
continue to be a viable business model, given its position as the
leading gaming operator in Canada. Furthermore, we expect that the
provincial Crown corporations would be motivated to ensure that
GCGC's properties remain operational."
-- S&P assumes that no value from the GTA bundle is available to
GCGC's creditors.
-- S&P's recovery analysis yields a net default enterprise value
of C$1.37 billion.
-- This is based on a 7.0x multiple of C$206 million of S&P's
emergence EBITDA estimates and 5% administrative expenses.
-- The secured notes, credit facility, and term loan rank pari
passu in terms of collateral. Therefore, S&P estimates substantial
(70%-90%; rounded estimate: 85%) recovery of the debt, leading to a
'2' recovery rating and a 'B+' issue-level rating.
Simulated default assumptions
-- Default year: 2027
-- Emergence EBITDA: C$206 million
-- EBITDA multiple: 7.0x
-- Gross recovery value: C$1.44 billion
Simplified waterfall
-- Net recovery value for waterfall after administrative expenses
(5%): C$1.37 billion
-- Estimated senior secured claim: C$1.6 billion
-- Value available for senior secured claim: C$1.37 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
GREEN OUTDOOR: Seeks to Hire Natural State Law as Attorney
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Green Outdoor Services LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Arkansas to hire Natural State
Law, PLLC as attorneys.
The firm will provide these services:
a. represent the Debtor with regard to the filing of its
Chapter 11 petition, schedules, and statements and in the
prosecution of its Chapter 11 case with respect to Debtor's powers
and duties as a Debtor-in-Possession; and
b. perform all legal services for the Debtor which may be
necessary in connection with the Debtor's Chapter 11 case.
Natural State Law will be paid at the rate of $250 per hour.
The firm was paid a retainer in the amount of $7,000. It will also
be reimbursed for reasonable out-of-pocket expenses incurred.
William F. Godbold, IV, Esq., a partner at Natural State Law, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
William F. Godbold, IV, Esq.
Natural State Law, PLLC
8201 Ranch Blvd. Ste. B-1,
Little Rock, AK 72223
Tel: (501) 916-2878
About Green Outdoor Services LLC
Green Outdoor Services LLC is a limited liability company.
Green Outdoor Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-13358) on
October 15, 2024. In the petition filed by Thomas B. Green, as
authorized representative of the Debtor, the Debtor reports
estimated assets and liabilities between $1 million and $10 million
each.
The Honorable Bankruptcy Judge Phyllis M. Jones handles the case.
The Debtor is represented by William F. Godbold IV, Esq. at NATURAL
STATE LAW PLLC.
HELIX ENERGY: BlackRock Reports 15.4% Equity Stake as of Sept. 30
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BlackRock, Inc. disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of September 30, 2024,
it beneficially owned 23,370,886 shares of Helix Energy Solutions
Group Inc.'s Common Stock, representing 15.4% of the shares
outstanding.
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/3fahbt8n
About Helix Energy
Helix Energy Solutions Group, Inc. is an American oil and gas
services company headquartered in Houston, Texas.
For the full year 2023, Helix reported a net loss of $10.8 million,
compared to a net loss of $87.8 million for the full year 2022. As
of June 30, 2024, Helix had $2.6 billion in total assets, $1.1
billion in total liabilities, and $1.5 billion in total
shareholders' equity.
* * *
Egan-Jones Ratings Company on September 21, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Helix Energy Solutions Group, Inc.
HYPERSCALE DATA: Raises $450K in Preferred Stock Offering
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Hyperscale Data, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company, pursuant
to the Securities Purchase Agreement entered into with Ault &
Company, Inc., an affiliate of the Company, on November 6, 2023,
sold 450 shares of Series C convertible preferred stock, and
warrants to purchase 133,038 shares of the Company's common stock
to Ault & Company for a purchase price of $450,000.
As of October 21, 2024, Ault & Company has purchased an aggregate
of 45,600 shares of Series C Convertible Preferred Stock and Series
C Warrants to purchase an aggregate of 13,481,154 Warrant Shares,
for an aggregate purchase price of $45.6 million. The Agreement
provides that Ault & Company may purchase up to $75 million of
Series C Convertible Preferred Stock and Series C Warrants in one
or more closings.
About Hyperscale Data
Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through the Company's wholly and majority-owned
subsidiaries and strategic investments, the Company owns and/or
operates data centers at which it mines Bitcoin and offers
colocation and hosting services for the emerging artificial
intelligence ecosystems and other industries, and provides
mission-critical products that support a diverse range of
industries, including a metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, and textiles.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has a working capital
deficiency, has incurred net losses, and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
As of June 30, 2024, the Company had $270.78 million in total
assets, $243.70 million in total liabilities, $795,000 in
redeemable non-controlling interests in equity of subsidiaries, and
$26.28 million in total stockholders' equity.
HYPERSCALE DATA: Reduces Stake in Algorhythm to 3.1% as of Oct. 18
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Hyperscale Data, Inc. formerly known as Ault Alliance, Inc.,
disclosed in a Schedule 13D/A Report that as of October 18, 2024,
the Company and its affiliates -- Ault Lending, LLC, Milton C.
Ault, III, Kenneth S. Cragun, Henry C. W. Nisser, and James M.
Turner -- beneficially owned shares of Algorhythm Holdings, Inc.'s
common stock.
The aggregate percentage of Shares reported owned by each Reporting
Person herein is based upon 9,736,850 Shares outstanding, which is
the total number of Shares outstanding as of August 16, 2024, as
reported in the Issuer's Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on August 19, 2024.
A. Hyperscale Data
As of October 18, 2024, 300,000 Shares, consisting of Shares held
by Ault Lending. Hyperscale Data may be deemed to beneficially own
the Shares beneficially owned by Ault Lending by virtue of its
relationship with such entity.
Percentage: 3.1%
B. Ault Lending
As of October 18, 2024, Ault Lending beneficially owns 300,000
Shares held directly by it.
Percentage: 3.1%
C. Milton C. Ault, III
As of October 18, 2024, Mr. Ault may be deemed to beneficially own
300,000 Shares, consisting of Shares held by Ault Lending. Mr. Ault
may be deemed to beneficially own the Shares beneficially owned by
Ault Lending by virtue of his relationship with such entity.
Percentage: 3.1%
D. Kenneth S. Cragun
As of October 18, 2024, Mr. Cragun beneficially owned 19,535
Shares, which represents (i) 18,868 shares of Common Stock held
directly by him and (ii) 667 shares of Common Stock underlying
certain stock options which are currently exercisable.
Percentage: Less than 1%
E. Henry C. W. Nisser
As of October 18, 2024, Mr. Nisser beneficially owned 667 Shares,
which are issuable upon the exercise of stock options that are
currently exercisable.
Percentage: Less than 1%
F. James M. Turner
As of October 18, 2024, Mr. Turner beneficially owned 667 Shares,
which are issuable upon exercise of stock options that are
currently exercisable.
Percentage: Less than 1%
A full-text copy of the Company's SEC Report is available at:
https://tinyurl.com/2k9wtu3k
About Hyperscale Data
Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through the Company's wholly and majority-owned
subsidiaries and strategic investments, the Company owns and/or
operates data centers at which it mines Bitcoin and offers
colocation and hosting services for the emerging artificial
intelligence ecosystems and other industries, and provides
mission-critical products that support a diverse range of
industries, including a metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, and textiles.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has a working capital
deficiency, has incurred net losses, and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
As of June 30, 2024, the Company had $270.78 million in total
assets, $243.70 million in total liabilities, $795,000 in
redeemable non-controlling interests in equity of subsidiaries, and
$26.28 million in total stockholders' equity.
ILUMIVU INC: Seeks to Hire GreerWalker LLP as Financial Advisor
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Ilumivu Inc. seeks approval from the U.S. Bankruptcy Court for the
Western District of North Carolina to employ GreerWalker LLP as
financial advisor.
GreerWalker's current hourly rates are:
William A. Barbee $490
Consultants $150 - $550
GreerWalker received a pre-petition retainer in the amount of
$30,000.
GreerWalker does not hold or represent any interest adverse to the
Debtor's estate, and GreerWalker is a "disinterested person" as
that phrase is defined in Section 101(14) of the Bankruptcy Code,
according to court filings.
The firm can be reached through:
William A. Barbee, CPA
GreerWalker LLP
Wells Fargo Center
15 South Main St., Suite 800
Greenville, SC 29601
Phone: (864) 752-0080
About Ilumivu Inc.
Ilumivu Inc. is a digital therapeutics company founded in 2009 to
help those struggling with mental and behavioral health issues. The
ivu platform combined with mEMA is a robust, patient centered,
software platform designed to capture rich, multimodal behavioral
data streams through user engagement.
Ilumivu Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-10169) on Sep.
16, 2024. In the petition filed by Lauren Flickinger, as CEO, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge George R. Hodges handles the case.
The Debtor is represented by Richard S. Wright, Esq. at MOON WRIGHT
& HOUSTON, PLLC.
INSULATED WALL: Unsecured Creditors to Split $300K over 3 Years
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Insulated Wall Holdings, LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Wisconsin a Plan of Reorganization
under Subchapter V dated September 16, 2024.
Since its inception, the Debtor has almost exclusively manufactured
insulated walls focused on mid-rise construction while operating
under the name Wally Walls.
In 2023, the Debtor began to transition its business model from
supplying insulated walls for commercial business construction to
supplying residential construction; however, following a judgment
in favor of its primary lender, the Debtor was forced to file a
voluntary petition to reorganize and preserve the value of its
estate.
The financial projections show the Debtor will have projected
disposable income of approximately $360,000.
David Wallach will continue to manage the Debtor under the Plan.
Mr. Wallach will receive annual compensation of $144,000 before
taxes, which compensation is included in the projections.
The final Plan payment is expected to be paid three years after the
Effective Date. Secured creditors and priority tax creditors will
be paid over a longer period of time.
This Plan is being proposed under subchapter V of chapter 11 of the
Code. It proposes to pay creditors of the Debtor from future income
from operations.
Class 3 consists of all non-priority unsecured claims. All
non-priority unsecured claims allowed estimated to total $2,750,365
will share on a pro-rata basis from a total of $300,000 paid in
installments ever sixth months of $50,000 for three years.
Non-priority unsecured creditors shall also receive on a prorata
basis a share of the True-Up Distribution. If the Plan is confirmed
under Section 1191(b) of the Bankruptcy Code, the amount will be
reduced by any fees of the Subchapter V Trustee paid for the
continuing involvement to monitor distributions.
Creditors in Class 3 shall also receive an additional annual
distribution over three years from the net profits of the
Reorganized Debtor (the "True Up Distribution"), as follows:
* 50% of $60,000 in excess of the ("Retained Earnings") shall
be distributed on a pro-rata basis to holders of allowed claims in
Class 3;
* 50% of $60,000 in excess of the ("Retained Earnings") shall
be distributed to holders of allowed interest in Class 5; and
* 25% of any amount in excess of the $60,000 in i. and ii.
shall be distributed on a pro-rata basis to holders of allowed
claims in Class 3.
Class 4 interests of the equity security holders with Class A
shares in the Debtor shall retain their interests and are not
impaired by the Plan.
The Debtor shall implement the Plan through future income from
operations.
On the Effective Date, XYiP Acquisitions, LLC shall lend the
Reorganized Debtor with $100,000 for payments due under the Plan on
the Effective Date with the balance to be used in operations. The
$100,000 will be added to the debtor-in-possession financing and
repaid under the same terms as the administrative expense claim.
A full-text copy of the Plan of Reorganization dated September 16,
2024 is available at https://urlcurt.com/u?l=LKppXE from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Nicholas W. Kerkman, Esq.
Kerkman & Dunn
839 N. Jefferson St., Suite 400
Milwaukee, WI 53202
Telephone: (414) 277-8200
Facsimile: (414) 277-0100
Email: nkerkman@kerkmandunn.com
About Insulated Wall Holdings
Insulated Wall Holdings, LLC, manufactures insulated walls that are
sold to builders. It operates under the tradename, Wally Walls. It
changed its business model from supplying insulated walls for
commercial business construction to supplying residential
construction.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wisc. Case No. 23-24709-gmh) on
October 16, 2023. In the petition signed by David T. Wallach, chief
executive officer, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge G. Michael Halfenger oversees the case.
Evan P. Schmit, Esq., at Kerkman & Dunn, is the Debtor's legal
counsel.
JEBB FOOD SERVICES: Kicks Off Subchapter V Bankruptcy Process
-------------------------------------------------------------
Jebb Food Services Inc. filed Chapter 11 protection in the Northern
District of Illinois. According to court documents, the Debtor
reports $1,977,800 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Jebb Food Services Inc.
Jebb Food Services Inc. is the owner of 21 properties located in
Chicago, Illinois having a total appraised value of $3.07 million.
Jebb Food Services Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15863)
on October 23, 2024. In the petition filed by Demetrio Cardone, as
president, the Debtor reports total assets of $3,302,156 and total
liabilities of $1,977,800.
Bankruptcy Judge Timothy A. Barnes handles the case.
The Debtor is represented by:
Richard G Larsen, Esq.
SPRINGERLARSEN, LLC
300 S. County Farm Road
Suite G
Wheaton, IL 60187
Tel: 630-510-0000
Fax: 630-510-0004
Email: rlarsen@springerbrown.com
JOSE FUENTES: Seeks Hire Stanley A. Zlotoff as Legal Counsel
------------------------------------------------------------
Jose Fuentes Construction Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to hire
Stanley A. Zlotoff, a Professional Corporation, as attorney.
The firm will provide these services:
(a) give the Debtor legal advice with respect to its powers
and duties as debtor in possession in the continued management of
its property;
(b) prepare necessary applications, answers, orders, reports
and other legal papers; and
(c) perform all other legal services for Debtor as debtor in
possession which may be necessary.
The firm's standard hourly rates is $350 per hour. A retainer fee
of $10,262 was paid to the firm, in addition to a court filing fee
of $1,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stanley A. Zlotoff, Esq., a partner at Stanley A. Zlotoff, a
Professional Corporation, disclosed in a court filing that the firm
is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Stanley A. Zlotoff, Esq.
Stanley A. Zlotoff, a Professional Corporation
300 S. First St. Suite 215
San Jose, CA 95113
Tel: (408) 287-5087
Fax: (408) 287-7645
Email: zlotofflaw@gmail.com
About Jose Fuentes Construction
Jose Fuentes Construction Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-51400) on Sept. 13, 2024. In the petition filed by Jose Fuentes,
as CFO/CEO, the Debtor estimated assets and liabilities between $1
million and $10 million.
The Honorable Bankruptcy Judge Stephen L. Johnson handles the
case.
The Debtor is represented by Stanley A. Zlotoff, Esq. at STANLEY A.
ZLOTOFF.
KBS REAL ESTATE: Extends Loan Maturity to Nov. 20
-------------------------------------------------
KBS Real Estate Investment Trust III disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
October 11, the Company, through its indirect wholly owned
subsidiaries (the "Portfolio Loan Borrowers"), entered into a sixth
loan modification and extension agreement with Bank of America,
N.A., the administrative agent, and the lenders.
Previously, On November 3, 2021, certain of KBS Real Estate
Investment Trust III, Inc.'s indirect wholly owned subsidiaries,
entered into a loan agreement with Bank of America, N.A., as
administrative agent; BofA Securities, Inc., Wells Fargo
Securities, LLC and Capital One, National Association as joint lead
arrangers and joint book runners; Wells Fargo Bank, N.A., as
syndication agent; and each of the financial institutions signatory
thereto as lenders. The current lenders under the Amended and
Restated Portfolio Loan Facility are Bank of America, N.A.; Wells
Fargo Bank, National Association; U.S. Bank, National Association;
Capital One, National Association; PNC Bank, National Association;
Regions Bank; and Zions Bankcorporation, N.A., DBA California Bank
& Trust (together, the Portfolio Loan Lenders). The Amended and
Restated Portfolio Loan Facility is secured by 60 South Sixth,
Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden
and Town Center.
Pursuant to the Sixth Extension Agreement, the maturity date of the
facility was extended to November 20, 2024. The Sixth Extension
Agreement requires KBS REIT III to satisfy certain conditions, some
of which conditions are not in the sole control of KBS REIT III,
including KBS REIT III taking identified actions relating to its
portfolio. The failure of KBS REIT III to satisfy certain of these
conditions will result in an immediate event of default under the
loan documents.
The aggregate outstanding principal balance of the Amended and
Restated Portfolio Loan Facility was approximately $601.3 million
as of October 11, 2024.
The Sixth Extension Agreement waived certain milestones initially
included in the fourth and fifth extension agreements, including
the requirement for KBS REIT III to raise not less than
$100,000,000 in new equity, debt or a combination of both.
Under the Sixth Extension Agreement, the Agent and the Portfolio
Loan Lenders waived the requirement for the Properties to satisfy
the minimum required ongoing debt service coverage ratio through
the then current maturity date under the loan documents and waived
the requirement for KBS REIT Properties III LLC, an indirect wholly
owned subsidiary of KBS REIT III, as guarantor, to satisfy a net
worth covenant through the then current maturity date under the
loan documents.
Pursuant to the Sixth Extension Agreement, the Portfolio Loan
Borrowers also agreed (a) to pay the Portfolio Loan Lenders a
non-refundable fee in the amount of $250,000, and (b) to pay the
Agent certain costs and expenses incurred by the Agent in
connection with the Sixth Extension Agreement. In addition,
pursuant to the Sixth Extension Agreement, the Portfolio Loan
Lenders agreed to modify the timing of the payment of the exit fee
in the amount of $1.0 million due to the Portfolio Loan Lenders to
the earliest to occur of the maturity date, the occurrence of
certain triggering events under the loan documents and the
repayment of the loan in full.
On February 12, 2024, KBS REIT III engaged Moelis & Company LLC, a
global investment bank with expertise in real estate, capital
raising and restructuring, to assist KBS REIT III in developing,
evaluating and pursuing the initiatives to restructure its
outstanding debt obligations. KBS REIT III will continue to work to
meet all of the conditions in the Sixth Extension Agreement, though
there can be no assurance as to the certainty or timing of KBS REIT
III's plans.
Also, as required by the Sixth Extension Agreement, on October 11,
2024, KBS REIT III and KBS Capital Advisors LLC, KBS REIT III's
external advisor, entered into an amendment to the advisory
agreement between the parties to reduce and defer until December 1,
2025 certain transaction-based compensation in an amount of
approximately $0.5 million that may be payable to the Advisor.
On February 6, 2024 and July 15, 2024, KBS REIT III, through the
Portfolio Loan Borrowers, entered into the fourth and fifth loan
modification and extension agreements, respectively, with the Agent
and the Portfolio Loan Lenders.
About KBS Real Estate
KBS Real Estate Investment Trust III, Inc. is a Maryland
corporation that has elected to be taxed as a real estate
investment trust and it intends to continue to operate in such a
manner. The Company conducts its business primarily through its
Operating Partnership, of which the Company is the sole general
partner.
The Company has invested in a diverse portfolio of real estate
investments. As of Dec. 31, 2023, the Company owned 16 office
properties (of which one property was held for non-sale
disposition), one mixed-use office/retail property, and an
investment in the equity securities of a Singapore real estate
investment trust. On Dec. 29, 2023, the Company entered a
deed-in-lieu of foreclosure transaction with the 201 Spear Street
mortgage lender. On Jan. 9, 2024, the mortgage lender transferred
title to the 201 Spear Street property to a third-party buyer of
the mortgage loan. Additionally, on Feb. 21, 2024, the Company sold
the McEwen Building to a third-party buyer.
Irvine, California-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 18, 2024, citing that the Company has $1.2 billion of
loan principal maturing within one year from the date of issuance
of the consolidated financial statements, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
KBS reported a net loss of $157.53 million for the year ended Dec.
31, 2023, compared to a net loss of $62.46 million for the year
ended Dec. 31, 2022.
KYLE CHANDANAIS: Hires Dunham Hildebrand Payne Waldron as Counsel
-----------------------------------------------------------------
Kyle Chandanais, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Tennessee to hire Dunham Hildebrand
Payne Waldron, PLLC as counsel.
The firm will render these services:
(a) advise the Debtor with respect to its rights, powers and
duties in the management of its property;
(b) investigate and, if necessary, institute legal action on
behalf of the Debtor to collect and recover assets of the estate;
(c) prepare all necessary pleadings, orders and reports with
respect to this proceeding and render all other necessary or proper
legal services;
(d) assist and counsel the Debtor in the preparation,
presentation and confirmation of its plan of reorganization;
(e) represent the Debtor as may be necessary to protect its
interests; and
(f) perform all other legal services that may be necessary and
appropriate in the general administration of the Debtor's estate.
The firm's counsel and staff will be paid at these hourly rates:
Attorneys $500
Paralegals $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $7,500.
Gray Waldron, Esq., an attorney at Dunham Hildebrand Payne Waldron,
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:
Gray Waldron, Esq.
Dunham Hildebrand Payne Waldron, PLLC
9020 Overlook Boulevard, Suite 316
Brentwood, TN 37027
Telephone: (629) 777-6519
Email: gray@dhnashville.com
About Kyle Chandanais, LLC
Kyle Chandanais, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-03914) on
October 10, 2024, listing up to $50,000 in assets and $500,001 to
$1 million in liabilities. Denis Graham (Gray) Waldron, Esq. at
Dunham Hildebrand Payne Waldron, PLLC represents the Debtor as
counsel.
LAKE RANCH: Hires Levene Neale Bender as Bankruptcy Counsel
-----------------------------------------------------------
Lake Ranch Holdings LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to hire Levene, Neale,
Bender, Yoo & Golubchik L.L.P. as general bankruptcy counsel.
The firm's services include:
a. advising the Debtors with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee as they pertain to the Debtors;
b. advising the Debtors with regard to certain rights and
remedies of their bankruptcy estates and the rights, claims and
interests of creditors;
c. representing the Debtors in any proceeding or hearing in
the Bankruptcy Court involving their estates unless the Debtors are
represented in such proceeding or hearing by other special
counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtors in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of LNBYG's expertise or which is beyond LNBYG's
staffing capabilities;
e. preparing and assisting the Debtors in the preparation of
reports, applications, pleadings and orders;
f. representing the Debtors with regard to obtaining use of
debtor in possession financing and/or cash collateral;
g. if appropriate, assisting the Debtors in the negotiation,
formulation, preparation and confirmation of a plan of
reorganization and the preparation and approval of a disclosure
statement in respect of the plan; and
h. performing any other services which may be appropriate in
LNBYG's representation of the Debtors during their bankruptcy
cases.
The firm will be paid at these rates:
Attorneys $495 to $725 per hour
Paraprofessionals $300 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $26,738.
David Golubchik, Esq., a partner at Levene, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David B. Golubchik, Esq.
Levene, Neale, Bender, Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dbg@lnbyg.com
About Lake Ranch Holdings LLC
Lake Ranch Holdings LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Lake Ranch Holdings LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-17736) on Sep. 23, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Kiran Sidhu as manager.
Judge Sandra R Klein presides over the case.
David B. Golubchik, Esq. at LEVENE, NEALE, BENDER, YOO & GOLUBCHIK
L.L.P. represents the Debtor as counsel.
LASER INNOVATIONS: Gets Interim OK to Use Cash Collateral
---------------------------------------------------------
Laser Innovations, Inc. received interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas to use the cash
collateral of its secured lenders.
The interim order authorized the company to use cash collateral in
accordance with its budget to pay expenses, including payroll,
payroll taxes, employee expenses, insurance costs and payment of
U.S. Trustee and SubChapter V Trustee fees. The budget shows total
expenses of $81,081.80.
Secured lenders, including the U.S. Small Business Administration,
De Lage Landen Financial Services, Inc., Headway Capital, LLC, and
Byzfunder NY, LLC, were granted post-petition liens co-extensive
with their pre-bankruptcy liens on Laser Innovation's property.
The final hearing is scheduled for Nov. 25, with objections due by
Nov. 18.
About Laser Innovations
Laser Innovations Inc., doing business as Innovative Lasers of
Houston, offers a non-invasive weight loss solution that uses
Zerona lasers to help clients lose weight.
Laser Innovations sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34781) on
October 11, 2024, with total assets of $100,000 to $500,000 and
total liabilities of $1 million to $10 million. Laura Alexis, chief
executive officer, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W.
Lindauer Attorney, PLLC.
LIFTOFF MOBILE: S&P Affirms 'B-' ICR on Debt-Funded Dividend
------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
Liftoff Mobile Inc. At the same time, S&p assigned a 'B-'
issue-level rating and '4' recovery rating to the company's
proposed $200 million incremental senior secured term loan maturing
in 2028.
S&P said, "We also affirmed the 'B-' issue-level rating on the
company's existing senior secured debt, although we revised our
recovery rating to '4' from '3' because the higher amount of
secured debt outstanding in our hypothetical default scenario
decreases recovery prospects for debt holders.
"The stable outlook reflects our expectation that the company will
maintain healthy FOCF to debt of about 5% over the next year,
despite elevated leverage above 7x.
"We expect the company will maintain healthy FOCF despite increased
leverage. Despite the proposed $200 million increase in debt to
partially fund the dividend, we still expect Liftoff will generate
healthy FOCF to debt of 4%-5% in 2024 and maintain EBITDA interest
coverage of about 1.7x, which support the current 'B-' rating. The
company proactively entered into interest rate hedging agreements,
which materially benefited its ability to maintain strong free cash
flow generation as interest rates have gone up in the past couple
years. We estimate the hedge agreements will result in about $20
million of interest rate savings in 2024.
"The transaction increases our forecast for S&P Global
Ratings-adjusted gross leverage to about 8.3x in 2024 from 7.2x
previously. Revenue continues to grow; the company continues to
realize the benefits from cost-savings initiatives; and
nonrecurring costs roll-off. Therefore, we expect leverage will
decline to about 8.3x by the end of 2024 and below 7x by the end of
2025. Given the financial sponsor ownership and proposed
transaction, we believe there is potential for additional
leveraging transactions in the future.
"We expect Liftoff will continue to benefit from the rollout of its
new advertising technology. In 2024, Liftoff began to benefit from
the implementation of Cortex, its proprietary neural-net based
advertising technology. The AI technology, which can efficiently
ingest much more data, has led to faster-than-industry core revenue
growth in the first half of 2024. Due to the performance-based
nature of the company's marketing platform, as efficiency increases
over time, additional advertising dollars are pushed into the
system, leading to growth in the total addressable market. We
expect the benefits from the company's new technology will continue
to accelerate as Liftoff refines and improves the technology."
Secular tailwinds will support continued growth, although the
mobile advertising market remains highly competitive. Digital
advertising continues to take market share from traditional media
channels like TV and radio. S&P expects this trend will continue
and digital advertising will increase over 10% in 2025. Still, the
digital and mobile advertising industry remains fragmented and
competitive, and customers do not sign long-term contracts with
Liftoff, providing a risk that they could potentially move their
advertising budgets to other platforms.
S&P said, "The stable outlook reflects our expectation that the
company will maintain healthy FOCF to debt of about 5% over the
next year, despite elevated leverage above 7x.
"We could lower our rating if a severe or prolonged recession or
increased competition results in poor revenue growth and an
inability to generate sustainably positive free cash flow."
S&P could raise its rating if:
-- Liftoff reduces and maintains S&P Global Ratings-adjusted gross
leverage below 6x; and
-- The company generates free operating cash flow (FOCF) to debt
above 5% on a sustained basis.
LIVEONE INC: BlackRock Reports 5% Equity Stake as of Sept. 30
-------------------------------------------------------------
BlackRock, Inc. disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of September 30, 2024,
it beneficially owned 4,952,472 shares of LiveOne Inc.'s Common
Stock, representing 5% of the shares outstanding.
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/4ew6canp
About LiveOne
Headquartered in Los Angeles, Calif., LiveOne, Inc. (NASDAQ: LVO)
(formerly known as LiveXLive Media, Inc.) is a creator-first,
music, entertainment, and technology platform focused on delivering
premium experiences and content worldwide through memberships and
live and virtual events. LiveOne's wholly-owned subsidiaries
include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, CPS,
LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne
is available on iOS, Android, Roku, Apple TV, Spotify, Samsung,
Amazon Fire, Android TV, and through STIRR's OTT applications. For
more investor information, please visit ir.liveone.com.
Los Angeles, Calif.-based Macias Gini & O'Connell LLP, the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated July 1, 2024, citing that the
Company has suffered recurring losses from operations, negative
cash flows from operating activities and has a net capital
deficiency. These matters raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, LiveOne had $64.63 million in total assets,
$58.02 million in total liabilities, and $6.61 million in total
equity.
LUMEN TECHNOLOGIES: State Street Holds 5% Stake as of Sept. 30
--------------------------------------------------------------
State Street Corporation disclosed in Schedule 13G Report filed
with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 50,570,374 shares of
Lumen Technologies, Inc.'s common stock, representing 5% of the
shares outstanding.
A full-text copy of State Street's SEC Report is available at:
https://tinyurl.com/4mxrtbkm
About Lumen Technologies
Headquartered in Monroe, Louisiana, Lumen Technologies, Inc. --
lumen.com -- is a facilities-based technology and communications
company that provides a broad array of integrated products and
services to its domestic and global business customers and its
domestic mass markets customers. The Company's platform empowers
its customers to swiftly adjust digital programs to meet immediate
demands, create efficiencies, accelerate market access, and reduce
costs, which allows its customers to rapidly evolve their IT
programs to address dynamic changes.
Lumen reported a net loss of $10.30 billion in 2023 following a net
loss of $1.55 billion in 2022. As of June 30, 2024, Lumen
Technologies had $32.94 billion in total assets, $3.74 billion in
total current liabilities, $18.41 billion in long-term debt, $10.33
billion in total deferred credits and other liabilities, and $466
million in total stockholders' equity.
* * *
In October 2024, S&P Global Ratings raised the issuer-credit rating
on U.S.-based telecommunications service provider Lumen
Technologies Inc. to 'CCC+' from 'SD' (selective default). S&P
said, "We also assigned a 'CCC+' issue-level rating and '3′
recovery rating to Level 3′s senior secured second-lien notes due
2032 and lowered the issue-level rating on the existing Level 3
second-lien notes to 'CCC+'. The '3′ recovery rating indicates
our expectation for meaningful (50%-70%; rounded estimate: 60%)
recovery in the event of payment default.
"At the same time, we assigned a 'B' issue-level rating and '1′
recovery rating to Lumen's 10% super-priority second-out notes due
2032. The recovery rating indicates our expectation for very high
(90%-100%; rounded estimate: 95%) recovery in the event of payment
default.
"The developing outlook reflects that we could raise the rating on
Lumen if it successfully executes on its network and IT systems
integration project while building customer networks for Microsoft
and other hyperscalers with upfront cash payments such that
earnings grow and leverage declines. Conversely, we could lower the
rating if Lumen announces another exchange transaction or liquidity
deteriorates because of execution missteps."
LW RETAIL: Files Amendment to Plan Disclosures
----------------------------------------------
LW Retail Associates LLC submitted a First Amended Chapter 11 Plan
of Reorganization dated September 16, 2024.
The treatment of and consideration to be received by holders of
Allowed Claims shall be in full satisfaction, release and discharge
of their respective Claims against the Debtor.
Class 1 shall consist of the Allowed Secured Claim of the Secured
Creditor. The Secured Creditor shall receive payment in full on its
Allowed Class 1 Claim in connection with the Refinance. Until such
time as the Class 1 Claim is paid in full, the holder thereof shall
retain its lien on the Commercial Units. The Allowed Class 1 Claim
is not Impaired under this Plan and is deemed to accept this Plan.
Class 2 shall consist of the Allowed Secured Claim of the SBA. The
SBA shall be paid in full, in Cash, on the Effective Date. The
Allowed Class 2 Claim is not Impaired under this Plan and is deemed
to accept the Plan.
Class 3 shall consist of all Allowed General Unsecured Claims. The
Holders of Allowed General Unsecured Claims shall be paid in full
in Cash on the Effective Date. The Allowed Class 3 Claims are not
Impaired under this Plan and are deemed to accept the Plan.
Except as otherwise provided in the Plan, including without
limitation Article VIII of this Plan, the Cash required to be first
distributed to holders of Allowed Claims under the Plan shall be
distributed by the Debtor on the Effective Date.
The Plan shall be funded from the Refinance.
A full-text copy of the First Amended Plan dated September 16, 2024
is available at https://urlcurt.com/u?l=Fy2Kf3 from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
KIRBY AISNER & CURLEY, LLP
Dawn Kirby, Esq.
700 Post Road, Suite 237
Scarsdale, New York 10583
(914) 401-9500
About LW Retail Associates
Brooklyn, N.Y.-based LW Retail Associates, LLC owns a fee-simple
interest in four condominium units in New York.
LW Retail Associates filed a Chapter 11 petition (Bankr. E.D.N.Y.
Case No. 17-45189) on Oct. 5, 2017. In the petition signed by Louis
Greco, manager, the Debtor disclosed $12.64 million in assets and
$6.25 million in liabilities. The Debtor valued its four condo
units at $12.20 million in the aggregate.
Judge Elizabeth S. Stong oversees the case.
The Debtor tapped DelBello Donnellan Weingarten Wise & Wiederkehr,
LLP as bankruptcy counsel, and Goldberg Weprin Finkel Goldstein LLP
and Sills Cummis & Gross P.C. as special counsel.
LYTTON VINEYARD: Seeks OK to Use Cash Collateral Until Dec. 31
--------------------------------------------------------------
Lytton Vineyard and Winery, LP asked the U.S. Bankruptcy Court for
the Central District of California, San Fernando Valley Division
for authority to use the cash collateral of its secured creditors
through Dec. 31.
Lytton intends to use the cash collateral to pay operating expenses
pursuant to its proposed 10-week budget in amounts not to exceed
115% of the amounts contained in each line item in the budget.
Nano Banc, American AgCredit and the U.S. Small Business
Administration assert an interest in the cash collateral. These
secured creditors will be protected by the granting of replacement
liens and preservation of Lytton's going concern value.
Additionally, Lytton proposed to make monthly payments of $731 to
SBA.
The court will hold a hearing today on Lytton's bid to use cash
collateral.
About Lytton Vineyard and Winery
Lytton Vineyard and Winery, LP operates a restaurant and winery in
Temecula Valley.
Lytton sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Calif. Case No. 24-11748) on October 18, 2024,
with $10 million to $50 million in both assets and liabilities.
Maribeth Levine, manager, signed the petition.
Judge Victoria S. Kaufman oversees the case.
M. Douglas Flahaut, Esq., at Echo Park Legal, APC represents the
Debtor as bankruptcy counsel.
MACAR TRANS: Hires Moon Wright & Houston as Bankruptcy Counsel
--------------------------------------------------------------
Macar Trans LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of North Carolina to hire Moon Wright &
Houston, PLLC as bankruptcy counsel.
The firm's services include:
a. providing legal advice with respect to its powers and
duties as debtor in possession in the continued operation of its
business affairs and management of its properties;
b. negotiating, preparing, and pursuing confirmation of a
Chapter 11 plan and approval of a disclosure statement (if
applicable), and all related reorganization agreements and/or
documents;
c. preparing necessary applications, motions, answers, orders,
reports, and other legal papers on behalf of the Debtor;
d. representing the Debtor in litigation arising from or
relating to the bankruptcy estate;
e. appearing in court to protect the interests of the Debtor;
and
f. performing all other legal services for the Debtor that may
be necessary and proper in the Chapter 11 proceeding.
The firm will be paid at these rates:
Richard S. Wright $575 per hour
Andrew T. Houston $550 per hour
Caleb Brown $375 per hour
Shannon L. Myers (Paralegal) $185 per hour
Jaime Schaedler (Assistant) $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Richard S. Wright, Esq., a partner at Moon Wright & Houston, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Richard S. Wright, Esq.
Moon Wright & Houston, PLLC
212 N. McDowell Street, Suite 200
Charlotte, NC 28204
Tel: (704) 944-6560
Fax: (704) 944-0380
About Macar Trans LLC
Macar Trans LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-10180) on
October 9, 2024. In the petition filed by Pavel Dureaghin, as
member/manager, the Debtor reports total assets of $900,081 and
total liabilities of $1,592,041.
The Honorable Bankruptcy Judge George R. Hodges handles the case.
The Debtor is represented by Richard S. Wright, Esq. at MOON WRIGHT
& HOUSTON, PLLC.
MCCONNELL ROAD: Case Summary & Three Unsecured Creditors
--------------------------------------------------------
Debtor: McConnell Road South -- GSO, LLC
1427 Military Cutoff Road, Ste. 208
Wilmington, NC 28403
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03767
Judge: Hon. David M Warren
Debtor's Counsel: Charles M. Ivey III, Esq.
IVEY, MCCLELLAN, SIEGMUND, BRUMBAUGH & MCDONOUGH
LLP
305 Blandwood Ave
Greensboro, NC 27401
Tel: 336-274-4658
Fax: 336-274-4540
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Zachary Tran as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LHFRRSA/McConnell_Road_South_--_GSO_LLC__ncebke-24-03767__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Three Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Guilford County Tax Dept. 5164 McConnel Road $13,727
P.O. Box 3328
Greensboro, NC
27402
2. Guilford County Tax Dept. 5144 McConnell $12,242
P.O. Box 3328 Road South
Greensboro, NC
27402
3. Kimley Horn Services Rendered $140,681
P.O. Box 932514
Atlanta, GA 31193
METRO MATTRESS: Seeks to Hire Tiger Capital Group as Consultant
---------------------------------------------------------------
Metro Mattress Corp. seeks approval from the U.S. Bankruptcy Court
for the Northern District of New York to employ Tiger Capital
Group, LLC as its store closing sales consultant.
The firm will render these services:
a. provide a qualified, part time supervisor to assist Debtor
in conducting the Store Closing Sales;
b. recommend appropriate advertising to effectively sell the
merchandise during the Store Closing Sales, consistent with the
applicable sale theme agreed to with Debtor, and subject to the
approval of Debtor;
c. recommend appropriate pricing, display and discounting of
merchandise, as well as recommend appropriate staffing levels for
the Stores (including Store employees); and
d. provide such other related services deemed necessary or
prudent by Debtor and Tiger under the circumstances giving rise to
the Store Closing Sales.
Tiger shall be entitled to a fee equal to $15,000, $7,500 of which
is payable upon Court approval of the Consulting Agreement, and the
other $7,500 payable within 15 days of Court approval.
Tiger Capital is a disinterested person as defined in 11 U.S.C.
Sec. 101(14), according to court filings.
The firm can be reached through:
Mark P. Naughton
Tiger Capital Group, LLC
84 State Street, Suite 420
Boston, MA 02109
Phone: (617) 523-7002
About Metro Mattress Corp.
Metro Mattress Corp. is specialty retailer of mattresses serving
New York, Connecticut, New Hampshire, Massachusetts, and Rhode
Island customers.
Metro Mattress Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-30773) on September 4,
2024. In the petition filed by Dino Cifelli, chief executive
officer, the Debtor disclosed estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
Judge Wendy A. Kinsella oversees the case.
Barclay Damon LLP serves as the Debtor's counsel.
MY SISTERS: Seeks to Hire Calaiaro Valencik as Bankruptcy Counsel
-----------------------------------------------------------------
My Sisters Keeper Personal Care and Staffing, LLC seeks approval
from the U.S. Bankruptcy Court for the Western District of
Pennsylvania to hire Calaiaro Valencik as counsel.
The firm will provide these services:
a. preparation of the bankruptcy petition and attendance at
the meeting of creditors;
b. representation of the Debtor in relation to negotiating an
agreement on cash collateral;
c. representation of the Debtor in relation to acceptance or
rejection of executory contracts;
d. advice regarding Debtor's rights and obligations during the
Chapter 11 case;
e. representation of the Debtor in relation to any motions to
convert or dismiss this Chapter 11;
f. representation of the Debtor in relation to any motions for
relief from stay filed by any creditors;
g. preparation of the Chapter 11 Plan and Disclosure
Statements.
h. preparation of any objection to claims in the Chapter 11.
i. otherwise, representation of the Debtor in general.
The firm will be paid at these rates:
Donald R. Calaiaro, Attorney/Partner $450 per hour
David Z. Valencik, Attorney/Partner $375 per hour
Andrew K. Pratt, Attorney/Partner $325 per hour
Paralegals $100 per hour
The firm received an initial retainer in the amount of $4,000. It
will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Donald R. Calaiaro, Esq., a partner at Law firm of Calaiaro
Valencik, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
David Z. Valencik, Esq.
Law firm of Calaiaro Valencik
938 Penn Avenue, Suite 501
Pittsburgh, PA 15222-3708
Phone: (412) 232-0930
E-mail: dvalencik@c-vlaw.com
About My Sisters Keeper
Personal Care and Staffing, LLC
My Sisters Keeper Personal Care and Staffing, LLC filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Pa. Case No. 24-22526) on October 14, 2024,
listing $50,001 to $100,000 in assets and $500,001 to $1 million in
liabilities.
David Z. Valencik, Esq. at Calaiaro Valencik represents the Debtor
as counsel.
MYOMO INC: Rosalind Advisors Holds 9.9% Stake as of Sept. 30
------------------------------------------------------------
Rosalind Advisors, Inc., Advisor to RMF, and affiliates, Rosalind
Master Fund LP - RMF, Steven Salamon, and Gilad Aharon, disclosed
in a Schedule 13G/A Report filed with the U.S. Securities and
Exchange Commission that as of September 30, 2024, they
collectively owned 3,021,391 shares of Common Stock and 4,575,385
shares of Common Stock issuable upon exercise of pre-funded
warrants in Myomo, Inc., representing 9.9% of the 30,244,155 shares
of the Myomo's common stock outstanding as of September 30, 2024,
in accordance with the information provided by the company.
Rosalind Master Fund L.P. may have been deemed to have the
beneficial ownership of 3,021,391 shares of common stock
representing the beneficial ownership of approximately 9.99% of the
common stock, which excludes the 4,575,385 shares issuable upon the
exercise of pre-funded warrants because they contain a blocker
provision under which the holder thereof does not have the right to
exercise any of the warrant to the extent that such exercise would
result in beneficial ownership by the holder in excess of 9.99% of
the Common Stock. Consequently, as of the date of the event which
requires the filing of this statement, the Reporting Persons were
not able to exercise any of the warrants due to the Blockers.
Rosalind Advisors, Inc. is the investment advisor to RMF and may be
deemed to be the beneficial owner of shares held by RMF. Steven
Salamon is the portfolio manager of the Advisor and may be deemed
to be the beneficial owner of shares held by RMF. Notwithstanding
the foregoing, the Advisor and Mr. Salamon disclaim beneficial
ownership of the shares.
A full-text copy of Rosalind's SEC Report is available at:
https://tinyurl.com/4f4p3t2y
About Myomo
Headquartered in Cambridge, Massachusetts, Myomo, Inc. --
http://www.myomo.com/-- is a wearable medical robotics company
that offers expanded mobility for those suffering from neurological
disorders and upper limb paralysis. Myomo develops and markets the
MyoPro product line. MyoPro is a powered upper limb orthosis
designed to support the arm and restore function to the weakened or
paralyzed arms of patients suffering from CVA stroke, brachial
plexus injury, traumatic brain or spinal cord injury, ALS or other
neuromuscular disease or injury.
As of March 31, 2024, the Company had $16,520,857 in total assets,
$5,621,100 in total liabilities, and $10,899,757 in total
stockholders' equity.
According to the Company's Quarterly Report on Form 10-Q for the
quarterly period March 31, 2024, its historical losses and cash
used in operations are indicators of substantial doubt regarding
the Company's ability to continue as a going concern.
Based upon its current cash, cash and cash equivalents, and
short-term investments, as well as the future expected cash flows,
the Company believes that its available cash, cash equivalents, and
short-term investments will fund its operations for at least the
next 12 months from the issuance date of the financial statements.
The Company has historically funded its operations through
financing activities, including raising equity and debt. The
Company believes that based on the final fees published by the
Centers for Medicare and Medicaid Services for the Company's
products, which became effective on April 1, 2024, if the Company
is able to hire at least 50 to 60 additional employees during the
first half of 2024 as planned to increase its clinical,
reimbursement and manufacturing capacity, and its supply chain is
able to meet its volume requirements without disruption, the
Company believes it can achieve cash flow breakeven on a quarterly
basis by the fourth quarter of 2024. In addition, the Company
believes that it has access to capital resources through possible
public or private equity offerings, exercises of outstanding
warrants, debt financings, or other means. Debt financing may
contain other terms that are not favorable to the Company or its
stockholders. Based on the Company's latitude as to the timing and
amount of certain expenses, its current cash position and operating
plans, the Company believes that the substantial doubt is
alleviated as of the issuance date its quarterly report for the
period ended March 31, 2024.
MYSTICAL STARS: Jack Shrum Represents Creditors
-----------------------------------------------
The law firm of Jack Shrum, P.A. filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 case of Mystical Stars, LLC,
f/k/a Arya International, Inc., the firm represents the following
creditors and/or parties in interest:
1. Kalyani & Sandeep Bhatia
610 Vale Drive
Morganville, NJ 07751
2. Pruthvi Katikaneni
36 Raymound Blvd.
Parsippany, NJ 07054
Kalyani & Sandeep Bhatia is a general unsecured creditor with a
claim of $705,822.20 that arises from monies loaned/or guaranteed
by the Debtor through one or more affiliates.
Pruthvi Katikanemi is a general unsecured creditor with a claim of
$100,000.00 that arises from monies loaned/invested with the Debtor
and/or guaranteed by the Debtor through one or more affiliates.
Jack Shrum does not own any claims or disclosable economic
interests against the Debtor. Jack Shrum was retained to represent
the creditors after being contacted directly by clients and except
as otherwise stated herein represents each of the creditors or
parties in interest.
The law firm can be reached at:
Jack Shrum, P.A.
"J" Jackson Shrum, Esq.
919 N. Market Street, Suite 1410
Wilmington, DE 19801
Phone: (302) 543-7551
Fax: (302) 543-6386
Email: Jshrum@jshrumlaw.com
About Mystical Stars
Mystical Stars, LLC, f/k/a Arya International, Inc filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Case No. 24-18290) on August 21, 2024, listing
$1,000,001 to $10 million in assets and $10,000,001 to $50 million
in liabilities. Anthony Sodono, III, Esq, at Mcmanimon, Scotland &
Baumann, LLC represents the Debtor as counsel.
NEPTUNE BIDCO: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Neptune BidCo U.S. Inc.'s (d/b/a
Nielsen) Long-Term Issuer Default Rating (IDR) at 'B+'. Fitch has
also assigned a 'B+' Long-Term IDR to Neptune Intermediate LLC. The
Rating Outlook is Stable. Additionally, Fitch has affirmed
Nielsen's issue-level ratings for its revolver, term loan B, and
bonds at 'BB'/'RR2'.
The ratings reflect Nielsen's leading market position and scale, as
well as its significant cash flow potential over the forecast
horizon. The cost savings plans executed by the management team
have led to significant margin expansion, and Fitch expects the
company will be able to maintain these margin gains. The rating is
constrained by relatively high leverage, which was 6.5x at the end
of 2023 but is expected to decrease by nearly a full turn by the
end of 2024 due to margin expansion.
Fitch expects strong FCF generation and the proceeds from near-term
asset sales to be used for meaningful debt repayment, with the
ratings case assuming reduced debt will lead to EBITDA interest
coverage above 2.0x. If the company deploys cash elsewhere, Fitch
may consider negative rating action.
Key Rating Drivers
Financial Structure and Flexibility: Fitch projects that Nielsen
will end 2024 with EBITDA leverage of 5.5x, significantly lower
than 2023, which is a credit positive. However, higher interest
rates are reducing the company's flexibility, since cash interest
will likely exceed $900 million in 2024 and 2025. Both leverage and
coverage should improve, assuming stable operations. Without
material changes, such as accelerated debt paydown or significant
growth in EBITDA, these factors limit Nielsen's rating to the
single 'B' category.
Cost Cutting and EBITDA Margin Execution: Nielsen's cost savings
programs over the past several years have led to significant margin
expansion. The company has steadily increased the targeted savings
and has executed the program well. Given management's recent track
record, Fitch believes they will realize the full savings. The
company's TTM, run-rate EBITDA as of 2Q24 exceeded Fitch's previous
base case, despite topline results that were below expectations.
High FCF Potential: Fitch expects adjusted FCF margins in the low
double digits during the forecast horizon, assuming capex around 6%
of revenue. This projection aligns with current run-rate results.
As Nielsen modernizes its technology platform, capital expenditures
may require a higher percentage of available cash. The overall
capital allocation plan remains uncertain under new ownership, but
the FCF potential is a strength that partially mitigates the
financial structure.
Changing Media Landscape: Nielsen has been adjusting and investing
in response to media digitization (video on demand/cord cutting/ad
free streaming) as clients seek new products to support streaming
services and new outcome-based measures. Nielsen aims to become a
trusted, independent measurement solution across all media types,
investing and forming partnerships with companies such as Roku and
Amazon to achieve this goal.
However, Fitch does not believe Nielsen will ever emerge as the
clear cross-media measurement winner due to the complexity and
numerous variables outside its control. Nonetheless, Nielsen
remains a market leader and is well-positioned to capture a
significant portion of the expanding market.
Global Scale and Brand: Fitch believes Nielsen's media business
remains well positioned, as its ratings are the primary metrics
used to determine the value of programming and advertising in the
U.S. TV advertising marketplace and in over 30 other countries.
This provides a stable base and valuable brand recognition. The
scale and entrenched nature of the business provides strong credit
protection, but the company needs to grow into its capital
structure.
Derivation Summary
Nielsen's credit profile benefits from its scale relative to
smaller niche competitors, expanding EBITDA margins, and recent
strategic investments to bolster its competitive position in
cross-media measurement solutions. While leverage is elevated due
to the take-private LBO, it remains comfortably below 6.0x on a run
rate basis. Fitch believes Nielsen's industry-leading position in
both legacy and high-growth subsectors of audience measurement
solutions positions it well against non-Fitch rated competitors
like comScore and newer entrants.
The closest Fitch-rated peer from a credit-metric standpoint is
Project Boost Purchaser (B/Stable, formerly J.D. Power), a provider
of data and analytics solutions for the automotive industry.
Although J.D. Power is not a direct competitor to Nielsen, it
operates with a similar data and analytics business model.
Comparatively, Nielsen has better scale, lower leverage, and
historically a better market position. Whether Nielsen can maintain
its leading market position in the complex media landscape remains
a key question, but Fitch notes that these factors justify a higher
rating for Nielsen relative to J.D. Power.
Key Assumptions
- Revenue growth is held low over the forecast, given the company's
challenges in recent quarters;
- EBITDA margin expansion for 2024 based on the company's realized
cost savings;
- Capital intensity of 6% over the forecast horizon;
- Interest rates moderate slightly over the next three to five
years.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated success in its cross-media measurement goals and
modernization of its operations, leading to sustained revenue
growth and continued strong competitive positioning;
- EBITDA leverage sustained below 5.5x;
- (CFO - Capex)/ Debt sustained above 5%.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Near-term FCF or disposition proceeds directed towards
shareholder returns versus debt reduction;
- Loss of market share or failure to generate positive organic
revenue growth;
- Interest coverage sustained below 2.0x
- EBITDA leverage sustained above 6.5x;
- (CFO - Capex)/ Debt sustained below 3%.
Liquidity and Debt Structure
Adequate Liquidity: At the end of 2023 the company has more than
$200 million of cash on the balance sheet and full availability on
its $650 million revolver. The company reported first-lien leverage
of 4.15x on its 2Q compliance certificate, and Fitch expects the
issuer to remain in compliance with its covenants over the forecast
period.
Manageable Debt Maturities: The earliest material maturity
(approximately $1.7 billion) is in 2028, with a significant
maturity wall of $8 billion in 2029. The debt stack includes
fixed-rate notes and first and second lien loans, which are
variable rate, but the company hedges the interest rate risk.
Issuer Profile
Nielsen has a long history measuring TV and advertising viewership.
This business still provides significant cash as Nielsen
participates in the shift to audience measurement across all media
types.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Neptune Intermediate LLC LT IDR B+ New Rating
Neptune BidCo US Inc. LT IDR B+ Affirmed B+
senior secured LT BB Affirmed RR2 BB
NEWELL BRANDS: S&P Rates Unsecured Debt Issuances 'BB-'
-------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to U.S.-based Newell Brands Inc.'s unsecured debt
issuances. The company launched two $500 million tranches maturing
in 2030 and 2032, respectively. The '3' recovery rating indicates
our expectation for meaningful (50%-70%; capped at 55%) recovery in
the event of a payment default. The company will use proceeds from
the issuance to repay its 4.875% $500 million unsecured notes due
2025 and partially repay its 4.2% $2.0 billion unsecured notes due
April 2026. Newell plans to use its cash flow to address its 4%
$201 million unsecured notes due 2024 and 3.9% $47 million
unsecured notes due 2025. S&P estimates the transaction could add
$7 million -$15 million of incremental annual interest expense,
assuming rates in the 6.00%-6.75% range on the issuance dependent
on tenor, which will hinder the company's future cash flow
generation and debt repayment.
S&P views Newell's decision to begin addressing its large 2026
maturity wall as credit positive; however, pro forma for the
issuance, it will still need to refinance $1.5 billion of debt
before it becomes a current in April 2025. The company's credit
metrics remain weak for the rating, given the soft demand for its
discretionary product portfolio. Specifically, Newell's net sales
declined about 5% in the third quarter (which is a sequential
improvement from the 8% decline in the second quarter). The
company's EBITDA metrics improved year over year and sequentially,
reducing its leverage to near 5.6x from 7.0x a year ago. For the
nine months ended Sept. 30, 2024, Newell generated reported FOCF of
$183 million. In addition, the company typically generates positive
cash flow in the fourth quarter due to holiday seasonality.
The negative outlook on Newell reflects that S&P could lower its
ratings over the next few quarters if it sustains leverage of above
5x or its free operating cash flow falls below $100 million due to
rising interest costs, continued weak demand trends, or its
prioritization of shareholder returns over debt repayment.
NEWPORT VENTURES: Case Summary & Seven Unsecured Creditors
----------------------------------------------------------
Debtor: Newport Ventures, LLC
1442 E Lincoln Ave
Suite 363
Orange, CA 92865
Business Description: Newport Ventures owns and operates a
restaurant.
Chapter 11 Petition Date: October 26, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-12738
Judge: Hon. Theodor Albert
Debtor's Counsel: Steven M. Kries, Esq.
8059 S Elk Way, CO 80016
Tel: (619) 890-0765
Email: skries@acc.capital
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Shahvand Aryana as principal.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/TT4RP4A/Newport_Ventures_LLC__cacbke-24-12738__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Colorado Comfort Air Professional $75,000
P.O. Box 1962 Services
Commerce City, CO 80037
2. Del Taco, LLC Franchisor $125,000
25521 Commercenter
Lake Forest, CA 92630
3. Enysion Equipment $220,000
P.O. Box 669142 Vendor
Dallas, TX 75266
4. Heritage Advisors Professional $150,000
150 Bethany Home Rd. Services
Phoenix, AZ 85014
5. NCR Voyix Corporation Professional $100,000
P.O. Box 198775 Services
Atlanta, GA 30384
6. New Horizon Internet $15,000
Communications Provider
P.O. Box 981073
Boston, MA 02298
7. Scape Sol Landscaping Landscape $15,000
4331W Wagon Trail Dr Maintenance
ONE TABLE RESTAURANT: Hires Stretto Inc as Administrative Advisor
-----------------------------------------------------------------
One Table Restaurant Brands, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
employ Stretto, Inc. as administrative advisor.
The firm will provide 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, including, if applicable, brokerage firms,
bank back-offices and institutional holders;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
d. provide a confidential data room, if requested;
e. manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f. provide such other processing, solicitation, balloting, and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtor, the Court, or the
Office of the Clerk of the Bankruptcy Court.
Stretto, Inc. will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a partner at Stretto, Inc., disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About One Table Restaurant Brands
One Table Restaurant Brands, LLC is a next generation restaurant
platform of best-in-class emerging concepts. The company is based
in Los Angeles, Calif.
One Table Restaurant Brands and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 24-11553) on July 17, 2024.
At the time of the filing, One Table Restaurant Brands reported
total assets of up to $50,000 and total liabilities of up to $50
million.
The Debtors are represented by Thomas Joseph Francella, Jr., Esq.,
at Raines Feldman Littrell, LLP. CR3 Partners, LLC as financial
advisor. Hilco Corporate Finance, LLC as investment banker. Raines
Feldman Littrell LLP as Delaware bankruptcy counsel.
ONONTIO LANDSCAPING: Gets OK to Use Cash Collateral Until Nov. 12
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of New York
granted Onontio Landscaping, Inc. authorization to use cash
collateral to cover payroll and operating expenses.
The court authorized the use of cash collateral based on the
company's proposed budget until Nov. 12, when a further hearing is
scheduled. During this period, secured creditors retain their
pre-bankruptcy liens and security interests in the company's
assets, pending further court rulings.
The court ordered the company to make weekly payments of $200 to
the Subchapter V Trustee starting the week of Oct. 21 to fund an
escrow for payment of the Trustee's fees up to the amount of
$4,000.
About Onontio Landscaping
Onontio Landscaping, Inc. is a landscaping and snow removal service
provider.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-60824) with $100,001
to $500,000 in assets and $500,001 to $1 million in liabilities.
Judge Patrick G. Radel oversees the case.
The Debtor is represented by:
Peter Alan Orville
Orville & Mcdonald Law, PC
30 Riverside Dr.
Binghamton, NY 13905
Tel: 607-770-1007
Email: peteropc@gmail.com
OPEN ARMS HEALTH: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Open Arms Health Systems LLC filed for Chapter 11 protection in the
Southern District of Ohio. 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 Open Arms Health Systems LLC
Open Arms Health Systems LLC -- https://www.oaohio.com -- is a
Health Care Business (as defined in 11 U.S.C. Sec. 101(27A)).
Open Arms Health Systems LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio. Case No.
24-54305) on October 25, 2024. In the petition signed by
Christopher W. Allison, as member, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
The Debtor is represented by:
David M. Whittaker, Esq.
Isaac Wiles
868 Freeway Dr. N.
Columbus, OH 43229
OPTINOSE INC: Rosalind Advisors Holds 5.5% Stake as of Sept. 30
---------------------------------------------------------------
Rosalind Advisors, Inc., Advisor to RMF, and affiliates, Rosalind
Master Fund LP - RMF, Steven Salamon, and Gilad Aharon, disclosed
in a Schedule 13G/A Report filed with the U.S. Securities and
Exchange Commission that as of September 30, 2024, they owned
8,287,503 shares of Common Stock and 1,313,878 shares of Common
Stock issuable upon exercise of warrants in OptiNose, Inc.,
representing 5.5% of the 150,776,811 shares of the OptiNose's
common stock outstanding as of July 31, 2024 in accordance with its
10-Q filed on August 8, 2024.
Rosalind Master Fund L.P. may have been deemed to have the
beneficial ownership of 8,287,503 shares of common stock
representing approximately 5.5% of the common stocks, which
excludes the 1,313,878 shares issuable upon the exercise of common
warrants because they contain a blocker provision under which the
holder thereof does not have the right to exercise any of the
warrant to the extent that such exercise would result in beneficial
ownership by the holder in excess of 4.99% of the Common Stock.
Rosalind Advisors, Inc. is the investment advisor to RMF and may be
deemed to be the beneficial owner of shares held by RMF. Steven
Salamon is the portfolio manager of the Advisor and may be deemed
to be the beneficial owner of shares held by RMF. Notwithstanding
the foregoing, the Advisor and Mr. Salamon disclaim beneficial
ownership of the shares.
A full-text copy of Rosalind's SEC Report is available at:
https://tinyurl.com/y6m45jkw
About OptiNose, Inc.
Yardley, Pa.-based OptiNose, Inc. is a specialty pharmaceutical
company focused on the development and commercialization of
products for patients treated by ear, nose and throat (ENT) and
allergy specialists.
Philadelphia. Pa.-based Ernst & Young LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated March 7, 2024, citing that the Company has incurred recurring
losses from operations, has a working capital deficiency and
expects to not be in compliance with certain debt covenants, and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
As of June 30, 2024, OptiNose had $131.9 million in total assets,
$174.7 million in total liabilities, and $42.9 million in total
stockholders' deficit.
PARKER HEATING: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Illinois
granted Parker Heating & Cooling, Inc. authorization to use cash
collateral on an interim basis.
The court authorized the company to use cash collateral in
accordance with its budget, which shows total projected expenses of
$29,898.
Parker granted first-priority replacement liens to secured
creditors, including the U.S. Small Business Administration,
Mulligan Funding, LLC, LG Funding, Specialty Capital, and Midland
States Bank, to the extent of any diminution in value of their
collateral.
The company owes approximately $500,000 to secured creditors.
The court ordered Parker to maintain an escrow account for the
benefit of Hunter Caroline, holding 15% of its gross receipts from
the sale of goods and services.
The next hearing is scheduled for Oct. 24.
About Parker Heating & Cooling
Parker Heating & Cooling, Inc. provides heating and air
conditioning services. The company is based in Marion, Ill.
Parker filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Ill. Case No. 24-40304) on August
5, 2024, listing $329,222 in assets and $1,456,253 in liabilities.
Parker President Jerry Parker signed the petition.
Judge Laura K. Grandy presides over the case.
Robert E. Eggmann, Esq., at Carmody MacDonald, P.C. represents the
Debtor as legal counsel.
PINEAPPLE ENERGY: Enters $10-Mil. Sales Agreement With Roth Capital
-------------------------------------------------------------------
Pineapple Energy Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on October 21, 2024,
it entered into a At The Market Offering Agreement with Roth
Capital Partners, LLC. Pursuant to the Sales Agreement, the Sales
Agent will act as the Company's agent with respect to an offering
and sale, at any time and from time to time, of the Company's
common stock, par value $0.05 per share. The Company has authorized
the sale, at its discretion, of Shares in an aggregate offering
amount up to $10,000,000 under the Sales Agreement. Sales of the
Shares, if any, will be made in "at the market offerings" as
defined in Rule 415 under the Securities Act of 1933, as amended.
The Sales Agent will use commercially reasonable efforts consistent
with normal trading and sales practices.
The Shares will be sold and issued pursuant to the Company's
Registration Statement on Form S-3 which was filed on August 25,
2022 with, and declared effective on September 2, 2022 by, the
Securities and Exchange Commission (File No. 333-267066), and a
related prospectus, as supplemented by a prospectus supplement
related to the Company's "at the market offering". Concurrently
herewith, the Company is filing a prospectus supplement, dated
October 21, 2024, with the U.S. Securities and Exchange Commission
in connection with the offer and sale of the Shares. The Company is
not obligated to make any sales of Shares under the Sales Agreement
and no assurance can be given that the Company will sell any Shares
under the Sales Agreement, or, if the Company does, as to the price
or amount of Shares that it will sell, or the dates on which any
such sales will take place.
The Company or the Sales Agent, under certain circumstances and
upon notice to the other, may suspend the offering of the Shares
under the Sales Agreement. The offering of the Shares pursuant to
the Sales Agreement will terminate upon the sale of Shares in an
aggregate offering amount equal to $10,000,000, or sooner if either
the Company or the Sales Agents terminate the Sales Agreement.
The Company will pay the Sales Agent a cash commission in an amount
up to 3% of the gross proceeds from each sale of Shares sold
pursuant to the Sales Agreement, and will reimburse the Sales Agent
for the documented fees and costs of its legal counsel reasonably
incurred in connection with entering into the transactions
contemplated by the Sales Agreement in an amount not to exceed
$50,000 in the aggregate.
The Company made certain customary representations, warranties and
covenants in the Sales Agreement concerning the Company and its
subsidiaries and the Registration Statement, prospectus, Prospectus
Supplement and other documents and filings relating to the offering
of the Shares. In addition, the Company has agreed to indemnify the
Sales Agent against certain liabilities, including liabilities
under the Securities Act.
The Shares to be sold under the Sales Agreement, if any, will be
issued and sold pursuant to the Company's Registration Statement,
and its Prospectus Supplement related thereto.
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.
PJP ENTERPRISES: Court Denies Bid to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Wyoming denied PJP
Enterprises, Inc.'s bid to use cash collateral without prejudice.
The court found that PJP failed to follow the proper procedure for
expedited hearings on first-day motions and did not provide
sufficient information to determine adequate protection for secured
creditors. It also noted that PJP's certificate of service was
incomplete.
The court ordered PJP to refile the motion, properly serve it, and
address the deficiencies outlined in the order.
About PJP Enterprises
PJP Enterprises, Inc. is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It is the owner of the real
property located at 1781 Fleishli Parkway, Cheyenne, Wyo., valued
at $4.46 million.
PJP filed voluntary Chapter 11 petition (Bankr. D. Wyo. Case No.
24-20373) on September 22, 2024, listing $4,501,000 in assets and
$15,188,709 in liabilities. PJP President Parinda Patel signed the
petition.
Judge Cathleen D. Parker presides over the case.
Hampton M. Young, Jr., Esq., at Hampton Young Law represents the
Debtor as bankruptcy counsel.
POET TECHNOLOGIES: Wins "Best in AI" Honors at Global Tech Awards
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POET Technologies Inc. has been named the winner of the "Best in
Artificial Intelligence" category at the prestigious 2024 Global
Tech Awards, announced on October 14. The honor is the third top
prize the Company has received in 2024, following recognition by
the AI Breakthrough Awards for "Best Optical AI Solution" and the
Gold Prize for "AI Innovator of the Year" from the Merit Awards.
POET Technologies was chosen as the Best in the Artificial
Intelligence category due to "its innovative approach to powering
AI networks and hyperscale data centers." "POET's commitment to
improving the performance and scalability of AI infrastructure sets
it apart as a leader in the industry," commented Sirisha Lanka,
Managing Director of the Global Tech Awards. Founded in 2022, the
awards' mandate is to "recognize and celebrate excellence in
technology." Among the judges were executives from enterprises such
as Amazon, Microsoft, and Oracle.
"We're thrilled to be recognized by industry experts who
acknowledge the groundbreaking nature and positive commercial
impacts of the POET Optical Interposer™ platform technology and
the growing suite of products we are building from it," said Dr.
Suresh Venkatesan, POET Chairman & CEO. "Winning the Best in
Artificial Intelligence honor from the Global Tech Awards is
another stellar indication of why an increasing number of the
leading companies in our industry are turning to POET for solutions
that will help them grow their market share and assist them in
developing new products that address the demand for AI networking
and data center connectivity."
About POET Technologies Inc.
POET Technologies Inc. -- www.poet-technologies.com -- is a design
and development company offering high-speed optical modules,
optical engines, and light source products to the artificial
intelligence systems market and hyperscale data centers. POET's
photonic integration solutions are based on the POET Optical
Interposer, a novel, patented platform that allows the seamless
integration of electronic and photonic devices into a single chip
using advanced wafer-level semiconductor manufacturing techniques.
POET's Optical Interposer-based products are lower cost, consume
less power than comparable products, are smaller in size, and are
readily scalable to high production volumes. In addition to
providing high-speed (800G, 1.6T, and above) optical engines and
optical modules for AI clusters and hyperscale data centers, POET
has designed and produced novel light source products for
chip-to-chip data communication within and between AI servers, the
next frontier for solving bandwidth and latency problems in AI
systems. POET's Optical Interposer platform also solves device
integration challenges in 5G networks, machine-to-machine
communication, self-contained "Edge" computing applications, and
sensing applications, such as LIDAR systems for autonomous
vehicles. POET is headquartered in Toronto, Canada, with operations
in Allentown, PA, Shenzhen, China, and Singapore.
Hartford, Conn.-based Marcum LLP, the Company's auditor since 2009,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has incurred significant losses
over the past few years and needs to raise additional funds to meet
its future obligations and sustain its operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
POET Technologies reported a net loss of $20.27 million for the
year ended Dec. 31, 2023, compared to a net loss of $21.04 million
for the year ended Dec. 31, 2022.
POTTSVILLE OPERATIONS: Hires Stretto Inc. as Administrative Agent
-----------------------------------------------------------------
Pottsville Operations LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
hire Stretto, Inc. as administrative agent.
The firm will provide 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, including, if applicable, brokerage firms,
bank back-offices and institutional holders;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
d. provide a confidential data room, if requested;
e. manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f. provide such other processing, solicitation, balloting, and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtor, the Court, or the
Office of the Clerk of the Bankruptcy Court.
Stretto, Inc. will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a partner at Stretto, Inc., disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Pottsville Operations LLC
Pottsville Operations LLC and its affiliates own and operates six
skilled nursing facilities in Pennsylvania. Collectively,
Pottsville has 925 beds across the six facilities, and 759
residents currently at the Facilities as of the Petition Date.
Pottsville acquired the facilities in May of 2021.
Pottsville Operations LLC and its 10 affiliates sought relief under
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70418) on Oct. 15, 2024. In the petition
signed by Neil Luria, as chief restructuring officer, Pottsville
reports estimated assets between $1 million and $10 million and
estimated liabilities between $10 million and $50 million.
Bankruptcy Judge Jeffery A Deller handles the cases.
The Debtors tapped BAKER & HOSTETLER LLP as general bankruptcy
counsel; and RAINES FELDMAN LITTRELL, LLP as local counsel. SOLIC
Capital Advisors LLC is serving as financial advisor, and Solic's
Neil Luria has been tapped as CRO of the Debtors. STRETTO, INC., is
the claims agent.
POTTSVILLE OPERATIONS: 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 Pottsville
Operations, LLC and its affiliates.
The committee members are:
1. Reliant Pro Rehab, LLC
Mr. Monte Green
5800 Granite Parkway, Suite 325
Plano, TX 75025
monte.green@reliant-rehab.com
Tel: (310) 467-0696
Identified Counsel:
Andrew J. Nazar, Esq.
Polsinelli P.C.
900 W. 48th Place, Suite 900
Kansas City, MO 64112
2. Trans-Med Ambulance, Inc.
Mr. Homer Berlew
14 Marion Street
Luzerne, PA 18709
homertma@gmail.com
Tel: (570) 283-2444 Ext. 229
3. Dedicated Nursing Associates, Inc.
Ms. Amy Silveri
6536 William Penn Highway, Route 22
Delmont, PA 15626
asilveri@dedicatednurses.com
Tel: (855) 349-6013
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 Pottsville Operations
Pottsville Operations, LLC and its affiliates own and operates six
skilled nursing facilities in Pennsylvania. Collectively,
Pottsville has 925 beds across the six facilities, and 759
residents currently at the facilities as of the petition date.
Pottsville acquired the facilities in May of 2021.
Pottsville and 10 affiliates sought relief under sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Lead
Case No. 24-70418) on Oct. 15, 2024. In the petition signed by its
chief restructuring officer, Neil Luria, Pottsville reported assets
between $1 million and $10 million and liabilities between $10
million and $50 million.
Judge Jeffery A Deller handles the cases.
The Debtors tapped Baker & Hostetler, LLP as general bankruptcy
counsel; Raines Feldman Littrell, LLP as local counsel; and SOLIC
Capital Advisors, LLC as financial advisor. Neil Luria of SOLIC
Capital Advisors serves as the Debtors' chief restructuring
officer. Stretto, Inc. is the claims agent.
QHSLAB INC: Posts 40% Revenue Growth, Plans Strategic Changes Ahead
-------------------------------------------------------------------
QHSLab, Inc. sent a letter to its shareholders on October 21, 2024.
In the Letter, President and CEO of the Company, Troy Grogan
reflected on what the Company achieved this year and outline its
path forward. The Company is nine months into what has been a
productive and transformative year for QHSLab, and Troy Grogan
proudly shared its progress with the Company's Shareholders.
Mr. Grogan highlighted:
Financial and Operational
Achievements
"This year, we have seen revenue grow by 40% compared to last year,
completing the third quarter with over $1.5 million in income. Our
gross profit has grown even more significantly—by 60%—reaching
just under $1 million, with a gross profit margin of over 60%.
What's more, we are now cash flow positive, and in the past five
months, we have been able to make payments of over $100,000 against
our long-term debt, directly from our cash flow."
"These achievements have been accomplished with limited resources,
and while we are operating in a large addressable market, we
recognize that our growth may not be at the spectacular levels some
public market enthusiasts might expect. We operate as a small
public company, and although we are not listed on a major exchange,
we are building a foundation for sustainable growth."
Liquidity
and Growth Challenges
"One of the challenges we face is the low liquidity of our stock.
Despite our growing financials, we have not yet seen the liquidity
advantages typically associated with being a public company. The
float of publicly available shares remains relatively low, and many
of our shareholders continue to hold their shares at higher prices,
believing in the company's long-term value, which limits the volume
of shares available for trading."
"As a long-term shareholder, I've witnessed QHSLab steadily grow
and achieve significant milestones despite being a small company
with limited resources. The company's commitment to innovative
healthcare solutions, especially in AI-driven medical applications,
continues to impress me. I strongly believe the value of QHSLab's
efforts will be recognized in the near future, and I'm confident
that we, as shareholders, will see great returns as the company
explores new opportunities."
"I've held my shares because I trust in the company's leadership
and mission. QHSLab has delivered growth in a tough market, and
while the stock may not be liquid right now, I see that as an
opportunity to stay invested in a company that is undervalued but
delivering on its promises. The fact that leadership remains
focused on long-term shareholder value while navigating new sectors
is reassuring. I look forward to seeing the full year results."
Strategic Actions and
Exploration of New Opportunities
"In response to the evolving needs of our shareholders and the
market, I have recently engaged two seasoned public market veterans
to analyze the company's structure and identify new potential
opportunities for shareholder growth and value creation. We are
undertaking a broad exploration of strategic options, which
includes AI technology-based applications and solutions, business
combinations, asset sales, and other potential restructurings."
"There are no guarantees that this process will lead to a specific
outcome, but I want to assure you that our focus remains on
maximizing shareholder value while keeping an open mind to new,
high-margin opportunities in rapidly growing sectors such as AI,
electric vehicles, robotics, bioinformatics, quantum or advanced
computing for drug development, biotechnology and personalized
medicine and other areas that align with our vision."
"We are fortunate to have patient and supportive lenders like the
Mercer Street Opportunity Fund, which has stood by us during this
journey. However, they are now looking for repayment of their
loans, recapitalization, or a conversion into salable equity to
realize a return on their funds."
"Similarly, we owe a debt of gratitude to MedScience, the
manufacturer of our allergy-related products. Their continued
support has been critical, even as we manage notable outstanding
debt to them relating to the purchase of the AllergiEnd
intellectual property. MedScience remains committed to our
partnership, and they believe in the long-term potential of our
business, just as you do."
"As your President and CEO, I continue to wear the same shoes as
you, our valued shareholders. As you are all aware, I have not
taken any compensation for the services and intellectual properties
I provide to QHSLab, and I am committed to sharing in the company's
future successes at the same rate as you will. Our mutual goal is
to drive QHSLab forward and realize the value that we all believe
this company holds."
"As we have recently begun the exploration of strategic
opportunities, I expect to communicate preliminary findings about
the company's future direction before the holidays. We will also
release our Q3 quarterly report in mid-November, and I encourage
you to stay tuned for more detailed updates at that time. In the
meantime, please take care of yourselves, and thank you for your
continued support," Mr. Grogan concluded.
About QHSLab, Inc.
Beach, Fla.-based QHSLab, Inc. is a medical device technology and
software-as-a-service company focused on enabling primary care
physicians to increase their revenues by providing them with
relevant, value-based tools to evaluate and treat chronic disease
as well as provide preventive care through reimbursable
procedures.
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 incurred losses
since inception, is highly leveraged, and has only recently begun
to generate cash from operations. The Company generated net loss of
$468,362 for the year ended December 31, 2023, and is currently in
default of its obligations under its OID Notes and the note
incurred to acquire assets related to its AllergiEnd products.
These factors, among others, raise substantial doubt about the
Company's ability to continue as a going concern for a reasonable
period of time.
QUAD/GRAPHICS INC: Moody's Rates Amended Credit Facilities 'B1'
---------------------------------------------------------------
Moody's Ratings assigned B1 ratings to Quad/Graphics, Inc.'s (Quad)
amended and extended US senior secured term loan A due 2029 and
amended and extended senior secured revolving credit facility due
2029.
All other ratings are unaffected, including Quad's B1 corporate
family rating, B1-PD probability of default rating and the
speculative grade liquidity rating (SGL) of SGL-2. The B1 ratings
at the non-extended senior secured bank credit facilities due 2026
will also remain unchanged. The stable outlook also remains
unchanged.
RATINGS RATIONALE
Quad's CFR benefits from: (1) good market position and scale in the
commercial print market; (2) Moody's expectation that debt/EBITDA
will remain around 3x in 2024 and 2025; (3) the company's focus on
debt repayment from free cash flow and asset sale proceeds; (4)
continued cost reductions; and (4) good liquidity, including its
ability to generate consistent free cash flow.
However, the rating is constrained by: (1) high business risk
stemming from exposure to the secular decline in commercial
printing due to ongoing digital substitution; (2) execution risks
as the company mitigates the secular pressures in commercial
printing (retail inserts, magazines and catalogs) by transforming
into an integrated marketing solutions provider; and (3) potential
for increased competition in the advertising and marketing services
industry.
Quad has good liquidity. Sources of liquidity exceed $275 million
with about $22.4 million of uses in the next four quarters through
Dec 2025. At June 2024, liquidity is supported by $12.8 million of
cash and about $228.8 million of availability under the company's
combined $325 million revolving credit facilities ($18 million
expiring in 2026 and $307 million expiring 2029), and Moody's free
cash flow assumption of about $50 million through Dec 2025. Uses of
liquidity include about $22.4 million debt amortization payments.
The company is subject to total net leverage, senior leverage, and
interest coverage covenants; cushion should exceed 20% on the
tightest covenant (total net leverage) through the next four
quarters. While Quad has limited ability to generate liquidity from
asset sales, it is anticipated that the divestiture of the
company's European operations will enhance liquidity sources by
approximately $44 million in sales proceeds. About $14.5 million of
the term loan facility is November 2026 and $351.3 million is due
October 2029.
The company has one class of debt, the B1 rated senior secured bank
credit facilities. Although, Quad's credit facilities benefit from
first-ranking security claim on the company's assets, the loss
absorption cushion provided by trade payables and other obligations
is not sufficient to provide uplift from the CFR.
The stable outlook reflects Moody's expectation that Quad will
maintain good liquidity, moderate leverage, and continue its
transformation into an integrated marketing solution service
provider.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A ratings upgrade could be considered if Quad is able to generate
sustainable positive organic EBITDA growth, successfully transform
away from the secular decline in commercial printing, and sustain
debt to EBITDA below 3x.
A ratings downgrade could be considered if the company is not able
to successfully execute on its transformation away from commercial
printing, leading to ongoing revenue and EBITDA declines. The
ratings could become under pressure if leverage increases towards
4x, or liquidity weakens.
The principal methodology used in these ratings was Media published
in June 2021.
Headquartered in Sussex, Wisconsin, Quad/Graphics, Inc. (Quad) is a
leading North American commercial printing company. The company
operates in two segments; United States Print and Related Services
(majority of revenue), and International.
RAVEN ACQUISITION: Moody's Rates New $1.3BB Sr. Secured Notes 'B3'
------------------------------------------------------------------
Moody's Ratings assigned Raven Acquisition Holdings, LLC (R1 RCM,
the company), a leading provider of revenue cycle management (RCM)
services to healthcare providers, a B3 to its proposed $1.3 billion
senior secured notes due 2031. Raven Acquisition Holdings, LLC is a
new legal entity that has been established to acquire R1 RCM, Inc.
Raven Acquisition Holdings, LLC will be the initial borrower under
the credit facilities. All other ratings remain unchanged,
including R1 RCM's B3 corporate family rating, B3-PD probability of
default rating and B3 rated senior secured bank credit facility
consisting of a $687.5 million multi-currency first lien revolving
credit facility due 2029, $2.8 billion first lien term loan B due
2031 (downsized from $3.1 billion), and $200 million first lien
delayed draw term loan due 2031. The outlook is stable.
The assigned ratings remain subject to Moody's review of the final
terms and conditions of the proposed financing.
RATINGS RATIONALE
R1 RCM's B3 CFR reflects the company's high debt to EBITDA, which
Moody's estimate to be 8.6x, pro forma for the proposed
transaction, that Moody's anticipate will improve to the low 7x by
the end of 2025 from a combination of earnings growth and debt
repayment. Moody's expect revenue and EBITDA growth will be modest
in 2024 as a result of two cybersecurity incidents earlier in the
year that lowered base and incentive fees, delayed cash collections
and necessitated one-time costs to remediate. Moody's believe the
disruptions, particularly the February 2024 ransomware attack at
UnitedHealth Group Incorporated's (A2 stable) subsidiary, Change
Healthcare Inc. (part of Optum Insight) which was one of the
largest medical claims clearinghouses before the attacks, limited
R1 RCM's ability to win new business while healthcare providers
dealt with the disruption. Nonetheless, Moody's expect these
effects will be temporary and that the company should see revenue
growth in the mid-to-high single digits in 2025 as the company
ramps up its new end-to-end contract with Providence St. Joseph
Health, WA (A2 negative). Moody's expect EBITDA margins will
improve modestly to around 21% in 2025, but should approach 24%
over the next few years as more end-to-end contracts reach steady
state profitability. Near term profitability improvement will be
limited by the cybersecurity incidents, start-up losses from new
contracts, integration costs from past acquisitions, technology
investments, and other costs related to strategic initiatives.
The ratings are supported by Moody's view that demand for RCM
services is favorable given Moody's anticipation for long term
healthcare industry trends that include increased healthcare
spending and strain on providers to drive improved collections as
they face high labor cost inflation, increased patient volumes at
lower margins, and regulatory-driven complexity in the billing
process. The services provided by R1 RCM are both critical to and
heavily embedded in their clients' efficiency and quality of
services, which results in high retention rates (e.g. 110% net
dollar retention for revenue performance solutions), across both
its end-to-end solutions (66% of June 2024 LTM revenue) and revenue
performance solutions (33%). The company has a well-established
position in the healthcare revenue cycle management space, evident
by its large revenue size, which Moody's project will reach $2.8
billion in 2025. The company has customer concentration from its
largest client, Ascension Health Alliance (Ascension, Aa2
negative), which accounted for 35% of R1 RCM's revenue through the
June 2024 LTM period. This concentration risk is counterbalanced by
a professional services agreement with Ascension, renewed for 10
years in 2021, ensuring a sustained partnership. Furthermore,
Ascension will continue to hold a large equity stake in R1 RCM
through TCP-ASC, a TowerBrook-managed investment vehicle, which
will hold roughly 50% of R1 RCM's equity post-transaction.
The credit profile is constrained by a highly competitive,
consolidating environment that includes many players, some
considerably larger and less leveraged than R1 RCM. This includes
other RCM providers, large scale electronic health record (EHR)
companies that could choose to compete more directly and upon which
R1 RCM relies to deliver services. A large portion of RCM is still
done by healthcare providers in-house that may be opposed to
outsourcing their full end-to-end functions, including headcount,
to service providers like R1 RCM. Moody's expect the company will
continue to have a debt-funded acquisition growth strategy given
its long ownership history by TowerBrook and Ascension, which have
been investors in the company since 2016.
All financial metrics cited reflect Moody's standard adjustments.
Moody's view R1 RCM's liquidity profile as adequate. Liquidity is
supported by $687.5 million of availability under the new revolver,
$213 million of cash expected at the close of the transaction, and
Moody's expectation for free cash flow of $30 million in 2025 that
will be used to service annual mandatory debt repayment of $31
million. Moody's anticipate the company will rely on its cash
balance and revolver initially, as Moody's expect negative free
cash flow during the next six months before turning positive in
mid-to-late 2025 as the company incurs start-up losses from its new
Providence contract and from anticipated one-time costs associated
with the company's Change Healthcare, Inc. and Ascension Health
Alliance cyber-attack responses in the second half of 2024.
Nonetheless, Moody's expect cash flow will turn positive in 2025 as
these one-time costs subside, earnings grow, and interest rates
moderate. The company is expected to have capital expenditure
requirements of around $145 million or 4% to 5% of revenue in 2025.
The first lien revolver will be subject to a maximum 9x net first
lien leverage covenant when revolver utilization is at least 40%.
Moody's expect that the company would remain well in compliance
with the covenant if tested. The term loan will not have financial
covenants.
The senior secured notes are rated B3, in line with the B3 CFR and
B3 senior secured credit facility ratings, and reflecting the B3-PD
PDR. The notes benefit from secured guarantees from its direct
parent and all existing and subsequently acquired domestic
subsidiaries.
The stable outlook reflects Moody's expectation that the company
will grow revenue at a mid-to-high single digits percentage rate in
2025, which will reduce debt to EBITDA to the low 7x by the end of
2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if R1 RCM maintains strong and stable
growth while improving profitability and cash flow generation.
Financial policies supportive of sustained debt to EBITDA below
6.5x, EBITDA less capex to interest above 1.25x, free cash flow to
debt above 2%, and the company maintains good liquidity could also
lead to a ratings upgrade.
The ratings could be downgraded if R1 RCM's revenue growth and
profitability are lower than anticipated, leading to low or no free
cash flow, EBITDA less capex to interest below 1x and debt to
EBITDA above 7.5x. More aggressive financial policies including
debt funded acquisitions or shareholder returns could also lead to
a downgrade.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
Utah-based R1 RCM is a leading provider of technology-driven
solutions that transform the financial performance and patient
experience for health systems, hospitals, and physician groups.
Affiliates of private equity firm CD&R and TowerBrook will be
co-owners at close. Moody's expect the company will generate
approximately $2.8 billion of revenue in 2025.
RECEPTION PURCHASER: S&P Hikes ICR to 'CCC+' on Debt Restructuring
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Reception
Purchaser LLC's (dba STG Logistics) to 'CCC+' from 'D' (default).
At the same time, S&P assigned its 'B' issue-level rating to STG's
new first-lien first-out term loan, 'CCC+' rating to the new
first-lien second-out term loan, and 'CCC' rating to the new
first-lien third-out term loan. S&P also raised its issue-level
rating on STG's existing first-lien debt to 'CCC'.
The negative outlook reflects S&P's belief that absent an
improvement in the freight market conditions, STG's continued free
cash flow deficits will render it vulnerable to a liquidity
shortfall, which could lead to a payment default or cause
management to consider undertaking another distressed
restructuring.
Reception Purchaser LLC (dba STG Logistics) completed a distressed
debt exchange and issued new debt, improving its short-term
liquidity and cash interest expense requirements.
Transaction summary.
STG transferred about half the assets securing its existing debt
facilities into a new, wholly owned, unrestricted subsidiary--STG
Distribution LLC. These assets now secure the new first-lien term
loan it has issued at this new subsidiary. The new term loan also
benefits from a first-lien guarantee extended by STG's other group
entities that hold the remaining assets. The majority of STG's
existing term loan holders have exchanged their holdings below par
into the three tranches (first out, second out, and third out) of
the new term loan while some lenders have also contributed $136.5
million of new money into the first-out (FLFO) tranche. The
majority of STG's exiting revolving credit facility (RCF) lenders
have also exchanged their holdings at par into the second-out
(FLSO) tranche of the new term loan. However, the original term
loan and RCF lenders who did not participate in the exchange
transaction have now taken a subordinated position relative to the
new debt.
The transaction provides liquidity to support STG's operations and
ongoing cash flow deficits amid subdued performance. Continuing
softer freight markets during the 2024 bid season caused STG's
intermodal contract rates to decline, constraining its
profitability. S&P said, "Accordingly, we estimated STG's free cash
flow deficits for fiscal 2024 at about negative $135 million prior
to this debt exchange transaction. We believe STG would have run
out of liquidity in about six months in the absence an external
capital infusion."
Through this debt exchange, STG has raised about $136.5 million.
S&P said, "Incremental equity contribution from financial sponsors
of about $50 million have added further to its cash balances, which
we now estimate at $196 million post transaction close. Moreover,
the new term loan has no amortization and comprises a partial
payment-in-kind (PIK) component that should reduce STG's cash
interest payout by about $45 million on an annualized basis. We
believe STG's post transaction liquidity is sufficient to service
its obligations through fiscal 2025."
STG's contract structure contributed to its weakened financial
performance. STG typically enters into 12 months or shorter
contracts with its customers for moving containerized freight
through intermodal freight transport. STG sources capacity from
class I railroads to move its customers containers under contracts
with the class I railroads. As freight demand softened beginning
the latter half of fiscal 2022, STG was compelled to re-bid
intermodal contracts with its customers at significantly lower
rates during the 2023 and 2024 bid season as rates trended lower
amid weakening demand and excess trucking capacity. Being unable to
reduce its purchased transportation costs, STG's margins were
squeezed, with negative cash flows depleting its liquidity.
S&P said, "We believe long-term sustainability risks remain due to
weak demand conditions. The broader freight market, including
trucking and intermodal, is showing limited signs of improvement
with rates remaining subdued and capacity exceeding demand. Excess
trucking capacity, which competes with intermodal, has lingered on
for longer than our earlier expectations and we believe it is
unlikely to correct before mid-2025. Even when the markets inflect,
intermodal freight rates, which follow trucking freight rates with
a near six-month lag will take even longer to improve. Amid all
this, the majority of STG's intermodal contracts are re-bid during
the first quarter of the calendar year, and we expect them to
remain flat for the 2025 bidding season, keeping its profitability
levels subdued and with negative free cash flow (estimated at
negative $85 million for 2025). Should rates improve during the
2026 bid season, STG will benefit from improved cash flows only by
the second half of 2026. By that time, we believe the company will
have depleted the cash balances sourced from the recent transaction
and would be confronting another liquidity shortfall. Nonetheless,
we expect STG to partially benefit from its drayage and
distribution business segments quickly if market conditions improve
or if it can re-negotiate its purchased transportation contracts
with class I railroads during the term or when they are re-bid.
"The negative outlook reflects our belief that absent an
improvement in the freight market conditions, STG's continued free
cash flow deficits will render it vulnerable to a liquidity
shortfall, which could lead to a payment default or cause
management to consider undertaking another distressed
restructuring.
"We could lower our ratings on STG if we believe it will default or
enter a distressed exchange offer within the next 12 months absent
an unforeseen positive development, likely due to a liquidity
crisis.
"This could occur if there is a prolonged weakness in consumer
demand or a protracted low freight rate environment led to
continued negative free cash flow generation depleting its
available cash balances such that we expect a default or exchange
is likely to occur within the subsequent 12 months.
"We could revise our outlook on STG to stable if its operating
performance improves such that its free cash flows shortfalls are
significantly curtailed such that we no longer envisage a potential
liquidity crisis within the next 12 months."
REFRESHING USA: Seeks to Tap Tonkon Torp LLP as Bankruptcy Counsel
------------------------------------------------------------------
Refreshing USA, LLC and Water Station Management LLC, and
alleged-debtor Creative Technologies, LLC seek approval from the
U.S. Bankruptcy Court for the Southern District of Texas to hire
Tonkon Torp LLP as Chapter 11 counsel.
The firm will render these services:
(a) advise the Debtor of its rights, powers, and duties in the
continued operation and management of its business and property
under Chapter 11 of the Code;
(b) take all actions necessary to protect and preserve
Debtor's bankruptcy estate;
(c) advise Debtor concerning, and prepare on behalf of Debtor,
all necessary legal papers, and review all financial and other
reports required in connection with administration of this Chapter
11 case;
(d) advise the Debtor with respect to, and assist in the
negotiation and documentation of, financing agreements, debt and
cash collateral orders, and related transactions;
(e) review the nature and validity of any liens asserted
against the Debtor's property and advise Debtor concerning the
enforceability of such liens;
(f) advise the Debtor regarding (i) its ability to initiate
actions to collect and recover property for the benefit of its
estate; (ii) any potential property dispositions; and (iii)
executory contract and unexpired lease assumptions, assignments,
and rejections, and lease restructuring and recharacterizations;
(g) negotiate with creditors concerning a Chapter 11 plan;
prepare the plan, disclosure statement, and related documents; and
take the steps necessary to confirm and implement the plan;
(h) provide such other legal advice or services; and
(i) provide such other legal advice or services as may be
required in connection with this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Danny Newman, Partner $515
Michael Fletcher, Partner $560
Ava Schoen, Partner $535
Spencer Fishe,r Paralegal $290
Mr. Newman disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Danny Newman, Esq.
Tonkon Torp LLP
888 SW Fifth Avenue, Suite 1600
Portland, OR 97204
Telephone: (503) 802-2089
Email: danny.newman@tonkon.com
About Refreshing USA, LLC
Alleged creditors filed an involuntary Chapter 11 petition for
Refreshing USA, LLC (Bankr. S.D. Tex. Case No. 24-33919) on August
27, 2024. The alleged petitioners are Donald E. Bonnie L. Gray of
Revocable Living Trust, Tyler Hellman and Annamarie Briggs. The
petitioners are represented by Ericka F. Johnson, Esq. and Steven
D. Adler, Esq. at BAYARD, P.A.
Judge Judge Jeffrey P. Norman presides over the case.
ROYAL CARIBBEAN: S&P Alters Outlook to Positive, Affirms 'BB+' ICR
------------------------------------------------------------------
S&P Global Ratings revised its rating outlook to positive from
stable and affirmed all ratings, including its 'BB+' issuer credit
rating on Royal Caribbean Cruises Ltd.
The positive rating outlook reflects S&P's expectation that Royal
Caribbean's FFO to debt could improve to above 25% and EBITDA
coverage of interest above 4.5x over the next 12 months, while
maintaining leverage below 3.5x.
Royal continues to outperform our 2024 base case forecast and
raised its guidance for a third time this year. Since its
first-quarter earnings call, Royal has raised its reported net
yield guidance nearly 500 basis points to 10.9%-11.4% from
5.3%-7.3% because of continued strength in pricing and onboard
revenue. This will drive higher than anticipated EBITDA and lower
debt to EBITDA. S&P now expects debt to EBITDA to improve to
3.3x-3.4x at the end of 2024, compared with its previous forecast
of 3.7x. The company's recent outperformance and revised yield
guidance reflects stronger close-in demand and continued strength
in onboard revenue. The company reported that demand and pricing
have accelerated since its last earnings call in July 2024,
exceeding 2023 levels. Higher-than-anticipated close-in demand
drove higher load factors at higher prices and higher onboard
revenue for the third quarter. Consumer spending onboard ships, as
well as pre-cruise purchases of onboard revenue, continues to
significantly exceed that of 2023 because of greater participation
at higher prices.
Royal is also reporting good bookings for 2025, indicating they are
outpacing 2024 bookings in the third quarter and October. The
company's new ships and investments in private destinations are
supporting 2025 bookings. However, it remains early as a more
significant percentage of 2025 inventory will likely be sold from
the Black Friday holiday through Wave season early next year.
Nevertheless, current booked load factors for 2025 are in line with
historical levels at higher pricing.
S&P said, "Despite strong performance in 2024, we expect yields to
moderate to low-single digits, more in line with historical
performance in the industry. Despite concerns around a slowing
consumer spending environment, we believe consumers will still
desire to take vacations especially if unemployment remains
moderate." Consumers may look for more value-oriented options, but
we believe the price differential (which remains larger than
pre-pandemic between cruise-based vacations and land-based
vacations) and shorter cruise itineraries will support performance
and potentially mitigate the need for discounts to fill ships as
has been the case in previous economic slowdowns.
Royal's refinancing transactions will lower interest expense and
improve financial flexibility. Royal completed several refinancing
transactions in 2024 that lowered interest expense and removed
securities and guarantees from its capital structure. The reduced
interest expense will support improving cash flow. This combined
with our forecasted EBITDA improvement over the next 12 months will
improve funds from operations (FFO) to debt to about 30% by the end
of 2025 and EBITDA coverage of interest above 5x. These measures
are above our 25% and 4.5x respective upgrade thresholds. In
addition, the company's capital structure is now fully unsecured
and aligns with the debt structure it had pre-pandemic. The removal
of the securities and guarantees that the company had to provide
while operations were suspended due to the COVID-19 pandemic
demonstrates the company's improving credit profile and increases
its financial flexibility.
Royal's larger cash flow base compared with pre-pandemic and a more
moderate ship delivery schedule should allow it to continue
reducing leverage over the next 12 months despite new ship debt and
our assumptions around shareholder returns. The funds needed for
new ships makes the cruise industry capital intensive. In addition,
the requirement to take delivery of ships regardless of the
operating environment could slow Royal's ability to reduce leverage
given its current ship delivery schedule. Cruise operators
generally must commit to ship orders at least three to five years
in advance given the limited number of shipyards globally that are
equipped to build cruise ships for the contemporary segment. While
the operators typically obtain financing commitments before
delivery (often when they contract for delivery), which provides
some liquidity support if cash flow declines, the incremental debt
can significantly deteriorate credit measure during operating
weakness because debt balances increase while EBITDA declines.
Royal's overall ship delivery schedule, especially in 2024 and
2026, should allow it to reduce leverage despite new ship debt. In
2024, Royal took delivery of two ships, one being a smaller
Silversea ship. In 2025, Royal has two large ship deliveries and
only one in 2026. Royal resumed ordering ships earlier this year
and placed an order for a fourth Icon class ship to be delivered in
2027 and a seventh Oasis class ship in 2028. S&P said, "These
orders remain contingent upon completed financing, which we would
expect to occur over the next few quarters. Royal previously had no
scheduled ship deliveries beginning in 2027. The company's
resumption of ship orders this year was in line with our
expectations from February 2024. We assumed that the company's
improving balance sheet, the need to reinvigorate the fleet with
new ships and new amenities to stay competitive, and the
expectation that older ships may eventually be retired would likely
cause Royal to resume ordering new ships over the next year. Going
forward, we assume Royal will likely target one to two ship
deliveries a year."
Royal's growing cash flow base should allow it to generate good
cash flow for other investments in its portfolio, including Perfect
Day Mexico, and still reduce leverage over the next few years,
despite expected debt to finance new deliveries. Furthermore, we
believe Royal's larger cash flow base compared with before the
pandemic provides it sufficient capacity to fund at least two large
ships annually with operating cash flow, despite having committed
financing in place. S&P also believes the company's improved cash
flow will allow it to grow its dividend over time and potentially
resume repurchasing shares.
S&P said, "The positive rating outlook reflects our expectation
that Royal Caribbean could improve FFO to debt above 25% and EBITDA
coverage of interest above 4.5x over the next 12 months, while
maintaining leverage below 3.5x, which represents a cushion to our
3.75x debt to EBITDA upgrade threshold. This incorporates our
expectation for yield growth to moderate in 2025, the benefits of
2024 refinancings and debt repayment, and our assumption that
returns to shareholders could increase next year. Furthermore, we
believe the company's financial policy is to sustain leverage under
3.5x.
"We could raise the rating if we believe Royal can sustain total
debt to EBITDA below 3.75x, FFO to total debt higher than 25%, and
EBITDA coverage of interest above 4.5x, incorporating a moderate to
severe cyclical downturn. We may tolerate a temporary spike above
these measures if we believe they could return to these levels
within a relatively short time horizon.
"We could revise our rating outlook to stable if we no longer
believe the company would be able to sustain the current level of
credit measure improvement that we are forecasting over the next
year, either because of operating performance or an unlikely change
in financial policy. While it is less likely given recent
performance and our forecasted cash flow over the next year, we
could lower the rating if we expect Royal will sustain debt to
EBITDA above 4.5x and FFO to debt below 20%."
ROYSTONE ON QUEEN: Files Amendment to Disclosure Statement
----------------------------------------------------------
Roystone on Queen Anne LLC submitted a Revised Disclosure Statement
for the Amended Chapter 11 Plan of Reorganization dated September
16, 2024.
The Plan provides for full payment of all creditors from cash on
hand, income generated from the Debtor's business operations,
proceeds of a post-petition exit loan, and the proceeds of a
refinance of the existing secured obligations and/or a sale of the
Debtor's real property.
The Schedules reflect general Unsecured Claims as of the Petition
Date totaling approximately $698,247.86. In addition to its Secured
Claim, Pavilion asserts a general Unsecured Claim in the amount of
$1,020,616.00 in its Proof of Claim.
As detailed in the Plan, each Allowed Claim in Classes 1–6 shall
be paid in full from cash on hand, Net Income, proceeds of the Exit
Loan, and the proceeds of a refinance of the Secured Claims and/or
sale of the Property. The Holders of Equity Interests shall retain
their Interests following Confirmation. Vibrant Cities, the
Debtor's Manager, will continue to own, manage and operate the
Debtor and the Property.
The Plan provides the Debtor with the option to either refinance
the Secured Claims, or sell the Property, so long as either such
event creates Net Proceeds sufficient to pay all Allowed Claims in
full. The Debtor through its management believes that, in the case
of a sale, the value of the Property will be more than sufficient
prior to the Plan Maturity Date to pay all Allowed Claims in full.
Early Sale Option under the Exit Loan and Appointment of Plan
Administrator
All terms and conditions set forth in the Exit Loan Documents shall
be deemed approved by the Bankruptcy Court upon entry of the
Confirmation Order. On and after the Effective Date and upon Equity
Funding's election to implement the Early Sale Option, the Plan
Administrator shall be deemed appointed. The duties, power,
authority, rights, and responsibilities of the Plan Administrator
shall be as set forth in the Plan and Exit Loan Documents. Mr. John
P. Rader of Pacific Realty Advisors LLC will serve as the Plan
Administrator and shall be bound to act in accordance with the
terms and conditions set forth in the Plan and Exit Loan
Documents.
Should Equity Funding invoke the Early Sale Option under the Exit
Loan Documents, the Plan Administrator shall oversee the listing
and sale of the Property, in consultation with Equity Funding
regarding price and marketing process. The Property will be listed
for sale at a price that would, at a minimum, ensure payment in
full of the Class 1 Allowed Claim. The listing would be with a
broker and at a price subject to Equity Funding's reasonable
consent and consultation.
The Plan Administrator will have authority to make decisions
regarding the pricing, marketing and sale process, in consultation
with the Reorganized Debtor, Equity Funding, and Pavilion. The Plan
Administrator will provide twenty days' notice of any proposed sale
of the Property to counsel for the Reorganized Debtor, 5 Roy,
Pavilion, and Equity Funding. The Plan Administrator will not be
the disbursing agent of the Net Sale Proceeds from a sale of the
Property, and all Distributions to Creditors made pursuant to this
Plan shall be the responsibility of the Reorganized Debtor.
Class 6 consists of all Unsecured Claims other than Allowed Claims
that qualify for or elect treatment under Class 5 (each, a "Class 6
Claim"). The Class 6 Allowed Claims shall be paid as follows:
* Each Holder of a Class 6 Allowed Claim shall be paid from
the Net Proceeds of a Financial Event after payment in full of
Classes 1, 2, 2A, and 3.
* Each Holder of a Class 6 Allowed Claim shall be paid pro
rata with Holders of Allowed Claims in Classes 2, 2A, and 3 from
the Net Proceeds generated from any Litigation Claims or Avoidance
Claims.
* Upon the occurrence of a Financial Event, the remaining
balance of all Class 6 Allowed Claims, if any, shall be paid in
full.
All Allowed Claims will be paid in full from monthly payments from
cash on hand, Net Income, funds advanced pursuant to the Exit Loan,
proceeds of Litigation Claims and/or Avoidance Actions, and from
the Net Proceeds of a Financial Event. The Plan provides and
invests the Reorganized Debtor with the right and authority to sell
the Property at any time following Confirmation, without further
notice or order of the Court.
A full-text copy of the Revised Disclosure Statement dated
September 16, 2024 is available at https://urlcurt.com/u?l=l0OL8r
from PacerMonitor.com at no charge.
Counsel to the Debtor:
Richard B. Keeton, Esq.
Bush Kornfeld Llp
601 Union Street, Suite 5000
Seattle, WA 98101
Tel: (206) 292-2110
Email: rkeeton@bskd.com
About Roystone On Queen Anne
Roystone on Queen Anne, LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments located
at 5 W. Roy Street, Seattle, Wash. The property has an appraised
value of $39,056,543.
Roystone on Queen Anne filed its voluntary petition for Chapter 11
protection (Bankr. W.D. Wash. Case No. 24-11462) on June 12, 2024,
listing $39,433,126 in assets and $35,776,259 in liabilities. James
H. Wong, manager of Vibrant Cities, LLC, signed the petition.
Judge Christopher M. Alston oversees the case.
Bush Kornfeld, LLP serves as the Debtor's legal counsel.
RUTHERFORD ENTERPRISES: Unsecureds to Split $10K Dividend in Plan
-----------------------------------------------------------------
Rutherford Enterprises 1, LLC d/b/a Marco's Pizza filed with the
U.S. Bankruptcy Court for the Northern District of Florida an
Amended Chapter 11 Plan of Reorganization dated September 16,
2024.
The Debtor operates a Marco's Pizza quick service restaurant in
Thomasville, Georgia. The Debtor does business as "Marco's Pizza"
as a franchisee. The Debtor began operating this restaurant at the
current location in 2020.
The Debtor filed this case to reorganize its debts. Prepetition,
the Debtor's franchisor (Marco's Pizza) threatened to terminate the
Debtor's franchise agreement due to alleged non-monetary defaults.
Additionally, the Debtor obtained a loan through the U.S. Small
Business Administration ("SBA") serviced by Customers Bank, and
guaranteed a second SBA loan serviced by KeyBank for another
Marco's Pizza restaurant (operated by a separate entity) that was
located in Tallahassee, Florida. The Tallahassee location has since
ceased operations, so the Debtor is left with the guaranty debt.
The Debtor's cash flow has stabilized and the Debtor believes it
will be able to fully perform under the terms of this Plan of
Reorganization. This Plan provides for the payment in full of
Customers Bank's secured claim, which has been paid down since the
Petition Date via the sale of real properties owned by the Debtor's
managers. Since the Petition Date, the Debtor has received ERTC
funds from the federal government to assist in funding the Debtor's
business operations.
This Plan of Reorganization proposes to pay creditors of the Debtor
out of cash flow from the normal operations of the Debtor's
business. The Managers of the Debtor, Charles and Krystal
Rutherford, will remain in those roles post-confirmation.
This Plan provides for the payment of priority tax claims, one
class of secured claims, one class of lease claim(s), one class of
franchise agreement claim(s), one class of general unsecured
claims, and one class of equity security holders. This Plan
provides for the payment of administrative and priority claims in
full.
Class 4 consists of General Unsecured claims. The class of general
unsecured claims shall receive a total dividend of $10,000.00 paid
pro-rata amongst the creditors in this class. Payments shall
commence on the fifteenth day of the month, on the first month that
begins more than ninety days after the Effective Date and shall
continue quarterly for nineteen additional quarters. The Debtor
shall pay a total of $500.00 per quarter (disbursed pro-rata). This
Class is impaired.
General Unsecured Creditors include Mulligan Funding, LLC
($72,656.80); KeyBank National Association ($449,189.95); and
Paychex ($17,000.00).
Class 5 consists of Equity Security Holder(s) Charles and Krystal
Rutherford. Post confirmation, the equity security holder(s) will
continue to receive the monthly salary that was approved by the
Court during this case.
The Debtor shall fund its Plan from the continued operations of its
business. The Debtor may also fund the Plan via a sale of the
business if an acceptable offer is received. Unless otherwise
ordered by the Court, the Debtor will make the payments under this
Plan, rather than the Subchapter V Trustee.
A full-text copy of the Amended Plan dated September 16, 2024 is
available at https://urlcurt.com/u?l=iMOZt6 from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Byron Wright III, Esq.
Bruner Wright, PA
2810 Remington Green Circle
Tallahassee, FL 32308
Tel: (850) 385-0342
Fax: (850) 270-2441
Email: twright@brunerwright.com
About Rutherford Enterprises 1, LLC
d/b/a Marco's Pizza
Rutherford Enterprises 1, LLC, a company in Tallahassee, Fla.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. N.D. Fla. Case No. 23-40217) on June 16, 2023, with
$100,000 to $500,000 in assets and $1 million to $10 million in
liabilities. Charles M Rutherford, Sr., manager, signed the
petition.
Judge Karen K. Specie oversees the case.
Byron W. Wright III, Esq., at Bruner Wright, P.A. is the Debtor's
legal counsel.
SAGINAW PREPARATORY: S&P Raises 2012 Revenue Bond Rating to 'BB-'
-----------------------------------------------------------------
S&P Global Ratings raised its long-term rating to 'BB-' from 'B+'
on Michigan Finance Authority's series 2012 public school academy
revenue bonds, issued for Saginaw Preparatory Academy (SPA). The
outlook is stable.
"The upgrade reflects our view of SPA's consistent enrollment
growth, improving academic performance, and stability in the new
management team, which have strengthened its overall enterprise
profile," said S&P Global Ratings credit analyst Joyce Jung.
"It also reflects its stable financial performance, which is
sustaining solid liquidity and maximum annual debt service
coverage," she added.
S&P said, "We assessed SPA's enterprise profile as vulnerable,
reflecting its smaller but growing enrollment base, improving
academic performance, stable management, and long operating
history. We assessed SPA's financial profile as adequate, due to
its consistent operating surpluses supporting its solid
lease-adjusted MADS coverage and days' cash on hand (DCOH), along
with its low outstanding debt, with all debt amortizing by fiscal
2029."
The bonds are secured by a pledge of state aid and a mortgage on
the existing facility. Debt payments are made through a state
intercept whereby 20% of the monthly school state aid payments are
sent directly to the trustee, with the remaining funds sent to the
school.
As of June 30, 2023, total debt outstanding was approximately $1.4
million, consisting solely of the series 2012 revenue bonds, which
have a maturity date of June 1, 2029.
SANUWAVE HEALTH: Registers 1.4MM Shares Under 2024 Equity Plan
--------------------------------------------------------------
SANUWAVE Health, Inc. filed a Registration Statement on Form S-8
with the U.S. Securities and Exchange Commission disclosing that
the stockholders of the Company approved its 2024 Equity Incentive
Plan on August 7, 2024. The following shares of the Company's
common stock, $0.001 par value per share, are available for
issuance under the 2024 Plan:
(a) 1,376,556 shares of Common Stock, and
(b) up to 42,605 shares of Common Stock which were subject to
outstanding awards under the Amended and Restated 2006 Stock
Incentive Plan as of the Effective Date.
The Outstanding Shares will be available for future grants under
the 2024 Plan to the extent that, on or after the Effective Date,
such awards are forfeited, cancelled, settled, paid in cash, or
expire before being exercised or settled in full. Upon stockholder
approval of the 2024 Plan on the Effective Date, no new awards may
be granted under the 2006 Plan.
The purpose of the Registration Statement is to register the New
Shares and the Outstanding Shares. A post-effective amendment to
the Company's Form S-8 filed with the Securities and Exchange
Commission on November 3, 2010 (Registration Statement No.
333-170301) is being filed contemporaneously with the filing of
this Registration Statement to deregister the 50,728 shares of
Common Stock that were previously authorized for issuance under the
2006 Plan and that, as of the Effective Date, were not issued under
the 2006 Plan and were not subject to outstanding awards granted
under the 2006 Plan.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/f2tyuabs
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. As of June 30, 2024, SANUWAVE Health
had $21 million in total assets, $60.6 million in total
liabilities, and $39.6 million in total stockholders' deficit.
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.
SCHULTE INC: Gets Interim OK to Use Cash Collateral Until Jan. 31
-----------------------------------------------------------------
Schulte Inc. received interim approval from the U.S. Bankruptcy
Court for the District of New Hampshire to continue using the cash
collateral of its secured creditors to cover operational expenses.
The interim order authorized the company to access up to $247,202
in cash collateral until Jan. 31 next year.
Secured creditors will retain replacement liens on the company's
post-petition property as adequate protection.
In addition, Schulte was ordered to make monthly payments of $363
to the U.S. Small Business Administration as per their loan
agreement.
The next hearing is scheduled for Jan. 29, 2025.
About Schulte Inc.
Schulte Inc., a company in Newton, N.H., filed its voluntary
Chapter 11 petition (Bankr. D.N.H. Case No. 24-10225) on April 8,
2024, with $1 million to $10 million in both assets and
liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon, PLLC serves as the Debtor's legal counsel.
SDS COLCON: Reaches Settlement with Romspen; Amends Plan
--------------------------------------------------------
SDS Colcon LLC and SDS Colcon Owner LLC, submitted an Amended
Disclosure Statement describing Joint Plan of Liquidation dated
September 16, 2024.
At its core, the Plan is the vehicle to implement a comprehensive
settlement reached by the Debtors and their sole secured creditor,
TIG Romspen US Master Mortgage LP ("Romspen" or the "Lender"),
providing an agreed exit strategy for conclusion of the Chapter 11
cases based upon Romspen’s financing of the completion of the
Debtors' unfinished condominium project and the subsequent sale of
the Property.
The Debtors and Romspen were at loggerheads for a significant
period of time both before and after the commencement of the
bankruptcy cases regarding, inter alia, (i) the final amounts owed
to Romspen on account of its Secured Claim; (ii) the scope and
costs needed to complete construction of the Debtor's project at 63
Columbia Street, Brooklyn, NY (the "Property") to build eleven
residential condominium units (the "Project"); (iii) how to finance
completion of the Project and whether the Debtors could do so; and
(iv) how best to sell the completed Project.
The negotiations came to include a proposed new unrelated general
contractor known as AKI Renovations Group, Inc. ("AKIR") which
emerged as a significant part of the settlement process, as well as
an affiliate of AKIR's named AKI Dev Management, LLC ("AKID") which
is separately contracted to act as the day-today overall developer
of the Project.
Ultimately, after months of negotiations, a formal and
comprehensive settlement agreement (the "Settlement") was reached
resolving all outstanding issues and disputes between the Debtors
and Romspen, including the terms of a $5.0 million DIP Loan and
potential reductions in Romspen's claim relating to default
interest and late fees if certain benchmark recoveries are obtained
to pay Romspen full principal amount of its debt, non default
interest and fees. The Debtors' Settlement and DIP Loan have been
approved in principle by the Bankruptcy Court, with proposed orders
expected to be entered in early August 2024.
As noted, the Plan incorporates and implements the Settlement and
provides for, inter alia, a sale of the Property at the election of
Romspen, subject to advances and carve-outs to fund certain of the
administrative expenses (which are capped), and establish a
creditor reserve in the sum of $200,000 to enable the Debtors to
pay a pro rata dividend to all unsecured creditors.
Under the Plan and Settlement, Romspen retains the option through
its credit bid rights to either acquire control over the Property
immediately on the Effective Date of the Plan based upon the
transfer of the underlying 100% membership interest in Colcon Owner
or to allow the Debtors to sell the Property either in bulk or as
individual condominium units (after completion of the Project) and
be paid from the proceeds (defined as the "Sale Election"). Based
upon current budgets, the Project is anticipated to be completed in
late 2025 or early 2026.
The decision on the Sale Election resides solely in the discretion
of Romspen and shall be made either before or after confirmation of
the Plan. All other creditors, however, are not negatively impacted
by the timing of the Sale Election since the Property is currently
worth less than the amount of the Romspen Secured Claim and Romspen
is funding an unsecured creditor reserve of $200,000 on the
Effective Date irrespective of what decision it ultimately makes.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* Class 2 consists of Unsecured Claims. Except as hereafter
provided and/or as may be agreed to between the Debtors and the
holder of any Allowed Unsecured Claim, the holders of Allowed
Unsecured Claims, in full and final satisfaction, release and
settlement of such Allowed Unsecured Claims, shall from time to
time receive Pro Rata distributions of cash from the Unsecured
Claim Fund plus, potential additional recovery if the Section 5.4
waivers are achieved and Remaining Cash exists after payment by
Owner of all Administrative Claims, Priority Claims, Professional
Fee Claims, the Romspen Allowed Secured Claim, Other Allowed
Secured Claims.
* The holders of the Class 3(a) Colcon Interests shall receive
a Pro Rata distribution of any Remaining Cash received from Owner
after payment by Owner of all Administrative Claims, Priority
Claims, Professional Fee Claims, the Romspen Allowed Secured Claim,
Other Allowed Secured Claims and Unsecured Claims, and otherwise
shall receive no other consideration under the Plan. Class 3(a)
Colcon Interests are Impaired by the Plan and are entitled to vote
to accept or reject the Plan.
* The holder of the Class 3(b) Owner Interest shall neither
receive nor retain any consideration under the Plan. The Class 3(b)
Owner Interests will be conveyed and assigned to Romspen as partial
consideration for the treatment of the Romspen Allowed Secured
Claim. The holders of the Class 3(b) Owner Interests are deemed to
have rejected the Plan.
The Plan provides that, from the first Net Proceeds, the Debtors
shall repay to Romspen, as the maker of the DIP Loan, the entire
outstanding principal amount of the DIP Loan, of up to $5 million,
plus all accrued interest thereon and any and all fees, costs and
expenses that accrue and are due and payable under the DIP Loan
Agreement.
A full-text copy of the Amended Disclosure Statement dated
September 16, 2024 is available at https://urlcurt.com/u?l=JayxfC
from PacerMonitor.com at no charge.
Counsel for the Debtors:
Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway, 22nd Floor
New York, NY 10036
Telephone: (212) 221-5700
Email: knash@gwfglaw.com
About SDS Colcon LLC
Alleged creditors filed an involuntary Chapter 11 petition for SDS
Colcon LLC on Sep. 27, 2023. The Debtors, SDS Colcon LLC and
SDSColcon Owner LLC, in turn filed a voluntary petition under
Chapter 11 of the Bankruptcy Code on Nov. 13, 2023 (Bankr. E.D.N.Y.
Lead Case No. 23-43469).
Goldberg Weprin Finkel Goldstein LLP is the Debtors' bankruptcy
counsel.
SEVEN SEAS: Seeks Cash Collateral Access
----------------------------------------
Seven Seas Roasting Co., LLC and Seven Seas Roasting OC, LLC asked
the U.S. Bankruptcy Court for the Southern District of California
for authority to use the cash collateral of its secured creditors.
The companies require the use of cash collateral to pay operating
expenses consistent with their six-month budget, with a 20%
variance.
The U.S. Small Business Administration, Black Olive Capital, JP
Morgan Chase and ODK Capital, LLC have a secured interest in the
companies' cash collateral. To protect the interests of secured
creditors, the companies agreed to provide them with replacement
liens on their post-petition property mirroring the priority of
their liens.
A court hearing is scheduled for Nov. 25.
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. and its affiliate, Seven Seas Roasting OC,
LLC, filed Chapter 11 petitions (Bankr. S.D. Calif. Lead Case No.
24-02183) on June 14, 2024. At the time of the filing, Seven Seas
Roasting Co. reported $100,001 to $500,000 in assets and $1 million
to $10 million in liabilities while Seven Seas Roasting OC reported
up to $50,000 in assets and up to $500,000 in liabilities.
Judge Christopher B. Latham oversees the cases.
The Debtors are represented by Gregory T. Highnote, Esq., at
Bankruptcy Legal Group.
SHEPHERD-HULDY DEVELOPMENT: Taps Kevin Michael Madden as Counsel
----------------------------------------------------------------
Shepherd-Huldy Development I, LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire The Law
Offices of Kevin Michael Madden, P.L.LC. as its counsel.
The firm will render these services:
a) advice and represent the Debtor throughout the bankruptcy
process;
b) represent the Debtor negotiations and discussions with
third parties;
c) represent at meetings, hearings and conferences, including
the meeting of creditors under section 341 meeting;
d) prepare pleadings, including motions and applications, to
facilitate the administration of the case;
e) take all actions to preserve the value of the estate and
its assets for the benefit of creditors;
f) facilitate the proposed sale process;
g) facilitate the plan confirmation process; and
h) perform all other acts and services necessary to assist the
Debtor in this chapter 11 case.
The firm will be paid at these rates:
Attorneys $375 per hour
Legal Assistants $150 per hour
The firm received a retainer in the amount of $7,500.
Kevin Michael Madden, Esq., disclosed in a court filing that the
firm does not represent any interest adverse to the Debtor's
bankruptcy estate, and that its attorneys are "disinterested
persons" as defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Kevin M. Madden, Esq.
Law Offices of Kevin Michael Madden, PLLC
16310 State Highway 249, Unit 1304
Houston, Texas 77064
Telephone: (281) 888-9681
Facsimile: (832) 538-0937
Email : kmm@kmaddenlaw.com
About Shepherd-Huldy Development I
Shepherd-Huldy Development I, LLC is a Texas limited liability
company founded on April 26, 2018, with an office building located
at 2419 S Shepherd Dr. Houston, Texas 77019 (the "Property").
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-32146) on May 6,
2024, with $1,000,001 to $10 million in assets and liabilities.
Judge Jeffrey P. Norman presides over the case.
Kevin M Madden, Esq., at the Law Offices Of Kevin Michael Madden
PLLC, is the Debtor's legal counsel.
SM ENERGY: Fitch Hikes Long-Term IDR to 'BB', Outlook Stable
------------------------------------------------------------
Fitch Ratings has upgraded SM Energy Company's Long-Term Issuer
Default Rating (IDR) to 'BB' from 'BB-' following the close of its
acquisition of an 80% working interest in XCL's Uinta Basin assets.
The Rating Outlook is Stable.
The transaction closed as expected when the ratings were placed on
Rating Watch Positive. The issue ratings on the secured revolver
will be upgraded to 'BBB-'/'RR1' from 'BB+'/'RR1' and the senior
unsecured notes to 'BB'/'RR4' from 'BB-'/'RR4'. The upgrade
reflects SM's increased size and scale, improved netbacks, and
basin diversity from the acquisition, along with maintaining
leverage below 1.5x. This rating action resolves the Rating Watch
Positive. The Stable Outlook reflects Fitch's expectation of
continued positive FCF and moderate leverage.
Key Rating Drivers
Credit Accretive Acquisition: Fitch views the XCL acquisition
favorably for SM Energy's credit profile despite the increase in
leverage. XCL adds 110 million barrels of oil equivalent (MMBoe) of
preliminary proved reserves and 43 million barrels of oil
equivalent per day (MMBoepd) of oil-biased production. The
acquisition also increases SM's years of inventory by two years to
12+, adds basin diversity and increases the oil percentage of
production and improves netbacks.
Increased Leverage: Fitch views the increase in leverage from the
acquisition as manageable for the company, primarily due to ample
leverage headroom leading into the acquisition. The XCL acquisition
adds $1.3 billion of debt and increases Fitch-calculated leverage
at the end of 2024 to 1.5x from 0.9x at the end of 2023. SM is
committed to paying down debt post the transaction, and Fitch's
forecasts leverage declining and remaining below 1.5x in 2025 and
throughout the forecast.
Consistently Positive FCF: SM's consistently positive FCF, even
while spending $1.3 billion-$1.4 billion annually on capex, is
supportive of credit strength. SM has been running a six-rig
program with four rigs running in the Midland Basin and two rigs
running in South Texas. Going forward, Fitch expects capex to align
with generating low to mid- single digit organic production growth.
Fitch also expects SM to use a material portion of its expected
positive FCF generation over the rating horizon to repay debt.
Strong Operating Performance: Fitch expects SM to extend its strong
operating performance to the acquired acreage. Both of the
company's existing basins showed higher cumulative oil production
than peers on new wells over the first 20 months of production.
Since 2022, SM has increased drilling footage per day by 10% and
completed footage per day by 85%. In the same timeframe, SM
increased these measures in South Texas by 20% and 30%,
respectively.
Well productivity in the XCL acreage is comparable to SM's wells.
The Uinta basin exhibits thicker sections with multiple targets of
high oil content. SM expects to bring over most of the existing XCL
field staff in the acquisition.
Protection from Hedge Program: Fitch views SM's policy of hedging
around 30% of production as supportive of the rating, even though
it somewhat exposes the company to more cash flow volatility than
peers that are more hedged. The addition of acquisition-related
hedging would be prudent in that it would protect SM's ability to
repay debt.
For the remainder of 2024, SM hedged approximately 40% of its
expected oil production at an average price of about $70.77 per
barrel (bbl) and approximately 20% of its expected natural gas
production at an average price of around $3.40 per thousand cubic
feet (mcf). For 2025, approximately 7% of expected oil production
is hedged at around $67/bbl and 24% of expected natural gas
production is hedged at $3.39/mcf.
Derivation Summary
With 2023 average production of 152 mboepd, SM is smaller than
Denver-Julesburg Basin peer Civitas Resources, Inc. (BB+/Stable;
212 mboepd), Permian peer Permian Resources Corporation
(BB+/Stable; 195 mboepd) and Murphy Oil Corporation (BB+/Positive;
193 mboepd), but larger than Permian peer Matador Resources Company
(BB-/Positive; 132 mboepd).
On a pro forma basis, SM's production scale will approach 200
Mboepd. SM's oil percentage of production at 43% is lower than all
of its peers, which ranged from 47% to 57% in 2023. On a pro forma
basis, SM's oil percentage of production will increase to around
52%. Civitas's pro forma production profile is expected to be 270
mboepd-290 mboepd, and Permian Resources' pro forma production
profile is expected to be approximately 300 mboepd.
SM's Fitch-calculated 2023 unhedged, levered cash netback of
$29.30/boe is below that of peers, which range from $29.70/boe for
Civitas to $37.80/boe for Matador. The introduction of the Uinta
production will increase SM's netbacks by around $4/boe due to
higher oil content and lower unit production costs offset somewhat
by negative oil differentials.
The acquisition-related debt brings leverage up to 1.5x, which is
still well within the range of peers and the expected generation of
FCF allows for deleveraging in the short term.
Key Assumptions
- West Texas Intermediate oil prices of $75/bbl in 2024, $65/bbl in
2025, $60/bbl in 2026 and 2027 and $57/bbl in the long term;
- Henry Hub natural gas prices of $2.25/mcf in 2024, $3.00/mcf in
2025 and 2026 and $2.75 in the long term;
- Production growth of 11% in 2024 (includes one quarter of XCL
production), 20% in 2025 (from a full year of XCL production),
followed by low-single-digit growth thereafter;
- Capex of between $1.3 billion and $1.4 billion throughout
forecast;
- FCF prioritized for debt repayment.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Higher netbacks relative to peers stemming from increased liquid
production or lower unit costs;
- Midcycle EBITDA leverage sustained below 2.0x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A change in financial policy or its hedging program leading to
debt-funded shareholder distributions;
- Midcycle EBITDA leverage sustained above 2.5x;
- Material reduction in liquidity or inability to access debt
capital markets.
Liquidity and Debt Structure
Strong Liquidity: At 2Q24, SM had $506 million of cash on hand,
$2.5 million of letters of credit utilization and no borrowings
under a $1.25 billion credit facility that matures in 2027. SM's
senior secured credit agreement provides for a maximum loan amount
of $3.0 billion with a borrowing base of $2.5 billion and elected
commitment of $1.25 billion. After the end of 2Q24, the company
extended the committed amount of the credit facility to $2 billion
and extended the maturity to 2029.
The credit facility has two financial maintenance covenants: total
funded debt/adjusted EBITDAX ratio of no greater than 3.5x and an
adjusted current ratio no less than 1.0. Fitch does not see any
covenant pressure through the rating horizon.
Fitch believes liquidity will remain strong through the forecast,
given the company's modest capital program, improving cost
structure and solid hedging program, which supports FCF
generation.
Issuer Profile
SM is an independent E&P company that operates in the Midland Basin
and in South Texas, which includes the Eagle Ford and Austin Chalk
basins. SM averaged 145.1 Mboepd of production during 1Q24,
including oil, natural gas liquids (NGLs) and gas.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
SM Energy Company LT IDR BB Upgrade BB-
senior unsecured LT BB Upgrade RR4 BB-
senior secured LT BBB- Upgrade RR1 BB+
SOUTHERN WAY TRUCKING: Seeks Bankruptcy Protection in Mississippi
-----------------------------------------------------------------
Southern Way Trucking Company LLC filed Chapter 11 protection in
the Northern District of Mississippi. According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Southern Way Trucking Company LLC
Southern Way Trucking Company LLC is part of the general freight
trucking industry.
Southern Way Trucking Company LLC sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case
No. 24-13299) on October 21, 2024. In the petition filed by Phillip
Lockhart, as managing member, the Debtor reports $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
SPIRIT AIRLINES: Draws Down $300MM From Revolving Credit Facility
-----------------------------------------------------------------
Spirit Airlines Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on October 15, 2024,
the Company borrowed the entire available amount of $300 million
under the Revolving Credit Facility.
Borrowings under the Revolving Credit Facility will mature on
September 30, 2026; provided that if the Company's senior secured
notes due 2025 are not extended or refinanced by June 20, 2025, or
the Company's convertible senior notes due 2026 are not extended or
refinanced by February 12, 2026, in each case in a specified
minimum outstanding principal amount thereof, then the maturity
will be automatically shortened to June 21, 2025 or February 13,
2026, respectively.
As previously disclosed, on March 30, 2020, the Company entered
into a senior secured revolving credit facility with the lenders
party thereto, Citibank, N.A., acting as the administrative agent,
and Wilmington Trust, National Association, acting as the
collateral agent.
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: Expects Over $1-Bil. in Liquidity by Year-End 2024
-------------------------------------------------------------------
Spirit Airlines Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company remains in
active and constructive discussions with holders of its senior
secured notes due 2025 and convertible senior notes due 2026 with
respect to their respective maturities.
Consistent with its previously provided guidance, the Company
expects to end the year 2024 with over $1 billion of liquidity,
including unrestricted cash and cash equivalents, short-term
investment securities and additional liquidity initiatives,
assuming that the Company is able to close those initiatives that
are currently in process.
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: Extends Maturity Dates in Card Processing Deal
---------------------------------------------------------------
Spirit Airlines Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a letter agreement which modifies the existing Card Processing
Agreement.
As previously disclosed, on May 21, 2009, the Company entered into
a Signatory Agreement (U.S. VISA and MasterCard Transactions) with
U.S. Bank National Association, pursuant to which U.S. Bank
National Association processes certain payments made to the Company
using credit cards bearing the service mark of Visa International,
Visa U.S.A. Inc. or MasterCard International Incorporated. On July
2, 2024, the Company entered into a letter agreement which modified
the Card Processing Agreement to, among other things, extend the
term thereof until December 31, 2025, including automatic
extensions for two successive one-year terms (subject to the right
of either party to opt out of any extension term by written notice
to the other within a specified period of time prior to the
commencement of any extension term); provided that if the Company's
senior secured notes due 2025 were not extended or refinanced by
September 20, 2024, in a specified minimum outstanding principal
amount thereof, then the term would revert to the prior expiration
of December 31, 2024 (with no automatic extensions). On September
9, 2024, the Company entered into a letter agreement which modified
the existing Card Processing Agreement to extend the 2025 Notes
Extension Deadline from September 20, 2024 to October 21, 2024.
The Newly Modified Card Processing extends:
(i) the 2025 Notes Extension Deadline from October 21, 2024 to
December 23, 2024 and
(ii) the Early Maturity Date from December 31, 2024 to March 3,
2025.
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.
TAYLOR G. WRIGHT: Seeks Bankruptcy Protection in Utah
-----------------------------------------------------
On October 23, 2024, Taylor G. Wright P.C. filed Chapter 11
protection in the District of Utah. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Taylor G. Wright P.C.
Taylor G. Wright P.C. is a medical establishment that diagnoses and
provides treatment advice for various health conditions.
Taylor G. Wright P.C. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 24-25496) on October 23,
2024. In the petition filed by Zachary Paul, as chief financial
officer, the Debtor reports estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Bankruptcy Judge Kevin R. Anderson handles the case.
The Debtor is represented by:
Ted F. Stokes, Esq.
STOKES LAW PLLC
2072 North Main Suite 102
North Logan, UT 84341
Tel: (435) 213-4771
Fax: (888) 443-1529
Email: ted@stokeslawpllc.com
TEGNA INC: BlackRock Reports 16.7% Equity Stake as of Sept. 30
--------------------------------------------------------------
BlackRock, Inc. disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of September 30, 2024,
it beneficially owned 27,596,366 shares of TEGNA Inc.'s Common
Stock, representing 16.7% of the shares outstanding.
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/fxfd5m6x
About TEGNA
Headquartered in Tysons Corner, Virginia, TEGNA Inc. (NYSE: TGNA)
is an American publicly traded broadcast, digital media and
marketing services company. It was created on June 29, 2015, when
the Gannett Company split into two publicly traded companies.
TEGNA reported a net income of $476.7 million attributable to the
Company for the year ended December 31, 2023, compared to a net
income of $630.5 million attributable to the Company for the year
ended December 31, 2022. As of June 30, 2024, TEGNA had $7.1
billion in total assets, $4.3 billion in total liabilities, and
$2.8 billion in total equity.
Egan-Jones Ratings Company, on January 16, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc.
THOMAS ROOFING: Case Summary & 15 Unsecured Creditors
-----------------------------------------------------
Debtor: Thomas Roofing and Repair Inc.
924 W. Colonial Drive
Orlando, FL 32804
Business Description: Thomas Roofing is a family-owned business
located in Central Florida, that offers
roofing and repair services to residential
and commercial customers.
Chapter 11 Petition Date: October 26, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-05788
Judge: Hon. Tiffany P Geyer
Debtor's Counsel: L. Todd Budgen, Esq.
BUDGEN LAW
PO Box 520546
Longwood FL 32752
Email: TBudgen@MyBankruptcyFirm.com
Total Assets: $466,403
Total Liabilities: $2,428,473
The petition was signed by Matthew Thomas as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/M4UA5QY/Thomas_Roofing_and_Repair_Inc__flmbke-24-05788__0001.0.pdf?mcid=tGE4TAMA
TINY PIECES: Taps Regional Bankruptcy Center as Bankruptcy Counsel
------------------------------------------------------------------
Tiny Pieces, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania to hire Regional Bankruptcy
Center of Southeastern PA, P.C. as to serve as legal counsel in its
Chapter 11 case.
Regional Bankruptcy Center will be paid at its hourly rate of
$300.
The firm has received an initial retainer of $10,000, plus the
filing fee of $1,738.
Roger Ashodian, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Mr. Ashodian can be reached at:
Roger V. Ashodian, Esq.
Regional Bankruptcy Center of Southeastern PA, P.C.
101 West Chester Pike, Suite 1A
Havertown, PA 19083
Tel: (610) 446-6800
Email: ecf@schollashodian.com
About Tiny Pieces
Tiny Pieces, LLC is engaged in activities related to real estate.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-13515) on September
30, 2024, with $1 million to $10 million in assets and liabilities.
Asmaro Gist, managing member, signed the petition.
Judge Ashely M. Chan presides over the case.
Roger V. Ashodian, Esq. at REGIONAL BANKRUPTCY CENTER OF
SOUTHEASTERN P.A., P.C. represents the Debtor as legal counsel.
TOS WHEELS: Gets Interim Approval to Use Cash Collateral
---------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
granted TOS Wheels & Tires, LLC authority for interim use of cash
collateral.
The interim order authorized the company to use cash collateral for
post-petition operating expenses, including payroll and related
taxes as outlined in its budget. The company can exceed the budget
by up to 15% without court approval and may carry over budget
savings to future weeks.
The court order granted JP Chase Morgan replacement liens in the
company's post-petition cash, accounts receivable, and inventory as
adequate protection for the use of its cash collateral.
The final hearing is scheduled for Nov. 7. Objections are due by
Nov. 1.
About TOS Wheels & Tires
TOS Wheels & Tires, LLC specializes in the sale and distribution of
wheels and tires for various vehicles. It offers a wide range of
products, including performance tires, off-road tires, and custom
wheel options, catering to both retail customers and automotive
businesses.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-12549) on October
14, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Christopher M. Alston oversees the case.
The Debtor is represented by:
Jennifer L Neeleman, Esq.
Neeleman Law Group, P.C.
1904 Wetmore Ave. Suite 200
Everett, WA 98201
Phone: 425-212-4800
Fax: 425-212-4802
Email: jennifer@neelemanlaw.com
TREASURES AND GEMS: Taps Northgate Real Estate Group as Advisor
---------------------------------------------------------------
Treasures and Gems, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Northgate Real
Estate Group as real estate advisor.
The firm will market and sell the Debtor's real property located at
1739 2nd Avenue, a/k/a 250 East 90th Street, New York New York
10128.
Northgate Real Estate will be paid a commission of 4.75 percent of
the gross sales price. Northgate is also entitled to the sum of
$50,000 if Kenden is the successful purchaser by bidding all or a
portion of its claim.
Greg Corbin, President at Northgate Real Estate Group, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Greg Corbin
Northgate Real Estate Group
1633 Broadway, 46th Floor
New York, NY 10019
Tel: (212) 369-1800
About Treasures and Gems, Ltd.
Treasures and Gems owns a 5-story, mixed use rent stabilized
building consisting of 12 rental units (8 residential and 4 retail)
valued at $8.8 million.
Treasures and Gems, Ltd. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-10570) on April 2, 2024, listing $9,700,000 in assets and
$4,479,735 in liabilities. The petition was signed by David M.
Repetto as president.
Eric J. Snyder, Esq. at WILK AUSLANDER LLP represents the Debtor as
counsel.
TW MEDICAL GROUP: Seeks Bankruptcy Protection in Utah
-----------------------------------------------------
TW Medical Group LLC filed Chapter 11 protection in the District of
Utah. According to court filing, the Debtor reports between $10
million and $50 million in debt owed to 200 and 999 creditors. The
petition states that funds will be available to unsecured
creditors.
About TW Medical Group LLC
TW Medical Group LLC, doing business as Innovation Medical Group
and Utah Foot & Ankle, is a podiatry practice offering
state-of-the-art care across many locations in the United States.
The Company provides care for patients of all ages, from infants to
older adults. Its podiatry team specializes in diagnosing and
treating many foot and ankle conditions, including plantar
fasciitis, tendonitis, ingrown toenail, toenail fungus, bunions,
and flat feet.
TW Medical Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 24-25495) on October 23,
2024. In the petition filed by Zachary Paul, as chief financial
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
Debtor's Counsel: George B. Hofmann, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Tel: 801-363-4300
Fax: 801-363-4378
Debtor's
Special
Counsel: PIA HOYT, LLC
TY TRUCKING: Unsecureds to Get 100 Cents on Dollar in Plan
----------------------------------------------------------
TY Trucking LLC filed with the U.S. Bankruptcy Court for the
District of Utah a Plan of Reorganization for Small Business under
Subchapter V dated September 16, 2024.
The Debtor is an LLC. Since the LLC was registered in June, 2015,
the Debtor has been in the business of hauling. There is a single
member of the LLC, Tyson O'Driscoll.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of at least $4,445.00 per
month. The final Plan payment is expected to be paid on 60 months
after the effective date of the plan.
The Debtor's financial reports show that he is collecting less than
what would be required to maintain the plan. However, the reports
also show that the Debtor's accounts receivable are substantially
more than will be required. The collection of these loads, or
accounts, is essential to the success of the plan, and the next
several reports should show a marked increase in revenue.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Class 3 is
impaired by this plan. Each holder of a Class 3 non-priority
unsecured claim will be paid the full amount of such claim, without
interest, in monthly installments over the term of the plan. The
Debtor proposes to pay $43.00 per month to Pilot Travel Centers
(claim 1) and $8.00 per month to State Bank of Southern Utah (no
claim filed).
Class 4 consists of Equity security holders of the Debtor Mr.
O'Driscoll is not owed money by the Debtor. He intends to continue
to work for the Debtor, and to manage this plan, and to retain his
Managing Membership throughout, and after completion of, this
plan.
The Debtor will pay by cashier's check, money order, ECH transfer
or direct deposit the amounts set forth in paragraph 4.1 of this
plan, to the individual creditors. The Debtor will likewise pay
such portion of its disposable income to administrative expense
claims as shall be agreed by the Debtor's counsel and the Chapter
11 Subchapter V trustee, until such administrative expense claims
are paid in full. The Debtor shall continue to do business for the
duration of this plan.
A full-text copy of the Plan of Reorganization dated September 16,
2024 is available at https://urlcurt.com/u?l=vp8XwO from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Brian D. Johnson, Esq.
Brian D. Johnson, P.C.
290 25th St. Suite 208
Ogden, UT 84401
Tel: (801) 394-2336
About TY Trucking
TY Trucking LLC has been in the business of hauling since it was
registered in June, 2015.
The Debtot sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 24-22996) on June 18,
2024, listing $100,001 to $500,000 in both assets and liabilities.
Judge Peggy Hunt presides over the case.
Brian D. Johnson, Esq. at Brian D. Johnson, P.C. represents the
Debtor as counsel.
ULTRA SAFE: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Ultra Safe Nuclear Corporation (Lead Case) 24-12443
200 Euphoria Ave
Oak Ridge, TN 37830
Ultra Safe Nuclear Corporation - Technologies 24-12444
USNC-Power Ltd. 24-12445
Global First Power Limited 24-12446
Business Description: The Company is a global leader in developing
cutting edge technology and equipment for
reliable and safe zero-carbon nuclear power
energy used on Earth and in space. It
holds 33 patents and is headquartered in Oak
Ridge, Tennessee. The Company is developing
front-line nuclear technology, including FCM
Fuel and the Micro Modular Reactor, which
have the potential to provide safe, clean,
and cost-effective zero-carbon energy. The
Company's technology has applications for
terrestrial power, space exploration, and
defense purposes, and could play a crucial
role in addressing global energy needs and
climate change concerns.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Karen B. Owens
Debtors' Counsel: Michael R. Nestor, Esq.
Elizabeth S. Justison, Esq.
Matthew B. Lunn, Esq.
Elizabeth S. Justison, Esq.
Shella Borovinskaya, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: mnestor@ycst.com
mlunn@ycst.com
ejustison@ycst.com
sborovinskaya@ycst.com
Debtors'
Investment
Banker: INTREPID INVESTMENT BANKERS LLC
Debtors'
Notice,
Claims,
Solicitation &
Balloting
Agent: STRETTO, INC.
Debtors'
Financial
Advisor: ANKURA CONSULTING GROUP, LLC
Estimated Assets
(on a consolidated basis): $10 million to $50 million
Estimated Liabilities
(on a consolidated basis): $50 million to $100 million
The petitions were signed by Kurt A. Terrani as interim chief
executive officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/6KF6NFI/Ultra_Safe_Nuclear_Corporation__debke-24-12443__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Hatch Trade Debt $2,154,556
2800 Speakman Drive
Mississauga, Ontario L5K 2R7
Canada
Georgios Tsarouchas
Tel: 1-431-441-5320
Email: Georgios.Tsarouchas@Hatch.com
2. NRG EU Trade Debt $1,982,799
Westerduinweg 3
Petten, 1755 LE
Holland
Mark Huntelaar
PHONE: +31 (0)224 56 4950
EMAIL: huntelaar@nrg.eu
3. Hyundai Engineering Co., Ltd. Trade Debt $1,745,533
75 Yulgok-Ro, Jongno-Gu
Seoul, 03058
South Korea
Hong, Hyeon Sung
PHONE: 010-3043-8962
EMAIL: sang@hec.co.kr
4. MPR Associates, Inc. Trade Debt $1,180,406
320 King Street
Suite 400
Alexandria, VA 22314-3230
Kyle Metzroth
PHONE: 703-519-0242
EMAIL: kmetzroth@mpr.com
5. Morgan, Lewis & Bockius LLP Trade Debt $1,012,864
1111 Pennsylvania Avenue
Washington, DC 20004-2541
Alex Polonsky
PHONE: 1-202-739-3000
EMAIL: alex.polonsky@morganlewis.com
6. University Of Illinois At Trade Debt $807,812
Urbana-Champaign
1901 South First Street
Suite A
Champaign, IL 61820-7406
Caleb Brooks
PHONE: 217-333-2187
EMAIL: csbrooks@illinois.edu
7. Buchanan Ingersoll & Rooney PC Trade Debt $696,987
2200 Renaissance Blvd
Suite 350
King of Prussia, PA 19406
Sunjeev Sikand
PHONE: 202-808-7374
EMAIL: sunjeev.sikand@bipc.com
8. Canadian Nuclear Safety Trade Debt $655,472
Commission
280 Slater Street
P.O. Box 1046, Station B
Ottawa, Ontario K1P 5S9
Canada
Olga Dolghi
PHONE: 888-229-2672
EMAIL: cnsc.receivables-recevables.ccsn@canada.ca
9. Avis Inc. dba AVS Inc. Trade Debt $620,260
60 Fitchburg Road
Ayer, MA 01432
Dave Landry
PHONE: 978-302-0596
EMAIL: dlandry2@avsinc.com
10. Calian Ltd. Trade Debt $517,227
770 Palladium Drive
4th Floor
Ottawa, Ontario K2V 1C8
Canada
C. Robinson
PHONE: 613-599-8600
EMAIL: c.robinson@calian.com
11. Massachusetts Institute of Trade Debt $499,989
Technology
77 Massachusetts Avenue
Cambridge, MA 02139
David Carpenter
PHONE: 617-510-1333
EMAIL: david_c@mit.edu
12. Ansys Inc. Trade Debt $400,622
2600 Ansys Drive
Canonsburg, PA 15317
Hichem Ben Cheikh
PHONE: 724-746-3304
EMAIL: hichem.bencheikh@ansys.com
13. Siemens Industry Software Trade Debt $391,792
Sa Pty Ltd.
1577 North Service Road E
Oakville, Ontario L6H 0H6
Canda
Matt McCullum
PHONE: 226-791-1990
EMAIL: matt.mccullum@siemens.com
14. Roland Berger Trade Debt $376,750
300 North LaSalle
Suite 2000
Chicago, IL 60654
Roland Berger
PHONE: 1-312 662-5500
EMAIL: RBNA.Accounting@rolandberger.co
15. JMP Consulting Inc. Trade Debt $303,456
801 Lawrence Avenue East
Unit 206
Toronto, Ontario M3C 3W2
Canada
Jay Patel
PHONE: 647-227-1785
EMAIL: jay.patel@jmpconsulting.ca
16. Anne Lindeblad Convertible $300,000
Address on File Note
17. Salmon Bay Trade Debt $284,168
Investment Group LLC
2001 West Garfield Street
Terminal 91, Bldg. A-1, C-107
Seattle, WA 98119
Frank Fulleton
PHONE: 206-291-3000
EMAIL: frank@glacierfish.com
18. Principal Technology Inc. Trade Debt $272,092
901 10th Street
Ste 400
Plano, TX 75074
Matt Hodson
PHONE: 972-941-4610
EMAIL: mhodson@principaltechnology.com
19. Oracle America Inc. Trade Debt $234,076
500 Oracle Parkway
Redwood Shores, CA 94065
Eric Shin
PHONE: 1-818-669-8104
EMAIL: eric.shin@oracle.com
20. Dentons Canada LLP Trade Debt $229,591
77 King Street West
Suite 400
Toronto, Ontario M5K0A1
Canada
Ivanka Petrisevac
PHONE: 514-673-7446
EMAIL: Ivanka.Petrisevac@dentons.com
21. Aecom Trade Debt $225,770
10 Patewood Drive
Greenville, SC 29615
Kevin Taylor
PHONE: 864-234-3005
EMAIL: kevin.taylor@aecom.com
22. Owens, Evans, And Ingols Trade Debt $210,000
309 Massachusetts Avenue
Washington, DC 20002
Adam Ingols
PHONE: 202-393-7771
EMAIL: adam@owensdc.com
23. Illinois Tool Works, Inc Trade Debt $194,402
dba Instron
825 University Avenue
Norwood, MA 02062
Mark Shorey
PHONE: 1-781-575-5247
EMAIL: mark_shorey@instron.com
24. Peter Schaefer Trade Debt $140,060
Address on Fil
25. Mirion Technologies, Trade Debt $128,657
(Canberra) Inc.
800 Research Parkway
Meriden, CT 06450
David Gebbie
PHONE: 800-243-3955
EMAIL: meriden-orders@mirion.com
26. Walter Morris Justice II Trade Debt $123,000
dba Navton
Consulting Service, LLC
1800 Ninth Avenue
Orange Beach, AL 36561
Walter M. Justice II
PHONE: 423-618-8283
EMAIL: wmjustice@navton.net
27. Texas A&M Engineering Trade Debt $120,724
Experiment Station
400 Harvey Mitchell Parkway South
Suite 300
College Station, TX 77845-4375
Chelsea Soechting
PHONE: 979-862-1323
EMAIL: csoechting@tamu.edu
28. Boundary Stone Partners LLC Trade Debt $120,000
1001 Pennsylvania Avenue NW
Suite 740S
Washington, DC 20004
Teddy Johnston
PHONE: 812-369-8394
EMAIL: teddy@boundarystone.com
29. Tesiac Corporation Trade Debt $119,200
50 Milk Street
10th Floor
Boston, MA 02110
John Bohn
PHONE: 914-671-8475
EMAIL: john.bohn@tesiac.com
30. EACL Consulting Services Trade Debt $118,138
15 Allstate Parkway
Suite 102
Markham, Ontario L3R5B4
Canada
John Chrobak
PHONE: 416-567-0526
EMAIL: john.chrobak@eaclconsulting.com
UNIVERSITY OF HARTFORD: S&P Affirms 'BB+' LT Rating on N/P Bonds
----------------------------------------------------------------
S&P Global Ratings revised the outlook to stable from negative and
affirmed its 'BB+' long-term rating on University of Hartford
(UHart), Conn.'s series N and P bonds.
"The outlook revision reflects our view of UHart's stabilized
enrollment and strengthened financial controls resulting in slimmer
operating deficits," said S&P Global Ratings credit analyst
Nicholas Breeding.
S&P said, "We could revise the outlook to negative or lower the
rating if enrollment and demand metrics deteriorate, if
full-accrual operating deficits and financial resources materially
worsen, or if unrestricted resources deplete before the university
can transition away from reliance on supplemental endowment draws.
We would also view material additional debt issuance without a
commensurate increase in financial resources negatively.
"We could revise the outlook to positive or raise the rating if
enrollment and demand metrics materially improve, if full-accrual
operating margins remain near break-even without reliance on
supplemental endowment draws, and if unrestricted financial
resources materially increase."
As of 2024 fiscal year-end, UHart had $162.2 million of debt
outstanding, including the series N and P bonds and the full draw
on its line of credit.
UPTOWN DENTAL: Kicks Off Subchapter V Bankruptcy
------------------------------------------------
Uptown Dental Solutions PLLC filed for Chapter 11 protection in the
Northern District of Texas. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Uptown Dental Solutions
Uptown Dental Solutions PLLC --
https://lakesidedentalsolutions.com/ -- doing business as Lakeside
Dental, provides dental care services.
Uptown Dental Solutions PLLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-33352) on October 25, 2024. In the petition filed by Rashid
Beirute-Prada, as sole member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
The Debtor is represented by:
Brandon John Tittle, Esq.
Tittle Law Group, PLLC
6705 Heritage Pkwy, #100
Rockwall, TX 75087
VERDE RESOURCES: Partners With Nature Plus to Establish VerdePlus
-----------------------------------------------------------------
Verde Resources Inc. is excited to announce a significant
advancement: following the successful installation at the National
Center for Asphalt Technology (NCAT) Test Track, Verde has
established VerdePlus Inc., a new subsidiary in partnership with
Nature Plus Inc. (NPI).
Verde collaborated with NPI to successfully integrate its
innovative stabilization enzyme, TerraZyme, into the subgrade and
base layers of its cross-section at NCAT, marking the first ever
application of its kind. TerraZyme eliminates the need for
stabilizing lime in A-6 clay subgrades and cuts Portland cement
usage by over 60% compared to traditional methods. This innovation
slashes the carbon footprint, enhances soil stabilization and
moisture resistance, delivers at least 30% cost savings in
construction, and reduces the expenses associated with sourcing and
transporting traditional road materials.
"VerdePlus strengthens our commitment to sustainable
infrastructure," said Jack Wong, CEO of Verde Resources. "This
partnership will drive innovative green solutions into materials."
NPI will inject its intellectual property of TerraZyme into
VerdePlus, a joint subsidiary majority-held by Verde. VerdePlus
will leverage the combined expertise of both companies to scale
innovations in low-carbon building materials, including road
construction and concrete.
"We are very pleased to formalize this alliance with Verde," said
Jon Sedgwick, CEO of NPI. "Our successful NCAT Test Track
collaboration highlights the value of innovating for
sustainability, and we look forward to expanding TerraZyme's impact
within the Net Zero construction space."
The successful Test Track installation has enabled Verde and its
partners to begin quantifying significant environmental footprint
reductions and working towards generating Carbon Avoidance Credits
using advanced methodologies, all while ensuring integrity and
transparency to prevent greenwashing.
About NPI
NPI is a developer and manufacturer of specialized enzyme products
with a strong focus on sustainable infrastructure and innovative
solutions that enhance environmental responsibility and economic
efficiency.
About VerdePlus Inc.
VerdePlus, a joint venture of Verde Resources Inc. and NPI, is
committed to advancing low- carbon construction technologies. Its
mission is to drive Net Zero initiatives with practical,
cost-effective solutions that cut GHG in the infrastructure
sector.
About Verde Resources
Headquartered in St. Louis, MO, Verde Resources, Inc. specializes
in Net Zero road construction and building materials, driving
innovations that enhance sustainability and advance environmental
stewardship. Since 2021, the Company's BioFraction facility in
Borneo has been converting palm waste into biochar and other
sustainable byproducts. The Company conducts business operations
in La Belle, Missouri, U.S.A., through Verde Renewables, Inc., a
company incorporated in the State of Missouri, U.S.A., and an
indirect wholly-owned subsidiary Verde Estates, LLC, a Missouri
limited liability company.
Kuala Lumpur, Malaysia-based J&S Associate PLT, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Oct. 16, 2024, citing that the Company has generated
recurring losses and suffered from an accumulated deficit of
$13,480,204 as of June 30, 2024. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
VERTIV GROUP: S&P Upgrades ICR to 'BB+' on Strong Performance
-------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on power and
thermal management equipment and service provider Vertiv Group
Corp. to 'BB+' from 'BB' and our issue-level rating on its senior
secured debt to 'BB+' from 'BB'. S&P's '3' recovery rating on the
senior secured debt remains unchanged, indicating its expectation
for meaningful (50%-70%; rounded estimate: 50%) recovery for
lenders in the event of a payment default.
The positive outlook reflects S&P's forecast that Vertiv's S&P
Global Ratings-adjusted leverage will remain below 2x through 2025
as its strong backlog, favorable price-cost realization, and
incremental productivity gains support a modest improvement in its
EBITDA.
S&P said, "The upgrade reflects Vertiv's strong performance,
improved credit metrics, and continued solid growth prospects, as
well as its capital allocation plans and financial policy, which we
view as supportive of the higher rating. The upgrade also reflects
our increasingly favorable view of the company's scale and
profitability. That said, we believe Vertiv remains exposed to
capital investment cycles, given its concentrations in the data
center and telecommunications end markets, and component
availability and cost inflation, though we note the company's
multi-sourcing strategy somewhat mitigates this exposure. While the
company has improved its S&P Global Ratings-adjusted EBITDA margins
to the 20% area and its leverage to the 2x area, we note that it
has a relatively short track record of maintaining these improved
credit metrics, which will be an important factor when considering
whether to raise our rating to the investment-grade level.
"In our view, secular demand trends in AI- and cloud-related data
storage and computing will support increasing revenue and order
volumes for the company over the next few years. We believe Vertiv
will continue to benefit from healthy demand for its products and
services due to the strong underlying fundamentals, notably in its
data center end markets. This is supported by our expectation that
global IT spending will expand to more than $4.5 trillion in 2028
from about $3.4 trillion in 2013 while annual spending on
AI--including traditional AI (machine learning) and generative
AI--rises to nearly $650 billion by 2028 from less than $200
billion in 2023.
"We view Vertiv as being well positioned to compete as the pace of
data center construction and data use and computation accelerate.
The company has a global footprint, which includes 23 production
facilities, a full suite of thermal and power management products,
and 3,750 field service engineers, and benefits from long-standing
relationships with its customers, suppliers, and semiconductor
manufacturers. Moreover, in our view, Vertiv's increased R&D
spending on liquid cooling and other advancing technologies, as
well as its elevated capital spending to fund the expansion of its
capacity, will improve its competitiveness in a rapidly changing
industry where it competes against large, well-funded participants
such as Schneider Electric S.E. and Eaton Corp.
"Following the 20% increase in its revenue in 2023, Vertiv
continued its robust performance and expanded its revenue by 13.4%
year over year through the first three quarters of 2024. The
company's expansion continues to benefit from the build-out of new
data centers as the demand for data to support AI and cloud
applications remains very strong. Specifically, Vertiv has
experienced a considerable increase in orders for large projects
from its hyperscale and colocation customers, which has created a
large, long-dated backlog (with many orders expected to be
delivered in 2025 and beyond). We forecast the company will expand
its organic revenue by about 13% in 2024 and about 12% in 2025 on
the persistence of these strong growth trends as it executes on its
backlog, which was valued at $7.4 billion as of Sept. 30, 2024."
Vertiv's increasing scale and improving profitability indicate its
strengthening business and maturing operations. Following its late
2021 acquisition of E&I Engineering Group for $1.8 billion, the
company was negatively affected by component availability, which
led to longer lead times of key inputs and an increased backlog
during a period of elevated material and freight costs. Vertiv was
unable to reprice its backlog to align with its higher costs, which
weakened its EBITDA margins. Since then, the company's supply
chains have normalized and it has digested the acquisition, with
its revenue and S&P Global Ratings-adjusted EBITDA margins
improving significantly to $7.5 billion and 20.7% as of the 12
months ended Sept. 30, 2024, from $5 billion and 10.7%,
respectively, in 2021.
In addition to the normalization of its supply chains, Vertiv has
expanded its margins through positive price-cost realization,
productivity gains from its operating efficiency initiatives, and
improved operating leverage from its higher volumes. At the same
time, the company has implemented measures to improve its supply
chain resiliency and protect its margin profile. These include
reducing the lead times from its suppliers by implementing a
multi-sourcing strategy for key inputs, as well as negotiating
contractual protections with its suppliers. With some customers,
Vertiv has negotiated advanced payments, the ability to reprice its
backlog in the event of material inflation, and order cancellation
clauses.
S&P said, "Though the company hasn't faced the same degree of
operational pressures in recent quarters as it did in 2022, we
anticipate these measures will lessen the effect of any potential
supply chain disruptions or economic downturns on its margins.
Notably, and notwithstanding the aforementioned actions it has
implemented to strengthen its operational resiliency and margin
profile, we continue to view Vertiv as exposed to capital
investment cycles, given its concentrations in the data center and
telecommunications end markets.
"We forecast continued deleveraging supported by its increasing
EBITDA and supportive financial policy. Vertiv reduced its S&P
Global-Ratings-adjusted leverage to 2.2x as of year-end 2023, from
5.3x in 2022, by significantly expanding its revenue and EBITDA
margin, which benefitted from its improved operating leverage,
favorable price-cost dynamics, and easing supply chains. We assume
the company will expand its S&P Global Ratings-adjusted EBITDA
margin by 250 basis points (bps)-300 bps in 2024 and about 130 bps
in 2025 as it executes its efficiency projects, benefits from
favorable price-cost dynamics, and improves its operating leverage
on continued volume increases. We expect the increase in Vertiv's
absolute EBITDA will support this deleveraging under our forecast,
even when incorporating our assumption that its excess cash--which
we net against its debt in our measure of its S&P Global
Ratings-adjusted leverage--will decline moderately through 2025.
"We assume working capital will be a modest use of cash in 2024 and
an even more material use of cash in 2025 as management works to
support its increasing revenue. We also assume Vertiv's capital
expenditure (capex) will remain elevated, as a percentage of its
revenue, relative to historical periods through 2025 to support its
capacity expansion. We also assume the company uses its cash
generation and some cash on hand to fund share repurchases and
bolt-on acquisitions as it seeks to continue expanding its critical
infrastructure portfolio.
"We believe Vertiv will have sufficient internally generated cash
to fund its capital allocation plans. We also expect the company
will generally maintain net leverage of 1x-2x (S&P Global
Ratings-adjusted leverage is about 0.5x higher due to our
adjustments for operating leases, accessible cash, and warrant
liabilities). Therefore, we forecast Vertiv's S&P Global
Ratings-adjusted leverage will improve to about the 2x area by the
end of 2024 and to the mid-1x area in 2025.
"The positive outlook reflects our forecast that Vertiv's S&P
Global Ratings-adjusted leverage will remain below 2x through 2025
as it executes its strong backlog and favorable price-cost
realization and realizes incremental productivity gains that
modestly improve its EBITDA. Our forecast is supported by our
expectation for continued favorable demand trends for the company's
products and services as data demand and usage spur further data
center construction in the near to medium term."
S&P could raise its ratings on Vertiv if:
-- Its S&P Global Ratings-adjusted debt to EBITDA remains below
2.5x and its FOCF to debt remains above 15% on a sustained basis;
-- The company firmly commits to maintain its credit measures at
these levels, even after incorporating its capital investments,
shareholder rewards, and potential acquisitions; and
-- It builds on its relatively short track record of operating
with improved margins and lower leverage.
S&P could revise its outlook on Vertiv to stable if its S&P Global
Ratings-adjusted leverage increases toward the 3x area. This could
occur if:
-- New data center construction materially slows and communication
network capital investment remains weak, significantly reducing the
demand for the company's products;
-- It is unable to maintain the improvement in its EBITDA margin
through pricing changes or cost controls; or
-- The company pursues more-aggressive capital deployment actions
that lead to higher sustained debt leverage.
ESG factors are an overall neutral consideration in our credit
rating analysis of Vertiv. The company manufactures power and
thermal management equipment for data centers, communication
networks, and commercial and industrial end markets. The rapid
growth of data center construction to support AI and cloud
computing use cases is driving the need for novel and efficient
means of heat dissipation. S&P believes Vertiv is well positioned
to benefit from the demand for more-energy-efficient data centers
and advancing power and thermal management equipment, particularly
as data center operators aim to become more sustainable and reduce
their energy consumption and costs.
WAGYU RESTAURANT: Seeks to Hire Joel Schechter as Counsel
---------------------------------------------------------
Wagyu Restaurant Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to hire the Law Offices of
Joel A. Schechter to handle its Chapter 11 case.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and financial affairs;
(b) prepare legal papers; and
(c) perform all other legal services for the Debtor.
The firm will charge at its hourly rate of $500 plus expenses.
The firm shall received an advance payment retainer in the amount
of $10,00 and filing fee of $1,738 from the Debtor.
Mr. Schechter disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Joel A. Schechter, Esq.
Law Offices of Joel A. Schechter
53 W. Jackson Blvd., Suite 1522
Chicago, IL 60604
Telephone: (312) 332-0267
Email: joel@jasbklaw.com
About Wagyu Restaurant Inc.
Wagyu Restaurant Inc. sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-12981) on Sep.
2, 2024, listing $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Donald R Cassling presides over the case.
Joel A Schechter, Esq. at Law Offices Of Joel Schechter represents
the Debtor as counsel.
WAT TIMBER: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: WAT Timber, Inc.
227 Blueberry Road
Butler, AL 36904
Business Description: WAT Timber Inc. is part of the logging
industry.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Southern District of Alabama
Case No.: 24-12749
Judge: Hon. Jerry C Oldshue
Debtor's Counsel: Wm. Wesley Causby, Esq.
MEMORY MEMORY & CAUSBY, LLP
469 South McDonough Street
Montgomery AL 36104
Tel: (334) 834-8000
E-mail: wcausby@memorylegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Willie Andrew Thomas 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/HQ2VEQI/WAT_Timber_Inc__alsbke-24-12749__0001.0.pdf?mcid=tGE4TAMA
WIN-SC LLC: Taps NAI CIR Commercial Real Estate Services as Realtor
-------------------------------------------------------------------
Win-SC, LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Pennsylvania to employ NAI CIR Commercial Real
Estate Services as realtor.
The Debtor requires a realtor to list and sell its real estate.
The firm will receive a commission of 2 percent of the property's
gross sale price and 3 percent if a co-broker is involved in the
transaction.
Nik Sgagias, a member at NAI CIR Commercial Real Estate Services,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Nik Sgagias
NAI CIR Commercial Real Estate Services
1015 Mumma Rd.
Lemoyne, PA 17043
Telephone: (717) 761-5070
Facsimile: (717) 975-9835
About Win-SC LLC
Win-SC LLC owns real property located at 1890 - 1900 North Atherton
Street, State College, Centre County, Pennsylvania comprised of two
parcels having a current value of $5.27 million.
Win-SC LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Pa. Case No. 24-02012) on April 15, 2024. In the
petition filed by Robert E. Schmidt, Jr., managing member of
Schmidt Investments of South Florida, LLC, the Debtor reports total
assets of $5,286,776 and total liabilities of $8,222,411.
The Honorable Bankruptcy Judge Henry W. Van Eck handles the case.
The Debtor is represented by Lawrence V. Young, Esq., at CGA Law
Firm.
WISCONSIN & MILWAUKEE: Lennhoff Real Estate as Expert Witness
-------------------------------------------------------------
Wisconsin & Milwaukee Hotel LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Wisconsin to employ
Lennhoff Real Estate Consulting LLC as expert witness.
Lennhoff Consulting will review and evaluate appraisals of
Milwaukee Marriott Downtown and prepare a written appraisal review
report, and potentially act as an expert witness for the Debtor in
the Property Tax Appeal.
Lennhoff Consulting will render these services:
a. Phase 1 -- Appraisal Review -- review appraisals of the
Hotel prepared for the purpose of the Property Tax Appeal, and
prepare a written appraisal review report; and
b. Phase 2 -- Expert Witness -- act as expert witness on behalf
of the Debtor in proceedings related to the Property Tax appeal,
including, but not limited to, providing testimony at
depositions or at trial, and preparing for both as necessary.
Lennhoff will be paid a fixed fee of $9,300 for the appraisal
review and charges $620 per hour for expert witness testimony.
David Lennhoff, a principal with Lennhoff Real Estate Consulting,
assured the court that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David C. Lennhoff, MAI
Lennhoff Real Estate Consulting LLC
12165 Darnestown Road
Gaithersburg, MD 20878
Phone: (703) 336-7488
About Wisconsin & Milwaukee Hotel LLC
Wisconsin & Milwaukee Hotel LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Wisc. Case No. 24-21743) on
April 9, 2024. In the petition signed by Mark Flaherty, as manager,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge G. Michael Halfenger oversees the case.
Michael P. Richman, Esq., at RICHMAN & RICHMAN LLC, is the Debtor's
legal counsel.
WWEX UNI: Moody's Affirms B3 CFR & Rates New 1st Lien Term Loan B3
------------------------------------------------------------------
Moody's Ratings affirmed WWEX UNI TopCo Holdings, LLC's (WWEX)
corporate family rating at B3 and probability of default rating at
B3-PD. At the same time, Moody's assigned a B3 rating to WWEX's
proposed senior secured first lien term loan. Concurrently, Moody's
downgraded the company's existing senior secured first lien
revolving credit facility to B3 from B2. Lastly, Moody's affirmed
the company's existing senior secured first lien term loan at B2
and senior secured second lien term loan at Caa2, which will be
repaid with proceeds from the new first lien term loan. Moody's
will withdraw the ratings on both of these facilities once the
proposed transaction closes. The outlook is stable.
WWEX is seeking to issue a new tranche of first lien term debt
totaling $1,540 million, which will consist of a repricing of its
existing $1,240 million first lien term loan and a $300 million
incremental fungible add-on. Proceeds from the incremental term
loan will be used to fully repay the company's $275 million second
lien term loan, add cash to the balance sheet and pay transaction
costs. Overall, Moody's view the transaction to be leverage neutral
with some interest cost savings. Following the transaction, WWEX's
debt structure will consist predominately of first lien term debt
as well as an undrawn $200 million first lien revolving credit
facility. Therefore, the first lien debt ratings are in line with
the company's CFR at B3.
The affirmation of WWEX's B3 CFR reflects Moody's expectation that
WWEX will continue to navigate through a challenging freight
environment. Moody's expect the company to modestly increase
volumes, particularly in its less-than-truckload and small parcel
businesses, while managing costs over the next twelve months. In
addition, Moody's expect WWEX to maintain good liquidity supported
by a solid cash position, positive free cash flow and full revolver
availability.
RATINGS RATIONALE
WWEX's B3 CFR reflects the company's good scale and competitive
position within the third party logistics market. However, the
company will also continue to have high financial leverage and
modest margins. WWEX's credit profile benefits from its position as
the largest authorized reseller of United Parcel Service Inc.'s
parcel service to small and medium sized businesses. Further, the
company's diversified and asset light business model has helped
mitigate broader market pressures over the last couple of years.
WWEX's financial leverage is high with debt/EBITDA expected to
remain above 6x by the end of 2024. Moody's anticipate ongoing cost
saving initiatives and additive earnings from additional franchise
acquisitions to support moderate earnings growth in 2025. As a
result, Moody's expect debt/EBITDA to improve to slightly below 6x
next year.
The stable outlook reflects Moody's expectation that WWEX will
maintain its good competitive position with modest volume growth
over the next twelve months. Further, the company will continue to
generate solidly positive free cash flow.
Moody's expect WWEX to maintain good liquidity through 2025.
Moody's expect WWEX to generate positive free cash flow of around
$40 million in 2024 before improving to at least $80 million in
2025. Moody's expect WWEX to use cash for acquisitions as well as
investing in the company's technology platform. Liquidity is
further supported by an undrawn $200 million revolving credit
facility expiring in 2026. Mandatory amortization on term debt is
about $15 million per annum.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if WWEX demonstrates profitable
revenue growth with improving margins. In addition, expectation
that meaningful, positive free cash flow will be used for debt
reduction such that debt/EBITDA remains below 5.5x on a sustained
basis would result in a rating upgrade. Lastly, an upgrade would be
predicated on the company maintaining good liquidity.
The ratings could be downgraded with expectations of margin
pressure or deteriorating liquidity, including sustained negative
free cash flow. A downgrade could also result from weakening credit
metrics, including debt/EBITDA sustained above 7x. Debt financed
dividends or acquisitions that meaningfully increase leverage or
weaken liquidity could also lead to a downgrade.
The principal methodology used in these ratings was Surface
Transportation and Logistics published in December 2021.
WWEX UNI TopCo Holdings, LLC is headquartered in Dallas, Texas and
is a leading non-asset based third party logistics services
provider to a wide array of end markets and customers. The company
is owned by private equity sponsors, CVC Capital Partners,
Providence Equity Partners, PSG, Ridgemont Equity Partners and
management. Revenue for the last twelve months ended June 30, 2024
was $3.5 billion.
YH&R CONSTRUCTION: Hits Chapter 11 Bankruptcy Protection
--------------------------------------------------------
YH&R Construction LLC filed Chapter 11 protection in the Western
District of Texas. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
About YH&R Construction LLC
YH&R Construction LLC is a general contractor in San Antonio,
Texas.
YH&R Construction LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-52085) on October 21,
2024. In the petition filed by Sandor Gonzalez, as chief executive
officer, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Michael M. Parker oversees the
case.
The Debtor is represented by:
James S. Wilkins, Esq.
JAMES S. WILKINS P.C.
1100 NW Loop 410, Ste. 700
San Antonio, TX 78213
Tel: 210-271-9212
Email: jwilkins@stic.net
Z BRAND: Seeks to Hire Calaiaro Valencik as Bankruptcy Counsel
--------------------------------------------------------------
Z Brand Group Inc. seeks approval from the U.S. Bankruptcy Court
for the Western District of Pennsylvania to hire Calaiaro Valencik
as counsel.
The firm will provide these services:
a. preparation of the bankruptcy petition and attendance at
the meeting of creditors;
b. representation of the Debtor in relation to negotiating an
agreement on cash collateral;
c. representation of the Debtor in relation to acceptance or
rejection of executory contracts;
d. advice regarding Debtor's rights and obligations during the
Chapter 11 case;
e. representation of the Debtor in relation to any motions to
convert or dismiss this Chapter 11;
f. representation of the Debtor in relation to any motions for
relief from stay filed by any creditors;
g. preparation of the Chapter 11 Plan and Disclosure
Statements;
h. preparation of any objection to claims in the Chapter 11;
and
i. otherwise, representation of the Debtor in general.
The firm will be paid at these rates:
Donald R. Calaiaro, Attorney/Partner $450 per hour
David Z. Valencik, Attorney/Partner $375 per hour
Andrew K. Pratt, Attorney/Partner $325 per hour
Paralegals $100 per hour
The firm received an initial retainer in the amount of $4,000. It
will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Donald R. Calaiaro, Esq., a partner at Law firm of Calaiaro
Valencik, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Donald R. Calaiaro, Esq.
Law firm of Calaiaro Valencik
938 Penn Avenue, 5th Fl. Suite 501
Pittsburgh, PA 15222
Tel: (412) 232-0930
Fax: )412) 232-3858
Email: dcalaiaro@c-vlaw.com
About Z Brand Group Inc.
Z Brand Group Inc. is a provider of full-service marketing and
advertising services intended to offer channel optimization and
related advanced marketing facilities.
Z Brand Group Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Penn. Case No. 24-22524) on October
14, 2024. In the petition filed by Jeff Lizik, as president, the
Debtor reports estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by Donald R. Calaiaro, Esq. at CALAIARO
VALENCIK.
[*] AcceptDebtPayments.com Launches Payment Solutions for Attys.
----------------------------------------------------------------
AcceptDebtPayments.com, a subsidiary of E-Commerce 4 LLC, announced
the launch of its new payment processing program for bankruptcy
attorneys. This program addresses the unique challenges bankruptcy
professionals face when accepting clients' credit and debit card
payments. The payment gateway and merchant account offer provides
various secure and compliant solutions, including online payments,
recurring billing, and shopping cart integration.
When you accept credit card payments for bankruptcy consultations
through traditional methods, it can increase the client's unsecured
debt, creating potential conflicts. AcceptDebtPayments.com tackles
this issue by facilitating direct and "on-behalf-of" payments,
allowing friends and family to contribute financially without
adding to the client's debt burden. This innovative approach
addresses ethical considerations while providing clients with
flexible payment options.
The program offers payment options to cater to diverse client needs
and preferences:
Online Web Forms: Clients or designated payers can submit payments
easily through a user-friendly online form. This option requires no
complex setup and provides a convenient way to manage transactions,
saving valuable time for both clients and attorneys.
Chapter 13 Recurring Billing: The program supports automated
recurring billing for clients enrolled in Chapter 13 repayment
plans. This "set it and forget it" feature simplifies the process
for attorneys while ensuring consistent and timely payments.
Shopping Cart Integration: AcceptDebtPayments.com seamlessly
integrates with popular e-commerce platforms like WooCommerce,
Shopify, and Wix, as well as any Authorize.Net-compatible attorney
software, allowing integration with existing practice management
systems. This provides a professional and integrated payment
experience directly on the attorney's website, enhancing client
convenience and streamlining administrative tasks.
Telephone Payments: For clients who prefer a more personal
approach, the program supports secure payments over the phone,
assisted by the attorney's office staff. This option caters to
clients who may be less comfortable with online transactions or who
prefer personalized assistance.
Emailed Invoices: Attorneys can send invoices with secure payment
links directly to clients via email. This simplifies the billing
process and provides a clear and convenient way for clients to
submit payments, reducing the time spent on administrative tasks
and improving cash flow.
In-Office Payments: The program also supports in-person payments
through secure payment terminals or mobile devices, offering
flexibility for clients who prefer to pay in person. This option is
ideal for consultations or other face-to-face interactions and
provides a seamless payment experience.
AcceptDebtPayments.com emphasizes the ease of setup and ongoing
support provided to its clients. The application process is
straightforward, and implementation requires no technical
expertise. The company also offers one-on-one screen-share sessions
to assist with any website or system setup required and provides
dedicated support to address any questions or concerns. This
commitment to client service ensures a smooth transition and
ongoing satisfaction with the program.
"Our goal is to simplify payment processing for bankruptcy
attorneys, allowing them to focus on their legal practice without
the added burden of complex payment management," states Alex Roy,
president of E-Commerce 4 LLC, AcceptDebtPayments.com's parent
company. "We are committed to providing a user-friendly platform
with competitive rates, a streamlined setup process, and dedicated
support to ensure a smooth and efficient experience for both
attorneys and their clients."
The enhanced efficiency offered by this program translates to more
time for client interaction, case management, and other essential
tasks, ultimately contributing to a more successful and less
stressful practice. By simplifying the payment process,
AcceptDebtPayments.com empowers bankruptcy attorneys to provide
better service and focus on what matters most: helping their
clients navigate challenging financial situations.
Bankruptcy attorneys seeking a payment solution tailored to the
needs of their practice are encouraged to visit
https://acceptdebtpayments.com/bankruptcy-attorney-payment-processing/
to learn more.
[*] Marshall & Stevens Acquires 7th Valuation Firm, Equitable Value
-------------------------------------------------------------------
Marshall & Stevens, Incorporated, an independent valuation
advisory, litigation support, and investment banking firm,
announces the acquisition of Equitable Value, LLC. Founded in 2017,
Equitable Value is the seventh respected valuation advisory and
litigation support company acquired by Marshall & Stevens since
2023.
Mark Santarsiero
Equitable Value is sought after for independent valuations of
businesses and intangible assets, matrimonial accounting, economic
damages calculations, and expert witness testimony. Clients engage
Equitable Value to assist with divorce and business litigation
matters, gift and estate tax reporting, as well as transaction
consulting.
"Like Marshall & Stevens, Equitable Value has experienced great
growth the past several years," said Scott DeMarco, MBA, CBA, CVA,
CDFA, CPVA, founder of Equitable Value. "By joining Marshall &
Stevens, we are partnering with like-minded professionals and
offering a greater diversity of services to our clients: real
estate and equipment valuation, transfer pricing and quality of
earnings studies, Fairness Opinions, Solvency Opinions, and
investment banking. Our team will be able to consult and share
resources with the deep bench of financial valuation and litigation
support professionals at Marshall & Stevens."
"Scott built an impressive firm over a short period of time," said
Mark Santarsiero, President and CEO of Marshall & Stevens. "The
focus on people, service, excellence, and growth by Equitable Value
is a great fit for Marshall & Stevens. We look forward to adding
their divorce services, litigation support, and financial valuation
specialists to our existing New York team and to Marshall & Stevens
as a whole."
MARSHALL & STEVENS
Founded in 1932, Marshall & Stevens works with public and private
companies, investors, and trusted advisors to assist with mergers,
acquisitions, divestitures, and financings, financial reporting,
tax planning and reporting, as well as matters of dispute,
insurance, and compliance.
Marshall & Stevens is relied upon to provide Fairness Opinions,
Solvency Opinions, and independent opinions of value of businesses,
equity and debt instruments, as well as intangible and tangible
assets including real estate.
The litigation specialists at Marshall Stevens perform
investigative accounting, valuation, damages calculations,
consulting, and expert witness services for parties requiring
assistance with bankruptcy, restructuring, and receivership, as
well as divorce, family law, regulatory, and business disputes.
Since 2023, Marshall & Stevens has acquired Reliant Business
Valuation and Reliant Equipment Appraisal, Rocky Mountain Advisory,
Lone Peak Valuation Group, Value Consulting Group, ValueScope,
Acuity Advisors, and now Equitable Value.
For more information about Marshall & Stevens, visit
marshall-stevens.com.
[*] Research Firm Reorg Rebrands to Octus
-----------------------------------------
Reorg, the leading provider of global credit intelligence and data,
announced it is renaming and rebranding itself to be, Octus.
Revealing a new brand identity that better captures the breadth and
depth of the company's capabilities across the entire credit
lifecycle, Octus reflects the company's market leadership
supporting the world's leading buy side firms, investment banks,
law firms and advisory firms. From deal origination and primary
issuance to performing, stressed and distressed credit, Octus is
the essential source for data and insights across all aspects of
sub-investment grade credit.
"Octus embodies the expansive scope of our offerings and
underscores our commitment to deliver unparalleled insights, data
and workflow to everyone involved in the high yield, leveraged loan
and private credit markets," said Kent Collier, founder and CEO of
Octus.
This transformative rebranding marks a pivotal moment for the
company. As financial markets continue to evolve, Octus' innovative
approach and customer-centered design philosophy positions it to
play an increasingly important role in providing critical
intelligence and data to decision makers across the capital
markets.
Proof of Octus' market leadership:
Comprehensive coverage of the global credit market: On a daily
basis, Octus publishes, on average, over 250 news stories and
sector insight alerts by reporters, financial analysts and legal
analysts spanning the entire credit lifecycle, from performing
credit to post-reorg situations. Year to date, Octus has published
more than 50,000 credit-related stories, including primary market
covenant analysis on 98 percent of high-yield issuances during Q2
and Q3 2024.
Growing subscriber base: Over 35,000 industry professionals, and
counting, look to Octus as their go-to resource. Octus clients
include 100 percent of the top 10 Bulge Bracket Banks, the top 10
asset managers and CLO managers, and 88% of the AM Law 50 firms,
along with all of the "magic circle" -- the five most prestigious
London-based multinational law firms.
Global expansion: Today, Octus has more than 650 employees
worldwide, including more than 300 credit, legal and data analysts
and debt capital markets subject matter experts, and nearly 150
technologists focused on application development, quality
assurance, data engineering, UI/UX, cybersecurity and AI.
Unrivaled commitment to tech innovation and AI: Octus leverages
market-leading, AI-integrated technologies and proprietary models
to help the editorial team publish faster and cover wider --
resulting in 99 percent content accuracy and 50 percent faster
publishing speeds. Using natural language queries across hundreds
of thousands of intelligence articles and data sets, Octus
subscribers can use CreditAI by OctusTM to simplify complex
scenarios and click through to the underlying intel used to source
responses. Since its inception, CreditAI has answered over 10,000
clients' credit-related questions.
"Over the past decade, the company has experienced massive growth
and as the business evolved, our brand did not. We took a holistic
view of the brand as part of the company's evolution to demonstrate
the depth, breadth and value we bring to our customers globally in
corporate credit," said Jeff Winter, Chief Marketing Officer at
Octus. "The name Octus reflects how we empower our customers to
make faster, more confident decisions at all stages of the credit
lifecycle. And, as we scale our workforce to support our rapidly
growing customer base, we're confident the company's positioning at
the intersection of finance, media and technology will continue to
attract high-caliber talent."
"The Octus platform is an essential part of our teams' daily
routine. From alerts in our inboxes to the FinDoxTM database and
portal on our screens, we are constantly using the data provided to
ensure we stay aware of our company results and how the market
thinks about these. The company has experienced impressive growth
and expansion into new services. We are now waiting and excited to
see what comes next," adds Octus client, Gauthier Reymondier,
Partner, Bain Capital Credit.
The Meaning Behind the Octus Brand
The name, Octus, is inspired by oculus, Latin for eye, and speaks
to the company's ability to reveal insights and unlock truths that
accelerate critical decisions and fuel decisive action across
financial markets. Octus allows the company to showcase its value
across the full credit lifecycle, enabling its audiences who seek
clarity in a complex market to see inside credit. The firm worked
with Prophet, a global marketing consultancy, on the re-branding.
About Octus
Founded in 2013, Octus, formerly Reorg, is the essential credit
intelligence and data provider for the world's leading buy side
firms, investment banks, law firms and advisory firms. By
surrounding unparalleled human expertise with proven technology,
data and AI tools, Octus unlocks powerful truths that fuel decisive
action across financial markets. Visit octus.com for more
information.
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Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
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are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***