/raid1/www/Hosts/bankrupt/TCR_Public/241101.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, November 1, 2024, Vol. 28, No. 305
Headlines
26 BOWERY LLC: Property Sale Proceeds to Fund Plan Payments
2626 PENN LLC: Hires Mcnamee Hosea P.A. as Legal Counsel
795 FAIRFIELD: Involuntary Chapter 11 Case Summary
A&R CONSTRUCTION: Michael Colvard Named Subchapter V Trustee
AGEAGLE AERIAL: CEO Outlines Long-Term Value Plans in Letter
ALEXANDER E. JONES: Trustee Soliciting Offers for IP Assets
ALMOND COW: Commences Subchapter V Proceedings
ANTERO MIDSTREAM: Moody's Alters Outlook on 'Ba2' CFR to Positive
ANTERO RESOURCES: Moody's Hikes Rating on Unsec. Notes to 'Ba1
ASMC LLC: Hires Crane Simon Clar & Goodman as Counsel
ASSETS4LIFE LLC: Brian Hofmeister Named Subchapter V Trustee
AVALON GLOBOCARE: Inks MOU for Co-Development Project With Qi
BAMBY EXPRESS: Hires Springer Larsen LLC as Attorney
BIG LOTS: Court Okays Nexus Capital as Lead Bidder
BIG RIVER CONTRACTORS: Eric Terry Named Subchapter V Trustee
BIOSIG TECHNOLOGIES: Has Until March 2025 to Regain MVLS Compliance
BLUE DOG: Hires DGIM Law Cohen Legal Services as Counsel
BUNNY'S LOUNGE: Dwayne Murray Named Subchapter V Trustee
BURGERFI INTERNATIONAL: DenCo Appointed to Creditors' Committee
CALERA CORP: Mark Sharf Named Subchapter V Trustee
CALISCO SPIRITS: Hires Gallagher & Kennedy P.A. as Counsel
CAPSITY INC: Lisa Holder Appointed as Chapter 11 Trustee
CENTENNIAL HOUSING: Case Summary & 20 Largest Unsecured Creditors
CHESSWOOD GROUP: Enters CCAA Protection Amid Credit Facility Issues
CONN CORP: Ciara Rogers Named Subchapter V Trustee
COST LESS DISTRIBUTING: Kimberly Clayson Named Subchapter V Trustee
CRYSTAL CITY INDEPENDENT SCHOOL: S&P Lowers GO Rating to 'BB'
CUSTOM CLUB: Hires Allen Jones & Giles PLC as Attorney
CUSTOM CLUB: Hires Sonoran Capital Advisors as Financial Advisor
DALRADA FINANCIAL: Appoints CM3 Advisory as Independent Auditor
DELTA 3 SOLUTIONS: Unsecureds to Get Share of Income for 5 Years
DIOCESE OF BUFFALO: Jeff Anderson Represents Sexual Abuse Claimants
DOGS ARE PEOPLE: Scott Seidel Named Subchapter V Trustee
DURHAM HOMES: Alternative Seeks Chapter 11 Trustee Appointment
EDMOUNDSON STEEL ERECTION: Seeks Bankruptcy Protection in Arkansas
EL DORADO OIL: Wants to Sell Gas Gathering and Processing Plant
ENPRO INDUSTRIES: Moody's Ups CFR to Ba2 & Unsecured Notes to Ba3
ENTECCO FILTER: Gets OK to Use Cash Collateral Until Nov. 22
ESPRIT US: Seeks Chapter 7 Bankruptcy Due to Financial Challenges
EVOKE PHARMA: Appoints Benjamin Smeal as Class II Director
FAIR OFFER: Hires Keller Williams as Real Estate Agent
FINEST COACHBUILDING: J. Schwendeman Named Subchapter V Trustee
FLUID MARKET: U.S. Trustee Appoints Creditors' Committee
FREE SPEECH: Jones Fights Bid to Sell Social Media Accounts
FREIRICH FOODS: Gets OK to Use Cash Collateral Until Nov. 29
GARDA WORLD: Moody's Affirms B3 CFR & Rates New Unsec. Notes Caa2
GEO. J. & HILDA: No Resident Care Concern, 5th PCO Report Says
GLOBAL CLEAN: Unit Issues CTCI Notice of Default Under EPC Contract
GREAT CANADIAN: Moody's Rates New $400MM Senior Secured Notes 'B2'
GREEN ENERGY: U.S. Trustee Unable to Appoint Committee
GRITSTONE BIO: U.S. Trustee Appoints Creditors' Committee
GROUP RESOURCES: Hires Robl Law Group LLC as Counsel
HANESBRANDS INC: Moody's Alters Outlook on 'B1' CFR to Stable
HOMESPUN LLC: Shantytown Cuts Offer for Equipment to $120,000
HOUSTON TRUCK: Melissa Haselden Named Subchapter V Trustee
HUDSON 888: Lender Get 52 Units of Hell’s Kitchen Condo
HYPERSCALE DATA: Sells $100K Worth of Convertible Preferred Shares
IMERYS TALC: Elliot, et al. Update on Talc Injury PI Claimants
INDOCHINE RESTAURANT: Gets Interim OK to Use Cash Collateral
INDOCHINE RESTAURANT: Hires Woodruff & Associates as Accountant
IROQUOIS-HUEY LLC: Patrick Malloy Named Subchapter V Trustee
ISUN INC: Creditors to Get Proceeds From Liquidation
IVF ORLANDO: Hires Latham Luna Eden & Beaudine LLP as Counsel
IVF ORLANDO: L. Todd Budgen Named Subchapter V Trustee
JM SUPERMARKETS: Hires RHM Law LLP as General Bankruptcy Counsel
JUNK IT PLUS: Jerrett McConnell Named Subchapter V Trustee
K & P COMMERCIAL: Chris Quinn Named Subchapter V Trustee
KLX ENERGY: Moody's Affirms 'Caa1' CFR & Alters Outlook to Negative
KYLE CHANDANAIS: Timothy Stone Named Subchapter V Trustee
LEGACY ENTERPRISES: Hires Oliver & Cheek PLLC as Attorney
MARINER WEALTH: Moody's Affirms B1 CFR, Rates New 1st Lien Debt Ba3
MARKETING ANALYSTS: Christine Brimm Named Subchapter V Trustee
MAXCAR EXPORT: Hires Cuenant & Pennington PA as Counsel
MEDICAL SOLUTIONS: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg
MENOTTI ENTERPRISE: Hires Hodgson Russ LLP as Special Counsel
MMA LAW FIRM: Gets Interim OK to Use Cash Collateral Until Dec. 31
MSHINGES.COM: Files for Chapter 11 Bankruptcy Protection
NAVACORD CORP: Moody's Assigns 'B3' CFR, Outlook Stable
NEWELL BRANDS: Moody's Rates New Senior Unsecured Notes 'Ba3'
NI-JO LLC: Ira Bodenstein Named Subchapter V Trustee
NORTHERN ILLINOIS UNIVERSITY: Moody's Rates New $62MM COPs 'Ba1'
NORTHPOINT DEVELOPMENT: Gets Interim OK to Use Cash Collateral
NUO THERAPEUTICS: Paul Anthony Jacobs Holds 6% as of Sept. 30
OZARK LANDSCAPE: Hires Crawley Law Firm P.A. as Attorney
PETIQ LLC: Moody's Withdraws 'B2' CFR Following Debt Repayment
PHCV4 HOMES: To Sell 20 Single Family Lots in Private Sale
RANCHO FRESCO: Walter Dahl of Dahl Law Named Subchapter V Trustee
RAZOR ENERGY: Plans Sale Transaction Amid CCAA Proceedings
RED PLANET: Moody's Rates $200MM First Lien Term Loan Add-on 'B3'
RED RIVER: $8.2B Talc Settlement Hinges on January 2024 Trial
REEVA DINING: Amends Priority Claims Pay Details
RESTAURANT LIFE: Maria Yip Named Subchapter V Trustee
RITE AID CORP: Sets to Close Waverly, Ohio Location
SASSY MEDCHILL: Gets Interim OK to Use Cash Collateral
SASSY MEDCHILL: Hires Lane Law Firm PLLC as Counsel
SCOTLAND MEADOWS: Hires Kenneth E. Lindauer as Counsel
SERVICE PROPERTIES: Moody's Cuts CFR & Senior Secured Notes to B3
SHAPIRO MANAGEMENT: Unsecureds Will Get 1.69% of Claims in Plan
SHIELDS NURSING: No Patient Care Concer, 6th PCO Report Says
SKID ROW HOUSING: Case Summary & 20 Largest Unsecured Creditors
SOUTH LINCOLN: Hires Kutner Brinen Dickey Riley P.C. as Counsel
SRHT PROPERTY: Case Summary & 20 Largest Unsecured Creditors
SYNAPSE FINANCIAL: B. Riley Notes of Nov. 4 Deadline for Bids
TABOR MANOR: Resident Care Maintained, 2nd PCO Report Says
TERVIS TUMBLER: Committee Hires Johnson Pope Bokor as Counsel
TGI FRIDAY'S: Closes More Locations in Central New Jersey
THE HOMESTEADER: Kicks Off Subchapter V Case
TRUE VALUE: Announces Plan to Lay Off Hundreds of Illinois Workers
TRUE VALUE: Court Approves Interim Use of Cash Collateral
TRUE VALUE: Russell R. Johnson III Represents Utility Companies
UNDEAD PRODUCTIONS: Gets Final OK to Use Cash Collateral
UNIMODE WOODWORKING: Matthew Brash Named Subchapter V Trustee
UNITED DENTAL: Case Summary & Six Unsecured Creditors
VALENCIA HOSPITALITY: Jarrod Martin Named Subchapter V Trustee
VANGUARD MEDICAL: No Decline in Patient Care, 2nd PCO Report Says
VERTEX ENERGY: Sidley Austin Advises Consenting Term Loan Lenders
VERTIV GROUP: Moody's Ups CFR to Ba2 & Alters Outlook to Positive
VIANT MEDICAL: S&P Affirms 'B-' ICR, Outlook Stable
WELLPATH HOLDINGS: Moody's Affirms 'Caa3' CFR, Outlook Stable
WEST HARWICH: Hires Paul E. Saperstein Co. Inc. as Auctioneer
WFO LLC: Trustee Hires Patrick Kelley PLLC as Counsel
WILLOUGHBY EQUITIES: Hires Wilk Auslander LLP as Legal Counsel
WINSTON DEVELOPMENT: Salvatore LaMonica Named Subchapter V Trustee
XPLORE INC: Moody's Raises CFR to 'B3', Outlook Stable
XTI AEROSPACE: Issues 2.8M Common Shares to Preferred Stockholder
YELLOW CORP: Judge Admits $6.5-Bil. Pension Ruling Mistake
ZHANG MEDICAL: No Decline in Patient Care, 7th PCO Report Says
[*] BOOK REVIEW: The Heroic Enterprise
[*] Jon F Weber & Co to be Featured in November 7 Webinar
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
26 BOWERY LLC: Property Sale Proceeds to Fund Plan Payments
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26 Bowery LLC and 2 Bowery Holding, LLC filed with the U.S.
Bankruptcy Court for the Southern District of New York a Disclosure
Statement for Joint Plan of Reorganization dated September 17,
2024.
2 Bowery is the owner of the real property and improvements located
at 2 Bowery, New York, New York ("2 Bowery Property").
26 Bowery is the owner of the real property and improvements
located at 26 Bowery, New York, New York ("26 Bowery Property").
Both the 26 Bowery Property and 2 Bowery Property are mixed-use
commercial properties located in Manhattan's Chinatown
neighborhood.
On April 26, 2019, the Debtors, as borrowers, executed a mortgage
loan agreement ("Senior Loan") in the original principal amount of
$8,200,000.00 with Double Bowery Funding LLC ("Double Bowery" or
"Senior Lender") in its capacity as lender.
Contemporaneously, the Debtors granted Senior Lender a mortgage on
the 26 Bowery Property and 2 Bowery Property and security interest
in virtually all of the Debtors' personal property and other
collateral specified in the security agreement and filed UCC-1. The
Debtors are jointly and severally liable with respect to the Senior
Loan. The Senior Loan has since matured and is in default.
By letter dated March 31, 2022, Mezz Lender informed the Debtors'
members that because of continuing defaults under the Senior Loan
and Mezz Loan, the Mezz Lender was exercising its rights under the
Pledge, including among other things, the right to vote the
Debtors' membership interests and to manage the Debtors, including
the right to file a chapter 11 case for each entity. Mezz Lender
also made a demand for the Debtors' books and records to be
delivered to it.
The Plan provides for (i) a sale of the 26 Bowery Property to
Double Bowery pursuant to a credit bid of $3,750,000 and (ii) a
sale of the 2 Bowery Property to a 1 Ludlow Three Points LLC for
$5,500,000. Both Double Bowery and 1 Ludlow Three Points are acting
as "stalking horses" and the Debtors will seek out higher and
better offers for 26 Bowery Property and 2 Bowery Property pursuant
to Court approved Bid Procedures. Should the Debtors receive higher
and better offers for either the 26 Bowery Property or the 2 Bowery
Property, then the Debtors will hold an auction pursuant to the Bid
Procedures. Upon the closing of the sale of the 26 Bowery Property
and 2 Bowery Property, the 26 Bowery Sale Proceeds and 2 Bowery
Sale Proceeds will be distributed to their respective creditors in
the order of their statutory priority.
Class 3 consists of 26 Bowery General Unsecured Claims. After
payment is made in full to holders of Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Fee Claims,
and Allowed Claims in class 1, on the 26 Bowery Closing Date, or as
soon thereafter as is reasonably practicable, except to the extent
that a holder of an Allowed General Unsecured Claim agrees to less
favorable treatment of such Allowed General Unsecured Claim or has
been paid before the Effective Date, each holder of an Allowed
General Unsecured Claim in Class 3 shall receive, net of any
setoffs allowed under section 7.6 of the Plan, in full and final
satisfaction of such Claim, their pro rata share of the remaining
Cash (or the Carve-Out) from the 26 Bowery Sale Proceeds, up to the
full amount of their Allowed Claim. The allowed unsecured claims
total $656,446.00. Class 3 is Impaired.
Class 4 consists of 2 Bowery General Unsecured Claims. After
payment is made in full to holders of Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Fee Claims,
and Allowed Claims in classes 1 and 2 on the 2 Bowery Closing Date,
or as soon thereafter as is reasonably practicable, except to the
extent that a holder of an Allowed General Unsecured Claim agrees
to less favorable treatment of such Allowed General Unsecured Claim
or has been paid before the Effective Date, each holder of an
Allowed General Unsecured Claim in Class 4 shall receive, net of
any setoffs allowed under section 7.6 of the Plan, in full and
final satisfaction of such Claim, their pro rata share of the
remaining Cash (or the Carve-Out) from the 2 Bowery Sale Proceeds,
up to the full amount of their Allowed Claim. The allowed unsecured
claims total $663,397.00. Class 4 is Impaired.
Class 5 consists of Interests in 26 Bowery. On the Effective Date,
or as soon thereafter as is reasonably practicable, Interests in 26
Bowery will be cancelled and will not receive any recovery on
account of their Interests in 26 Bowery, provided however, if
payment is made in full to holders of Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Fee Claims and
Allowed Claims in classes 1 and 3, Holders of Interests in 26
Bowery shall receive any remaining 26 Bowery Sale Proceeds, net of
any setoffs allowed under section 7.6 of the Plan, but in no event
will Class 5 receive any portion of the Carve-Out.
Class 6 consists of Interests in 2 Bowery. On the Effective Date,
or as soon thereafter as is reasonably practicable, Interests in 2
Bowery will be cancelled and will not receive any recovery on
account of their Interests in 2 Bowery, provided however, if
payment is made in full to holders of Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Fee Claims and
Allowed Claims in classes 1, 2 and 4, Holders of Interests in 2
Bowery shall receive any remaining 2 Bowery Sale Proceeds, net of
any setoffs allowed under section 7.6 of the Plan, but in no event
will Class 6 receive any portion of the Carve-Out.
The Plan shall be funded by the 26 Bowery Sale Proceeds and 2
Bowery Sale Proceeds, including the Carve-Out, to the extent
required by the Plan or Confirmation Order.
Creditor distributions not made on the 26 Bowery Closing Date and 2
Bowery Closing Date will be made from the 26 Bowery Sale Proceeds
and 2 Bowery Sale Proceeds by the Disbursing Agent in accordance
with the terms of the Plan.
The Bankruptcy Court has scheduled November 12, 2024 at 2:00 p.m.
as the hearing to consider confirmation of the Plan. Deadline to
file and serve any objection or response to the Plan shall be
November 5, 2024. Deadline for completed ballots to be received by
the ballot collector shall be November 5, 2024.
A full-text copy of the Disclosure Statement dated September 17,
2024 is available at https://urlcurt.com/u?l=OQ6ozd from
PacerMonitor.com at no charge.
26 Bowery LLC and 2 Bowery Holding, LLC are represented by:
Fred B. Ringel, Esq.
Clement Yee, Esq.
LEECH TISHMAN ROBINSON BROG PLLC
One Dag Hammarskjöld Plaza
885 Second Avenue, 3rd Floor
New York, New York 10017
Tel. No. 212 603 6300
About 26 Bowery
26 Bowery, LLC is the owner of the real property and improvements
located at 26 Bowery, N.Y. The property is a mixed-use commercial
property located in Manhattan's Chinatown neighborhood.
26 Bowery and its affiliate, 2 Bowery Holding, LLC, filed their
voluntary petitions for Chapter 11 protection (Bankr. S.D.N.Y. Case
Nos. 22-10412 and 22-10413) on March 31, 2022. Both reported as
much as $10 million in both assets and liabilities at the time of
the filing.
Judge Martin Glenn oversees the cases.
A. Mitchell Greene, Esq., at Leech Tishman Robinson Brog PLLC
serves as the Debtors' legal counsel.
2626 PENN LLC: Hires Mcnamee Hosea P.A. as Legal Counsel
--------------------------------------------------------
2626 Penn LLC seeks approval from the U.S. Bankruptcy Court for the
District of Columbia to employ Mcnamee Hosea, P.A. as counsel.
The firm will provide these services:
a. prepare and file the petition, schedules, statement of
affairs and other documents required by the court.
b. represent the debtor at the initial debtor interview and
meeting of creditors.
c. counsel the Debtor in connection with the formulation,
negotiation and promulgation of plans of reorganization and related
documents.
d. advise the Debtor concerning, and assisting in the
negotiation and documentation of financing agreements, debt
restructurings and related transactions.
e. review the validity of liens asserted against the property
of the Debtor and advising the Debtor concerning the enforceability
of such liens.
f. prepare all necessary and appropriate applications,
motions, pleadings, draft orders, notices, and other documents, and
reviewing all financial and other reports to be filed in this
Chapter 11 case; and
g. perform all other legal services that the Law Firm is
qualified to handle for or on behalf of the Debtor that may be
necessary or desirable in this Chapter 11 case and the Debtor's
business.
The firm will be paid at these rates:
Partners $400 per hour
Associates $350 per hour
Paralegal $$105 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Craig M. Palik, Esq., a partner at McNamee Hosea, P.A., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Craig M. Palik, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Telephone: (301) 441-2420
Email: cpalik@mhlawyers.com
About 2626 Penn LLC
2626 Penn LLC is the owner of real property located at 2626
Pennsylvania Avenue, N.W., Washington DC 20037 having an appraised
value of $17.5 million.
2626 Penn LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Col. Case No. 24-00345) on October 16, 2024. In the
petition filed by Phil Kang, as authorized representative, the
Debtor reports total assets of $17,526,583 and total liabilities of
$17,361,619.
The Honorable Bankruptcy Judge Elizabeth L. Gunn handles the case.
The Debtor is represented by:
Craig M. Palik, Esq.
MCNAMEE HOSEA, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
E-mail: cpalik@mhlawyers.com
795 FAIRFIELD: Involuntary Chapter 11 Case Summary
--------------------------------------------------
Alleged Debtor: 795 Fairfield Circle, LLC
530 S Lake Ave, Suite 364
Pasadena CA 91101
Business Description: 795 Fairfield is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101
(51B)).
Involuntary Chapter
11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-18871
Judge: Hon. Neil W Bason
Petitioner's Counsel: Filed Pro Se
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QRQ5D2I/795_Fairfield_Circle_LLC__cacbke-24-18871__0001.0.pdf?mcid=tGE4TAMA
Alleged creditor who signed the petition:
Petitioner Nature of Claim Claim Amount
Jose G Moctezuma Money Loaned $130,000
710 South Myrtle
Monrovia CA 91016
A&R CONSTRUCTION: Michael Colvard Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Michael Colvard as
Subchapter V trustee for A&R Construction LLC.
Mr. Colvard will charge $400 per hour for his services as
Subchapter V trustee and will seek reimbursement for work-related
expenses incurred.
Mr. Colvard declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael Colvard
Weston Centre
112 East Pecan St., Ste. 1616
San Antonio, TX 78205
Email: mcolvard@mdtlaw.com
Telephone: (210) 220-1334
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.
AGEAGLE AERIAL: CEO Outlines Long-Term Value Plans in Letter
------------------------------------------------------------
AgEagle Aerial Systems Inc., a leading provider of best-in-class
unmanned aerial systems, sensors and software solutions for
customers worldwide in the commercial and government verticals,
issued a Letter to Stockholders from Company CEO Bill Irby.
Dear Stockholders:
First, I want to extend my appreciation for the trust and
confidence you have placed in AgEagle. Upon taking over as CEO from
Grant Begley (former interim CEO and current Board Chairman), we
have been evolving and advancing AgEagle toward the creation of
maximum long-term shareholder value.
To fund our aggressive growth plans, we recently completed a $6.5M
capital raise. The market's reaction was a continued decline in our
stock price. It became necessary to plan and execute a 50:1 reverse
stock split. Our trading was halted October 4th but has since
resumed, and I am truly optimistic regarding the path ahead as I
believe that the company is currently under-valued for the
following reasons:
AgEagle has made tremendous operational progress.
* Not only did we win the two largest orders in company
history, totaling $5.5M for the French Army and UAE security
forces, but we are now fulfilling the final deliveries required
under those orders, with follow-on orders pending.
* We signed a teaming agreement with a large, well-known
company for a major European competition.
* We implemented new KPI's for regular progress measurement,
to enable measured decisions, balancing quality and speed in our
production. These KPI's include measures such as on-time delivery
statistics, inventory goals, and quality metrics.
* We enacted a new sales, inventory, and operations planning
(SIOP) process to align cross-department efforts for the best
outcomes.
* We introduced a new Enterprise Resource Planning software
tool within our US operations, and created a new e-commerce website
(https://store.ageagle.com/).
* We are currently undergoing an ISO-9001 recertification of
our engineering, UAV production and distribution operation
(expected completion in Q1 2025).
AgEagle is Executing its new Strategic Plan – Shifting
Significantly for Growth
* We have re-defined our mission – "Reaching beyond to
provide unmatched insights that enhance operations, safeguard
communities, and optimize productivity."
* We are re-dedicating our culture to four main values:
innovation, integrity, transparency, and passion. Aligning the
entire team, our most valuable resources – people, around these
key cultural elements will enable high-performance culture.
* We are refocusing our markets – moving from 11 vertical
markets to 3 vertical markets, namely military, public safety, and
agricultural/commercial. This shift demands a focus on precise,
real-time data collection enabling ISR collection and terrain
analysis/mapping.
* We are re-shaping our portfolio – the eBee VISION™, our
newest drone product, will serves as the core aircraft for new
capabilities, capitalizing on its unique combination of range, low
observability, and high mobility/portability, providing high value
to its users. Additionally, we are evaluating targeted
opportunities for mergers & acquisitions.
* We are demonstrating growth in Defense & Security – not
only did we achieve the two largest contracts in company history
this year, but we just booked purchase orders for 17 U.S. eBee TAC
units in October, further validating our growth strategy in defense
& security.
* Finally, we are initiating a site optimization project to
meet our increasing demand, with the first step being the expansion
of eBee VISION production, adding a drone production line in the
U.S.A. to meet U.S. demand, as we are evaluating our facility size
for downsizing in Europe due to under-utilized floor space.
In conclusion, through a combination of our key initiatives,
growing demand, and demonstrated progress in our newest market, I
believe AgEagle is on the correct path to increase long-term
shareholder value. We appreciate your continued support.
Sincerely,
Bill Irby
CEO
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.
ALEXANDER E. JONES: Trustee Soliciting Offers for IP Assets
-----------------------------------------------------------
Christopher R. Murray, Chapter 7 Trustee for the bankruptcy estate
of Alex Jones, is soliciting separate offers for a transaction or
transactions, for the purchase of the IP Assets and the Remaining
Assets consistent with the order entered by the United States
Bankruptcy Court for the Southern District of Texas on Sept. 25,
2024.
The Qualified IP Assets Bid Deadline for the IP Assets and any
other Remaining Assets the potential buyer seeks to acquire in
connection with the acquisition of the IP Assets, is Nov. 8, 2024,
at 2:00 p.m. (prevailing Central Time), and that any person or
entity who wishes to participate in the IP Assets Auction must
comply with the participation requirements, bid requirements, and
other requirements set forth in the Order and as required by the
Trustee in his discretion.
The Trustee intends to conduct the IP Assets Auction, at which time
he will consider qualifying bids submitted to the Trustee and his
professionals, by and pursuant to the Order, beginning on Nov. 13,
2024, at 10:30 a.m. (prevailing Central Time) through Tranzon360's
selected online auction platform.
The Trustee intends to conduct the Auction for the Remaining
Assets, at which time he will consider bids submitted to the
Trustee and his professionals, by and pursuant to the Order,
beginning on Dec. 10, 2024, at 10:30 a.m. (prevailing Central Time)
through Tranzon360's selected online auction platform.
Copies of the Order or other documents related thereto are
available upon request to co-counsel for the Trustee, Porter Hedges
LLP, Joshua W. Wolfshohl (jwolfshohl@porterhedges.com) and Michael
B. Dearman (mdearman@porterhedges.com) or Kelly Toney
(ktoney@tranzon.com) and Jeff Tanenbaum
(jeff@360assetadvisors.com).
Counsel for the Chapter 7 Trustee:
Erin E. Jones (TX 24032478)
Jones Murray LLP
602 Sawyer Street, Suite 400
Houston, Texas 77007
Tel: (832) 529-1999
Fax: (832) 529-3393
Email: erin@jonesmurray.com
About Alexander Jones
Alexander E. Jones sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-33553) on Dec. 2,
2022. The Debtor is represented by Crowe & Dunlevy, P.C. and
Jordan & Ortiz, P.C.
ALMOND COW: Commences Subchapter V Proceedings
----------------------------------------------
Almond Cow Inc. filed for Chapter 11 protection in the Northern
District of Georgia. 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 Almond Cow Inc.
Almond Cow Inc. -- https://almondcow.co -- is a plant-based milk
maker.
Almond Cow Inc. sought relief under Subchapter_V of Chapter 11 of
the U.S. Bankruptcy Code (Banrk. N.D. Ga. Case No. 24-61376) on
October 25, 2024. In the petition filed by Brett Goodson, 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:
Ashley Reynolds Ray, Esq.
Scroggins, Williamson & Ray, P.C.
2275 Marietta Blvd, NW
Suite 270-202
Atlanta, GA 30318
ANTERO MIDSTREAM: Moody's Alters Outlook on 'Ba2' CFR to Positive
-----------------------------------------------------------------
Moody's Ratings changed Antero Midstream Partners LP's rating
outlook to positive from stable. Concurrently, Moody's affirmed the
company's Ba2 Corporate Family Rating, Ba2-PD Probability of
Default Rating and Ba3 senior unsecured notes rating. The
Speculative Grade Liquidity rating was upgraded to SGL-2 from
SGL-3.
"The positive outlook reflects Moody's expectation that earnings
growth will drive leverage lower in 2025 providing the company
increased financial flexibility to sustain leverage around its long
term target of 3x," said Sajjad Alam, a Moody's Ratings Vice
President.
RATINGS RATIONALE
Antero Midstream's Ba2 CFR is supported by its substantial scale,
moderate financial leverage, solid distribution coverage, and
fee-based long-term contracted revenue from Antero Resources
Corporation (Antero or AR, Ba1 stable). Throughput volumes should
remain steady and credit metrics should strengthen through 2025
based on management's commitment to boost free cash flow, reduce
debt and operate with a high degree of capital efficiency. AM's
credit profile is constrained by its geographic concentration in
Appalachia; high reliance on a single counterparty, Antero;
significant exposure to volumetric risks through mostly acreage
dedication contracts; and indirect exposure to volatile natural gas
prices which influence upstream investment and production
decisions.
Antero Midstream's senior unsecured notes are rated Ba3, one notch
below the Ba2 CFR, reflecting the significant size of AM's secured
revolving credit facility, which has an all-asset pledge and a
priority-claim over the notes.
The company should have good liquidity through 2025 which is
captured in the SGL-2 rating. Moody's expect AM to generate a
modest amount of free cash flow after making planned distributions
that could be used to reduce revolver debt. There was $556 million
outstanding and $694 million in available borrowing capacity under
the revolving credit facility as of June 30, 2024. The company
recently amended its credit agreement, keeping the same $1.25
billion commitment while extending the maturity date to July 30,
2029. The company should have ample compliance cushion under the
three financial covenants governing the credit agreement.
AM's positive outlook reflects its declining financial leverage and
Moody's expectation of additional debt reduction to sustain lower
leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if AM can sustain debt/EBITDA near 3x
and distribution coverage above 1.4x. AM's ratings could be
downgraded if debt/EBITDA rises above 4x or if Antero Resources'
CFR is downgraded below AM's CFR level.
Antero Midstream Partners LP is a wholly owned subsidiary of Antero
Midstream Corporation, a midstream energy company based in Denver,
Colorado. Antero Midstream Corporation owns and operates an
integrated system of natural gas gathering pipelines, compression
stations, processing and fractionation plants, and water handling
and treatment assets in northwest West Virginia and southern Ohio.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
ANTERO RESOURCES: Moody's Hikes Rating on Unsec. Notes to 'Ba1
--------------------------------------------------------------
Moody's Ratings upgraded Antero Resources Corporation's senior
unsecured notes rating to Ba1 from Ba2. Moody's concurrently
affirmed Antero's Ba1 Corporate Family Rating and Ba1-PD
Probability of Default Rating. The SGL-1 Speculative Grade
Liquidity rating was unchanged. The rating outlook is stable.
"The notes were upgraded to Ba1 and equalized with Antero's Ba1 CFR
to reflect an unsecured capital structure following liens securing
the company's prior revolving credit facility being released," said
Sajjad Alam, Moody's Ratings Vice President.
RATINGS RATIONALE
Antero's senior unsecured notes rank pari passu with the new
revolving credit facility. Borrowings under the new credit facility
and the notes are unsecured and are no longer guaranteed by
Antero's operating subsidiaries. The new facility has $1.65 billion
of lenders commitments and it expires on July 30, 2029.
The Ba1 CFR is underpinned by Antero's low and declining debt
balance; improved capital efficiency that can sustain production
with lower levels of investments; and ability to generate free cash
flow at low gas prices, all of which should help better manage
commodity price volatility. The CFR also reflects Antero's large
scale natural gas production and reserve base in Appalachia,
growing exposure to natural gas liquids (over 35% of total
production) that boosts unit margins, ability to sell gas in higher
value markets through a diversified portfolio of
firm-transportation (FT) contracts, and the value embedded in its
ownership interest in Antero Midstream Partners LP (AM, Ba2
positive), which had a market capitalization of $7.2 billion as of
late-October 2024. Antero's key credit risks are its singular
geographic concentration in Appalachia, shale focused operations
that require significant recurring investments, exposure to
volatile natural gas prices, and high midstream costs relative to
other Appalachian dry gas producers because of its substantial FT
costs and processing fees. Low gas prices will also challenge cash
flow generation in the near term given limited hedge protection.
The credit profile also takes into account Antero Midstream's
substantial debt, which Moody's consolidate in Antero's financial
metrics. Although Antero owns 29% of AM, the two companies are
highly integrated and Antero's management has significant influence
over AM's operational and financial decisions.
Antero will have very good liquidity through 2025 despite weak near
term natural gas prices. Reduced capital expenditures and increased
NGLs production should help substantially offset effects of low gas
prices. As of June 30, 2024, Antero had $496 million of borrowings
and $120 million in outstanding letters of credit under its prior
revolving credit facility. Moody's expect the company to use any
excess free cash flow to reduce revolver borrowings and outstanding
notes in the coming quarters based on management's intent to
further reduce debt. The new $1.65 billion revolver has a 65% debt
to capitalization covenant which Antero should be able to
comfortably maintain compliance through 2025. Given the limited
near term free cash flow generation prospects, Antero is unlikely
to execute any share repurchases under its $2 billion authorized
share repurchase program, which had $1.05 billion in remaining
buyback capacity as of June 30, 2024.
The stable rating outlook reflects Antero's very good liquidity and
commitment to further debt reduction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade could be considered if Antero can operate with lower
debt and capex levels over a period of time, generate consistent
free cash flow and balance its debtholders' interest against
potentially higher future shareholder distributions. The company
will also need to sustain a retained cash flow to debt ratio above
50% on a consolidated basis (for Antero Midstream) while
maintaining the leveraged full-cycle ratio above 2x to be
considered for an upgrade. Antero's ratings could come under
pressure if the consolidated retained cash flow to debt ratio
approaches 30%, the LFCR falls below 1.5x, or the company generates
recurring negative free cash flow.
Antero Resources Corporation is a leading natural gas and natural
gas liquids producer in the Marcellus and Utica Shales in West
Virginia, Ohio and Pennsylvania.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
ASMC LLC: Hires Crane Simon Clar & Goodman as Counsel
-----------------------------------------------------
ASMC, LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of Illinois to employ Crane, Simon, Clar &
Goodman as counsel.
The firm will provide these services:
a. prepare necessary applications, motions, answers, orders,
adversary proceedings, reports and other legal papers;
b. provide the Debtor with legal advice with respect to its
rights and duties involving its property, as well as its
reorganization efforts herein;
c. appear in court and to litigate whenever necessary; and
d. perform any and all other legal services that may be
required from time to time in the ordinary course of the Debtor's
business during the administration of this bankruptcy case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received from the Debtor a retainer in the amount of
$25,000.
Scott R. Clar, Esq., a partner at Crane, Simon, Clar & Goodman,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Scott R. Clar, Esq.
Crane, Simon, Clar & Goodman
135 S. LaSalle, #3950
Chicago, IL 60603
Tel: (312) 641-6777
Email: sclar@cranesimon.com
About ASMC, LLC
ASMC, LLC is a fastener distributor headquartered in Libertyville,
Ill. It sells anchors, bolts & screws, nuts, washers, pins and
clips, and bearings.
ASMC sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. N.D. Ill. Case No. 24-14067) with $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Anthony J. King as managing member.
Judge David D. Cleary oversees the case.
The Debtor is represented by:
Scott R Clar
Crane, Simon, Clar & Goodman
135 South LaSalle Street, Suite 3950
Chicago, IL 60603-4297
Tel: (312) 641-6777
Fax: (312) 641-7114
Email: sclar@cranesimon.com
ASSETS4LIFE LLC: Brian Hofmeister Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Brian Hofmeister,
Esq., as Subchapter V trustee for Assets4Life, LLC.
Mr. Hofmeister will be paid an hourly fee of $400 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hofmeister declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian W. Hofmeister, Esq.
3131 Princeton Pike
Building 5, Suite 110
Lawrenceville, NJ 08648
Phone: (609) 890-1500
Email: bwh@hofmeisterfirm.com
About Assets4Life LLC
Assets4Life LLC, a company in Irvington, N.J., owns and operates
apartment buildings.
Assets4Life sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 24-19735) on October 1, 2024, with $1
million to $10 million in both assets and liabilities. Mohamed
Hassanain, managing member, signed the petition.
The Debtor is represented by Lawrence Luttrell, Esq., at the Law
Office of Lawrence W. Luttrell, P.C.
AVALON GLOBOCARE: Inks MOU for Co-Development Project With Qi
-------------------------------------------------------------
Avalon GloboCare Corp. announced Oct. 25 that it entered into a
memorandum of understanding ("MOU") with Qi Diagnostics Limited, a
nanosensor-based diagnostic technologies company, to explore a
proposed strategic collaboration to co-develop a VOC (volatile
organic compound) nanosensor-based point-of-care cannabis
breathalyzer. The MOU provides Avalon with an exclusivity period
of 120 days, during which Avalon intends to negotiate with Qi
Diagnostics and enter into a definitive agreement regarding the
proposed strategic collaboration.
If Avalon and Qi Diagnostics enter into a definitive agreement
within the Exclusivity Period, then the proposed collaboration
would focus on the initial prototype-enabling stage, which would
involve critical research, data collection, software development,
and drafting of the prototype design of a breathalyzer that is
capable of detecting cannabis. Avalon believes that its regulatory
expertise would be beneficial to such collaboration, including but
not limited to its experience with regulatory pathways, clinical
trials, and approval process in the United States.
"The proposed collaboration with Qi Diagnostics would be a
milestone in our commitment to developing innovative diagnostic
solutions," stated David Jin, M.D., Ph.D., president and chief
executive officer of Avalon GloboCare. "We intend to enter into a
definitive agreement with Qi Diagnostics during the Exclusivity
Period, and then put our effort into the development of a VOC
nanosensor-based cannabis breathalyzer that is capable of
addressing the need for point-of-care testing in law enforcement
and workplace safety."
The proposed collaboration with Qi Diagnostics is subject to
negotiations during the Exclusivity Period, during which the
Company intends to enter into a definitive agreement for the
development of the breathalyzer. However, there can be no
assurance that the terms of such definitive agreement will be
acceptable to Avalon or Qi Diagnostics. Accordingly, Avalon and Qi
Diagnostics may not enter into such definitive agreement during the
Exclusivity Period or at all.
Avalon Globocare
Headquartered in Freehold, New Jersey, Avalon Globocare --
http://www.avalon-globocare.com/-- is a commercial stage company
dedicated to developing and delivering innovative, transformative,
precision diagnostics and clinical laboratory services. Avalon is
working to establish a leading role in the innovation of diagnostic
testing, utilizing proprietary technology to deliver precise,
genetics-driven results. The Company also provides laboratory
services, offering a broad portfolio of diagnostic tests, including
drug testing, toxicology, and a broad array of test services, from
general bloodwork to anatomic pathology, and urine toxicology.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
BAMBY EXPRESS: Hires Springer Larsen LLC as Attorney
----------------------------------------------------
Bamby Express, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ Springer Larsen,
LLC as attorney.
The firm will provide these services:
a. consult with the Debtor concerning its powers and duties as
debtor in possession, the continued operation of its business and
the Debtor's management of the financial and legal affairs of its
estate;
b. consult with the Debtor and with other professionals
concerning the negotiation, formulation, preparation, and
prosecution of a Chapter 11 plan and disclosure statement;
c. confer and negotiation with the Debtor's creditors, other
parties in interest, and their respective attorneys and other
professionals concerning the Debtor's financial and property,
Chapter 11 plans, claims, liens, and other aspects of this case;
d. appear in court on behalf of the Debtor when required, and
will prepare, file and serve such applications, motions,
complaints, notices, orders, reports, and other documents and
pleading as may be necessary in connection with this case; and
e. provide the Debtor with such services as the Debtor may
request and which may be necessary in the circumstances.
The firm will be paid at these rates:
Richard G. Larsen $465 per hour
Thomas E. Springer $475 per hour
The firm received a retainer in the amount of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Richard G. Larsen, Esq., a partner at Springer Larsen, LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Richard G. Larsen, Esq.
Springer Larsen, LLC
300 South County Farm Rd., Suite G
Wheaton, IL 60187
Tel: (630) 510 0000
Email: rlarsen@springerbrown.com
About Bamby Express, Inc.
Bamby Express, Inc. is a small transportation company that operates
a single semi-truck and trailer. It primarily offers freight and
logistics services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill, Case No. 24-13689), with up to
$50,000 assets and up to $500,000 in liabilities. Dusan Cirkovic,
president, signed the petition.
Judge Timothy A. Barnes oversees the case.
Richard G. Larsen Esq., at Springer Larsen, LLC represents the
Debtor as legal counsel.
BIG LOTS: Court Okays Nexus Capital as Lead Bidder
--------------------------------------------------
Jonathan Randles of Bloomberg News reports that a federal judge has
granted Nexus Capital Management lead bidder status to acquire Big
Lots Inc., after the private equity firm secured $765 million in
financing to support its planned acquisition of the bankrupt
discount retailer.
Judge J. Kate Stickles stated on Friday, October 25, 2024, that she
would approve the deal, which is set as a "stalking horse bid,"
allowing for competing offers until the October 28 deadline at
noon.
This approval follows several days of Nexus collaborating with Big
Lots and its lenders to complete the necessary financing.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIG RIVER CONTRACTORS: Eric Terry Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Eric Terry as Subchapter V
trustee for Big River Contractors, LLC.
Mr. Terry will charge $450 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Terry declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Terry
3511 Broadway
San Antonio, TX 78209
Phone: (210)468-8274
Email: eric@ericterrylaw.com
About Big River Contractors
Big River Contractors, LLC offers oil field maintenance and repair
services.
Big River Contractors LLC sought relief under Subchapter V of
Chapter 11 of the U.S. (Bankr. W.D. Texas Case No. 24-52028) on
October 10, 2024. In the petition filed by Jeffery Green, as
president, the Debtor reports total assets of $940,619 and total
debts of $1,838,548.
Bankruptcy Judge Craig A. Gargotta handles the case.
The Debtor is represented by:
Robert C. Lane, Esq.
The Lane Law Firm
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Email: notifications@lanelaw.com
BIOSIG TECHNOLOGIES: Has Until March 2025 to Regain MVLS Compliance
-------------------------------------------------------------------
BioSig Technologies, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on October 18,
2024, the Company received a decision from the Nasdaq Listing and
Hearing Review Council granting the Company a grace period until
March 7, 2025 to regain compliance with the Nasdaq Listing Rule
5550(b)(2), the MVLS Rule, which requires a market value of listed
securities of at least $35 million.
On October 21, 2024, the Company was notified that its common stock
would commence trading on The Nasdaq Stock Market on Wednesday,
October 23, 2024 effective at the opening of trading.
About BioSig Technologies
Westport, Conn.-based BioSig Technologies, Inc. was initially
incorporated on February 24, 2009, under the laws of the State of
Nevada and subsequently re-incorporated in the state of Delaware in
2011. The Company is principally devoted to improving the standard
of care in electrophysiology with its PURE EP System's enhanced
signal acquisition, digital signal processing, and analysis during
ablation of cardiac arrhythmias.
As of June 30, 2024, BioSig had $3.1 million in total assets, $3
million in total liabilities, $105,000 in Series C 9% convertible
preferred stock, and $11,000 in total equity.
Going Concern
As of June 30, 2024, the Company had cash of $2.1 million and
working capital deficit of $0.6 million. During the six months
ended June 30, 2024, the Company used net cash in operating
activities of $2.8 million. These balances create a liquidity
concern, which in turn raises substantial doubt about the Company's
ability to continue as a going concern. The Company has experienced
losses and negative cash flows from operations since inception and
expects these conditions to continue for the foreseeable future.
BLUE DOG: Hires DGIM Law Cohen Legal Services as Counsel
--------------------------------------------------------
The Blue Dog In Boca, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ DGIM Law, PLLC
and Cohen Legal Services, P.A. as counsel.
The firms will provide these services:
a. give advice to the Ddebtor with respect to its powers and
duties as a debtor in possession and the continued management of
its business operations;
b. advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating and Reporting
Requirements and with the rules of the Court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of Debtor in all matters pending before
the Court;
e. represent the Debtor in negotiation with its creditors in
the preparation of a Plan.
The firms will be paid at these rates:
Partners $490 to $565 per hour
Paralegals $220 per hour.
The firms received an advance retainer from the Debtor in the
amount of $30,000. They will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Isaac Marcushammer, Esq. and Rachamin Cohens, partners at DGIM Law,
PLLC and Cohen Legal Services, P.A., respectively, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firms can be reached at:
Isaac Marcushammer, Esq.
Monique D. Hayes, Esq.
DGIM Law, PLLC
2875 NE 191st Street, Suite 705
Aventura, FL 33180
Telephone: (305) 763-8708
Email: isaac@dgimlaw.com
monique@dgimlaw.com
- and -
Rachamin Cohen, Esq.
Cohen Legal Services, P.A.
1801 NE 123rd Street, Suite 314
North Miami, FL 33181
Telephone: (305) 570-2326
Email: rocky@lawcls.com
About Blue Dog In Boca, Inc.
The Blue Dog In Boca, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 24-20655) on Oct. 15, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor hires
DGIM Law, PLLC and Cohen Legal Services, P.A. as counsel.
BUNNY'S LOUNGE: Dwayne Murray Named Subchapter V Trustee
--------------------------------------------------------
The Acting U.S. Trustee for Region 5 appointed Dwayne Murray, Esq.,
at Murray & Murray, LLC, as Subchapter V trustee for Bunny's
Lounge, LLC.
Mr. Murray will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Murray declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dwayne Murray, Esq.
Murray & Murray, LLC
4970 Bluebonnet Blvd., Suite B
Baton Rouge, LA 70809
Tel: (225) 925-1110
Fax: (225) 925-1116
Email: dmm@murraylaw.net
About Bunny's Lounge
Bunny's Lounge, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. La. Case No. 24-11957) on
October 8, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Meredith S. Grabill presides over the case.
Thomas H. Gray, Esq., represents the Debtor as legal counsel.
BURGERFI INTERNATIONAL: DenCo Appointed to Creditors' Committee
---------------------------------------------------------------
The U.S. Trustee for Region 3 appointed DenCo Foods, LLC as new
member of the official committee of unsecured creditors in the
Chapter 11 cases of BurgerFi International, Inc. and its
affiliates.
As of Oct. 28, the members of the committee are:
1. Burger Guys of Dania Point, LLC
Attn: Eugene Gargiulo
730 NW 7th Street
Ft. Lauderdale, FL 33311
Phone: 954-764-8117
Email: gino@oilcanman.com
2. Newville Collaborative, LLC
Attn: Jason Newville
3600 Orchard Way
Minnetonka, MN 55305
Phone: 763-355-8503
Email: jason.newville@kosedigital.com
3. Mindstream Media Group, LLC
Attn: Jeff Moyer
1717 Main St., 40th Floor
Dallas, TX 75201
Phone: 815-540-5425
Email: jmoyer@mindstreammediagroup.com
4. Strativ, Inc.
Attn: Mark Sue
1494 Kings Lane
Palo Alto, CA 94303
Phone: 917-359-0406
Email: mark.sue@strativ.co
5. Orlando Burgers LLC
Attn: Shehzaan Chunara
120 Grand Crescent
Alpharetta, GA 30009
Phone: 404-936-4621
Email: shehzaan@chunaragroup.com
6. DenCo Foods, LLC
Attn: Lori Wright
2101 Firestone Way
Superior, CO 80027
Phone: 303-917-7017
Email: lwright@dencofoodsllc.com
About BurgerFi Int'l
BurgerFi International, Inc. (NASDAQ:BFI) is a multi-brand
restaurant company that develops, markets, and acquires fast-casual
and premium-casual dining restaurant concepts around the world,
including corporate-owned stores and franchises. BurgerFi
International, Inc. is the owner and franchisor of two brands with
a combined 144 locations: (i) Anthony's, a premium pizza and wing
brand with 51 restaurants (50 corporate-owned casual restaurant
locations and one dual brand franchise location), as of Sept. 10,
2024, and (ii) BurgerFi, among the nation's fast-casual better
burger concepts with 93 BurgerFi restaurants (76 franchised and 17
corporate-owned) as of Sept. 10, 2024.
BurgerFi International, Inc. and 114 affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code on Sept. 11, 2024 (Bankr. D. Del. Lead Case No.
24-12017). The cases are pending before the Honorable Judge Craig
T Goldblatt.
Raines Feldman Littrell LLP serves as the Debtors' counsel. Force
Ten Partners' Jeremy Rosenthal serves as the Company's Chief
Restructuring Officer. Sitrick And Company serves as strategic
communications advisor to the Company. Stretto is the claims
agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
McDonald Hopkins, LLC and Morris, Nichols, Arsht & Tunnell, LLP
serve as the committee's legal counsel.
CALERA CORP: Mark Sharf Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for
Calera Corporation.
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About Calera Corporation
Calera Corporation, doing business as Chemetry, develops a
cementitious material that provides significant economic saving and
reduces carbon dioxide emissions.
Calera Corporation sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51527)
on Oct. 9, 2024, with $500,001 to $1 million in assets and $1
million to $10 million in liabilities.
Judge Stephen L. Johnson handles the case.
The Debtor is represented by Ron Bender, Esq., at Levene, Neale,
Bender, Yoo & Golubchik L.L.P.
CALISCO SPIRITS: Hires Gallagher & Kennedy P.A. as Counsel
----------------------------------------------------------
Calisco Spirits, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Gallagher & Kennedy, P.A. as
counsel.
The firm will provide these services:
a. provide legal advice with respect to powers and duties as
debtor-in-possession in the continued operation of its business and
management of the Debtor's property;
b. prepare all necessary applications, schedules and
statements, motions, answers, budgets, orders, reports,
declarations, and other legal papers on behalf of the Debtor;
c. appear in Court and protect the interests of the Debtor
before the Court;
d. assist the Debtor with the collection and disposition of
the Debtor's assets, by sale or otherwise;
e. assist the Debtor with ongoing corporate and regulatory
legal needs, as
applicable;
f. represent the Debtor in any future collection or other
litigation commenced (or to be commenced) by and/or against the
Debtor;
g. assist the Debtor in preparing and confirming a Chapter 11
plan;
h. represent the Debtor in connection with all aspects of its
bankruptcy case and perform all legal services for the Debtor which
may be necessary and proper in these proceedings.
The firm will be paid at these rates:
Dale C. Schian $725 per hour
Kortney K. Otten $500 per hour
Sarah E. Myers $400 per hour
Shareholders $475 to $795 per hour
Associates $350 to $450 per hour
Paralegals $275 to $345 per hour
The firm received a retainer in the amount of $61,400.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Dale C. Schian, Esq., a partner at Gallagher & Kennedy, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Dale C. Schian, Esq.
Gallagher & Kennedy, P.A.
2575 East Camelback Road
Phoenix, AZ 85016-9225
Telephone: (602) 530-8000
Facsimile: (602) 530-8500
Email: dale.schian@gknet.com
About Calisco Spirits, LLC
Calisco Spirits, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 2:24-bk-02567) on April 4, 2024. The
Debtor hires Gallagher & Kennedy, P.A. as counsel.
CAPSITY INC: Lisa Holder Appointed as Chapter 11 Trustee
--------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 17, appointed Lisa
Holder to serve as the Chapter 11 trustee for the bankruptcy case
of Capsity, Inc.
The Chapter 11 trustee can be reached at:
Lisa Holder
2601 Kilcarey Court
Bakersfield, California 93306
Telephone: (661) 205-2385
Email: Lholder@Lnhpc.com
About Capsity Inc.
Capsity, Inc. was established in 2008 and operates as a community
business organization.
Capsity 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., at the Law Offices of Gabriel Liberman,
APC is the Debtor's bankruptcy counsel.
CENTENNIAL HOUSING: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Centennial Housing & Community Services Corp.
d/b/a Washington Regional Medical Center
958 Hwy 64 East
Plymouth, NC 27962
Business Description: Washington Regional Medical Center is a 25-
bed critical access hospital offering a
broad range of healthcare services.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-03469
Debtor's Counsel: Jason L. Hendren, Esq.
HENDREN, REDWINE & MALONE, PLLC
4600 Marriott Drive
Suite 150
Raleigh, NC 27612
Tel: (919) 420-7867
Fax: (919) 420-0475
Email: jhendren@hendrenmalone.com
Total Assets: $6,970,517
Total Liabilities: $11,730,050
The petition was signed by Todd Mobley as chairman of the Board.
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.
CHESSWOOD GROUP: Enters CCAA Protection Amid Credit Facility Issues
-------------------------------------------------------------------
Chesswood Group Limited announces that on application by the agent
for its syndicate of lenders under its US$300 million revolving
senior secured credit facility, Chesswood and its subsidiaries have
become subject to creditor protection under the Companies'
Creditors Arrangement Act (Canada) in Canada pursuant to an order
of the Ontario Superior Court of Justice (Commercial List). The
Initial Order provides for among other things, a stay of
proceedings, the approval of interim financing, and the appointment
of FTI Consulting Canada Inc. as the court appointed monitor.
Chesswood also announces that each of the members of its board of
directors has resigned, and that its chief financial officer (Ivy
Sun) has resigned. It is anticipated that Chesswood's chief
executive officer (Tobias Rajchel) will continue in his position.
History
On June 14, 2024, Chesswood announced that it had come to its
attention that it was not in compliance with the minimum borrowing
base covenants under the Credit Facility and that it had received
an initial waiver to July 15, 2024 from the Syndicate Lenders to
pursue transactions to remedy the breach.
On July 8, 2024, Chesswood provided an update on its Credit
Facility action plan. The update advised that a special committee
of the Board (with the assistance and participation of its
financial advisor) had continued to engage in discussions and
negotiations for potential sales of key operating subsidiaries and
considerations for how best to maximize value of Chesswood's large
portfolios of receivables to ensure that the interests of
Chesswood's stakeholders were served. The update further advised
that, as a result of capital constraints, Chesswood subsidiaries
Pawnee Leasing Corporation and Rifco National Auto Finance had
suspended most origination activity. The update also advised that
Ryan Marr (Chesswood's then chief executive officer) had resigned
from his positions with Chesswood and its subsidiaries, and that
Tobias Rajchel (Chesswood's then chief financial officer) had been
appointed president and chief executive officer and Ivy Sun
(Chesswood's then controller) had been appointed chief financial
officer.
On July 16, 2024, Chesswood announced that the Credit Facility
waiver had been extended to August 2, 2024, that it continued to
engage in co-operative discussions with the Syndicate Lenders and
that it remained focused on completing the negotiation and
settlement of definitive arrangements and documents for its Credit
Facility action plan.
On July 22, 2024, Chesswood announced that it had determined that
it would have to prepare and file restated interim financial
statements and management's discussion and analysis for the three
months ended March 31, 2024 as a result of the previously announced
borrowing base calculation error and resulting breach of the Credit
Facility. Such announcement included the known expected
restatements for the Q1 Filings (including, among others, the write
down of certain -- and perhaps all -- intangibles, and revised
going concern and controls/procedures disclosure). The announcement
further noted that Chesswood's management was engaged in review of
the prior year borrowing base calculations and prior year financial
statements and MD&A to determine whether restatement of any of such
filings was required.
On July 30, 2024, Chesswood announced that Daniel Wittlin had
resigned as a director. Mr. Wittlin advised that he had resigned in
order to be able to devote the necessary time to his other
operating companies, and also to better manage his potential
conflicts of interest resulting from his significant indirect
minority interests in Chesswood subsidiaries Vault Credit
Corporation and Vault Home Credit Corporation and his indirect
interest in a potential purchaser of Chesswood's interests in the
Vault Subsidiaries. Chesswood also announced that it had received
notice from the owner of the "Vault" names and associated
intellectual property that they were terminating the intellectual
property agreements with the Vault Subsidiaries.
On August 6, 2024, Chesswood provided a further update on its
Credit Facility action plan. Such update included that the Credit
Facility waiver had been amended and extended to September 16, 2024
(the "Amended Waiver"), which was intended to provide the time for
Chesswood to complete important elements of its Credit Facility
action plan. Among other things, the Amended Waiver provided for a
staged reduction in the permitted maximum outstanding amount under
the Credit Facility and required Chesswood to complete sales during
the extended waiver period of a portion of its portfolio
receivables, its interests in the Vault Subsidiaries and its
interest in the operations and certain portfolio receivables of
Pawnee. Such update also announced that Chesswood had received
notices of default from certain securitizers under the related
securitization facility agreements, although the securitizers were
not at that time purporting to exercise any termination rights.
On August 7, 2024, Chesswood announced that it would be unable to
meet its filing deadline of August 14, 2024 for its interim
financial statements and MD&A for the three and six months ended
June 30, 2024. The inability to complete the Q2 Filings was
primarily due to the previously disclosed requirement to restate
the Q1 Filings, and perhaps previous year filings. Chesswood
further announced that it was seeking a management cease trade
order, and noted that the Ontario Securities Commission may instead
impose an issuer failure to file cease trade order.
On August 9, 2024, Chesswood announced that it had sold all of its
interests in the Vault Subsidiaries, marking a first step towards
the execution on its Credit Facility action plan. The announcement
noted that the Committee and the Board had considered, and were
continuing to consider, a variety of financial restructuring
options and, following their respective reviews of the terms of the
Vault Subsidiaries sale transaction, unanimously determined that
such transaction was the only reasonable option available that was
capable of satisfying the Vault Subsidiaries related condition in
the Amended Waiver. The announcement noted that the Committee had
retained RBC Capital Markets as financial advisor and Chesswood had
engaged Alvarez & Marsal to provide certain financial and
restructuring advisory services.
On August 14, 2024, Chesswood announced that the Ontario Securities
Commission had advised that it would not be granting a management
cease trade order as previously applied for by Chesswood and would
instead be issuing a failure to file cease trade order upon
Chesswood failing to make the Q2 Filings. On August 16, 2024,
Chesswood announced that the failure to file cease trade order had
been issued by the Ontario Securities Commission.
During the more than two-month period following the sale of its
interests in the Vault Subsidiaries, Chesswood had been actively
pursuing the completion of a sale of Pawnee as a going concern,
with a significant portion of Pawnee's portfolio receivable to have
been transferred to, and retained by, another Chesswood subsidiary.
This would have fulfilled the other specific divestiture condition
in the Amended Waiver. During such period, Chesswood also engaged
in discussions for other potential transactions involving Rifco and
certain of Chesswood's other subsidiaries. Over the ensuing weeks,
Chesswood did reach agreement in principle with an interested party
for a Pawnee transaction, but after a further several weeks of
negotiations, a transaction on acceptable terms could not be
reached and the transaction did not proceed. As a result, the
Syndicate Lenders determined that the Credit Facility action plan
was no longer actionable, and the Syndicate Lenders' waiver of
events of default under the Credity Facility terminated without
further extension.
On October 28, 2024, with the most recent Credit Facility waiver
extension having terminated and no agreement to further extend the
waiver, the Syndicate Lenders issued demand for repayment of, and
notice of intention to enforce their security under, the Credit
Facility to Chesswood and its subsidiaries. Chesswood sees no
reasonable prospect to restructure or to orderly wind-down without
ongoing Syndicate Lender support and, in light of the amount owing
under the Credit Facility and the related security over
substantially all of Chesswood's assets, believes it best to
co-operate to facilitate the court supervised process desired by
the Syndicate Lenders (including by waiving the 10-day notice
period under the notices of intention to enforce). Chesswood's
subsidiaries have also now received termination notices from
certain of their securitizers.
Each of the members of the Board has resigned to facilitate the
application by the Syndicate Lenders for the CCAA proceeding,
including the appointment of a CCAA monitor with the authority to
exercise the powers of the Board.
About Chesswood Group
Chesswood Group Limited operates primarily in the specialty finance
industry in North America. The company offers micro and
small-ticket commercial equipment financing and origination to
small and medium-sized businesses through the third-party broker
and equipment vendor channels; and commercial equipment financing
and loans to small and medium-sized businesses. It also provides
home improvement and other consumer financing solutions; credit
alternatives to investors; consumer financing for motor vehicle
purchasers; and specialized financing solutions. The company was
formerly known as Chesswood Income Fund and changed its name to
Chesswood Group Limited in January 2011. Chesswood Group Limited
was founded in 1982 and is headquartered in Toronto, Canada.
CONN CORP: Ciara Rogers Named Subchapter V Trustee
--------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed Ciara Rogers, Esq., as
Subchapter V trustee for Conn Corp. LLC.
Ms. Rogers is a partner at Waldrep Wall Babcock & Bailey, PLLC. She
will be paid an hourly fee of $375 for her services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
The Subchapter V trustee can be reached at:
Ciara L. Rogers, Esq.
Waldrep Wall Babcock & Bailey, PLLC
3600 Glenwood Avenue, Suite 210
Raleigh, NC 27612
Phone: (984) 480-2005
Email: crogers@waldrepwall.com
About Conn Corp.
Conn Corp. LLC, doing business as Thompson Nursery, Thompson,
Thompson Nursery Inc., and Thompson Power Equipment, is a
professional landscaping company that offers irrigation systems,
hardscapes, landscaping, tree and stump removal, and turf
maintenance services.
Conn Corp. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03563) on October
11, 2024, with $1 million to $10 million in both assets and
liabilities. Maria Conn, managing member, signed the petition.
Judge Pamela W. Mcafee handles the case.
The Debtor is represented by C. Scott Kirk, Esq., at C. Scott Kirk,
Attorney at Law, PLLC.
COST LESS DISTRIBUTING: Kimberly Clayson Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Kimberly Ross
Clayson, Esq., as Subchapter V trustee for Cost Less Distributing
Inc.
Ms. Clayson, an attorney at Taft Stettinius & Hollister, LLP, will
be paid an hourly fee of $350 for her services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Ms. Clayson declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kimberly Ross Clayson, Esq.
Taft Stettinius & Hollister, LLP
27777 Franklin Rd., Ste. 2500
Southfield, MI 48034
Phone: (248) 727.1635
Email: kclayson@taftlaw.com
About Cost Less Distributing
Cost Less Distributing Inc. is a family-owned company in the pet
treat and pet food industry.
Cost Less Distributing filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
24-31912) on October 7, 2024, with up to $50,000 in assets and up
to $10 million in liabilities. Matthew Ovadek, vice president,
signed the petition.
Judge Joel D. Applebaum oversees the case.
The Debtor is represented by Peter T. Mooney, Esq., at Simen,
Figura & Parker, PLC.
CRYSTAL CITY INDEPENDENT SCHOOL: S&P Lowers GO Rating to 'BB'
-------------------------------------------------------------
S&P Global Ratings resolved its CreditWatch and lowered its
underlying rating on Crystal City Independent School District
(ISD), Texas' general obligation (GO) debt three notches to 'BB'
from 'BBB' and subsequently withdrew the underlying ratings, at the
issuer's request.
"The downgrade reflects the rapid deterioration of reserves to
negative levels as the result of an extreme structural imbalance,"
said S&P Global Ratings credit analyst Katy Vazquez. These events
led to a 'BB' cap on the rating based on shortfalls in the
district's governance structure, lack of effective oversight, and
expectation of very low liquidity levels.
The bonds remain guaranteed by the Texas Permanent School Fund bond
guarantee program.
An unlimited ad valorem tax levied on all taxable property within
the district secures the GO bonds.
This rating action follows S&P's Oct. 22, 2024 action where it
downgraded Crystal City ISD to 'BBB' from 'A+' and placed the
rating on CreditWatch with negative implications.
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Governance: Risk management, culture, and oversight, and
transparency and reporting
CUSTOM CLUB: Hires Allen Jones & Giles PLC as Attorney
------------------------------------------------------
Custom Club, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Arizona to employ Allen, Jones & Giles, PLC as
attorney.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
reorganization;
b. representing the Debtor in connection with negotiations
involving secured and unsecured creditors;
c. representing the Debtor at hearings set by the Court in
Debtor's bankruptcy case; and
d. preparing necessary applications, motions, answers,
orders, reports, or other legal papers necessary to assist in the
Debtor's reorganization.
The firm will be paid at these rates:
Michael A. Jones, Member $500 per hour
Philip J. Giles, Member $475 per hour
David B. Nelson, Associate $375 per hour
Ryan M. Deutsch, Associate $300 per hour
Paralegal and Law Clerks $150 to 225.00 per hour
Allen, Jones & Giles was paid a retainer in the amount of $85,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael A. Jones, a partner at Allen, Jones & Giles, PLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael A. Jones, Esq.
David B. Nelson, Esq.
Ryan M. Deutsch, Esq.
Allen, Jones & Giles, PLC
1850 N. Central Ave., Suite 1025
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
Email: mjones@bkfirmaz.com
dnelson@bkfirmaz.com
rdeutsch@bkfirmaz.com
About Custom Club Inc.
Custom Club Inc. is a manufacturer of dental mouthguards.
Custom Club Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-08770) on
October 16, 2024. In the petition filed by Craig Weiss, as CEO, the
Debtor reports total assets as of September 30, 2024 amounting to
$8,040,894 and total liabilities as of September 30, 2024 amounting
to $2,561,119.
The Honorable Bankruptcy Judge Brenda K. Martin handles the case.
The Debtor is represented by:
Michael A. Jones, Esq.
ALLEN, JONES & GILES, PLC
1850 N. Central Avenue, Suite 1025
Phoenix, AZ 85004
Tel: (602) 256-6000
Email: mjones@bkfirmaz.com
CUSTOM CLUB: Hires Sonoran Capital Advisors as Financial Advisor
----------------------------------------------------------------
Custom Club, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Arizona to employ Sonoran Capital Advisors as
financial advisor.
The firm will provide these services:
a. liaise with Debtor's counsel and creditor constituencies;
b. assist with cash flow and budgeting, including providing
necessary bookkeeping services;
c. assist in the creation of schedules and statements, as
necessary;
d. assist in the creation of motions that are to be filed
during the pendency of the bankruptcy case; assist in production of
information to the U.S. Trustee's office;
e. assist, as necessary, with creation of the plan or related
analyses and projections;
f. provide financial advisory services; and provide testimony
as may be required in connection with any of the foregoing.
The firm will be paid at these rates:
Managing Directors $595 per hour
Senior Consultants $495 per hour
Directors $395 per hour
Associates $295 per hour
Analysts $195 per hour
The Debtor's wholly owned subsidiary, Retainer Club, Inc., provided
the firm with a retainer of $19,964.50.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Bryan Perkinson, Esq., a partner at Sonoran Capital Advisors,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Bryan Perkinson, Esq.
Sonoran Capital Advisors, LLC
1733 N. Greenfield Rd.
Mesa, AZ 85205
Telephone: (480) 825-6650
Email: bperkinson@sonorancap.com
About Custom Club Inc.
Custom Club Inc. is a manufacturer of dental mouthguards.
Custom Club Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-08770) on
October 16, 2024. In the petition filed by Craig Weiss, as CEO, the
Debtor reports total assets as of September 30, 2024 amounting to
$8,040,894 and total liabilities as of September 30, 2024 amounting
to $2,561,119.
The Honorable Bankruptcy Judge Brenda K. Martin handles the case.
The Debtor is represented by:
Michael A. Jones, Esq.
ALLEN, JONES & GILES, PLC
1850 N. Central Avenue, Suite 1025
Phoenix, AZ 85004
Telephone: (602) 256-6000
Email: mjones@bkfirmaz.com
DALRADA FINANCIAL: Appoints CM3 Advisory as Independent Auditor
---------------------------------------------------------------
Dalrada Financial Corporation disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on October
18, 2024, the Company engaged CM3 Advisory as its independent
registered public accounting firm.
No consultations occurred between the Company and CM3 during the
transitional period ended, the fiscal years ended June 30, 2024 and
2023 and through October 18, 2024, regarding either:
(i) the application of accounting principles to a specific
completed or contemplated transaction, the type of audit opinion
that might be rendered on the Company's consolidated financial
statements, or other information provided that was an important
factor considered by the Company in reaching a decision as to an
accounting, auditing, or financial reporting issue, or
(ii) any matter that was the subject of disagreement requiring
disclosure under Item 304(a)(1)(iv) of Regulation S-K or reportable
event requiring disclosure under Item 304(a)(1)(v) of Regulation
S-K.
About Dalrada
Dalrada Financial Corporation has five business divisions: Genefic,
Dalrada Climate Technology, Dalrada Precision Manufacturing,
Dalrada Technologies, and Dalrada Corporate. Within each of these
divisions, the Company drives transformative innovation while
creating solutions that are sustainable, accessible, and
affordable. Dalrada's global solutions directly address climate
change, gaps in the health care industry, and technology needs that
facilitate a new era of human behavior and interaction and ensure a
bright future for the world around us.
Going Concern
In its Quarterly Report for the three months ended March 31, 2024,
Dalrada disclosed that the continuation of the Company as a going
concern is dependent upon the continued financial support from
related parties, its ability to identify future investment
opportunities, obtain the necessary debt or equity financing, and
generate profitable operations. The Company had net losses of
approximately $13.1 million, accumulated deficit of $154.8 million,
and net cash used in operations of $5.7 million for the nine months
ended March 31, 2024. These factors raise substantial doubt
regarding the Company's ability to continue as a going concern for
a period of 12 months from the issue date of the report.
As of March 31, 2024, Dalrada had $30.17 million in total assets,
$21.35 million in total liabilities, and $8.82 million in total
stockholders' equity.
DELTA 3 SOLUTIONS: Unsecureds to Get Share of Income for 5 Years
----------------------------------------------------------------
Delta 3 Solutions LLC filed with the U.S. Bankruptcy Court for the
Middle District of Florida a Chapter 11 Plan of Reorganization
dated September 16, 2024.
The Debtor is a Florida limited liability company that was
organized on October 4, 2016, and currently is a value-added
reseller of electronics with a focus on technical surveillance
products and services, as well as operational sustainment, support,
and training.
The Debtor's operations are located within a commercial space it
leases from Continental Fidelity Corporation, located at 4517
George Road, Suite 240, Tampa, Florida.
The Debtor's main supplier filed bankruptcy, causing a sixty
percent decrease in revenue. The Debtor closed their North Carolina
office and laid off all North Carolina employees to address
cash-flow issues. The Debtor filed this reorganization to
restructure many of the unsecured loans that were obtained to
address the immediate shortfall caused by the supplier's
bankruptcy. The Debtor has enough product lines available at this
time to support a revenue stream to allow the Debtor to confirm a
feasible Chapter 11 Plan. The Debtor anticipates a consensual
confirmation.
The Debtor filed its schedules with the Debtor's total property
valued at $208,308.84. The Debtor's secured claims total
$1,152,483.10 and unsecured claims total $191,238.97. By this plan,
the Debtor is proposing to pay secured and in full and unsecured
creditors in the pro rata share of disposable income pursuant to
the terms set forth herein.
This Plan of Reorganization proposes to pay creditors of the Debtor
from the Debtor's future earnings over the course of sixty months.
Class V is comprised of the scheduled and filed unsecured claims of
the Debtor, which the Debtor reserves the right to object to, in
the total amount of $191,238.97. Each holder of an allowed
nonpriority, unsecured claim shall receive its pro rata share of
the Debtor's projected disposable income, as that term is defined
in Section 1191(d) of the Bankruptcy Code, after the payment in
full of all senior Allowed Claims.
Payments shall be made in five equal annual distributions, with
payments commencing on the one-year anniversary of the entry of the
Confirmation Order. The amount of the pro rata distribution will be
considered final and binding thirty days after the filing of the
Certificate of Substantial Consummation by the Debtor. Class V is
Impaired by the Plan and entitled to vote to accept or reject the
Plan.
Class VI is comprised of all membership interests in the Debtor,
which are owned by Michael Brantley (80%) and Debra Brantley (20%).
Existing members will retain their membership interests in the
Debtor, however, no distributions (except for salaries, benefits,
and pass-through distributions for tax attributable to income
earned by the Debtor) will be made to Class VI until all senior
claims have been paid in full. Class VI is unimpaired by the Plan.
The Plan will be funded by Debtor's projected disposable income.
A full-text copy of the Plan of Reorganization dated September 16,
2024 is available at https://urlcurt.com/u?l=MLoFU5 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Kristina E. Feher, Esq.
Feher Law, P.L.L.C.
1275 66th Street N., #40042
St. Petersburg, FL 33743
Tel: (727) 359-0367
About Delta 3 Solutions LLC
Delta 3 Solutions is a total solutions partner with a focus on
technical surveillance products and services, as well as
operational sustainment, support, and training.
Delta 3 Solutions LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03171) on June 1, 2024, listing $208,308 in assets and
$1,223,319 in liabilities. The petition was signed by Michael
Brantley as CEO/president.
Kristina Feher, Esq. at FEHER LAW, P.L.L.C. represents the Debtor
as counsel.
DIOCESE OF BUFFALO: Jeff Anderson Represents Sexual Abuse Claimants
-------------------------------------------------------------------
The law firm of Jeff Anderson & Associates, 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 the Diocese of
Buffalo, N.Y., the firm represents Sexual Abuse Claimants.
Jeff Anderson & Associates individually represents each Sexual
Abuse Claimant listed in Exhibit A attached to this disclosure. Due
to confidentiality, each Claimant has been identified by their
Sexual Abuse Proof of Claim Form number. The names and addresses of
the confidential Claimants are available to permitted parties who
have executed a confidentiality agreement and have access to the
Sexual Abuse Claim Forms.
Pursuant to individual fee agreements, Jeff Anderson & Associates
was individually retained by each Claimant to pursue claims for
damages against The Diocese of Buffalo, N.Y. as a result of sexual
abuse. This includes representing and acting on behalf of each
Claimant in the bankruptcy case.
Jeff Anderson & Associates' interest relative to each Claimant is
outlined in each retainer agreement executed by the Claimant and is
set forth in the exemplar retainer agreements. As of the date of
this Statement, each Claimant maintains an individual economic
interest against the Debtor that has been disclosed in the
Confidential Sexual Abuse Claim Supplement or will be disclosed in
the future.
Attorneys for Certain Abuse Survivor Claimants:
JEFF ANDERSON & ASSOCIATES, P.A.
Jeffrey R. Anderson, Esq.
Michael G. Finnegan, Esq.
Stacey Benson, Esq.
366 Jackson Street, Suite 100
St. Paul, MN 55101
Telephone: 651-227-9990
Email: jeff@andersonadvocates.com
mike@andersonadvocates.com
stacey@andersonadvocates.com
About The Diocese of Buffalo N.Y.
The Diocese of Buffalo, N.Y., is home to nearly 600,000 Catholics
in eight counties in Western New York. The territory of the diocese
is co-extensive with the counties of Erie, Niagara, Genesee,
Orleans, Chautauqua, Wyoming, Cattaraugus, and Allegany in New York
State, comprising 161 parishes. There are 144 diocesan priests and
84 religious priests who reside in the Diocese.
The diocese through its central administrative offices (a) provides
operational support to the Catholic parishes, schools, and certain
other Catholic entities that operate within the territory of the
Diocese "OCE"; (b) conducts school operations through which it
provides parish schools with financial and educational support; (c)
provides comprehensive risk management services to the OCEs; (d)
administers a lay pension trust and a priest pension trust for the
benefit of certain employees and priests of the OCEs; and (e)
provides administrative support for St. Joseph Investment Fund,
Inc.
Dealing with sexual abuse claims, the Diocese of Buffalo sought
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10322) on Feb.
28, 2020. The diocese was estimated to have $10 million to $50
million in assets and $50 million to $100 million in liabilities as
of the bankruptcy filing.
The Honorable Carl L. Bucki is the case judge.
Bond, Schoeneck & King, PLLC, led by Stephen A. Donato, Esq., is
the diocese's counsel; Connors LLP and Lippes Mathias Wexler
Friedman LLP are its special litigation counsel; and Phoenix
Management Services, LLC is its financial advisor. Stretto is the
claims agent, maintaining the page:
https://case.stretto.com/dioceseofbuffalo/docket
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on March 12, 2020. The committee tapped Pachulski Stang
Ziehl & Jones, LLP and Gleichenhaus, Marchese & Weishaar, PC as
bankruptcy counsel, and Burns Bair LLP as special insurance
counsel.
DOGS ARE PEOPLE: Scott Seidel Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 6 appointed Scott Seidel as Subchapter
V trustee for Dogs Are People Too, LLC.
Mr. Seidel will be paid an hourly fee of $520 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Seidel declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Scott Seidel
6505 West Park Blvd., Suite 306
Plano, TX 75093
214-234-2500-main
214-234-2503-direct
Email: scott@scottseidel.com
About Dogs Are People Too
Dogs Are People Too, LLC is a company that specializes in products
or services related to pets, particularly dogs.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33079), with up to
$50,000 in assets and up to $500,000 in liabilities.
Judge Scott W. Everett oversees the case.
The Debtor is represented by Trey Andrew Monsour, Esq., at Fox
Rothschild, LLP.
DURHAM HOMES: Alternative Seeks Chapter 11 Trustee Appointment
--------------------------------------------------------------
Alternative Global Six, LLC, a creditor of Durham Homes USA LLC,
asked the U.S. Bankruptcy Court for the Southern District of
Florida to appoint a Chapter 11 trustee for the company.
In a court filing, AG6 raised the need to appoint an independent
trustee to manage the case, saying the company's management is
crippled by conflicts of interest that prevent it from fulfilling
its fiduciary duties. These conflicts arise from the intertwined
ownership and control of Broadstreet and JDS, both dominated by the
individual insiders. Their control compromises Durham's ability to
act in the estate's best interests.
AG6 cited that Durham's conflicts are concrete and significant,
manifesting in the insiders' self-serving actions, and not
theoretical. As detailed in AG6's derivative standing motion,
Broadstreet received $3.8 million in preferential transfers within
the year prior to the petition date. These transfers, orchestrated
by the insiders, prioritized Broadstreet over legitimate creditors
like AG6 and its nearly 100 investors.
AG6 noted the proposal of Durham to pay over $1.4 million in
post-petition payments to Broadstreet investors as part of its
first cash collateral motion, and removed such payments only after
AG6 objected. In doing so, Durham never disclosed to the court or
creditors that Broadstreet does not have a security agreement. Such
conduct shows management is not acting in the estate's best
interest, further justifying the appointment of a trustee.
Additionally, Feingold, on behalf of Broadstreet, filed a UCC-1
financing statement within 90 days of the petition date. The timing
and absence of a corresponding security agreement raise serious
concerns about Broadstreet's secured status, suggesting this was a
calculated last minute move to elevate its position over other
creditors. This insider manipulation constitutes a conflict of
interest and warrants appointment of a trustee.
Moreover, AG6 has lost confidence in Durham's financial management,
controlled by Feingold, given the resistance to providing financial
information, and the conflicting interests of Broadstreet. Durham
has repeatedly used delay tactics to avoid providing critical
financial information, which only heightens concerns about its
ability to fulfill its fiduciary duties.
Counsel for Alternative Global Six, LLC:
GREENBERG TRAURIG, P.A.
John B. Hutton, Esq.
Jon L. Swergold, Esq.
Kevin Hoyos, Esq.
Toby S. Soli, Esq.
333 S.E. 2nd Avenue, Suite 4400
Miami, Florida 33131
Telephone: (305) 579-0500
Facsimile: (305) 579-0717
Email: huttonj@gtlaw.com
Email: swergoldj@gtlaw.com
Email: zachary.needell@gtlaw.com
Email: hoyosk@gtlaw.com
About Durham Homes USA
Durham Homes USA, LLC operates in the residential building
construction industry.
Durham Homes USA filed its voluntary petition for Chapter 11
protection (Bankr. S.D. Fla. Case No. 24-16133) on June 20, 2024.
In the petition signed by Johnny Martin Childress, manager, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Mindy A. Mora oversees the case.
Aaron A. Wernick, Esq., at Wernick Law, PLLC serves as the Debtor's
legal counsel.
EDMOUNDSON STEEL ERECTION: Seeks Bankruptcy Protection in Arkansas
------------------------------------------------------------------
Edmoundson Steel Erection Inc. filed for Chapter 11 protection in
the Western District of Arkansas. 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 Edmoundson Steel Erection Inc.
Edmoundson Steel Erection Inc. is a construction company based out
of Fort Smith, AR.
Edmoundson Steel Erection Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No.
24-71778) on Oct. 25, 2024. In the petition filed by John Balley,
as owner, the Debtor reported assets between $100,000 and $500,000
and liabilities between $1 million and $10 million.
Bankruptcy Judge Bianca M. Rucker handles the case.
The Debtor is represented by:
Stanley V. Bond, Esq.
Bond Law Office
PO Box 181347
Fort Smith, AR 72918
EL DORADO OIL: Wants to Sell Gas Gathering and Processing Plant
---------------------------------------------------------------
Victoria Reporter of mysanantonio.com reports that across Texas,
gas and oil magnates have established their presence and leveraged
the region's resources. However, some businesses encounter
difficulties and end up being sold off piece by piece. One company
is currently in the process of liquidating much of its remaining
assets in a gas plant sale in South Texas.
El Dorado Oil & Gas Inc. has put its gas gathering and processing
plant in Nordheim up for auction as part of the Eagle Ford Shale.
This sale follows a final order from the U.S. Bankruptcy Court for
the Southern District of Mississippi, as stated in a news release.
El Dorado, based in Gulfport, Mississippi, filed for Chapter 11
bankruptcy in December 2023. The company commenced an auction in
July 2024 to sell over 10,000 industrial machinery and items.
It housed a wide variety of equipment across 37 locations, mainly
in Mississippi and Texas, but also in Alabama, Louisiana, Nevada,
North Dakota, Ohio, Oklahoma, Tennessee, Virginia, Wyoming, and
several other states.
The company is currently marketing one of its plants for sale,
featuring a 17-acre facility that can function as a valuable
business asset. At its peak, the site produces 60 million standard
cubic feet of gas and 4,500 barrels of oil each day. "Situated
close to the productive Eagle Ford Shale, this asset offers a
remarkable opportunity for midstream companies with current or
future operations in South Texas," stated Chad Farrell, Managing
Director of Tiger Commercial & Industrial, in the release.
"We are accepting offers for the entire facility, which is in
excellent condition and ready for immediate inspection, along with
the 17.11-acre parcel of land in DeWitt County."
The sale includes the following equipment:
* Slug catcher design: 1 unit, 100 MMscf/d, 5,000 barrels
of liquid per day
* Dehydrator unit skid design: 4 units, 15 MMscf/d
* Vapor recovery unit skid design: 1 unit, 0.7 MMscf/d
* Two-5,000 barrel crude/natural gas liquids (NGL) tanks
* Two LACT Units
* NGL bullet design: 1 unit, 30,000 gallons
* Security: fenced, electric gates, LED lights, 750
kilovolt-amperes (KVA) transformer
The plant is being sold in collaboration with Tiger Group and
Liquidity Services, with financing options available.
About El Dorado Gas & Oil and
Hugoton Operating Company
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed a
Chapter 11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec.
22, 2023, with $500 million to $1 billion in assets and $50 million
to $100 million in liabilities. Thomas L. Swarek, president, signed
the petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions
(Bankr. S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the Court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtor cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns
real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M. Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is counsel for
Debtors Bluestone Natural Resources II-South Texas, LLC and World
Aircraft, Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
ENPRO INDUSTRIES: Moody's Ups CFR to Ba2 & Unsecured Notes to Ba3
-----------------------------------------------------------------
Moody's Ratings upgraded its ratings of EnPro Industries, Inc.;
corporate family rating to Ba2 from Ba3, probability of default
rating to Ba2-PD from Ba3-PD and senior unsecured rating to Ba3
from B2. The speculative grade liquidity rating has been upgraded
to SGL-1 from SGL-2. The ratings outlook remains stable.
The ratings upgrades reflect Moody's expectations of steady demand
in EnPro's various end markets, which will support moderate
earnings growth and good cash generation. The rating upgrades also
reflect Moody's expectations that EnPro will maintain a relatively
conservative balance sheet with around $100 million of cash on hand
and debt/EBITDA of around 3 times.
The two notch rating upgrade on the senior unsecured notes to Ba3
reflects Moody's expectation of a higher recovery rate because of
the reduced amount of senior secured claims in the capital
structure. EnPro has retired over $300 million of secured debt
since the end of 2021, reducing the outstanding amount of senior
secured debt to $313 million at June 30, 2024, and increasing the
first loss position provided by the unsecured claims in the
company's capital structure.
RATINGS RATIONALE
The Ba2 CFR reflects EnPro's good revenue scale, brand strength,
and diversified end-markets, which include general industrial,
semiconductors, food & pharmaceuticals, heavy duty trucking,
automotive and aerospace and energy. Over half of the company's
business is aftermarket-related, which provides revenue stability
and helps mitigate some of the company's more cyclical end markets,
such as semiconductors, heavy duty trucking, and automotive.
Moody's expect EnPro to maintain strong credit metrics –
debt/EBITDA was 2.9x at the end of June 2024 -- and good cash
generation with FCF/debt at least in the mid single-digits through
2025.
Moody's expect EnPro to maintain an active acquisition strategy
with a focus on high growth technology-related businesses.
Acquisitions may result in periodic increases in leverage, although
Moody's expect the company to prioritize debt repayment to restore
metrics after any leveraging transaction, such that debt/EBITDA
reverts to around 3x.
Moody's recognize EnPro's efforts to reshape its portfolio through
a series of divestitures and acquisitions. Over the last few years,
the company's shift from higher-capex, slower-growth businesses has
resulted in a marked improvement in profitability, with adjusted
EBITDA margins having grown from the mid-to-high teens to around
23% as of June 2024.
Tempering considerations include the company's vulnerability to
supply chain and inflationary cost headwinds. Credit risks also
include EnPro's modest size and scale and on-going portfolio
reshaping that involves costs. The cyclical nature of the
semiconductor market is also a ratings consideration.
The stable outlook reflects Moody's expectation that EnPro will
maintain a well-balanced financial policy, with debt/EBITDA of
around 3.0x. Moody's also expect that the company will maintain a
healthy EBITDA margin of around 25% and good liquidity.
The SGL-1 rating denotes Moody's expectation for good liquidity
over the next 12-18 months. The company held $176 million of cash
at June 30, 2024. Moody's expect good free cash generation in 2024
and 2025 with FCF/debt at least in the mid single-digits. External
liquidity is provided by a $400 million revolving credit facility
that expires in December 2026. There was $18 million drawn at June
30, 2024. The revolver contains two maintenance-based financial
covenants, including a maximum net leverage ratio of 4.0x and a
minimum consolidated interest coverage of 2.5x. Moody's expect
EnPro to maintain ample cushions with respect to these covenants.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded following a material increase in the
company's size with debt/EBITDA approaching 2.5x and FCF/debt
sustained in the high single-digits. The ratings could be
downgraded if the company adopts a more aggressive financial policy
such that debt/EBITDA is sustained near 4.0x. Weakening liquidity,
including FCF/debt sustained in the low single-digits or negative
free cash flow or a sustained material reliance on the revolver
could also result in a downgrade.
Charlotte, North Carolina based EnPro Industries, Inc. (EnPro)
manufactures and markets a variety of proprietary engineered
products, including sealing products, specialized optical filters
and thin-film coatings for various end markets including the
semiconductor, industrial technology, and life sciences end
markets. The company also manufactures and markets heavy duty truck
wheel-end component systems; self-lubricating non-rolling bearing
products; and other engineered products for use in critical
applications by industries worldwide. Revenue for the twelve months
ended June 2024 was around $1 billion.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
ENTECCO FILTER: Gets OK to Use Cash Collateral Until Nov. 22
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston-Salem Division granted Entecco Filter Technology,
Inc. authorization to use cash collateral on an interim basis.
At the time of its Chapter 11 filing, Entecco's available cash
collateral included $348,564 in its bank account and $376,818 in
accounts receivable. PNC Bank, National Association has a lien on
these assets based on a $125,000 loan extended under a revolving
line of credit issued on July 20, 2023. The bank holds a valid and
perfected security
interest in the company's pre-bankruptcy collateral.
The court authorized Entecco to use the cash collateral through
Nov. 22 or until a further order, based on the company's four-week
budget projection. The budget outlines anticipated income from
accounts receivable collections and down payments, along with
expenses related to operations and ongoing projects. A copy of the
court's order, including the company's budget, is available at
https://urlcurt.com/u?l=Q3ejZ4
During this interim period, Entecco is permitted to use up to 110%
of any line item in the budget to cover necessary expenditures. The
budget includes expenses like payroll and payments of secured debt
to PNC Bank. Notably, the cash flow projection shows the company
starting with $362,000 and ending with an anticipated balance of
$683,401 after four weeks.
As adequate protection for PNC's interest in the cash collateral,
the court granted the bank a continuing security interest in the
company's post-petition assets. This security interest mirrors the
pre-bankruptcy collateral and ensures that PNC's position remains
protected throughout the bankruptcy process. In case of any default
or unauthorized use of funds, PNC can request immediate relief,
including termination of the company's ability to use cash
collateral.
The next hearing is scheduled for Nov. 22.
About Entecco Filter Technology
Entecco Filter Technology, Inc., is a Delaware-based environmental
technology company, specializing in air purification systems and
filter products used in various industries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50707) with $1 million
to $10 million in both assets and liabilities. James David
Edgerton, president and chief executive officer, signed the
petition.
James C. Lanik, Esq., at Waldrep Wall Babcock & Bailey, PLLC serves
as the Debtor's legal counsel.
ESPRIT US: Seeks Chapter 7 Bankruptcy Due to Financial Challenges
-----------------------------------------------------------------
TipRanks reports that Esprit Holdings has announced that its U.S.
subsidiaries, Esprit US Distributions Limited and Esprit US Retail
Inc., have filed for Chapter 7 bankruptcy, citing financial
challenges and high operating expenses. This move will result in
the deconsolidation of these subsidiaries from Esprit Holdings'
financial statements, substantially lowering operational costs.
Going forward, the company plans to concentrate on growing its
asset-light licensing business by partnering with experienced
collaborators.
About Esprit US Distributions Limited and
Esprit US Retail Inc.
Esprit US Distribution Limited retails apparel and accessories. The
Company offers products including eyewear, clothing, shoes,
jewelry, socks, tights, timewear, stationery, cudle toys,
wallpaper, and accessories. Esprit US Distribution serves customers
in the United States.
Esprit US Distributions Limited and Esprit US Retail Inc. sought
relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y.
Case Nos. 24-11840 and 24-11839) on October 25, 2024.
Bankruptcy Judge Philip Bentley oversees these cases.
Paul M. Rosenblatt of Kilpatrick Townsend & Stockton LLP is the
Debtors' counsel.
EVOKE PHARMA: Appoints Benjamin Smeal as Class II Director
----------------------------------------------------------
Evoke Pharma, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on October 18, 2024,
pursuant to the amended and restated bylaws of the Company, the
Board of Directors of the Company appointed Benjamin Smeal to serve
as a Class II director, effective immediately, with an initial term
expiring at the Company's 2027 annual meeting of stockholders.
In connection with Mr. Smeal's appointment, effective October 18,
2024, the Audit Committee of the Board will be composed of Kenneth
J. Widder, Mr. Smeal and Vickie W. Reed, who will continue to serve
as chair of the Audit Committee, the Compensation Committee of the
Board will be composed of Malcolm R. Hill, Pharm.D., Mr. Smeal and
Todd C. Brady, M.D., Ph.D., who will serve as chair of the
Compensation Committee, and the Nominating and Corporate Governance
Committee of the Board will be Mr. Smeal, Mr. Widder, and Dr. Hill,
who will continue to serve as chair of the Nominating and Corporate
Governance Committee.
Mr. Smeal, age 46, has been a private investor since April 2018.
From April 2017 to April 2018, he served as the Associate Director,
Public Equities at Willett Advisors, the family office of Michael
R. Bloomberg, managing substantially all of Bloomberg's personal
assets in addition to those of Bloomberg Philanthropies. From
November 2007 to April 2017, he held the role of Senior Investment
Analyst at Kenmare Management, a hedge fund focused on U.S.
equities. From November 2020 to December 2020, Mr. Smeal served as
a director of ImageWare Systems, Inc. and from August 2018 to March
2019, he served as a director of Owens Realty Mortgage, Inc. Mr.
Smeal holds a Bachelor of Arts in Political Economy from Williams
College in Williamstown, Massachusetts, and a Master of Business
Administration, with a focus on Value Investing, from Columbia
Business School in New York, New York.
Pursuant to the Company's non-employee director compensation
program, Mr. Smeal was granted on the date of his appointment
options to purchase 5,833 shares of the Company's common stock,
which vests in substantially equal annual installments on each of
the first three anniversaries of the date of grant. Mr. Smeal will
receive cash compensation for his service on the Board in
accordance with the Company's non-employee director compensation
program, as such program may be amended from time to time. Mr.
Smeal has also entered into the Company's standard form of
Indemnification Agreement, the form of which was filed as Exhibit
10.1 to the Company's Registration Statement on Form S-1, filed
with the SEC on May 24, 2013.
Mr. Smeal was appointed to the Board pursuant the nominating rights
granted in the previously disclosed letter agreement, dated
September 27, 2024, with Nantahala Capital Management, LLC. Mr.
Smeal is not a party to any transaction that would require
disclosure under Item 404(a) of Regulation S-K promulgated under
the Securities Act of 1933, as amended. The Board has determined
that Mr. Smeal is an independent director in accordance with the
listing requirements of the Nasdaq Capital Market.
About Evoke Pharma
Headquartered in Solana Beach, California, Evoke Pharma, Inc. --
http://www.evokepharma.com-- is a specialty pharmaceutical company
focused primarily on the development of drugs to treat GI disorders
and diseases. The company developed, commercialized, and markets
GIMOTI, a nasal spray formulation of metoclopramide, for the relief
of symptoms associated with acute and recurrent diabetic
gastroparesis in adults.
San Diego, California-based BDO USA, P.C., the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated March 14, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations since
inception. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
Evoke Pharma reported a net loss of $7.79 million for the year
ended Dec. 31, 2023, compared to a net loss of $8.22 million for
the year ended Dec. 31, 2022. As of June 30, 2024, the Company had
$12,136,215 in total assets, $9,471,257 in total liabilities, and
$2,664,958 in total stockholders' equity.
FAIR OFFER: Hires Keller Williams 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 Tery Sherer,
of Keller Williams Homewood, as real estate broker.
The firm will market and sell the Debtor's real properties located
at 1534 County Road 573, Hanceville, Alabama 35077; 163 21st
Street, Hueytown, Alabama 35023; and 816 Northwest 19th Street, NW,
Fayette, Alabama 35555.
The firm will be paid a commission of 6 percent of the gross
proceeds of the sale.
Tery Sherer, of Keller Williams Homewood, 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:
Tery Sherer
Keller Williams Homewood
3040 Independence Dr.
Homewood, AL 35209
Tel: (205) 875-6959
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.
FINEST COACHBUILDING: J. Schwendeman Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Jeffrey Schwendeman
of RPA Advisors, LLC as Subchapter V trustee for Finest
Coachbuilding Group, LLC.
Mr. Schwendeman will charge $425 per hour for his services as
Subchapter V trustee and will seek reimbursement for work-related
expenses incurred.
Mr. Schwendeman declared that he is a disinterested person
according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jeffrey Schwendeman
RPA Advisors, LLC
45 Eisenhower Drive
Paramus, NJ 07652
(201) 527-6661
Email: jschwendeman@rpaadvisors.com
About Finest Coachbuilding Group
Finest Coachbuilding Group LLC, doing business as Radford Motors,
specializes in the creation of bespoke, luxury vehicles.
Finest Coachbuilding Group sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12327) on October
10, 2024, with $1 million to $10 million in both assets and
liabilities. Daniel Bednarski, chief financial officer and chief
operating officer, signed the petition.
Judge John T. Dorsey handles the case.
The Debtor is represented by:
Thomas J. Francella, Jr., Esq.
Raines Feldman Littrell, LLP
1200 N. Broom Street
Wilmington, DE 19806
Tel: (302) 772-5805
FLUID MARKET: 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 Fluid
Market, Inc. and Fluid Fleet Services, LLC.
The committee members are:
1. USA GoMobile Inc.
Attn: Derek Naidoo
163 SW Freeman Avenue, Ste D
Hillsboro, OR 97123
Email: derek@usagomobile.com
Phone: 904-655-5818
2. Cina Global, LLC
Attn: Aidin Ansari
710 Water St.
Darby, MT 59829
Email: aidin@cinaglobal.net
Phone: 310-497-5755
3. IceJamma Exgellin LLC
Attn: Jaime Babcock
495 W Oakwood Ln.
Castle Rock, CO 80108
Email: 528jg@comcast.net
Phone: 303-587-7231
4. Always Funday LLC
Attn: Clark Lodge
3330 E 7th Ave Pkwy
Denver, CO 80206
Email: clarklodge78@gmail.com
Phone: 310-913-0782
5. JDK Delivery LLC
Attn: Treassia Hall-Cawthon
12955 Woodlake Rd
Elbert, CO 80106
Email: jdkdelivery@outlook.com
Phone: 719-338-2518
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 Fluid Market
Fluid Market, Inc., et al., operate and manage a technology-based,
peer-to-peer truck-sharing platform across the United States with a
fleet of nearly 5,500 vehicles owned by their non-Debtor
affiliates
or third-party owners who have elected to put their vehicles on the
Debtors' platform, https://www.fluidtruck.com. Customers have
quick and easy access to the right vehicle whenever they need it
via the Debtors' mobile app and website.
Fluid Market Inc. and Fluid Fleet Services, LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
24-12363) on Oct. 16, 2024. In the bankruptcy petition, Fluid
Market reported $50 million to $100 million in assets and
liabilities.
The petition was signed by T. Scott Avila as chief executive
officer.
Pachulski Stang Zihel & Jones LLP serves as the Debtors' counsel.
Paladin Management Group, LLC acts as the Debtors' restructuring
advisor; SSG Capital Advisors, LLC acts as investment banker to the
Debtors; and EPIQ Corporate Restructuring LLC is claims and
noticing agent to the Debtors.
FREE SPEECH: Jones Fights Bid to Sell Social Media Accounts
-----------------------------------------------------------
Jim Vertuno of AP reports that conspiracy theorist Alex Jones is
attempting to safeguard his personal social media accounts from
being included in the upcoming auction of his Infowars media
platform. This auction is aimed at covering over $1 billion in
debts owed to the families of victims from the Sandy Hook
Elementary School shooting. Jones argues that selling these
accounts would infringe on his privacy and hinder his ability to
start anew following his bankruptcy.
The trustee managing the liquidation of Infowars and its parent
company, Free Speech Systems, requested a federal judge on Friday
to incorporate the social media accounts into the auctions set for
November and December. The judge has postponed a decision on this
issue for at least a week.
Jones' attorneys contend that the personal media accounts, which
bear his real name, are not the property of Infowars or Free Speech
Systems, but are instead personally managed by him. They argue that
these accounts represent his "persona" and should not be owned by
anyone other than himself.
They argue that trustee Christopher Murray does not have the right
to claim the social media accounts as sellable property and
cautioned that any potential buyer could face lawsuits regarding
the legitimacy of the acquisition.
U.S. Bankruptcy Judge Christopher Lopez, based in Houston,
indicated that a proposed order regarding the potential sale of the
social media accounts, which would allow Jones to challenge
ownership later, was ambiguous. He tentatively scheduled another
hearing for the following week.
"We need to ensure clarity so everyone understands what can be sold
before it goes on the market," Lopez stated. "I want any buyer or
bidder to know exactly what they are purchasing. I aim to avoid
creating litigation risks for potential purchasers."
Additionally, the trustee is seeking permission to sell the rights
to royalties from Jones' book, The Great Reset: And the War for the
World, published in August 2022, as well as his video game, Alex
Jones NWO Wars, released in 2023, which features Jones as the
protagonist in a shooting game.
Despite the impending loss of his company, Jones has pledged to
keep his talk shows going through alternative channels, potentially
including a new website and his personal social media accounts. He
has also hinted that his supporters could purchase Infowars'
assets, allowing him to continue hosting his show as an employee
under the Infowars brand in Austin, Texas, where the company is
based. In court filings, the trustee's legal team argued that
Jones' X account, along with others on platforms like Telegram,
Gab, and Parler, "are frequently used to promote and post Infowars
content, and in some instances, have a substantial following."
Jones' X account boasts nearly 3 million followers.
The trustee contended that social media accounts belonging to
influencers, celebrities, and political figures have become
valuable assets, and that Jones' accounts have attracted
significant interest from various parties looking to acquire them.
According to Jones' attorneys, any potential litigation would
depend on the identity of the purchaser.
"We expressed to the trustee that if certain parties were the
successful bidder, litigation would likely follow; however, if
other parties won, there would be no litigation," Vickie Driver,
one of Jones' attorneys, informed the judge.
"There is value to some individuals in acquiring these assets and
using them in one way, while others see value in using them
differently," Driver added.
Jones and his company both filed for bankruptcy protection in 2022,
the same year that families of Sandy Hook victims won nearly $1.5
billion in defamation and emotional distress lawsuits against him
for repeatedly asserting that the 2012 school shooting was a hoax
orchestrated by "crisis actors" to advance gun control measures.
The tragic shooting claimed the lives of 20 first-graders and six
educators in Newtown, Connecticut.
During two civil trials held in Texas and Connecticut, parents and
children of many victims testified about the trauma inflicted by
Jones' conspiracy theories and the actions of his followers. They
recounted experiences of harassment and threats from Jones'
supporters, who confronted grieving families, insisting that the
shooting never occurred and that their children were fabricated.
One parent described a chilling incident where someone threatened
to disturb his deceased son's grave.
Jones is currently appealing the civil jury verdicts, arguing that
his free speech rights are at stake and questioning whether the
families successfully established a link between his statements and
the harassment faced by the relatives. He has since admitted that
the shooting did take place.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FREIRICH FOODS: Gets OK to Use Cash Collateral Until Nov. 29
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston-Salem Division granted Freirich Foods, Inc.
authority to use cash collateral on an interim basis.
The interim order authorized the company to use cash collateral
until Nov. 29 to pay operating expenses as set forth in its budget.
The budget shows a beginning cash balance of $1,880,221 and
projected receipts and disbursements for the period from Oct. 4 to
Nov. 29.
First National Bank of Pennsylvania was granted post-petition
replacement liens on the company's cash collateral and
post-petition property, with the same priority as its
pre-bankruptcy liens.
In addition, First National Bank will receive monthly payments of
$50,000 from Freirich Foods, plus interest accruing during the
prior month at the contract rate on the outstanding principal
balance of the bank's secured claim.
The next hearing is scheduled for Nov. 26.
About Freirich Foods
Freirich Foods, Inc. is a deli meat processor that produces dry
open-oven roasted products. It has been supplying specialty meats
to select grocers and delis since 1921. Although initially opened
in New York, the business is headquartered in Salisbury, North
Carolina today and has been managed by four generations of the
Freirich family.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50204) on March 20,
2024, with $13,015,005 in assets and $14,524,627 in liabilities.
Paul Bardinas, president, signed the petition.
Judge Benjamin A. Kahn oversees the case.
The Debtor tapped John A Northen, Esq., at Northen Blue, LLP as
legal counsel and The Finley Group, Inc. as financial advisor.
GARDA WORLD: Moody's Affirms B3 CFR & Rates New Unsec. Notes Caa2
-----------------------------------------------------------------
Moody's Ratings affirmed Garda World Security Corporation's B3
corporate family rating, B3-PD probability of default rating and
Caa2 senior unsecured notes. At the same time, Moody's have
assigned a Caa2 rating to the proposed $1 billion senior unsecured
notes due 2032 and upgraded to B1 from B2 the senior secured
ratings, which include the senior secured term loan, senior secured
first lien revolving credit facility and senior secured first lien
notes. The outlook is stable.
The upgrade of the secured debt to B1 reflects higher proportion
the unsecured debt relative to secured increasing the loss
absorption provided.
The net proceeds from the proposed $1 billion senior unsecured
notes will be used to fund the announced acquisition of Stealth
Monitoring, a leading remote video monitoring provider in the
United States and Canada, for $485 million ($330 million cash and
$140 million equity) with the remaining proceeds used to repay the
$604 million senior unsecured notes due 2027 with the balance held
in cash for general corporate purposes and future acquisitions.
"The notes issuance and acquisition is leverage neutral with Garda
World's pro forma debt/EBITDA (EBITDA includes ongoing integration
costs and full 12 month EBITDA contribution from recent
acquisitions) remaining elevated at around 7.7x." said Moody's
Ratings analyst Dion Bate.
On October 28 Garda World announced that BC Partners had reached an
agreement to sell the majority of its 49% equity stake in Garda
World to Garda World's CEO and senior management (increasing
managements stake to around 70% from 49%) and a group of private
equity investors lead by HPS Investment Partners. The change in
ownership does not change Moody's governance risk assessment of G-4
because Moody's expect management to continue to pursue a strategy
of debt funded acquisitions which will keep financial leverage
high.
RATINGS RATIONALE
Garda World's rating is constrained by: (1) its debt-financed
acquisition strategy and highly leveraged capital structure with
debt/EBITDA expected to remain above 7x through 2025; (2) limited
history of generating positive free cash flow; (3) high reliance on
labor supply and high staff turnover; and (4) some geopolitical and
reputational risks from protective services contracts in the Middle
East and Africa.
The company's rating benefits from: (1) strong market positions in
both security and cash service segments, which provide competitive
advantages in winning contracts; (2) recession resistant nature of
its businesses with high contract renewal rates and recurring
revenue; (3) established track record of integrating tuck-in
acquisitions; and (4) good customer and geographic diversity.
The senior secured debt is rated B1, two notches above the B3
corporate family rating (CFR) due to the senior debt's first
priority position, while the Caa2 rating on the senior unsecured
notes is two notches below the CFR due to the notes' junior
position in the capital structure.
The outlook is stable because Moody's expect Garda World to sustain
financial leverage between 6.5x and 7.5x over the next 12 to 18
months as management balances its growing cash flow generation
against debt funded acquisitions.
Garda World has adequate liquidity. In the past, Garda World has
generated negative free cash flow, relying on its revolver credit
facility (RCF) and accumulating more debt to finance acquisitions
and enhance its cash position. Sources are around C$715 million
compared to mandatory debt repayments of about C$28 million for the
four quarters to October 31, 2025. Garda World's liquidity is
supported by around C$290 million of pro forma cash and C$424
million (after deducting C$131 million of outstanding letters of
credit) under its $392 million RCF ($33.9 million expiring in
October 2024; $100 million expiring in April 2026 and $258.1
million expiring in January 2028) and Moody's assumption of neutral
free cash flow for the next twelve months to October 2025. The RCF
is subject to a springing covenant for net first lien leverage and
Moody's expect sufficient buffer the next four quarters. Garda
World has limited ability to generate liquidity from asset sales,
and will not have any refinancing risk until 2027 when its $570
million senior secured notes mature in February 2027.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be upgraded if Garda World maintains good
liquidity and sustains adjusted Debt/EBITDA below 6x and
EBITA/Interest above 2x.
The rating could be downgraded if liquidity worsens, possibly due
to consistent negative free cash flow or if adjusted Debt/EBITDA
was sustained toward 8x and EBITA/Interest below 1x.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Garda World, headquartered in Montreal, Quebec, is a provider of
cash services in North America (end-to-end cash management
services), protective services in Canada and US (manned guarding,
airport screening operations, executive protection, security
systems and remote monitoring) and international protective
services in the Middle East and Africa.
GEO. J. & HILDA: No Resident Care Concern, 5th PCO Report Says
--------------------------------------------------------------
Jenny Hollandsworth, the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Western District of Missouri her
report regarding the quality of patient care provided by The Geo.
J. & Hilda Meyer Foundation.
Representatives of the office visited Meyer Care Center on August 5
and 28. The facility did have some cases of COVID-19 during this
past reporting period. No care concerns were reported during these
visits. One resident reported the ice machine needed cleaning
during the August 5th visit and this concern has since been
resolved.
The PCO observed residents participating in activities and physical
therapy sessions during visits. Multiple residents were also seen
visiting with family or friends during visits. The community has
been publicizing several events including an upcoming dinner for
promotional/marketing purposes.
The PCO noted no vendor related issues during visits. Facility has
not issued any discharged notices since last report. No turnover in
key positions since last report.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=Sy7AGE from PacerMonitor.com.
The ombudsman may be reached at:
Jenny Hollandsworth
State Office of Long-Term Care Ombudsman Program
Missouri Department of Health and Senior Services
PO Box 570
Jefferson City, MO 65102-0570
Phone: (800) 309-3282
Email: LTCOmbudsman@health.mo.gov
About The Geo. J. & Hilda Meyer Foundation
The Geo. J. & Hilda Meyer Foundation owns and operates a senior
living community in Higginsville Mo.
The Debtor filed Chapter 11 petition (Bankr. W.D. Mo. Case No.
23-41685) on Dec. 4, 2023, with up to $10 million in both assets
and liabilities. Judge Brian T. Fenimore oversees the case.
Conroy Baran, LLC serves as the Debtor's bankruptcy counsel.
Jenny Hollandsworth has been appointed as patient care ombudsman in
the Debtor's Chapter 11 case.
GLOBAL CLEAN: Unit Issues CTCI Notice of Default Under EPC Contract
-------------------------------------------------------------------
Global Clean Energy Holdings, Inc. disclosed in a Form 8-K filed
with the Securities and Exchange Commission that on Oct. 21, 2024,
Bakersfield Renewable Fuels, LLC ("BKRF"), an indirect wholly-owned
subsidiary of Global Clean Energy Holdings, Inc., notified CTCI
Americas, Inc. that CTCI was in default under the EPC Agreement,
and such defaults are not capable of cure. As a result, all
further work under the EPC Agreement was terminated, and BKRF
exercised its right to complete all remaining work. BKRF intends
to pursue any and all remedies available to it as a result of such
defaults under the EPC Agreement and at law, including enforcing
its right to draw down on a letter of credit provided by CTCI in
support of its obligations under the EPC Agreement.
As previously disclosed, BKRF is party to that certain Turnkey
Agreement with a Guaranteed Maximum Price for the Engineering,
Procurement and Construction of the Bakersfield Renewable Fuels
Project, by and between BKRF and CTCI Americas, Inc. dated as of
May 18, 2021 (as amended from time to time), pursuant to which CTCI
agreed to provide services for the engineering, procurement,
construction, start-up and testing of the Company's Bakersfield
Renewable Fuels Facility.
About Global Clean
Global Clean Energy Holdings, Inc. and its subsidiaries is a
vertically integrated renewable feedstocks and finished fuels
company. Utilizing a farm-to-fuels strategy, the Company's
business model is designed to control all aspects of the value
chain, with one end of its business anchored in plant science and
the other in renewable fuels production. The Company contracts
directly with farmers to grow its ultra-low carbon, nonfood,
proprietary Camelina crop on fallow land to source sustainable
feedstock for its Renewable Fuels Facility in Bakersfield,
California.
Kansas City, Missouri-based Grant Thornton LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the Company incurred a net
loss of $89.9 million during the year ended Dec. 31, 2023, and as
of that date, the Company's current liabilities exceeded its
current assets by $217.5 million. Further, the Company believes it
will need additional capital to meet its obligations and fund
certain liquidity requirements, including repayment of debt,
completion of the refinery, and other operational requirements such
as camelina activities, general and administrative costs, and
initial feedstock required for operations. These conditions, along
with other matters, raise substantial doubt about the Company's
ability to continue as a going concern.
GREAT CANADIAN: Moody's Rates New $400MM Senior Secured Notes 'B2'
------------------------------------------------------------------
Moody's Ratings has assigned a B2 rating to Great Canadian Gaming
Corporation's proposed $400 million backed senior secured notes due
2029. The remaining ratings remain unchanged. The outlook is
unchanged at stable.
The net proceeds from the proposed $400 million senior secured
notes will be used to refinance the existing $350 million backed
senior secured notes due November 2026.
RATINGS RATIONALE
Great Canadian's Corporate Family Rating is constrained by: (1)
high financial leverage, with Moody's adjusted debt/EBITDA
remaining around 7x (consolidated) through 2025; (2) low interest
coverage with a EBIT/interest expense projected to trend below 1x
in 2025; (3) financial policy risks under private equity ownership
as reflected by the debt funded dividend distribution at Ontario
Gaming GTA Limited Partnership (B3/stable)(aka One Toronto Gaming
(OTG)) in February 2024; and (4) longer-term social risks including
demographic shifts away from traditional casino-style gaming and
online substitution.
The rating benefits from: (1) wide geographic diversification
across 25 properties in four provinces, with proximity to major
metropolitan areas (Toronto and Vancouver); (2) strong market
positions, including the absence of competing casino gaming
operators within Ontario's regulated gaming bundles; (3) favorable
provincial regulatory frameworks given high barriers to entry and
history of supportive measures; and (4) good liquidity.
Great Canadian has good liquidity. Moody's liquidity analysis for
Great Canadian excludes OTG because of the restricted access to
OTG's cash flow. As of Q3 2024 ending September, sources are around
C$440 million compared to uses in the form of mandatory term loan
amortization of about C$10 million through Q3 2025. The sources
comprised of C$195 million in unrestricted cash on hand (excluding
$106 million in float and holdback cash), about C$225 million
available after letters of credit under the company's US$215
million (C$290 million) revolver expiring November 2029 (post
extension) and Moody's expectations of around C$20 million of free
cash flow over the next twelve months to Q3 2025. The revolving
credit facility is subject to a springing net first lien leverage
ratio when drawings and letters of credit exceed 35% of the
facility's size. While Moody's do not expect the company to use the
facility over the next twelve months, Moody's believe the company
will remain in compliance. The company has some flexibility to
generate liquidity from asset sales. Moody's have assumed that the
sale proceeds from the announced casino disposals will be used to
reduce debt.
OTG has its own unrestricted cash of C$134 million (excluding float
and holdback cash of about C$108 million) and a $200 million (C$269
million) revolver expiring 2028 with around C$160 million available
after letters of credit.
Great Canadian's senior secured first lien bank credit facilities
are rated B2, one notch above the B3 CFR, reflecting higher
recovery in the capital structure. The senior unsecured notes are
rated two notches below the CFR at Caa2, reflecting their junior
position behind the secured debt.
The stable outlook reflects Moody's expectation that despite the
net revenue and EBITDA decline in 2025, consolidated adjusted debt
/ EBITDA will remain around 7x and that Great Canadian will
maintain a strong cash position and generate positive free cash
flow at the restricted group level over the next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if Great Canadian (both restricted
group and consolidated levels) maintains adjusted debt/EBITDA
comfortably below 6x and EBIT/interest above 2x while generating
positive free cash flow and maintaining good liquidity.
The rating could be downgraded if liquidity weakens or operational
performance is impacted by a slower than anticipated recovery, if
adjusted debt/EBITDA remains above 8x or if EBIT/interest declines
to under 1x, at both the restricted group and consolidated levels.
Great Canadian Gaming Corporation, headquartered in Ontario, is a
gaming and entertainment operator with 25 properties located in
British Columbia, Ontario, Nova Scotia, and New Brunswick,
including over 19,500 slot machines, over 635 table games, 75
dining amenities and over 1,300 hotel rooms. Great Canadian is
majority owned by funds managed by affiliates of Apollo Global
Management.
The principal methodology used in this rating was Gaming published
in June 2021.
GREEN ENERGY: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Green Energy Partners, LLC.
About Green Energy Partners
Green Energy Partners LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-33634) on Sept.
29, 2024. In the petition filed by Mark E. Andrews, as manager,
the Debtor estimated assets between $10 million and $50 million and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by James P. Campbell, Esq., at Campbell
Flannery, P.C.
GRITSTONE BIO: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Gritstone
bio, Inc.
The committee members are:
1. BMR-Sidney Research Campus LLC
Attn: Carlye Murphy '
314 Main Street, 14th Floor
Cambridge, MA 02142
Phone: 617-551-5952
Email: carlye.murphy@biomedrealty.com
2. Presidio
Attn: Jay Staples
One Penn Plaza, Suite 2501
New York, NY 10119
' Phone: 770-582-7228
Email: jstaples@presidio.com
3. Murigenics, Inc.
Attn: Dr. Henry W. Lopez
941 Railroad Avenue
Phone: 707-561-8900
Email: lopezh@murigenics.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Gritstone Bio Inc.
Gritstone Bio Inc. is developing next-generation vaccines for
cancer and infectious disease. Gritstone's approach seeks to
generate potent and durable immune responses by leveraging insights
into the immune
system's ability to recognize and destroy diseased cells by
targeting select antigens.
Gritstone Bio sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-12305) on October 10, 2024. In the
petition filed by Celia Economides, as chief financial officer, the
Debtor reports total assets as of August 31, 2024 amounting to
$124,885,479 and total debts as of August 31, 2024 amounting to
$40,000,000.
Judge Karen B. Owens handles the case.
The Debtor tapped Pachulski Stang Ziehl & Jones, LLP as bankruptcy
counsel; Fenwick & West, LLP as corporate counsel;
PricewaterhouseCoopers, LLP as financial advisor; and Raymond James
& Associates, Inc. as investment banker.
GROUP RESOURCES: Hires Robl Law Group LLC as Counsel
----------------------------------------------------
Group Resources Acquisitions, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Northern District of Georgia
to employ Robl Law Group LLC as counsel.
The firm's services include:
a. advising Debtors regarding pros and cons of the Chapter 11
process, as applicable to each Debtors' circumstances;
b. preparation of the bankruptcy Petition, Schedules of Assets
and Liabilities, Statement of Financial Affairs, company
Resolution, and similar documents;
c. assisting the Debtors with the preparation of such "first
day motions" as may be necessary, including motions to authorize
payment of pre-petition claims, motions for joint administration,
and similar filings;
d. assisting the Debtors in providing documents to the United
States Trustee's ("U.S. Trustee's") office for review in advance of
the Initial Debtor Interview ("IDI");
e. assisting the Debtors in preparing for the IDI and
participating in the IDI with Debtors' representative;
f. assisting the Debtors in preparing for the examination
provided for by Bankruptcy Code Section 341 (the "341 Meeting") and
participating in the 341 Meeting with Debtor's representative;
g. advising the Debtors of their rights, duties and
obligations as a debtor-in-possession;
h. reviewing claims filed in the case and assisting Debtors in
evaluating such claims for potential objections;
i. conducting or defending examinations pursuant to Rule 2004
of the Federal Rules of Bankruptcy Procedure as may be deemed
desirable or necessary;
j. consulting with the Debtors and representing Debtors with
respect to formulating a Chapter 11 plan of reorganization,
k. assisting the Debtors in the Chapter 11 plan confirmation
process;
l. communicating with creditors regarding their concerns;
m. assisting in the conduct of a forensic accounting /
investigation of funds misappropriated from the Debtors;
n. assisting the Debtors with the preparation of monthly
operating reports;
o. performing those legal services incidental and necessary to
carrying out the day-to-day operations of Debtors' business
activities;
p. institution and prosecution of necessary adversary
proceedings and contested matters; and
q. taking any and all other actions incident to the proper
preservation and administration of Debtors' estate and business.
The firm will be paid at these rates:
Michael Robl, Esq. $475 per hour
Max Bowen, Esq. $375 per hour
Lelena Kassa, paralegal $175 per hour
The firm received from the Debtors a retainer of $50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael D. Robl, Esq., a partner at Robl Law Group, LLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael D. Robl, Esq.
Maxwell W. Bowen
Robl Law Group, LLC
3754 Lavista Road, Suite 250
Tucker, GA 30084
Tel: (404) 373-5153
Fax: (404) 537-1761
Email: michael@roblgroup.com
max@roblgroup.com
About Group Resources Acquisitions, LLC
Group Resources Acquisitions, LLC and its affiliates, Group
Resources of Iowa, LLC and Employee Benefits Concepts, Inc. filed
Chapter 11 petitions (Bankr. N.D. Ga. Case Nos. 24-59671, 24-59675
and 24-59673) on September 13, 2024. Another affiliate, Group
Resources Incorporated, filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ga. Case No. 24-59729) on Sept. 16, 2024. The cases
are jointly administered under Case No. 24-59671.
At the time of the filing, Group Resources Acquisitions reported up
to $10 million in assets and up to $50,000 in liabilities.
Judge Sage M. Sigler oversees the cases.
The Debtors are represented by Michael D Robl, Esq., at Robl Law
Group, LLC.
HANESBRANDS INC: Moody's Alters Outlook on 'B1' CFR to Stable
-------------------------------------------------------------
Moody's Ratings changed Hanesbrands Inc.'s outlook to stable from
negative. At the same time, Moody's affirmed Hanesbrands ratings
including its B1 corporate family rating, B1-PD probability of
default rating, Ba2 senior secured bank credit facilities ratings
and B3 senior unsecured notes ratings. The SGL-2 speculative grade
liquidity rating (SGL) remains unchanged.
The outlook changes to stable reflects governance considerations,
particularly Moody's view that Hanesbrands will demonstrate its
focus on strengthening its financial profile through the expected
utilization of $900 million of the proceeds from the sale of
Champion to repay debt. The outlook change also reflects Moody's
expectation that the company should benefit from a continued
stabilization in and refined focus on its core innerwear business
where it has a strong market position.
On the heels of the debt repayment and stabilization in the
standalone innerwear business, debt/EBITDA and EBITA/interest
(adjusted for transaction-related and other one-time costs) are
expected to improve to about 4.25x and 2.0x, respectively at
year-end 2024 from 6.0x and 1.4x, respectively at year-end 2023.
Moody's expect the company to continue to use cash flow generation
toward debt repayment such that leverage and coverage will further
improve to 3.5x and 2.5x, respectively by year-end 2025. Moody's
also expect Hanesbrands to maintain good liquidity with full
availability on its $1.0 billion revolving credit facility and
adequate cash balances over the next 12-18 months. Moody's also
anticipate that the company will refinance its revolver, Term Loan
A and bond coming due in 2026 in a timely fashion.
RATINGS RATIONALE
Hanesbrands' B1 CFR reflects the company's well-known brands and
leading share in the innerwear product category and its typically
low-cost supply chain. Hanesbrands' credit profile also reflects
the more focused business following the Champion sale and the
company's good liquidity. Moody's expect that the company will
remain focused on reducing leverage to its stated long-term net
leverage target of 2.0x-3.0x on reported EBITDA. Additionally,
management has taken creditor-friendly steps such as halting
dividends and reducing capital expenditures which has bolstered
free cash flow and liquidity. Also considered in the credit profile
is Hanesbrands significant customer concentration which leaves it
susceptible to volatility in the buying patterns of large
retailers, exposure to cotton, freight and other input costs and
fact that apparel basics such as those sold by Hanesbrands are in a
category where price is a significant factor influencing the
consumer's buying decisions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded following a sustained improvement in
operating performance and credit metrics and the continued
maintenance of a balanced financial strategy that supports
deleveraging and at least good liquidity, particularly a timely
refinancing of its 2026 maturities. Quantitatively, ratings could
be upgraded if Moody's-adjusted debt/EBITDA is maintained below
4.25x and EBITA/interest is maintained above 2.5x.
Ratings could be downgraded should the company suffer negative
revenue and profitability trends. Inability to refinance the 2026
maturities in a timely fashion could also lead to a downgrade.
Quantitatively, ratings could be downgraded if Moody's-adjusted
debt/EBITDA remains above 5.5x or EBITA/interest is sustained below
1.75x.
Headquartered in Winston-Salem, North Carolina, Hanesbrands Inc.
manufactures and distributes basic apparel products under brands
that include Hanes, Maidenform, Bali, Bonds and Playtex. Revenue
for the go-forward business following the sale of Champion was
about $3.6 billion for the 12 months ended June 30, 2024.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
HOMESPUN LLC: Shantytown Cuts Offer for Equipment to $120,000
-------------------------------------------------------------
Homespun LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York, Poughkeepsie Division, at a hearing
on November 19, 2024, to sell restaurant equipment to Shantytown
LLC, free and clear of all liens and encumbrances.
The Debtor operates Dia Beacon Cafe, which serves food and
beverages located at Dia:Beacon, 11 Beekman Street, Beacon, New
York, and the Homespun Foods, which serves breakfast and lunch
located at 232 Main Street, Beacon, New York.
The Debtor initially sought to sell the equipment to Shantytown
LLC, as the initial bidder, at the purchase price of $200,000,
after publishing a Notice of Sale, along with the Bid Procedures,
in the Poughkeepsie Journal. The deadline by which bids were to be
summitted was on September 25, 2024, and the Debtor's counsel did
not receive any inquiries regarding the purchase of the Assets.
However, it was discovered that the Debtor is not the owner of the
equipment and fixed items located at the Dia Beacon Cafe premises,
which prompted Shantytown to reduce its offer to $120,000.
The Debtor's assets being sold consists of miscellaneous equipment,
furniture, fixtures, the Debtor's trade name and logos, and other
goodwill.
The Debtor says the decision to sell its assets was one of
necessity and resulted from a lack of remaining viable
alternatives.
About Homespun LLC
Homespun operates Dia Beacon Cafe and Homespun Foods, which both
serves food and beverages in Beacon, New York.
Homespun, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 24-35813) on August 15, 2024.
The Debtor hired Genova, Malin & Trier, LLP as legal counsel.
HOUSTON TRUCK: Melissa Haselden Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 7 appointed Melissa Haselden, Esq., at
Haselden Farrow, PLLC as Subchapter V trustee for Houston Truck
Wash & Lube, Inc.
Ms. Haselden will be paid an hourly fee of $550 for her services as
Subchapter V trustee and will be reimbursed for work-related
incurred.
Ms. Haselden declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Melissa A. Haselden, Esq.
Haselden Farrow, PLLC
700 Milam, Suite 1300
Pennzoil Place
Houston, TX 77002
Telephone: (832) 819-1149
Facsimile: (866) 405-6038
Email: mhaselden@haseldenfarrow.com
About Houston Truck Wash & Lube
Houston Truck Wash & Lube, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Case No. 24-34706) on October 6, 2024, listing $500,001 to $1
million in both assets and liabilities.
Judge Jeffrey P Norman presides over the case.
Reese W Baker, Esq., at Baker & Associates represents the Debtor as
legal counsel.
HUDSON 888: Lender Get 52 Units of Hell’s Kitchen Condo
---------------------------------------------------------
C. J. Hughes of Crain's New York Business reports that Xin
Development Group International, a Chinese developer, has
transferred numerous unsold units at 500 W. 45th St. to lender BH3
Management as part of a Chapter 11 bankruptcy restructuring
approved by the court. This transfer was recorded in deeds filed
with the city register on Thursday, October 24, 2024.
Xin, the American subsidiary of China's struggling Xinyuan Real
Estate, has transferred 52 unsold units at the 92-unit condo
project, Bloom at 45th—formerly a Hess gas station turned
Target-anchored mixed-use development. Based on property records,
these units have a total value of $50 million, with the U.S.
Bankruptcy Court for the Southern District of New York setting an
average price per apartment at around $1 million, which may be
below market value as courts often assign conservative estimates.
BH3 Management plans to relaunch the units on the market. "We are
finalizing plans to initiate a new sales-and-marketing campaign for
the remaining units," a BH3 spokesperson told Crain's.
As part of the reorganization, approved on October 11 by Southern
District Judge Michael Wiles, Xin refinanced its debt on the unsold
units, which had been secured by a mortgage in default since 2023,
according to public records.
Xin retains ownership of the complex's retail units, which include
a veterinary clinic, a dermatology office, and Target. This series
of transactions concludes a turbulent period for the 7-story,
blockwide development at 500 W. 45th St., which features 35,000
square feet of retail space on 10th Avenue.
As part of its New York expansion, which included the Oosten
complex in South Williamsburg, Xin acquired the former Hess station
in 2016 for $57.5 million and began taking out substantial loans
against the property, according to records.
Bloom's initial offering plan, approved in early 2019, projected a
$164 million sell-out. However, the onset of the pandemic in early
2020, just as Bloom was attracting potential buyers, appears to
have stalled progress. The developer eventually revised
expectations to $147 million, as reflected in the plan.
The project's latest financing included a $90 million mortgage from
Ares Management and a $30 million mezzanine loan from The
Georgetown Co. BH3, a firm known for acquiring distressed debt in
New York, purchased this debt in May 2023 and subsequently began
foreclosure proceedings a few months later.
In January, Xin sought bankruptcy protection to retain the site, a
strategy that ultimately proved ineffective. This isn't BH3's first
similar acquisition, as the Florida-based company with a Manhattan
office also took control of 125 Greenwich St. in 2019 after the
developers defaulted on a $195 million loan.
Xin faced similar financial issues with its Oosten project on Kent
Avenue, defaulting last year while still holding 21 unsold condos
nearly a decade after they hit the market. Xinyuan, Xin's parent
company, has also struggled due to China's real estate downturn,
which has limited potential financial support for the projects.
Attempts to reach Xin's legal representatives at Herrick,
Feinstein, were unsuccessful as of press time.
About Hudson 888 Owner
Hudson 888 Owner LLC, a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Sec. 101(51B)), owns a mixed-use real estate project
commonly known as the Bloom on Forty-Fifth Condominium, located at
500 West 45th Street, in Manhattan, New York. Construction was
completed in 2020 and consists of 92 studio, one-bedroom,
two-bedroom, and three-bedroom residential condominium apartments
and five commercial condominium units.
Hudson 888 Holdco LLC, a holding company, owns the membership
interests in Hudson 888 Owner. Chinese developer Xinyuan Real
Estate Co., Ltd., is the parent entity of Hudson 888.
Hudson 888 Owner LLC and Hudson 888 Holdco LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-10021) on Jan. 7, 2024. In the petition signed by Sheng Zhang,
chairman and CEO, Hudson 888 Owner disclosed up to $500 million in
both assets and liabilities. Judge Michael E. Wiles oversaw the
cases.
Counsel for the Debtors:
Robert D. Gordon, Esq.
Nicholas G.O. Veliky, Esq.
Rodger T. Quigley, Esq.
HERRICK, FEINSTEIN LLP
Two Park Avenue
New York, NY 10016
Tel: (212) 592-1400
Fax: (212) 592-1500
E-mail: rgordon@herrick.com
nveliky@herrick.com
rquigley@herrick.com
Special condominium counsel to the Debtors:
Holland & Knight LLC
31 West 52nd Street
New York, NY 10019
Attn: Stuart M. Saft
Telephone: (212) 513-3308
E-mail: stuart.saft@hklaw.com
Counsel to the Secured Lenders:
Reed Smith LLP
David A. Pisciotta
599 Lexington Avenue
New York, NY 10022-7650
Tel: (212) 521 5400
Fax: (212) 521 5450
E-mail: dpisciotta@reedsmith.com
HYPERSCALE DATA: Sells $100K Worth of Convertible Preferred Shares
------------------------------------------------------------------
Hyperscale Data, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Oct. 22, 2024, the
Company, pursuant to the Securities Purchase Agreement entered into
with Ault & Company, Inc. (the "Purchaser") on Nov. 6, 2023, sold
100 shares of Series C convertible preferred stock, and warrants to
purchase 29,564 shares of the Company's common stock to the
Purchaser, for a purchase price of $100,000. As of Oct. 25, 2024,
the Purchaser has purchased an aggregate of 45,700 shares of Series
C Convertible Preferred Stock and Series C Warrants to purchase an
aggregate of 13,510,718 Warrant Shares, for an aggregate purchase
price of $45.7 million. The Agreement provides that the Purchaser
may purchase up to $75 million of Series C Convertible Preferred
Stock and Series C Warrants in one or more closings.
The Purchaser is an affiliate of the Company. The material terms
of the Agreement, Series C Convertible Preferred Stock and the
Series C Warrants were described in the Form 8-K filed with the SEC
on
Nov. 7, 2023.
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.
IMERYS TALC: Elliot, et al. Update on Talc Injury PI Claimants
--------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Elliott Greenleaf, P.C., KTBS Law LLP and
Aylstock, Witkin, Kreis & Overholtz, PLLC, submitted a second
supplement verified statement to disclose an updated list of AWKO
Plaintiffs that they are representing in the Chapter 11 cases of
Imerys Talc America, Inc., et al.
Each of the AWKO Plaintiffs has, individually, retained AWKO to
represent him or her as counsel in connection with, among other
things, Talc Personal Injury Claims against one or more of the
debtors or certain of their subsidiaries and affiliates.
On or about April 14, 2021, AWKO retained KTBS Law LLP as special
bankruptcy counsel. On or about October 1, 2023, AWKO retained
Elliott Greenleaf, P.C. as Delaware special bankruptcy counsel.
AWKO does not represent the AWKO Plaintiffs as a "committee" or a
"group" (as such terms are used in the Bankruptcy Code and the
Bankruptcy Rules) and does not undertake to represent the interests
of, and is not a fiduciary for, any creditor, party in interest, or
other entity that has not signed a retention agreement with AWKO.
Counsel to the AWKO Plaintiffs can be reached at:
ELLIOT GREENLEAF, P.C.
Deirdre M. Richards, Esq.
1300 North King Street
Wilmington, DE 19801
Telephone: (302) 384-9400
Facsimile: (302) 384-9399
Email: dmr@elliottgreenleaf.com
- and –
KTBS LAW LLP
Michael L. Tuchin, Esq.
Robert J. Pfister, Esq.
Samuel M. Kidder, Esq.
1801 Century Park East, 26th Floor
Los Angeles, CA 90067
Telephone: (310) 407-4000
Facsimile: (310) 407-9090
E-mail: mtuchin@ktbslaw.com
rpfister@ktbslaw.com
skidder@ktbslaw.com
- and -
AYLSTOCK, WITKIN, KREIS & OVERHOLTZ, PLLC
Justin Witkin, Esq.
17 East Main Street, Suite 200
Pensacola, FL 32502
Telephone: (850) 202-1010
E-mail: jwitkin@awkolaw.com
A copy of the Rule 2019 filing is available at
https://urlcurt.com/u?l=l3T4iy at no extra charge.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont,
Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The
Debtors were estimated to have $100 million to $500 million in
assets and $50 million to $100 million in liabilities as of the
bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC, as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
INDOCHINE RESTAURANT: Gets Interim OK to Use Cash Collateral
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Wilmington Division granted Indochine Restaurant, LLC
authorization to use cash collateral, on an interim basis, to pay
its operating expenses.
This collateral includes funds from unprocessed credit card
transactions and accounts receivable, which are subject to liens
held by North State Bank and the U.S. Small Business
Administration.
North State Bank and SBA were granted post-petition replacement
liens on the company's cash collateral, with the same priority as
their pre-bankruptcy liens.
About Indochine Restaurant
Indochine Restaurant, LLC operates a restaurant in Wilmington,
N.C., serving Thai and Vietnamese Asian cuisine.
Indochine Restaurant sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03490) on October 4,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Solange Thompson, manager, signed the petition.
The Debtor is represented by George Mason Oliver, Esq., at The Law
Offices of Oliver & Cheek, PLLC.
INDOCHINE RESTAURANT: Hires Woodruff & Associates as Accountant
---------------------------------------------------------------
Indochine Restaurant, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina to
employ Woodruff & Associates, CPA PC as accountant.
The firm will provide these services:
a. prepare Debtors' tax returns;
b. provide general tax/accounting services;
c. provide consulting and advice; and
d. review past accounting and tax returns.
The firm will be paid at $200 per hour, and a retainer in the
amount of $2,000.
Woodruff & Associates will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Kenny Woodruff, Esq., a partner at Woodruff & Associates, CPA, PC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Kenny Woodruff, CPA
Woodruff & Associates, CPA, PC
3819 Park Avenue
Wilmington, NC 28403
Telephone: (910) 523-5477
Email: kenny@woodruffcpa.com
About Indochine Restaurant LLC
Indochine Restaurant LLC is a restaurant serving Thai and
Vietnamese Asian cuisine.
Indochine Restaurant LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03490) on October 4,
2024. In the petition filed by Solange Thompson, as manager, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: (252) 633-1930
Fax: (252) 633-1950
E-mail: george@olivercheek.com
IROQUOIS-HUEY LLC: Patrick Malloy Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Patrick Malloy, III as
Subchapter V trustee for Iroquois-Huey, LLC.
Mr. Malloy will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Malloy declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Patrick J. Malloy, III
401 S. Boston Ave., Suite 500
Tulsa, OK 74103
Telephone: (918) 699-0345
Email: pjmiii@sbcglobal.net
About Iroquois-Huey LLC
Iroquois-Huey, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. Okla. Case No. 24-11343) on
October 7, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Brown Law Firm, P.C. is the Debtor's legal counsel.
ISUN INC: Creditors to Get Proceeds From Liquidation
----------------------------------------------------
iSun, Inc., and its Debtor Affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware a Disclosure
Statement with respect to Joint Chapter 11 Plan of Liquidation
dated September 16, 2024.
The Debtors were one of the largest solar energy services and
infrastructure deployment companies in the country.
The Debtors' business targeted all solar markets, including
residential, commercial, industrial and utility segments, and its
services included solar, storage and electric vehicle
infrastructure, design, development and professional services,
engineering, procurement, installation, O&M, and storage (the
"Business").
To facilitate the Sale, Clean Royalties (in such capacity, the "DIP
Lender") agreed to provide the Debtors with up to $4 million of new
money capital. This included the $1 million Bridge Loan shortly
before the Petition Date to ensure that the Debtors had sufficient
run-way to prepare for these cases in an orderly and efficient
manner and minimize the disruption to the Debtors and their
businesses that is attended to the commencement of these cases.
Clean Royalties also agreed to provide an incremental $3 million of
new money through a senior secured priming debtor in possession
financing facility (the "DIP Facility"), pursuant to which the
Bridge Loan would be be rolled into the initial obligations under
the DIP Facility as a condition to the initial borrowings under the
DIP Facility. Decathlon consented to priming by the Bridge Lender
and DIP Lender and consented to the DIP Facility.
Pursuant to the Stalking Horse Agreement, Clean Royalties was
designated as the stalking horse bidder with a credit bid of $10
million plus assumption of certain Assumed Liabilities (as defined
in the Stalking Horse Agreement).
On August 23, 2024, the Bankruptcy Court entered the Order (I)
Approving the Sale of the Debtors' Assets Free and Clear; (II)
Approving the Assumption and Assignment of Contracts and Leases;
and (III) Granting Related Relief, thereby approving the Stalking
Horse Agreement with Clean Royalties, which closed on August 26,
2024 (the "Closing Date"). On August 28, 2024 the Debtors' filed
the Debtor's Notice of Sale Closing and Report of Sale.
The Plan provides for the wind down of the Debtors' affairs,
continued liquidation of the Debtors' remaining assets to Cash, and
the distribution of the net proceeds realized therefrom, in
addition to Cash on hand on the Effective Date of the Plan, to
creditors holding Allowed Claims as of the Record Date in
accordance with the relative priorities established in the
Bankruptcy Code. The Plan does not provide for a distribution to
holders of Intercompany Claims, Subordinated Claims, or Interests,
and their votes are not being solicited as each is deemed to reject
the Plan.
The Plan contemplates the appointment of a Liquidation Trustee,
selected by the Creditors' Committee, to, among other things,
receive the Liquidation Trust Assets, establish and maintain such
operating, reserve, and trust accounts as are necessary and
appropriate to carry out the terms of the Liquidation Trust and the
Plan, including the Liquidation Trust Claims Reserve, invest Cash
that is a Liquidation Trust Asset, pursue objections to, estimation
of, and settlements of all Claims, regardless of whether any such
Claim is listed on the Debtors' Schedules, other than Claims that
are Allowed pursuant to the Plan, prosecute, settle, or abandon any
Retained Causes of Action, calculate all distributions made under
the Plan, and authorize and make, through the Distribution Agent,
all distributions to be made under the Plan.
Class 5 consists of General Unsecured Claims. Except to the extent
that a holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, in exchange for full and final satisfaction,
settlement, and release of each Allowed General Unsecured Claim,
each holder of such Allowed General Unsecured Claim shall receive
its pro rata share of the Beneficial Trust Interests, which
Beneficial Trust Interests shall entitle the holders thereof to
receive their pro rata share of the Liquidation Trust Assets.
Holders of Interests in the Debtors will receive no distribution
under the Plan.
The Plan is a liquidating plan and provides for the liquidation of
the Plan Assets and the payment of the proceeds generated therefrom
to holders of Allowed Claims in accordance with the priorities set
forth in the Bankruptcy Code.
On and after the Effective Date, the Plan will be implemented by,
among other things, the appointment of the Liquidation Trustee to
carry out the responsibilities described herein and more fully set
forth in the Liquidation Trust Agreement.
A full-text copy of the Disclosure Statement dated September 16,
2024 is available at https://urlcurt.com/u?l=rU1al6 from EPIQ
Corporate Restructuring LLC, claims agent.
Counsel for the Debtors:
Michael Busenkell, Esq.
Amy D. Brown, Esq.
Michael Van Gorder, Esq.
Gellert Seitz Busenkell & Brown, LLC
1201 N. Orange Street Suite 300
Wilmington, DE 19801
Tel: (302) 425-5812
Fax: (302) 425-5814
Email: mbusenkell@gsbblaw.com
abrown@gsbblaw.com
mvangorder@gsbblaw.com
-and-
Jennifer R. Hoover, Esq.
Kevin M. Capuzzi, Esq.
John C. Gentile, Esq.
Benesch, Friedlander, Coplan & Aronoff LLP
1313 North Market Street, Suite 1201
Wilmington, DE 19801
Telephone: (302) 442-7010
Facsimile: (302) 442-7012
Email: jhoover@beneschlaw.com
kcapuzzi@beneschlaw.com
jgentile@beneschlaw.com
About iSun Inc.
iSun, Inc. (doing business as iSun) is a provider of solar energy
services and infrastructure. Its services include solar, storage
and electric vehicle infrastructure, design, development and
professional services, engineering, procurement, installation, O&M
and storage.
iSun and 11 of its affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11144) on
June 3, 2024. In the petition signed by Jeff Peck as president and
chief executive officer, iSun disclosed as much as $50,000 in
assets and liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Gellert Seitz Busenkell & Brown, LLC as general
reorganization counsel; and England & Company as investment banker
and advisor. EPIQ Corporate Restructuring, LLC is the Debtors'
claims and noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Seward & Kissel, LLP, Benesch, Friedlander, Coplan & Aronoff, LLP
and Dundon Advisers, LLC serve as the committee's bankruptcy
counsel, Delaware counsel and financial advisor, respectively.
IVF ORLANDO: Hires Latham Luna Eden & Beaudine LLP as Counsel
-------------------------------------------------------------
IVF Orlando, Inc. seeks approval from the U.S. Bankruptcy Court for
the Middle District of Florida to employ Latham, Luna, Eden &
Beaudine, LLP as counsel.
The firm's services include:
a. advising as to the Debtor's rights and duties in this
case;
b. preparing pleadings related to this case, including a
disclosure statement and plan of reorganization; and
c. taking and all other necessary action incident to the
proper preservation and administration of this estate.
The firm will be paid at these rates:
Attorneys $500 per hour
Junior paraprofessionals $105 per hour
The firm received from the Debtor a retainer of $8,475.
Latham, Luna, Eden & Beaudine will also be reimbursed for
reasonable out-of-pocket expenses incurred.
Daniel A. Velasquez, Esq., a partner at Latham, Luna, Eden &
Beaudine, 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:
Daniel A. Velasquez, Esq.
Latham, Luna, Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Telephone: (407) 481-5800
Facsimile: (407) 481-5801
About IVF Orlando Inc.
IVF Orlando Inc. -- https://theivfcenter.com/ -- is one of the
longest established IVF programs in the Winter Park â€" Orlando,
Florida area.
IVF Orlando Inc. sought relief under Subchapter V of Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05475) on October
8, 2024. In the petition filed by Dr. Milton McNichol, as
president, the Debtor reports estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Tiffany P. Geyer handles the case.
The Debtor is represented by:
Daniel A. Velasquez, Esq.
Latham Luna Eden & Beaudine LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: dvelasquez@lathamluna.com
IVF ORLANDO: L. Todd Budgen Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a
practicing attorney in Longwood, Fla., as Subchapter V trustee for
IVF Orlando, Inc.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About IVF Orlando
IVF Orlando Inc. -- https://theivfcenter.com/ -- is one of the
longest established IVF programs in the Winter Park, Orlando,
Florida area.
IVF Orlando sought relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05475) on October 8,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Dr. Milton McNichol, president of IVF
Orlando, signed the petition.
Judge Tiffany P. Geyer handles the case.
The Debtor is represented by Daniel A. Velasquez, Esq., at Latham
Luna Eden & Beaudine, LLP.
JM SUPERMARKETS: Hires RHM Law LLP as General Bankruptcy Counsel
----------------------------------------------------------------
JM Supermarkets, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ RHM LAW LLP as
general bankruptcy counsel.
The firm will provide these services:
a. advise and assist Debtor regarding compliance with the
requirements of the Office of the United States Trustee;
b. advise Debtor regarding matters of bankruptcy law,
including the rights and remedies of the Debtor in regard to its
assets and with respect to the claims of creditors;
c. advise Debtor regarding cash collateral matters;
d. conduct examinations of witnesses, claimants or adverse
parties and to prepare and assist in the preparation of reports,
accounts and pleadings;
e. advise Debtor concerning the requirements of the Bankruptcy
Code and applicable rules;
f. assist with the negotiation, formulation, confirmation and
implementation of a Chapter 11 plan of reorganization;
g. make any appearances in the Bankruptcy Court on behalf of
the Debtor; and
h. take such other action and to perform such other services
as the Debtor may require.
The firm will charge the Debtor for its legal services on flat fee
basis in accordance with its ordinary and customary rates.
RHM LAW LLP will be paid a retainer in the amount of $36,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Roksana D. Moradi-Brovia, Esq. a partner at RHM law 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:
Roksana D. Moradi-Brovia, Esq.
RHM Law LLP
17609 Ventura Boulevard, Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: nina@rhmfirm.com
About JM Supermarkets, Inc.
JM Supermarkets Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51252) on August
19, 2024, with $10,000,001 to $50 million in both assets and
liabilities.
Judge M. Elaine Hammond presides over the case.
JUNK IT PLUS: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for Junk It
Plus, LLC.
Mr. McConnell will be paid an hourly fee of $350 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About Junk It Plus
Junk It Plus, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05466) on October 8,
2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge Grace E. Robson presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as bankruptcy counsel.
K & P COMMERCIAL: Chris Quinn Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 7 appointed Chris Quinn as Subchapter V
trustee for K & P Commercial Contractors LLC.
Mr. Quinn will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Quinn declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Chris Quinn
26414 Cottage Cypress Lane
Cypress, TX 77433
Phone: 713-498-8500
Email: chris.quinn2021@outlook.com
About K & P Commercial Contractors
K & P Commercial Contractors LLC -- https://kandpconst.com/ --
provides commercial construction, renovations, and project
management services. It conducts business under the name K&P
Construction Services.
K & P filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34688) on Oct. 4,
2024, with total assets of $100,000 to $500,000 and total
liabilities of $1 million to $10 million. Landon Knapp, president,
signed the petition.
Judge Eduardo V. Rodriguez handles the case.
The Debtor is represented by Robert C Lane, Esq., at The Lane Law
Firm.
KLX ENERGY: Moody's Affirms 'Caa1' CFR & Alters Outlook to Negative
-------------------------------------------------------------------
Moody's Ratings changed KLX Energy Services Holdings, Inc.'s (KLXE)
outlook to negative from positive. The Caa1 Corporate Family
Rating, Caa1-PD Probability of Default Rating and Caa1 senior
secured notes ratings were affirmed. The SGL-2 Speculative Grade
Liquidity Rating (SGL) was changed to SGL-4.
"The change in KLXE's ratings outlook to negative reflects the
impact of the challenging North American onshore oilfield services
business environment on the company's financial results, which have
fallen short of Moody's prior expectations causing leverage metrics
to deteriorate rather than improve," said Jake Leiby, Moody's
Ratings Vice President. "This deterioration in financial profile
increases the refinancing risk associated with the company's
near-dated maturity schedule."
RATINGS RATIONALE
The change in KLXE's outlook to negative reflects its deterioration
in its financial results in 2024 combined with its nearing debt
maturities and correspondingly weak liquidity. The US rig count has
fallen 6% over the past 12 months and 25% since peaking in December
2022. The decline in rig activity has negatively pressured KLXE's
financial results, leading to a meaningful decline in EBITDA
generation this year. Although KLXE's successful efforts to better
align itself with higher quality customers could benefit its
results and drive EBITDA improvement in 2025, the growth in EBITDA
could be slow depending on commodity prices and rig activity next
year. These pressures on KLXE's credit profile come as the company
faces the maturity of its secured revolving credit facility in
September 2025 and its senior secured notes in November 2025.
KLXE's Caa1 CFR reflects its diversified oilfield services product
offering, geographic diversity, and relatively small scale in a
highly cyclical industry. The company's financial results are
reliant on the capital spending and activity levels of its US
onshore upstream customer base. KLXE has been successful in
high-grading its customer base, however, the oilfield services
industry is highly competitive and the company's scale leaves it
disadvantaged compared to a number of significantly larger
competitors with greater financial resources and product diversity.
KLXE's ratings are supported by its diversified geographic
footprint which provides exposure to all producing regions onshore
in the US.
KLXE's senior secured notes are rated Caa1, the same as the CFR.
The senior secured notes benefit from a second lien on the ABL
collateral and a first lien on substantially all of the company's
other assets. The ABL facility provides for a maximum of $120
million of committed capacity, subject to a borrowing base
calculation that has kept the borrowing base below $120 million
throughout 2024. Based on the actual size of the borrowing base the
secured notes are rated the same as the CFR.
The SGL-4 rating reflects KLXE's weak liquidity owing to its debt
maturities in 2025. KLXE had $87 million of cash on hand and $50
million of borrowings outstanding under its ABL as of June 30,
2024. Moody's expect KLXE's existing liquidity and cash flow
generation will be sufficient to cover cash needs including
interest and capital spending. KLXE's ABL has a $120 million
revolving credit commitment and is scheduled to mature in September
2025, however, the ABL maturity date will spring to August 2025 if
any of the senior secured notes due November 2025 remain
outstanding at that time. The ABL requires KLXE to maintain a fixed
charge coverage ratio of at least 1.0x if borrowing availability
falls below the greater of $15 million or 20% of the borrowing
base.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
KLXE's ratings could be upgraded if the company completes a
refinancing of its senior secured notes due 2025 and an extension
of its ABL on reasonable terms, and if the company is able to
return to EBITDA growth and establish greater visibility around its
mid-cycle earnings power and leverage profile. Interest coverage
(EBITDA/Interest) that can be sustained above 2.5x could support a
ratings upgrade. KLXE's ratings could be downgraded if it appears
that the company will be challenged to refinance its senior secured
notes and extend its ABL and risk of default rises. Interest
coverage that declines below 1.5x could result in a ratings
downgrade.
KLXE is a publicly-traded provider of drilling, completion,
production, and intervention services and products, primarily to
E&P companies in major US onshore producing regions.
The principal methodology used in these ratings was Oilfield
Services published in January 2023.
KYLE CHANDANAIS: Timothy Stone Named Subchapter V Trustee
---------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Timothy Stone of
Newpoint Advisors Corporation as Subchapter V trustee for Kyle
Chandanais, LLC.
Mr. Stone will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Stone declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Timothy Stone
Newpoint Advisors Corporation
750 Old Hickory Blvd, Building Two, Suite 150
Brentwood, TN 37027
Phone: 800-306-1250/615-440-8273
Fax: (702) 543-3881
Email: tstone@newpointadvisors.us
About Kyle Chandanais
Kyle Chandanais, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-03914) on October
10, 2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Denis Graham (Gray) Waldron, Esq., at Dunham Hildebrand Payne
Waldron, PLLC represents the Debtor as legal counsel.
LEGACY ENTERPRISES: Hires Oliver & Cheek PLLC as Attorney
---------------------------------------------------------
Legacy Enterprises Of North America, Ltd. seeks approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina to
employ Oliver & Cheek, PLLC to handle its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
Oliver & Cheek will be paid a retainer in the amount of $5,000.
George Mason Oliver, Esq., a partner at Oliver & Cheek, 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:
George Mason Oliver, Esq.
The Law Offices of Oliver & Cheek, PLLC
P.O. Box 1548
New Bern, NC 28563
Tel: (252) 633-1930
Fax: (252) 633-1950
Email: george@olivercheek.com
About Legacy Enterprises of North America
Legacy Enterprises of North America, Ltd. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-03477) on October 4, 2024, with $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. David Faulk,
president, signed the petition.
Judge Joseph N. Callaway presides over the case.
George Mason Oliver, Esq. at The Law Offices of Oliver & Cheek,
PLLC represents the Debtor as bankruptcy counsel.
MARINER WEALTH: Moody's Affirms B1 CFR, Rates New 1st Lien Debt Ba3
-------------------------------------------------------------------
Moody's Ratings has affirmed Mariner Wealth Advisors, LLC's Ba3
senior secured first lien bank credit facility, its B1 corporate
family rating, and its B1-PD probability of default rating. Moody's
also assigned a Ba3 rating to the company's new senior secured
first lien revolving credit facility. The outlook remains stable.
Mariner plans to raise a $100 million fungible first lien term loan
add-on and $150 million in equity from a new investor, in exchange
for a minority stake in the company. Marty Bicknell, founder and
CEO, will retain control via board voting majority. Additionally,
the company will expand the capacity on its revolving credit
facility by $50 million to $175 million and extend its maturity to
2029. Proceeds from the new equity and debt will bolster the firm's
balance sheet cash and fund its acquisition pipeline.
RATINGS RATIONALE
The ratings affirmation reflects the company's positive operating
performance and Moody's expectation that Mariner and its owners
will prioritize business reinvestment which Moody's expect to
ultimately help in deleveraging as the company increases in scale.
Recent acquisitions and organic operating leverage have improved
operating results. For the twelve months ending 30 June 2024, net
revenue rose by 28% to $528 million. Reported EBITDA margins have
increased to about 30% and have become more consistent with peers.
However, Moody's expect that Mariner will continue to engage in M&A
transactions that in addition to its higher debt burden will
continue to constrain pretax earnings and margins.
While the first-lien debt will, proforma for the transaction,
account for a higher proportion of Mariner's capital structure, its
Ba3 rating is supported by loss-absorbing junior obligations.
As of June 30, 2024, the company had $150 million in second lien
term loans (unrated) and significant commitments, including $78
million in acquisition-related liabilities. These deal-related
obligations have grown significantly, prompting us to include them
in Mariner's debt through Moody's standard adjustments. The
deferred compensation liabilities, which represent earnouts paid
over a period of three years, led to a gross debt-to-EBITDA ratio
of 9.6x for the trailing twelve months ending June 30, 2024.
Excluding such obligations and factoring in share-based
compensation into EBITDA, debt-to-EBITDA is 5.3x.
Mariner's B1 CFR reflects its leading position as a consolidator of
wealth advisors. The company has relied on debt, sponsored equity,
and internally generated cash to support its acquisition strategy
and grow its business. However, high financial leverage and
majority control by the company's CEO and president are key rating
constraints. The stable outlook on the ratings reflects Mariner's
growth trajectory, fueled by consistent asset gathering and M&A
transactions which Moody's expect will improve the firm's scale and
profitability.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The factors that could lead to an upgrade include: 1) consistent
improvement in free cash flow, reducing dependency on leverage; or
2) adjusted leverage multiple sustained below 3.5x; or 3) sustained
pre-tax margins in excess of 15%.
Conversely, factors that could lead to a downgrade include: 1)
scale as measured by net revenues declining below $450 million; or
2) a considerable decline in free cash flow eroding healthy cash
balances, pushing the company to rely more on its revolving credit
facility and weakening its liquidity profile; or 3) inability to
replace lost client assets, weakening AUM resiliency or; 4)
substantial attrition of advisors leading to a significant decrease
in managed assets.
The principal methodology used in these ratings was Asset Managers
published in May 2024.
MARKETING ANALYSTS: Christine Brimm Named Subchapter V Trustee
--------------------------------------------------------------
Gerard Vetter, Acting U.S. Trustee for Region 4, appointed
Christine Brimm, Esq., as Subchapter V trustee for Marketing
Analysts LLC.
Ms. Brimm, a practicing attorney in Myrtle Beach, S.C., will be
paid an hourly fee of $350 for her services as Subchapter V trustee
and an hourly fee of $150 for paralegal services. In addition, the
Subchapter V trustee will receive reimbursement for work-related
expenses incurred.
Ms. Brimm declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christine E. Brimm
P.O. Box 14805
Myrtle Beach, SC 29587
Telephone: 803-256-6582
Email: cbrimm@bartonbrimm.com
About Marketing Analysts
Marketing Analysts, LLC is a marketing agency in South Carolina.
Marketing Analysts sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.S.C. Case No. 24-03671) on
October 9, 2024, with total assets of $332,938 and total
liabilities of $1,441,611. Robert Clark, manager/ and ember, signed
the petition.
Judge Elisabetta Gm Gasparini handles the case.
The Debtor is represented by Michael Conrady, Esq., at Campbell Law
Firm, PA.
MAXCAR EXPORT: Hires Cuenant & Pennington PA as Counsel
-------------------------------------------------------
Maxcar Export, Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Cuenant & Pennington
PA as counsel.
The firm will provide these services:
a. advise and counsel the debtors-in-possession concerning the
operation of its business in compliance with Chapter 11 and orders
of this court;
b. prosecute and defend any causes of action on behalf of the
debtors-in-possession;
c. prepare, on behalf of the debtors-in-possession, all
necessary applications, motions, and other papers;
d. assist in the formulation of a plan of reorganization and
preparation of a disclosure statement; and
e. provide all services of a legal nature in the field of
bankruptcy law.
The firm will be paid at these rates:
Attorney $495 per hour
Paralegal $175 per hour
The firm received from the Debtor a retainer in the amount of
$10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Winston I. Cuenant, Esq., a partner at Cuenant & Pennington PA,
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:
Winston I. Cuenant, Esq.
Cuenant & Pennington PA
101 NE 3rd Avenue, Suite 1500
Fort Lauderdale, FL 33301
Tel: (954) 766-4271
Fax: (954) 379-4454
Email: winston@cuenantlaw.com
About Maxcar Export
Maxcar Export, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Fla. Case No. 24-20058) on Sept. 29, 2024. The Debtor hires
Cuenant & Pennington PA as counsel.
MEDICAL SOLUTIONS: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg
-------------------------------------------------------------------
Moody's Ratings downgraded Medical Solutions Holdings, Inc.'s
corporate family rating to Caa1 from B3, probability of default
rating to Caa1-PD from B3-PD, the senior secured first lien credit
facilities to Caa1 from B2, and the senior secured second lien term
loan to Caa3 from Caa2. The outlook is revised to negative from
stable.
The downgrade of Medical Solutions' CFR reflects the company's
deteriorating credit metrics as revenue continues to decline due to
lower demand in the nurse staffing industry. The bill-pay spread
has continued to compress and as a result, debt-to-EBITDA as of LTM
June 30, 2024 was 8.9x, which Moody's forecast will continue to
rise through the end of 2024. Medical Solutions does not currently
rely on its revolving credit facility, but should maintain adequate
cushions on its covenants if it needs to draw. Medical Solutions
has implemented many cost cutting initiatives including headcount
reductions, which will equate to roughly $82 million of annual cost
savings. However, these steps have not been able to offset the
margin compression and decline in demand.
Governance considerations are material to the rating action.
Financial policy and risk management have contributed to the
company's high financial leverage and ability to withstand the
sector's headwinds. While Medical Solutions has been cutting costs,
the cost savings have not come quickly enough to offset the margin
compression.
The negative outlook reflects Moody's expectation that leverage
will rise and remain elevated, as the company continues to face
margin pressure, which could result in an unsustainable capital
structure.
RATINGS RATIONALE
Medical Solutions' rating is constrained by the company's high
financial leverage of 8.9x LTM June 30, 2024 and weak interest
coverage. Moody's forecast that leverage will continue to rise and
will remain around 10x for the next 12-18 months. The rating is
also constrained by the cyclical nature of demand for travel nurses
and labor pressure including the rising wages and shortage of nurse
staffing. The company also faces financial policy risks under
private equity ownership, including a history of
shareholder-friendly transactions. The company benefits from strong
customer and geographic diversification and solid long-term growth
prospects supported by industry trends including nursing shortages
and an aging population requiring more frequent medical attention.
Medical Solutions will maintain adequate liquidity. Sources of
liquidity include $67 million of cash on hand, as of June 30, 2024.
Moody's expect the company to generate $50 million in free cash
flow in FYE 2024 but roughly break-even in 2025. The company has
about $156 million of availability on its $180 million revolving
credit facility (less LCs) expiring in 2026 and another $164
million available on its $375 million AR Securitization facility
that is due in April 2026. Uses of cash are largely interest
expense of about $168 million, and mandatory debt and lease
repayments, which total roughly $12.5 million and $5 million,
respectively. Moody's expect the company to also use cash on an
opportunistic basis to repay its account receivable securitization
facility. Although Moody's do not expect the company to rely on the
revolver, there would be a comfortable cushion if triggered.
Medical Solutions has limited capacity to sell assets to raise
cash.
The first lien facilities are rated Caa1 and rank above the second
lien term loan, rated Caa3. The Caa1 rating considers the existence
of a higher-ranked debt (AR securitization facility). The second
lien term loan is rated two notches below the Caa1 CFR, at Caa3,
reflecting contractual subordination to the first lien debt.
Medical Solutions' CIS-5 (previously CIS-4) indicates that the
rating is lower that it would have been if ESG risk exposures did
not exist and that the negative impact is more pronounced than for
issuers scored CIS-4. ESG considerations are primarily tied to
governance risks (G-5, previously G-4) related to aggressive
financial policies including operating with high financial leverage
and track record of weak operating performance. Social risk
considerations include exposure to sourcing and maintaining highly
skilled, licensed, and certified nurses and other professionals as
its customers manage rising healthcare costs.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company improves its operating
performance and profitability including margin stabilization.
Improvement in liquidity such that there is consistent positive
free cash flow generation would support an upgrade. Quantitatively,
the ratings could be upgraded if adjusted debt/EBITDA is sustained
below 7.0x.
The ratings could be downgraded if the company's credit metrics and
liquidity continue to deteriorate such that the capital structure
becomes unsustainable increasing the probability of a default.
Further, debt-funded shareholder returns or other aggressive
financial policies could also result in a downgrade.
Medical Solutions is a leading provider of contingent clinical
labor solutions to hospitals across the US. The company places
contracted nurses on assignment at hospitals, and in some cases,
administers the entire short-term staffing needs (nurses and other
specialists) of its clients. Medical Solutions also provides
nursing solutions during labor disputes. The company is owned by
Centerbridge Partners and Caisse de dépôt et placement du Québec
(CDPQ). Medical Solutions generated $2.7 billion in net revenue LTM
June 30, 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
MENOTTI ENTERPRISE: Hires Hodgson Russ LLP as Special Counsel
-------------------------------------------------------------
Menotti Enterprise LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Hodgson Russ
LLP as special counsel.
The firm will provide these services:
a. represent the Debtor with respect to a New York State
sales and use tax appeal and possible objection to New York State's
claim;
b. assist in the analysis and settlement of New York State's
sales and use tax claims;
c. consult with counsel for the Debtor in connection with
operating, financial and other business matters related to the tax
liabilities of the Debtor; and
d. performing such other duties as are normally required by
the Debtor in connection with tax claims.
The firm will be paid at these rates:
Partners $570 to 700 per hour
Associates $310 to 365 per hour
Paraprofessionals $320 to 535 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
K. Craig Reilly, Esq., a partner at Hodgson Russ 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:
K. Craig Reilly, Esq.
Hodgson Russ LLP
605 Third Avenue, Suite 2300
New York, NY 10158
Tel: (212) 751-4300
About Menotti Enterprise
Menotti provides safety training, consulting, and onsite safety
professionals to ensure construction worksites are safe and
compliant.
Menotti Enterprise, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-22242) on March 22, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Michael J.
Menotti as president.
Judge Sean H. Lane presides over the case.
Norma E. Ortiz, Esq. at Ortiz & Ortiz, LLP represents the Debtor as
counsel.
MMA LAW FIRM: Gets Interim OK to Use Cash Collateral Until Dec. 31
------------------------------------------------------------------
MMA Law Firm, PLLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas, Houston
Division to use the cash collateral of its secured creditors until
Dec. 31.
The interim order authorized the company to use cash collateral to
pay expenses outlined in its budget, provided it does not exceed
the budgeted amounts by more than 10%.
The budget shows total projected expenses of $1,238,044.78 for the
period of Dec. 1 to 7, and $1,223,508.49 for the period of Dec. 8
to 14.
MMA Law Firm was ordered to provide its secured creditors, Equal
Access Justice Fund, LP and EAJF ESQ Fund, LP, with replacement
liens on its post-petition assets, with the same priority as their
pre-bankruptcy liens.
The next hearing is scheduled for Dec. 20.
About MMA Law Firm
MMA Law Firm, PLLC is a Houston-based law firm specializing in
insurance claim management, negotiation and litigation.
MMA Law Firm filed Chapter 11 petition (Bankr. S.D. Texas Case No.
24-31596) on April 9, 2024, with $100 million to $500 million in
assets and $10 million to $50 million in liabilities. Zach Moseley,
managing member, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Johnie Patterson, Esq., at Walker &
Patterson, P.C.
MSHINGES.COM: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
MSHINGES.COM filed for Chapter 11 protection in the District of
Nevada. 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 MSHINGES.COM
MSHINGES.COM -- https://www.mshinges.com -- doing business as
Aerospace Machine & Supply, is an aerospace company in Nevada.
MSHINGES.COM sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Nev. Case No. 24-15588) on October 25, 2024. In the
petition filed by Douglas B. Silva, as president, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
Bankruptcy Judge August B. Landis handles the case.
The Debtor is represented by:
Matthew C. Zirzow, Esq.
LARSON AND ZIRZOW, LLC
2937 N. LAMB BLVD.
LAS VEGAS, NV 89115
NAVACORD CORP: Moody's Assigns 'B3' CFR, Outlook Stable
-------------------------------------------------------
Moody's Ratings has affirmed the B2 backed senior secured first
lien bank credit facilities and backed senior secured notes ratings
and the Caa2 senior unsecured notes ratings of Jones DesLauriers
Insurance Management Inc. (Jones DesLauriers), a wholly owned
subsidiary of Navacord Corp. (together with its subsidiaries,
Navacord), a leading Canadian insurance broker.
At the same time, Moody's assigned a B3 corporate family rating and
B3-PD probability of default rating to Navacord Corp., the ultimate
parent of the group and the issuer of its audited financial
statements. For administrative purposes, Moody's withdrew the
existing B3 CFR and B3-PD PDR from Jones DesLauriers. The rating
outlook for Navacord Corp. and Jones DesLauriers is stable.
RATINGS RATIONALE
Navacord's ratings reflect its growing market presence among the
four largest insurance brokers in Canada, generally serving middle
market clients. The company has a good mix of business across
commercial and personal property & casualty insurance and employee
benefits, with specialties in construction and transportation. The
company is also diversified geographically across Canada,
particularly in Ontario, Alberta and British Columbia. Navacord has
produced strong organic growth in the low double digits in recent
years, supporting healthy EBITDA margins in the low-to-mid-30s (per
Moody's calculations). The company pursues an active acquisition
strategy through a decentralized model that allows acquired
entities to operate fairly autonomously while benefitting from
Navacord's centralized services.
These strengths are tempered by Navacord's aggressive financial
leverage, low fixed charge and free cash flow coverage, execution
risk associated with acquisitions, and limited scale relative to
other rated insurance brokers. Navacord also faces potential
liabilities arising from errors and omissions, a risk inherent in
professional services.
Moody's estimate that Navacord's debt-to-EBITDA ratio is around 7x,
with (EBITDA - capex) interest coverage in the range of 1x-2x, and
a free-cash-flow-to-debt ratio in the low single digits. These
metrics include Moody's adjustments for operating leases, deferred
earnout obligations and run-rate earnings from completed
acquisitions. Navacord has significant cash on hand following its
recent issuance of incremental senior unsecured notes earmarked for
general corporate purposes, including to help fund acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade of Navacord's ratings
include: (i) increased scale and diversification, (ii)
debt-to-EBITDA ratio below 6x, (iii) (EBITDA - capex) coverage of
interest exceeding 2x, and (iv) free-cash-flow-to-debt ratio
exceeding 5%.
Factors that could lead to a downgrade of the ratings include: (i)
debt-to-EBITDA ratio above 7.5x, (ii) (EBITDA - capex) coverage of
interest below 1.2x, (iii) free-cash-flow-to-debt ratio below 2%,
or (iv) disruptions to existing or newly acquired operations.
The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in February 2024.
Based in Toronto, Canada, Navacord offers a diversified mix of
property & casualty insurance, employee benefits and specialized
products mainly to middle market businesses across Canada. The
company generated revenue of CAD738 million for the 12 months
through July 2024.
NEWELL BRANDS: Moody's Rates New Senior Unsecured Notes 'Ba3'
-------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to Newell Brands Inc.'s
proposed new senior unsecured notes. All other ratings remain
unchanged including the company's Ba2 Corporate Family Rating,
Ba2-PD Probability of Default Rating, Ba3 senior unsecured notes
rating and NP (Not Prime) commercial paper rating. The outlook
remains negative and the speculative grade liquidity rating (SGL)
remains unchanged at SGL-3.
Newell plans to issue senior unsecured notes with maturities in
2030 and 2032, proceeds of which will be used to refinance upcoming
maturities including its $500 million 4.875% notes that mature in
June 2025 and a portion of its $1.985 billion 4.2% notes that
mature in April 2026. The offering is credit positive because it
will improve Newell's liquidity by extending maturities and is
expected to only result in a modest increase to cash interest
costs.
The company is in the process of rationalizing its portfolio of
brands and is working towards extracting value and growth by
focusing on its top 25 brands, which represent about 90% of its
sales and are the company most profitable. However, Newell
continues to be impacted by weaker demand as consumers remain
pressured due to an inflationary environment, weakness which
Moody's anticipate will continue over the next 12 months. The
company is demonstrating good traction with its restructuring
initiatives that are increasing the gross margin. Newell is
reinvesting some of the savings in product development and
marketing, and it will take good execution for such investment and
the cost saving initiatives to translate into sustainable sales
growth and a materially better operating margin. Moody's expect
that Newell's core sales will end full year 2024 about 3%-5% down
compared to 2023 while the EBIT margin continues to recover. FY
2025 should see modest increases in both sales and the operating
margin as the benefits of the strategic initiatives are realized
more fully. Financial leverage as measured by Moody's-adjusted
debt-to-EBITDA currently remains elevated at 6.1x as of September
2024 despite a drop from above 7x in 2023. Moody's anticipate
leverage will continue to decline to below 5.5x by the end of 2024
and near 5.0x by the end of 2025 as the company continues to repay
debt with excess cash flows. However, prolonged weak demand or poor
execution of the company's new brand strategy could curtail the
rapid deleveraging needed to maintain the current ratings. Moody's
expect that Newell will generate approximately $50 million to $75
million of annual free cash flow (after payment of dividend) over
the next 12-18 months and will continue to focus its use of cash
flow on debt repayment.
Moody's expect the company to improve its liquidity position
following the refinancing of near-term debt using the proceeds from
the new issuances. Sources of liquidity consist of $494 million of
cash and cash equivalents as of September 30, 2024, Moody's
expectation of $50-$75 million of free cash flow over the next
year, and a $1.0 billion asset-based revolver due August 2027.
Newell also has an accounts receivable facility expiring in October
2026 which provides additional liquidity of up to $225 million
between February and April of each year and up to $275 million at
all other times. Moody's believe these sources of liquidity are
sufficient to cover the company's upcoming maturities over the next
12 months that include $200 million of notes due in December 2024
and $500 million of notes due in June 2025.
RATINGS RATIONALE
Newell's Ba2 CFR reflects its large scale, well recognized brands,
and good product and geographic diversity. The rating is
constrained by concerns around the long-term growth prospects of
the company's mature product categories such as small appliances
and cookware, food storage, and writing that require constant
investment and innovation to spur growth and retain market share.
The rating also reflects the cyclicality and discretionary nature
of some of its products that are negatively impacted during the
current weak environment. The dividend payment somewhat constraints
Newell's financial flexibility, especially during economic
weakness, because it weakens free cash flow at a time when leverage
is elevated. Debt-to-EBITDA leverage of 6.1x as of September 30,
2024 (excluding addbacks for restructuring) is weak for the Ba2
rating. Moody's believe that the company's 2.5x net debt-to-EBITDA
leverage target (based on company calculations; 4.9x as of
September 2024) indicates management's desire to reduce leverage
over the longer term. The Ba2 rating is based on Moody's view that
leverage will decline materially from this high level as the
company executes its strategies to improve operating efficiency,
the operating margin and organic sales growth.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook reflects risks that leverage could remain
elevated due to weak consumer demand for discretionary goods, and
the execution risk and time necessary to realize benefits from the
company's strategies to improve operating efficiency and margins.
Ratings could be upgraded if Newell demonstrates good operating
execution of its strategic initiatives that leads to sustained
organic revenue growth with the EBITDA margin recovering at least
to the mid-teens percent range. The company would also need to
maintain a financial policy that results in debt to EBITDA leverage
sustained comfortably below 4.5x. Newell would also need to improve
liquidity and generate solid free cash flow relative to debt, and
demonstrate a consistent strategic direction to be considered for
an upgrade.
Ratings could be downgraded if Newell's revenue or EBITDA margin do
not improve materially, liquidity does not improve, or the company
is not able to sustain strong positive free cash flow.
Additionally, the ratings could be downgraded if Newell's
debt-to-EBITDA is sustained above 5.0x or retained-cash-flow to net
debt remains below 10%.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Newell Brands Inc. is a global marketer of consumer and commercial
products utilized in the home, office, and commercial segments. Key
brands include Rubbermaid, Graco, Sharpie, Oster, Coleman, Yankee
Candle, Paper Mate, Expo, Dymo Mr. Coffee, Crock Pot, Ball and
Elmer's -to name a few. The publicly-traded company generated $7.7
billion of revenue for the 12 months ended September 30, 2024.
NI-JO LLC: Ira Bodenstein Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 11 appointed Ira Bodenstein as
Subchapter V trustee for NI-JO LLC.
Mr. Bodenstein will be paid an hourly fee of $500 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Bodenstein declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
About NI-JO LLC
NI-JO LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-14686) on October 2, 2024, with
$50,001 to $100,000 in both assets and liabilities.
Judge Deborah L. Thorne presides over the case.
Jay M. Reese, Esq., at the Law Office Of Jay M. Reese, P.C.
represents the Debtor as bankruptcy counsel.
NORTHERN ILLINOIS UNIVERSITY: Moody's Rates New $62MM COPs 'Ba1'
----------------------------------------------------------------
Moody's Ratings has revised Northern Illinois University's (IL)
outlook to negative from stable and has assigned a Ba1 to the
proposed approximately $62 million of Certificates of Participation
(Energy Savings Projects), Series 2024. Moody's have also affirmed
the Baa3 issuer and Auxiliary Facilities Revenue Bond (AFS) ratings
as well as the Ba1 on outstanding Certificates of Participation
(COPs). The university had $257 million of total debt outstanding
as of June 30, 2023.
The revision of the outlook to negative incorporates the
university's substantially weakened operating performance in fiscal
2024 that follows weaker than expected results in fiscal 2023. The
recent record of weak fiscal results and use of liquidity informs
Moody's thoughts around management credibility and track record, a
governance consideration under Moody's ESG framework and a key
driver of the rating action. Additionally, the proposed increase in
debt at a time when EBIDA margins have weakened will further strain
the university's leverage profile. While a guaranteed savings
contract from its energy contractor, in addition to other
anticipated savings, should offset the incremental debt service,
the university currently has minimal cushion to absorb the new debt
service if challenges arise.
RATINGS RATIONALE
The affirmation of Northern Illinois University's (NIU) Baa3 issuer
rating reflects the continued strengthening of the State of
Illinois' (A3 positive) credit profile, a more stable state funding
environment, including increased monetary assistance program (MAP)
funding for students and capital support. Expanded enrollment and
financial aid opportunities have contributed to stability in
enrollment and offers prospects for greater budgeted revenue
predictability.
Credit challenges include what is still a difficult operating
environment as wage pressures continue to weigh on operating
results, contributing to a significant weakening in fiscal 2024.
Improvement will depend on NIU's ability to control expenses amid
what will likely be modest revenue increases. Multiple years of
weak operating results has led to a significant decline in
unrestricted liquidity and collective bargaining agreements
constrain flexibility. Additionally factored into NIU's rating is
its moderately large scale with over 13,000 FTE enrollment and high
financial leverage.
The university generated less than 1x debt service coverage on its
outstanding debt service obligations in fiscal 2023 (Moody's
adjusted), and will report even weaker coverage in fiscal 2024.
With capitalized interest and no amortization on the Series 2024
COPs through fiscal 2026, the university has time to strengthen
fiscally before its new debt service obligations begin.
The affirmation of the Baa3 rating on the auxiliary facilities
system revenue bonds incorporates the university's Baa3 issuer
rating as well as the breadth of the pledge and available financial
reserves.
The assignment and affirmation of the Ba1 rating on the
certificates of participation reflect the issuer, the contingent
nature of the obligation, the relative subordination to the
auxiliary facilities system revenue bonds, and limited unrestricted
liquidity.
RATING OUTLOOOK
The negative outlook incorporates weak fiscal 2024 operating
results and prospects for credit deterioration absent marked
improvement in fiscal 2025 and stabilization of liquidity. The
outlook assumes no additional debt issuance beyond the anticipated
COPs.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Sustained strengthening of operating performance and debt
service coverage
-- Continued improvement in the state's fiscal condition and
sustained financial support for higher education improving NIU's
operating environment
-- Enrollment and net tuition revenue growth
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Inability to strengthen operating performance in fiscal 2025
resulting in at least 1x debt service coverage
-- Further deterioration of monthly liquidity in fiscal 2025
-- Further weakening of management credibility exhibited through
financial performance that doesn't align with guidance
-- Weakening of the State of Illinois' fiscal condition resulting
in uncertainty surrounding direct operating support and on-behalf
payments
-- Further distancing between the issuer rating and the COPS could
occur with a sustained deterioration of Legally Available
Non-Appropriated Funds
LEGAL SECURITY
The Auxiliary Facilities System Revenue bonds are secured by the
sum of net revenue, pledged fees and pledged tuition. Net revenue,
pledged fees and pledged tuition are covenanted to be adjusted in
amounts that will maintain 2.0x maximum annual debt service (MADS)
coverage. Pledged fees are derived from the system and may be
adjusted to reflect actual and projected fee increases. Inclusive
of the system's net revenue, pledged fees, and pledged tuition,
fiscal 2023 coverage exceeded its covenant requirement with MADS
coverage at over 7x.
The proposed Series 2024 and outstanding Series 2014 COPs are
payable from state appropriated funds and budgeted legally
available funds of the board. Legally available funds include
student tuition (subject to the prior pledge for AFS revenue
bonds), certain fees, certain investment income, and indirect cost
recoveries on grants and contracts. The board is required to
transfer pledged tuition to pay for the operating and maintenance
costs of the AFS if AFS revenues are insufficient, and these
expenses have a priority position over debt service for the COPs.
The COPs are unsecured, and the installment agreement can be
terminated in the absence of budgeted legally available funds,
resulting in a weaker security than the secured pledge provided to
AFS bonds.
USE OF PROCEEDS
Proceeds from the Series 2024 COPs will fund significant energy
savings and improvements projects on campus, impacting
approximately half of all campus infrastructure. Proceeds will also
be used to fund capitalized interest through fiscal 2026 and to pay
the costs of issuance.
PROFILE
Northern Illinois University is a multi-campus public university
with its main campus in the City of DeKalb, IL (A1), and satellite
campuses that primarily serve graduate students. The university has
a broad array of undergraduate and graduate academic programs,
including concentrations in education, business, engineering,
health and human science, law, and visual and performing arts. Fall
2024 full-time equivalent enrollment was 13,072 students.
METHODOLOGY
The principal methodology used in these ratings was Higher
Education published in July 2024.
NORTHPOINT DEVELOPMENT: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------------
Northpoint Development Holdings, LLC received interim approval from
the U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division to use cash collateral to pay its operating
expenses.
The interim order authorized the company to use cash collateral
until Oct. 31 as outlined in its budget, with a 10% variance. Any
further usage of cash collateral beyond Oct. 31 requires further
court approval.
The First National Bank of Ottawa, a secured creditor, was granted
post-petition replacement liens on the company's collateral,
including cash collateral, to protect its interest.
About Northpoint Development Holdings
Northpoint Development Holdings, LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101(51B)). It is the fee
simple owner of real property located at 1800 North Bloomington
St., Streator, Ill., valued at $6.8 million.
Northpoint sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-13265) on September 9, 2024,
with total assets of $6,800,000 and total liabilities of
$5,176,241. Keith Weinstein, manager of Greystone Develpment
Holdings, LLC, signed the petition.
Judge Deborah L. Thorne oversees the case.
The Debtor is represented by Gregory K. Stern, Esq., at Gregory K.
Stern, P.C.
NUO THERAPEUTICS: Paul Anthony Jacobs Holds 6% as of Sept. 30
-------------------------------------------------------------
Paul Anthony Jacobs disclosed in a Schedule 13G/A filed with the
U.S. Securities and Exchange Commission that as of September 30,
2024, they beneficially owned an aggregate of 2,800,000 shares of
Nuo Therapeutics, Inc.'s common stock, representing 6% of the
shares outstanding.
Paul Anthony Jacobs beneficially owns 2,550,000 shares in the Paul
Anthony Jacobs as Trustee of the Paul Anthony Jacobs and Nancy E.
Jacobs Joint Revocable Trust dated October 16, 1997 (Survivor's
Trust) and 250,000 shares in the P. Anthony Jacobs IRA.
A full-text copy of Paul Anthony Jacobs's SEC Report is available
at:
https://tinyurl.com/2u256v42
About NUO Therapeutics
Headquartered in Houston, Texas, Nuo Therapeutics, Inc. is a
regenerative therapies company focused on developing and marketing
products for chronic wound care primarily within the U.S. The
Company commercializes innovative cell-based technologies that
harness the regenerative capacity of the human body to trigger
natural healing. The use of autologous (i.e., from self, the
patient's own) biological therapies for tissue repair and
regeneration is part of a clinical strategy designed to improve
long-term recovery in inherently complex chronic conditions with
significant unmet medical needs.
Houston, Texas-based Marcum LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
19, 2024, citing that the Company has incurred significant losses
and needs to raise additional funds to meet its obligations and
sustain its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
For the years ended December 31, 2023 and 2022, the Company had a
net loss of approximately $3.2 million in each year. As of June 30,
2024, the Company had $1,420,472 in total assets, $821,959 in total
liabilities, and $598,513 in total stockholders' equity.
OZARK LANDSCAPE: Hires Crawley Law Firm P.A. as Attorney
--------------------------------------------------------
Ozark Landscape and Design, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Arkansas to employ
Crawley Law Firm, P.A. as attorney.
The firm will provide these services:
a. advise and consult with the Debtor concerning questions
arising in the conduct of the administration of the estate and
concerning the Debtor rights and remedies with regard to the
estate's assets and claims of secured, priority and unsecured
creditors and other parties in interest;
b. appear for; prosecute, defend, and represent the Debtor
interest in adversary proceedings and/or contested matters arising
in or related to this case;
c. investigate and prosecute preference and other actions
arising under the Debtor's avoiding powers;
d. assist in the preparation of such pleadings, motions,
notices and orders as are required for the orderly administration
of this estate and to consult with and advise the Debtor in
connection with the operation of or termination of the
operation of the business of the Debtor;
e. assist in the preparation of a Plan of Reorganization and
to present said Plan of Reorganization to this Court for approval
and confirmation; and
f. undertake all other necessary and appropriate legal
representation of the Debtor in the bankruptcy proceeding.
The firm will be paid at these rates:
Michael E. Crawley, Jr. $250 per hour
Paralegal $75 per hour
The firm received from the Debtor a retainer in the amount of
$6,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael E. Crawley, Jr., Esq., a partner at Crawley Law Firm, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Michael E. Crawley, Jr, Esq.
Crawley Law Firm, P.A.
2702 S. Culberhouse, Suite N
Jonesboro, AR 72401
Tel: (870) 972-1150
About Ozark Landscape and Design, Inc.
Ozark Landscape & Design, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Ark. Case No. 24-13011) on Sept. 15, 2024,
disclosing under $1 million in both assets and liabilities. The
Debtor hires Crawley Law Firm, P.A. as counsel.
PETIQ LLC: Moody's Withdraws 'B2' CFR Following Debt Repayment
--------------------------------------------------------------
Moody's Ratings has withdrawn all ratings of PetIQ, LLC, including
the B2 Corporate Family Rating, B2-PD Probability of Default
Rating, B2 backed senior secured term loan rating and the SGL-1
Speculative Grade Liquidity Rating, following the announcement that
PetIQ has completed the previously announced sale of the company to
a private equity sponsor, Bansk Group, via a $1.5 billion take
private leveraged buyout transaction. In connection with the
transaction closing, PetIQ has fully repaid and extinguished the
existing rated bank credit facility consisting of $300 million
first lien term loan. Prior to the withdrawal the outlook was
stable.
RATINGS RATIONALE
Withdrawal Reasons
Moody's have withdrawn the ratings because PetIQ's previously rated
bank credit facility has been fully repaid.
PetIQ, LLC based in Eagle, Idaho, is a pet medication and wellness
company providing convenient access to affordable veterinary
products and services through the company's own branded and
distributed medications and health and wellness products. The
company operates two business segments: Products and Services. The
Products segment consists of the company's manufacturing and
distribution business. Through the Products segment, PetIQ
distributes prescriptions and over the counter medications as well
as its own branded medications. The Services segment consists of
veterinary services and related product sales and is operated
through PetVet, VIP Petcare and VetIQ which has about 2,400 clinic
locations in 41 states. PetIQ was taken private by Bansk Group in
October 2024 and generated net sales of $1,134 million for the 12
months ending June 30, 2024.
PHCV4 HOMES: To Sell 20 Single Family Lots in Private Sale
----------------------------------------------------------
PHCV4 Homes LLC seeks permission from the U.S. Bankruptcy Court for
the Northern District of Alabama to sell its property located in
Gulf Shores, Baldwin County, Alabama, free and clear of liens,
encumbrances and other interests.
The Debtor proposes to sell its interest in certain real estate
consisting of 20 single family lots in the subdivision known as
Colonia Traditions, Phase One.
The proposed sale will occur at an initial closing of 10 lots and,
following the initial closing, at a prescribed time at a second
closing of 10 lots. The Sale will be by private sale and the total
purchase price is $100,000 per lot at the initial closing and
$107,000 per lot at the second closing.
Valor Communities LLC has entered into a contract to purchase the
Property.
The Debtor indicates the total price for the 20 lots represents the
fair market value of the Property and Valor has already obtained or
will obtain financing and the sales are contemplated to be closed
after the Court's approval.
The Property will be purchased in the following conditions:
-- Ten lots will be purchased at an initial closing;
-- Six months after the initial closing, but not later than
December 15, 2024 [sic], and the Purchaser will purchase the
remaining 10 lots
The Property is subject to liens, mortgages and other interest from
CoreVest American Finance Lender and B/E Engineering VB LLC, and
B/E Home Services LLC.
About PHCV4 Homes LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
RANCHO FRESCO: Walter Dahl of Dahl Law Named Subchapter V Trustee
-----------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Walter Dahl, Esq., a
partner at Dahl Law, as Subchapter V trustee for Rancho Fresco
Modesto Inc.
Mr. Dahl will be compensated at $485 per hour for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
In court filings, Mr. Dahl declared that he is a disinterested
person according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Walter R. Dahl
Dahl Law
2304 "N" Street
Sacramento, CA 95816-5716
Telephone: (916) 446-8800
Telecopier: (916) 741-3346
Email: wdahl@dahllaw.net
About Rancho Fresco Modesto
Rancho Fresco Modesto Inc. is a Mexican restaurant in Modesto,
Calif.
Rancho Fresco Modesto sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No.
24-90580) on October 2, 2024, with assets of $100,000 to $500,000
and liabilities of $1 million to $10 million. Ismael Covarrubias,
Jr., president of Rancho Fresco Modesto, signed the petition.
Judge Ronald H. Sargis oversees the case.
The Debtor is represented by:
David J. Johnston, Esq.
David J. Johnston
1600 G Street, Suite 102
Modesto, CA 95354
Tel: (209) 579-1150
Email: david@johnstonbusinesslaw.com
RAZOR ENERGY: Plans Sale Transaction Amid CCAA Proceedings
----------------------------------------------------------
Razor Energy Corp. (and together with its wholly-owned
subsidiaries, Blade Energy Services Corp. and Razor Holdings GP
Corp., collectively (unless the context requires otherwise), the
the Corporation) announced its intention to complete a sale
transaction and ancillary steps pursuant to a Subscription
Agreement, dated October 27, 2024, between the Corporation, as
vendor, and Texcal Energy Canada Inc. The Subscription Agreement
was entered into in connection with the Corporation's proceedings
under the Companies' Creditors Arrangement Act (Canada) and the
related sales and investment solicitation process approved by the
Court of King's Bench of Alberta, whereby the Purchaser was
selected as the successful bidder under the SISP.
The Transaction, as contemplated by the Subscription Agreement,
includes, among other things, that:
(i) the Purchaser will subscribe for certain common shares in the
capital of the Corporation;
(ii) all other equity interests in the Corporation shall be
retracted and cancelled, for nominal consideration of $0.00001 per
common share; and,
(iii) upon the closing of the Subscription Agreement, the Purchaser
shall obtain and hold 100% of all issued and outstanding common
shares of the Corporation, all on and subject to the terms and
conditions of the Subscription Agreement.
The Transaction is a result of the implementation of the SISP, is
conditional upon the approval of the Court, and is to be given
effect by way of a reverse vesting order and certain ancillary
relief, to be granted within the CCAA Proceedings.
The Corporation intends to appear before the Court on November 8,
2024, or as soon as possible thereafter, to seek orders approving
the Subscription Agreement and the Transaction. A copy of the
Subscription Agreement and more information related to the CCAA
Proceedings can be found on the Court-appointed Monitor's website
at http://cfcanada.fticonsulting.com/razor-blade.
About Razor Energy Corp.
Razor Energy Corp. -- https://www.razor-energy.com/ -- operates as
an oil and gas company. The Company focuses on acquiring,
producing, and exploration of oil and gas properties. Razor Energy
offers its services in Canada.
RED PLANET: Moody's Rates $200MM First Lien Term Loan Add-on 'B3'
-----------------------------------------------------------------
Moody's Ratings assigned a B3 rating to Red Planet Borrower, LLC's
(d/b/a "Liftoff" or the "company") planned $200 million senior
secured first-lien term, which will be an add-on to the existing
$1.36 billion outstanding senior secured first-lien term loan due
2028. Liftoff's B3 corporate family rating, B3 ratings on the
existing bank credit facilities and stable outlook remain
unchanged.
Net proceeds from the non-fungible term loan add-on plus
cash-on-hand will be used to pay an approximate $300 million cash
distribution to shareholders, which include private equity sponsor
Blackstone Inc., the majority shareowner. The add-on will be issued
by the same borrower, secured by the same collateral package,
guaranteed by the same guarantors, and contain the same terms,
conditions and maturity as the existing term loan; however, the
add-on facility will bear a different CUSIP than the current term
loan facility. The assigned rating is subject to review of final
documentation and no material change in the size, terms and
conditions of the transaction as advised to us.
RATINGS RATIONALE
Though pro forma total debt to EBITDA will increase to roughly 7.1x
from 6.2x at LTM June 30, 2024, Moody's view the refinancing as
credit neutral given that Liftoff's pro forma financial leverage
will remain consistent with the B3 credit profile (metrics are
Moody's adjusted, with EBITDA further adjusted to include pro forma
realized cost savings and exclude non-recurring costs and
extraordinary items). Moody's expect implemented cost savings to
more than offset the increase in interest expense.
Liftoff's B3 CFR largely reflects the company's elevated financial
leverage. Revenue rebounded vigorously in 2023 as marketing spend
recovered led by digital media and mobile formats, coupled with the
new leadership team's more focused efforts to align the company's
R&D and product tempo with targeted customer solutions. Mobile
continues to perform well in 2024 albeit at a slower pace than last
year. Nonetheless, Moody's expect Liftoff's core ad business
(expected to be 92% of total revenue in 2024) will grow faster than
the overall digital ad market as advertisers continue to diversify
their budgets away from the Big Media-Tech walled garden publishers
to performance-based marketers with a presence in the rapidly
growing in-app mobile advertising markets, which are experiencing
strong user demand for interactive entertainment on handheld
devices.
The CFR also considers Liftoff's small scale relative to Big
Media-Tech, including social media providers, as well as
competitive pressures in a rapidly changing environment and
concentrated ownership by a financial sponsor. Consequently, the
company will need to continue to exercise technical focus and
financial discipline while navigating potential operational
challenges amid the industry's fast pace of innovation, which
requires constant monitoring and investment to stay competitive.
Despite Liftoff's small size, Moody's expect the company will
benefit from its position as one of the largest independent mobile
marketing platforms providing both demand-side and supply-side
growth solutions for advertisers and publishers, powered by its
proprietary neural net technology, as well as diversification
across gaming and many other verticals. Liftoff's Moody's adjusted
EBITDA margins have strengthened and LTM free cash flow (FCF) has
remained positive for seven consecutive quarters. This reflects
improved revenue growth, cost discipline and merger synergies.
The stable outlook incorporates Moody's expectation for continued
growth in the in-app mobile advertising market, leading to
Liftoff's core business producing around 12%-15% organic annual
revenue growth, on average, over the rating horizon with stable to
improving EBITDA margins and solid FCF. The outlook also considers
that Liftoff's total organic revenue growth in 2024 will likely be
in the mid-single digit percentage range as the company exits the
non-core business (non-programmatic). This year, Moody's expect the
core business to grow in the 20%-27% range and non-core to recede
to around 8% of revenue. Moody's also anticipate that organic
growth investments and potential acquisitions will be funded
primarily with excess cash. However, to the extent incremental debt
is issued to finance M&A, Moody's expect credit metrics on a
Moody's adjusted basis will be appropriately managed to return debt
protection measures to levels suitable for the rating category
within at least one year.
Moody's expect Liftoff to maintain good liquidity, reflecting solid
cash balances, full revolver availability and good FCF generation.
At June 30, 2024, the company had access to unrestricted cash
balances totaling approximately $205 million and a $150 million
revolving credit facility (RCF) due September 2026, which Moody's
expect to remain undrawn over the next 12-18 months. Moody's expect
positive FCF in the range of $50 - $75 million over the next twelve
months. While the term loan is void of financial maintenance
covenants, the RCF has a springing first-lien net leverage ratio of
8.75x at 35% utilization, which Moody's do not expect to be
tested.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Ratings could be upgraded if organic revenue growth returns to
double-digit percentage levels and EBITDA margins revert to the
45%-50% range, leading to total debt to EBITDA sustained below 6x.
Upward ratings pressure would also occur if Moody's expect
sustained positive free cash flow generation as measured by free
cash flow to adjusted debt of at least 6.5% (all metrics calculated
and adjusted by Moody's).
Ratings could be downgraded if Liftoff experienced client losses,
declines in organic revenue growth and/or operating margin erosion.
Downward pressure on ratings could also occur if Moody's expect
financial leverage will be sustained above 8x total debt to EBITDA
or EBITDA growth will be insufficient to maintain free cash flow to
adjusted debt of at least 1% (all metrics calculated and adjusted
by Moody's). If Moody's expect the company will shift to more
aggressive financial policies resulting in higher financial
leverage from M&A or sizable shareholder distributions and/or a
weakened liquidity profile, this could also lead to downward
ratings pressure.
With headquarters in Redwood City, CA, Red Planet Borrower, LLC
(d/b/a "Liftoff") is an independent mobile app performance-based
marketing and advertising platform. The company was formed in
September 2021 through the combination of Liftoff Mobile, Inc. and
Vungle Inc., both portfolio holdings of Blackstone Inc., which
retains majority ownership of the combined entity.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
RED RIVER: $8.2B Talc Settlement Hinges on January 2024 Trial
-------------------------------------------------------------
Johnson & Johnson's attempt to resolve thousands of cancer-related
lawsuits connected to its iconic baby powder through bankruptcy
court now hinges on a critical trial scheduled for January.
After months of legal disputes, a federal judge in Houston will
soon decide if J&J's proposed $8.2 billion settlement to settle the
claims can proceed. An attorney representing claimants opposing the
settlement argues that the vote approving the deal was
manipulated—a claim J&J refutes.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
REEVA DINING: Amends Priority Claims Pay Details
------------------------------------------------
Reeva Dining Club, Inc., submitted an Amended Plan of
Reorganization for Small Business dated September 16, 2024.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $15,738.65.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 2.5 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 1 consists of Priority claims excluding those in Article 3:
Arkansas Department of Finance and Administration; Internal Revenue
Service. Arkansas Department of Finance and Administration
("ADF&A") filed claim No. 1 in the amount of $57,016.59. This claim
shall be paid in full over 5 years at 0% percent interest with 60
monthly payments of $950.28. Payments shall begin on the first day
of the first month following the effective date of the Plan, or
when a final non-appealable order is entered allowing the claim,
whichever comes last. The remaining portion of the claim, in the
amount of $10,230.16 shall be allowed as a general unsecured claim,
which shall be paid pursuant to Class 4.
ADF&A filed claim No. 3 in the amount of $37,164.72. This claim
shall be paid in full over 5 years at 0% percent interest with 60
monthly payments of $619.41. Payments shall begin on the first day
of the first month following the effective date of the Plan, or
when a final non-appealable order is entered allowing the claim,
whichever comes last. The remaining portion of the claim, in the
amount of $12,292.52 shall be allowed as a general unsecured claim,
which shall be paid pursuant to Class 4.
ADF&A filed claim No. 4 in the amount of $9773.03. This claim shall
be paid in full over 5 years at 0% percent interest with 60 monthly
payments of $162.88. Payments shall begin on the first day of the
first month following the effective date of the Plan, or when a
final non-appealable order is entered allowing the claim, whichever
comes last.
Arkansas Department of Finance and Administration ("ADF&A") filed
claim No. 10 in the amount of $1500.81. This claim shall be paid in
full over 5 years at 0% percent interest with 60 monthly payments
of $25.02. Payments shall begin on the first day of the first month
following the effective date of the Plan, or when a final
non-appealable order is entered allowing the claim, whichever comes
last. The remaining portion of the claim, in the amount of $166.74
shall be allowed as a general unsecured claim, which shall be paid
pursuant to Class 4.
Despite any other provision of this plan to the contrary, any
failure by the Debtor to timely make any payment due to ADF&A, or
to timely file and pay post- petition taxes shall constitute an
event of default. In the event of Default, ADF&A shall provide the
Debtor and counsel with written notice of default and a 15-day
opportunity to cure. The Debtor shall only be permitted 3 defaults
under the terms of this plan. If a fourth default occurs, ADF&A
shall be authorized to utilize all available remedies to collect
the entire amount of unpaid taxes owed by the Debtor without
approval of the Court and without further notice to the Debtor or
to the Debtor's counsel.
The Internal Revenue Service ("IRS") filed claim No. 6 in the
amount of $155,461.36, which will be reduced to $134,856.36 upon
the filing of the 2023 corporate return for the debtor on May 7,
2024. This claim shall be paid in full over 5 years at 0% percent
interest with 60 monthly payments of $2247.61. Payments shall begin
on the first day of the first month following the effective date of
the Plan, or when a final non-appealable order is entered allowing
the claim, whichever comes last. The remaining portion of the
claim, in the amount of $16,548.52 shall be allowed as a general
unsecured claim, which shall be paid pursuant to Class 4.
Like in the prior iteration of the Plan, all allowed general
unsecured non-priority claims in Class 4 in the approximate amount
of $629,545.93 and includes any amounts of secured claims that
exceed the value of the collateral securing the claim. Debtor
estimates that there will be a dividend pool accumulated over the
next 5 years of the Plan in the amount of $15,738.65. Therefore,
unsecured creditors will receive approximately 2.5% distribution on
their claims over the 5-year period of the plan. Debtor will
disburse payment pro rata to unsecured creditors at the end of
every plan year for the 5 years following confirmation of the
plan.
Upon confirmation, Debtor shall be charged with administration of
the case. Chintan Patel will continue to perform his current
position as President of Reeva Dining, LLC, and payments for the
plan will be made from cash flow from this business. 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 Amended Plan dated September 16, 2024 is
available at https://urlcurt.com/u?l=vEpKqx from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Marc Honey, Esq.
HONEY LAW FIRM, PA
P.O. Box 1254
Hot Springs, AR 71902
Telephone: (501) 321-1007
Facsimile: (501) 321-1255
Email: mhoney@honeylawfirm.com
About Reeva Dining Club
Reeva Dining Club, Inc. operates in the traveler accommodation
industry and is based in Batesville, Ark.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-10386) on Feb. 9,
2024, with up to $50,000 in assets and $1 million to $10 million in
liabilities. Chintan Patel, president, signed the petition.
Judge Phyllis M. Jones oversees the case.
Marc Honey, Esq., at Honey Law Firm, P.A., is the Debtor's
bankruptcy counsel.
RESTAURANT LIFE: Maria Yip Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed Maria Yip, a certified
public accountant and managing partner at Yip Associates, as
Subchapter V trustee for Restaurant Life, LLC.
Ms. Yip will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Yip declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Maria M. Yip
2 S. Biscayne Blvd., Suite 2690
Miami, FL 33131
Tel: (305) 569-0550
Email: myip@yipcpa.com
About Restaurant Life
Restaurant Life, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20485) on Oct. 8,
2024, with as much as $1 million in both assets and liabilities.
Grant Galuppi, manager, signed the petition.
Judge Peter D. Russin oversees the case.
The Law Offices of Robert Reynolds, P.A. serves as the Debtor's
bankruptcy counsel.
RITE AID CORP: Sets to Close Waverly, Ohio Location
---------------------------------------------------
Bret Bevens of NewsWatchman reports that as part of its Chapter 11
bankruptcy process, Rite Aid announced on February 28, 2024 that it
will close an additional 77 stores in 2024, according to court
filings. This round of closures brings the total number of stores
shut down since the company's October bankruptcy filing to 431, as
reported by MassLive.
Although the February list included 10 Ohio locations, the Waverly
store at 501 E. Emmitt Ave. was initially not affected, and no
stores in southern Ohio were scheduled for closure.
However, plans have since shifted, with Rite Aid spokesperson
Alicja Wojczyk confirming that the Waverly location is now set to
close "later this month."
"Rite Aid regularly reviews its retail locations to ensure
efficient operations while meeting the needs of our customers,
communities, associates, and business," said a release provided to
the Pike County News Watchman. "In connection with our
court-supervised process, we notified the Court about certain
underperforming stores set to close to reduce rental costs and
enhance financial stability. At this time, no further specific
store closures have been decided or confirmed as part of our
restructuring."
The Waverly Rite Aid, which opened in 1997, has served as a
convenient pharmacy for residents on the west side of US 23,
allowing them to avoid traffic and signals along the main highway.
Walmart remains the only other pharmacy on this side of US 23 in
Waverly.
"The decision to close a store is not one we take lightly," said
Rite Aid spokesperson Alicja Wojczyk. "With the support of our
advisors, we carefully consider factors such as business strategy,
lease terms, local market conditions, and store performance in
making these decisions."
"For customers, we make every effort to maintain access to
pharmacy-based services, either at other Rite Aid locations or
nearby pharmacies, and we ensure seamless prescription transfers to
prevent service disruptions."
"For our associates, we strive to offer transfers to other Rite Aid
locations where possible," the release added. "Approximately 75% of
our associates have accepted transfer opportunities if their store
is impacted by closures."
The nearest Rite Aid locations to Waverly are in Hillsboro,
Greenfield, and Wheelersburg.
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
SASSY MEDCHILL: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas granted
Sassy Medchill, LLC authorization to use cash collateral on an
interim basis.
The interim order authorized the company to use cash collateral in
accordance with its budget, which shows total expenses of
$59,132.14.
Secured creditors were granted replacement liens on all
post-petition cash collateral and post-petition acquired property
to the same extent and priority as they possessed as of the
petition date.
The proposed payment of $4,000 for attorney's fees and $1,000 for
Subchapter V Trustee fees set forth in the budget has not been
authorized by the court at this time and such fees will not be paid
unless authorized by the court in a separate order.
A final hearing will be held on Nov. 5.
About Sassy Medchill
Sassy MedChill, LLC, based in Frisco, Texas, operates as a wellness
and medical service provider offering specialized treatments.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Texas Case No. 24-42447), with up to
$50,000 in assets and up to $500,000 in liabilities.
The Debtor is represented by Robert C. Lane, Esq., at The Lane Law
Firm, PLLC.
SASSY MEDCHILL: Hires Lane Law Firm PLLC as Counsel
---------------------------------------------------
Sassy Medchill LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to employ Lane Law Firm, PLLC as
counsel.
The firm will provide these services:
a. assist, advise and represent the Debtors relative to the
administration of the chapter 11 case;
b. assist, advise and represent the Debtors in analyzing the
Debtors' assets and liabilities, investigating the extent and
validity of lien and claims, and participating in and reviewing any
proposed asset sales or dispositions;
c. attend meetings and negotiate with the representatives of
the secured creditors;
d. assist the Debtors in the preparation, analysis and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
e. take all necessary action to protect and preserve the
interests of the Debtors;
f. appear, as appropriate, before this Court, the Appellate
Courts, and other Courts in which matters may be heard and to
protect the interests of Debtors before said Courts and the United
States Trustee; and
g. perform all other necessary legal services in these cases.
The firm will be paid at these rates:
Robert "Chip" Lane, Managing partner $595 per hour
Joshua Gordon $550 per hour
Associate Attorneys $500 per hour
Paraprofessionals $250 per hour
Lane Law Firm will be paid a retainer in the amount of $32,000
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert "Chip" Lane, Esq. a partner at Lane Law Firm, 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:
Robert C. Lane, Esq.
Joshua D. Gordon, Esq.
A. Zachary Casas, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, Texas 77036
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
Email: notifications@lanelaw.com
joshua.gordon@lanelaw.com
zach.casas@lanelaw.com
About Sassy Medchill LLC
Sassy Medchill LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Tex. Case No. 42-42447) on Oct. 16, 2024. The Debtor hires
Lane Law Firm, PLLC as counsel.
SCOTLAND MEADOWS: Hires Kenneth E. Lindauer as Counsel
------------------------------------------------------
Scotland Meadows, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to employ Law Offices of Kenneth
E. Lindauer as counsel.
The firm will provide these services:
a. assist and advise the Debtor in the formulation and
presentation of a plan of Reorganization and Disclosure Statement;
b. advise the Debtor as to its duties and responsibilities as
Debtor-in-Possession; and
c. perform such other legal services as may be required during
the course of this Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm will be paid a retainer in the amount of $15,000.
Kenneth E. Lindauer, Esq., a partner at Law Offices of Kenneth E.
Lindauer, 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:
Kenneth E. Lindauer, Esq.
Law Offices of Kenneth E. Lindauer
14 Lynde Street
Salem, MA 01970
Telephone: (978) 744-5861
Email: ken@lindauer.com
About Scotland Meadows LLC
Scotland Meadows LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Scotland Meadows LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-11997) on October 1,
2024. In the petition filed by Kemith K. Luster, as manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Debtor is represented by:
Kenneth E. Lindauer, Esq.
LAW OFFICES OF KENNETH E. LINDAUER
14 Lynde Street
Salem MA 01970
Tel: (978) 744-5861
E-mail: ken@lindauer.com
SERVICE PROPERTIES: Moody's Cuts CFR & Senior Secured Notes to B3
-----------------------------------------------------------------
Moody's Ratings downgraded Service Properties Trust's ("SVC" or the
"REIT") Corporate Family Rating to B3 from B2, and the guaranteed
and non-guaranteed senior unsecured ratings to B3 and Caa1 from B2
and B3, respectively. In addition, Moody's downgraded the senior
secured rating to B3 from B2. The Speculative Grade Liquidity
rating remains unchanged at SGL-4 and the outlook remains
negative.
The downgrade of SVC's ratings reflects the REIT's weak operating
performance and deteriorating cash flow trends, which are impacting
key credit metrics. SVC's leverage is very high and its fixed
charge coverage has declined significantly due to lower EBITDA from
its hotels and higher interest costs from recent refinancing
activities. As a result, SVC has very limited cushion on its bond
and credit revolver covenants, which require debt service coverage
of at least 1.5x. Breach of these covenants would limit its ability
to incur debt and inhibit its already weak financial flexibility as
it faces a large amount of debt maturities beginning in 2026.
SVC is taking actions to improve liquidity, as it recently
announced a material reduction in its common dividend as well as
plans to sell a large portfolio of hotels that have significant
capital needs. The dividend cut will generate $127 million in
annual savings and it plans to sell 114 focused service hotels
managed by Sonesta (in addition to another 14 hotels that it had
already earmarked for sale) that have an aggregate net carrying
value of $850 million. Sales proceeds would be used to reduce debt
and improve its overall credit profile, but this strategy carries
execution risk.
The negative outlook reflects the REIT's weak operating trends,
high leverage, and limited financial flexibility as it faces a
large amount of upcoming debt maturities.
Governance risk factors are material to the rating actions,
specifically financial strategy is a key credit concern given SVC's
high financial leverage and risk that it will breach a bond
covenant.
RATINGS RATIONALE
SVC's B3 CFR reflects its weak operating performance, as well as
its high overall leverage and secured debt levels, which weaken
financial flexibility. The REIT posted weak operating results
through the first half of 2024, with same-store RevPAR down 3.0%,
driven primarily by a 290 basis point decline in average daily
rate. The weakness was driven by softness in transient and business
travel across the REIT's select service portfolio, in addition to
disruptions due to hotel renovations.
SVC also maintains very high leverage, with net debt to EBITDA at
9.8x for last twelve months (LTM) 2Q24, up from 8.4x for 2023.
Fixed charge coverage is also very weak at 1.6x for LTM 2Q24, down
from 1.9x for 2023. In addition, Moody's note that the REIT has
limited cushion within its debt service coverage covenant on its
senior bonds. This calculation stood at 1.60x for 2Q24 as compared
with the 1.50x minimum test requirement.
SVC has embarked on a large asset sales program, which could
strengthen its financial profile as it would use net proceeds to
reduce debt. However, this plan carries significant execution risk
as the identified hotels have been generating weak operating
performance and also have significant capital needs. Despite these
challenges, SVC's ratings are supported by the company's meaningful
scale and its portfolio mix, including hotels and net lease service
and necessity-based retail properties, which provide
diversification to cash flows. The ratings also reflect the value
of its unencumbered asset pool, which the company has leveraged
successfully in recent transactions to manage its capital needs.
SVC's SGL-4 rating reflects a weak liquidity profile given expected
sources and uses over the next 24 month period. Liquidity is
comprised of $14.6 million in cash on hand and full availability
under SVC's $650 million secured credit facility due June 2027,
which was downsized from $800 million in its June 2023 refinancing.
SVC successfully refinanced the 2025 maturities and the next
maturities include a total of $800 million due in 2026, $850
million due in 2027, and $1 billion due in 2028. Moody's expect the
REIT to manage its near-term maturities primarily through asset
sales as additional secured debt funding, including draws on the
revolver, and/or higher cost of capital unsecured debt would result
in a breach of bond and credit facility covenants. SVC maintains a
large unencumbered portfolio of about $7 billion, but the size and
quality of this pool continues to diminish with the delivery of
first lien mortgages and equity interests on certain higher quality
properties to secure obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A downgrade of SVC's ratings could occur should the company fail to
maintain sufficient liquidity related to near-term maturities or if
it continues to materially encumber more assets. Fixed charge
coverage below 1.5x or a deterioration in operating performance
could also lead to a downgrade.
An upgrade is unlikely given the negative outlook, but longer term
would require stable operating metrics, adequate liquidity, and
improved recovery expectations.
Service Properties Trust is a real estate investment trust (REIT)
which owns a diverse portfolio of hotels and net lease service
retail (businesses that sell non-physical goods and services) and
necessity-based retail properties across the United States and in
Puerto Rico and Canada. SVC is managed by the operating subsidiary
of The RMR Group Inc., an alternative asset management company
headquartered in Newton, MA.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in February 2024.
SHAPIRO MANAGEMENT: Unsecureds Will Get 1.69% of Claims in Plan
---------------------------------------------------------------
Shapiro Management Group, Inc., submitted a First Amended Plan of
Reorganization dated September 16, 2024.
Creditors will receive payment from the Debtor from the cash flow
of the Debtor's operations for a period of three years.
This Plan provides for five classes of secured claims, one class of
administrative convenience claims, one class of general unsecured
claims, and one class of equity security holders claims. General
unsecured creditors holding allowed claims will receive
distributions, which the Debtor has valued at approximately 1.69%.
This Plan also provides for the payment of administrative and
priority claims.
The Debtor's financial projections show that the Debtor will have
projected disposable income of $30,087.17. The final Plan payment
is expected to be paid in the fourth quarter of 2027.
Class 1 consists of the Secured Claim of SouthState Bank, N.A. The
Principals of the Debtor Anna Shapiro and Gennadiy Shapiro (the
"Principals"), shall list for sale their real property located at
1830 S Ocean Drive, #3708, Hallandale Beach, FL 33009. After
satisfying the mortgage, liens and other customary closing costs,
the Principals will apply the net proceeds estimated at $650,000.00
towards SouthState's Claim No. 5. The Debtor shall make equal
monthly principal and interest payments in the amount of $18,479.00
over the extended 30-year loan term.
Class 2 consists of the Secured Claim of U.S. Small Business
Administration. The Debtor filed a Motion to Value seeking to
reclassify the SBA's Claim No. 2 to a general unsecured claim
which, if granted, shall be treated under Class 6.
Class 3 consists of the Secured Claim of Greenwoods Equipment
Finance, LLC. The Debtor filed a Motion to Value seeking to
reclassify Claim No. 9 as a secured claim in the amount of
$35,000.00, with the remaining $75,181.72 classified as a general
unsecured claim. The unsecured portion of Claim No. 9 shall be
treated under Class 6. Greenwoods has received post-petition
payments totaling $3,176.00 from the Debtor. After applying these
payments, the remaining balance of Greenwoods' secured claim is
$31,824.00. Repayment will be structured over a thirty-six month
amortization period at an interest rate of 7.44% resulting in equal
monthly principal and interest payments of $989.05.
Class 4 consists of the Secured claim of Amur Equipment Finance.
The Debtor filed a Motion to Value seeking to reclassify Claim No.
10 to a secured claim in the amount of $26,700.00, with the
remaining $81,292.90 classified as a general unsecured claim. The
unsecured portion of Claim No. 10 shall be treated under Class 6.
Amur has received post-petition payments totaling $5,297.26 from
the Debtor. After applying these payments, the remaining balance of
Amur's secured claim is $21,402.74. Repayment will be structured
over a thirty-six month amortization period at an interest rate of
7.44% resulting in equal monthly principal and interest payments of
$665.17.
Class 5 consists of the Secured claim of Wells Fargo Bank, N.A. The
Debtor filed a Motion to Value seeking to reclassify Claim No. 6 to
a secured claim in the amount of $54,100.00, with the remaining
$22,859.27 classified as a general unsecured claim. The unsecured
portion of Claim No. 6 shall be treated under Class 6. Wells Fargo
has received post-petition payments totaling $1,464.39 from the
Debtor. After applying these payments, the remaining balance of
Wells Fargo's secured claim is $22,859.27. Repayment will be
structured over a thirty-six month amortization period at an
interest rate of 7.44% resulting in equal monthly principal and
interest payments of $1,635.84.
Class 6 consists of all allowed general unsecured creditors and
undersecured claims. The Class 6 General Unsecured Creditors and
Claims shall share pro rata in total distribution in the amount of
$30,078.17. Unsecured creditors will be receiving a distribution of
approximately 1.69% of their allowed claim(s), which is an amount
in excess of what claimants would receive in a hypothetical Chapter
7 proceeding, in which case such claimants would receive 0.00%.
The means necessary for the implementation of this Plan include the
Debtor's cash flow from operations for a period of three years and
contributions from the Principals of the Debtor when necessary. The
Debtor's financial projections show that the Debtor will have
sufficient cash over the life of the Plan to make the required Plan
payments and operate its business. The estimated cash on hand as of
the First Payment Date of this Plan is $7,500.00.
A full-text copy of the First Amended Plan dated September 16, 2024
is available at https://urlcurt.com/u?l=NzmQlu from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Rachamin Cohen, Esq.
COHEN LEGAL SERVICES, PA
12 SE 7th Street, Suite 805
Fort Lauderdale, FL 33301
Tel: (305) 570-2326
E-mail: Rocky@CohenLegalServicesFL.com
About Shapiro Management Group
Shapiro Management operates in the healthcare industry.
Shapiro Management Group, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-14473) on May 7, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Gennadiy Shapiro as president.
Judge Robert A. Mark presides over the case.
Rachamin "Rocky" Cohen, Esq. at COHEN LEGAL SERVICES, PA, is the
Debtor's counsel.
SHIELDS NURSING: No Patient Care Concer, 6th PCO Report Says
------------------------------------------------------------
Blanca Castro, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Northern District of California her sixth
report regarding the quality of patient care provided at Shields
Nursing Centers, Inc.'s skilled nursing facilities.
The local Long-Term Care Ombudsman (LTCO) visited Shields Richmond
Nursing Center on September 17. The LTCO spoke with two residents
who continue to report long waits for staff to respond to call
lights. Both noted waits of 20-30 minutes during all shifts, with
even longer delays during the night shift. The Ombudsman discussed
this ongoing Quality of Care problem with the Administrator.
The LTCO continues to work with the Department of Health Care
Services (DHCS), CDPH, and fee-for-service plan administrators to
resolve the remaining outstanding dental issues experienced by two
residents. In one case, the resident's dental prosthetics are being
readjusted, with the estimated date for completion October 11. In
the other case, the resident has had their dental appointment
rescheduled for February 2025.
The LTCO visited Shields Nursing Center, El Cerrito, on September
17. The LTCO met with several residents during the visit, and they
did not have any concerns. The entry way to the facility was
inviting and clean and the inside of the facility was odor free.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=z2OCJY from PacerMonitor.com.
The ombudsman may be reached at:
Blanca E. Castro
2880 Gateway Oaks Drive, Suite 200,
Sacramento, CA 95833
Phone: (916) 928-2500
Email: Blanca.Castro@aging.ca.gov
About Shields Nursing Centers
Shields Nursing Centers, Inc. owns and operates a skilled nursing
facility in Hercules, Calif., which offers rehabilitation programs
including physical, occupational and speech therapy.
Shields Nursing Centers filed its voluntary Chapter 11 petition
(Bankr. N.D. Calif. Case No. 23-41201) on Sept. 20, 2023, with
$1,726,970 in assets and $13,504,710 in liabilities. Judge Charles
Novack oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's
bankruptcy counsel.
Blanca E. Castro has been appointed as patient care ombudsman in
the Debtor's Chapter 11 case.
SKID ROW HOUSING: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: The Skid Row Housing Trust
RHT Property Holding Company LLC (CA)
SRHT Property Holding LLC
SRHT Health and Human Services
Restorative Neighborhood Resources
1317 E. 7th Street
Los Angeles, CA 9002
Business Description: Skid Row Housing Trust owns an interest in
certain real properties. The business and
mission of the Corporation is to provide
management, support, administration and
rental services related to the provision of
permanent supportive housing at the Trust
Properties and to perform certain other
property management services for the Trust.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-18882
Debtor's Counsel: Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067
Tel: 310-440-4100
Email: hrafatjoo@raineslaw.com
Total Assets: $161,592
Total Liabilities: $122,547,696
The petition was signed by Joanne Cordero as interim CEO.
A full-text copy of the petition containing is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NE3RLRQ/The_Skid_Row_Housing_Trust__cacbke-24-18882__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Union/Us Bank Co-Debtor on $11,261,834
190 S. LaSalle St Loan
Chicago, IL 60603
2. Affordable Housing Program Co-Debtor on $7,222,265
580 California St Loan
San Francisco, CA
94104
3. Housing and Community Co-Debtor on $6,922,244
Development Loan
651 Bannon Street
Sacramento, CA
95811
4. Housing and Community Co-Debtor on $6,086,619
Development Loan
651 Bannon Street
Sacramento, CA
95811
5. LA Housing Department Co-Debtor on $6,066,000
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
6. LA Housing Department Co-Debtor on $4,500,000
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
7. Housing and Community Co-Debtor on $4,336,722
Development Loan
651 Bannon Street
Sacramento, CA
95811
8. Housing and Community Co-Debtor on $4,252,359
Development Loan
651 Bannon Street
Sacramento, CA
95811
9. Pacific Premier Bank $4,000,000
17901 Von Karman Avenue
Suite 1200
Irvine, CA 92614
10. LA Housing Department Co-Debtor on $3,772,148
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
11. Housing and Community Co-Debtor on $3,500,000
Development Loan
651 Bannon Street
Sacramento, CA
95811
12. Housing and Community Co-Debtor on $3,300,000
Development Loan
651 Bannon Street
Sacramento, CA
95811
13. LA Housing Department Co-Debtor on $3,209,078
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
14. Genesis LA $3,105,212
801 Grand Avenue,
Suite 775
Los Angeles, CA
90017
15. LA Housing Department Co-Debtor on $2,999,841
1910 Sunset Blvd Loan
Suite 300
Los Angeles, CA
90028
16. LA Housing Department Co-Debtor on $2,693,025
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
17. Housing and Community Co-Debtor on $2,650,150
Development Loan
651 Bannon Street
Sacramento, CA
95811
18. Affordable Housing Program Co-Debtor on $2,000,000
580 California St Loan
San Francisco, CA
94104
19. U.S. Small Business $2,000,000
Administration
10737 Gateway West
#300
El Paso, TX 79935
20. LA Housing Department Co-Debtor on $1,880,000
1910 Sunset Blvd Loan
Suite 300
LosAngeles, CA
90028
SOUTH LINCOLN: Hires Kutner Brinen Dickey Riley P.C. as Counsel
---------------------------------------------------------------
South Lincoln Storage LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ Kutner Brinen Dickey
Riley, P.C., as counsel.
The firm will provide these services:
a. provide the Debtor with legal advice with respect to its
powers and duties;
b. aid the Debtor in the development of a plan of
reorganization under Chapter 11;
c. file the necessary petitions, pleadings, reports, and
actions which may be required in the continued administration of
the Debtor's property under Chapter 11;
d. take necessary actions to enjoin and stay until final
decree herein continuation of pending proceedings and to enjoin and
stay until final decree herein commencement of lien foreclosure
proceedings and all matters as may be provided under 11 U.S.C.
§362; and
e. perform all other legal services for the Debtor which may
be necessary herein
The firm will be paid at these rates:
Jeffrey S. Brinen $515 per hour
Jonathan M. Dickey $375 per hour
Keri L. Riley $375 per hour
Jenny M. Fujii $410 per hour
Kutner Brinen received a pre-Petition retainer of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Keri L. Riley, Esq., a partner at Kutner Brinen Dickey Riley, P.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Keri L. Riley, Esq.
Jeffrey S. Brinen, Esq.
Kutner Brinen Dickey Riley, P.C.
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Telephone: (303) 832-2400
E-mail: klr@kutnerlaw.com
About South Lincoln Storage LLC
South Lincoln Storage LLC is the owner of real property in Colorado
having an appraised value of $4.7 million.
South Lincoln Storage LLC sought relief under Chapter 11 of the
U.S. Bankr. D. Col. Case No. 24-16115) on October 15, 2024. In the
petition filed by Jeffrey A. Diette, as managing member, the Debtor
reports total assets of $4,700,500 and total liabilities of
$3,383,497.
Honorable Bankruptcy Judge Michael E. Romero oversees the case.
The Debtor is represented by:
Jeffrey S. Brinen, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: (303) 382-2400
Email: jsb@kutnerlaw.com
SRHT PROPERTY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: SRHT Property Management Company
1317 E. 7th Street
Los Angeles, CA 90021
Business Description: The Debtor is a California nonprofit public
benefit corporation.
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-18883
Debtor's Counsel: Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067
Tel: 310-440-4100
Email: hrafatjoo@raineslaw.com
Total Assets: $33,540
Total Liabilities: $7,423,977
The petition was signed by Joanne Cordero as interim CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/24A6QOI/SRHT_Property_Management_Company__cacbke-24-18883__0001.0.pdf?mcid=tGE4TAMA
SYNAPSE FINANCIAL: B. Riley Notes of Nov. 4 Deadline for Bids
-------------------------------------------------------------
B. Riley Advisory Services is soliciting bids for the assets of
Synapse Financial Technologies, Inc., pursuant to the Order of the
United States Bankruptcy Court, Central District of California,
Chapter 11 Case No.: 1:24-bk-10646-MB.
The Deadline for Initial Indications of Interest is November 4,
2024 at 4:00 p.m. Pacific Time. The Deadline for Initial Bids is
November 11, 2024 at 4:00 p.m. Pacific Time.
The Synapse Financial Technologies platform provided Banking as a
Service (BaaS) infrastructure to fintech customers. According to
its Fall 2023 literature, the Synapse platform was serving
approximately 120 fintech customers, 3 million active users, $60
billion annualized money movements and $3 billion card-based
spending. The system is running on MongoDB Atlas and AWS.
The assets being offered by the Chapter 11 Trustee include:
* The Synapse Financial Technologies platform, a BaaS
(Banking as a Service) and IP
* Equity interests in subsidiaries, Synapse Credit, LLC
and Synapse Brokerage, LLC
Other Assets as determined by the Chapter 11 Trustee.
About Synapse Financial
Headquartered in San Francisco, Calif., Synapse Financial
Technologies, Inc. provides banking-as-a-service platform for
embedded finance solutions worldwide.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22, 2024. In the
petition signed by Sankaet Pathak, chief executive officer, the
Debtor disclosed up to $50 million in assets and liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P.,
is the Debtor's legal counsel.
Jelena McWilliams has been appointed as Chapter 11 Trustee. She has
tapped GlassRatner Advisory & Capital Group LLC d/b/a B. Riley
Advisory Services as her financial advisor; and Cravath, Swaine &
Moore LLP and Keller Benvenutti Kim LLP as counsel.
TABOR MANOR: Resident Care Maintained, 2nd PCO Report Says
----------------------------------------------------------
Jeanne Goche, the court-appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the Southern District of Iowa
her second interim report concerning the quality of resident care
provided at Tabor Manor Care Center, Inc.'s nursing facility.
The PCO filed the interim report for Tabor due to the potential
significant decline or material compromise in the quality of
patient care that might have occurred because the healthcare
provider experienced a Covid-19 outbreak beginning two days prior
to the filing of the first interim report. At this filing, the
outbreak is over, and resident care and safety have been
maintained.
At this site visit, the PCO examined Tabor Manor documentation on
compliance with the standards for Covid-19 outbreaks, interviewed
staff on compliance with these standards, and observed the health
of the residents and certain health records. The PCO also checked
Tabor Manor's status with the Iowa Department of Inspections,
Appeals, and Licensing (DIAL).
The PCO observed that Tabor Manor has quickly and effectively
managed its Covid outbreak. Tabor Manor was prepared for this most
recent infectious disease experience, reaching a successful
conclusion with no hospitalizations, no complications, and no
adverse effects among its residents.
The PCO noted that Tabor Manor has moved forward with improvements
in permanent staffing, a dining room renovation, and strong hires
in leadership positions such as DON despite bankruptcy, prolonged
recovery from the pandemic, and the recent Covid outbreak. Tabor
Manor remains committed to a positive resident and staff culture,
and throughout this case, resident care and safety have been
maintained.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=YAD1I9 from PacerMonitor.com.
The ombudsman may be reached at:
Jeanne M. Goche, MA, JD
Solutions in Health Care Management
PO Box 743
West Branch, IA 52358
Ph: 319-330-0008
Email: jgoche@solutionsinhealthcaremanagement.com
About Tabor Manor Care Center
Tabor Manor Care Center, Inc. provides skilled nursing and
complementary and ancillary health care services in Fremont County,
Iowa. It has 46 beds in its skilled nursing facility.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Iowa Case No. 24-00636) on May 8,
2024, with up to $10 million in both assets and liabilities. Chris
Worcester, assistant administrator, signed the petition.
Judge Lee M. Jackwig oversees the case.
Jeffrey D. Goetz, Esq., at Dickinson, Bradshaw, Fowler & Hagen, PC,
represents the Debtor as legal counsel.
Jeanne Goche is the patient care ombudsman appointed in the
Debtor's case.
TERVIS TUMBLER: Committee Hires Johnson Pope Bokor as Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Tervis Tumbler
Company seeks approval from the U.S. Bankruptcy Court for the
Middle District of Florida to employ Johnson Pope Bokor Ruppel &
Burns, LLP as counsel.
The firm will provide these services:
a. assisting the Committee in carrying out the duties
enumerated in 11 U.S.C. Sec. 1102 and 1103;
b. advising the Committee about any relevant matter arising in
the case, including but not limited to conducting any review or
research that may be required to properly evaluate the Debtor's
current and prospective financial and operational condition, the
Debtor's prospects for reorganization, and/or the effect of any
proposed plan of reorganization;
c. drafting and/or filing any and all required documents,
pleadings, or other written instruments required by the Committee
in the case;
d. representing the Committee, when necessary, in any and all
hearings, depositions, conferences, trials, mediations, and/or
other appearances or participations related to the case; and
e. taking any and all other actions deemed necessary to
satisfy the Committee's responsibilities and to protect the
Committee's interests with respect to any matter arising in the
case.
The firm will be paid at these rates:
Edward J. Peterson, Shareholder $450 per hour
James Eising, Associate $325 per hour
Andrena Westcott, Paralegal $175 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Edward J. Peterson, Esq., a partner at Johnson Pope Bokor Ruppel &
Burns, LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Edward J. Peterson, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
400 N Ashley Dr., Ste. 3100
Tampa, FL 33602
Tel: (813) 225-2500
Email: edwardp@jpfirm.com
About Tervis Tumbler Co.
Tervis Tumbler Co. -- https://www.tervis.com -- is a
third-generation American-owned and operated company, renowned for
the durable construction of its drinkware, the timelessness of its
decorations and designs, and the insulation qualities.
Tervis sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-05274) on September 5, 2024, with $10
million to $50 million in both assets and liabilities. Hosana
Fieber, president and chief executive officer, signed the
petition.
Judge Roberta A. Colton oversees the case.
The Debtor is represented by Steven M. Berman, Esq., at Shumaker,
Loop & Kendrick, LLP.
TGI FRIDAY'S: Closes More Locations in Central New Jersey
---------------------------------------------------------
Mike Deak of MyCentralJersey.com reports that TGI Fridays has
officially ended its weekend happy hour celebrations in Central
Jersey. The well-known casual dining chain, which helped define the
casual dining scene in the U.S., is reportedly considering
bankruptcy and has recently closed its restaurants in Bridgewater
and Watchung.
Additional locations in Central Jersey have also shut down,
including those in Piscataway, Franklin, Woodbridge, North
Brunswick, East Brunswick, Old Bridge, and Iselin. This leaves
Linden’s Park Avenue as the only TGI Fridays location still open
in Central Jersey, with the next closest spot on Route 130 in East
Windsor. A branch in Allentown, Pa., recently closed as well.
Other TGI Fridays locations that remain open in New Jersey include
West Orange, Manahawkin, Turnersville, Burlington, Toms River, and
Brick.
About TGI Friday's Inc.
TGI Friday's Inc., doing business as Wow Bao, operates a chain of
restaurants. The Company provides appetizers, sizzlings, seafood,
salads, sandwiches, entres, desserts, and non-alcoholic and
alcoholic beverages. Wow Bao serves customers in the United States.
THE HOMESTEADER: Kicks Off Subchapter V Case
--------------------------------------------
The Homesteader, First Coast Edition, Inc. dba More Than Ink
Printing filed for Chapter 11 protection in the Middle District of
Florida (Case No. 24-03249). The petition states funds will be
available to unsecured creditors.
About The Homesteader, First Coast Edition Inc.
The Homesteader, First Coast Edition Inc., doing business as More
Than Ink Printing, is a commercial printing company in
Jacksonville, Florida.
The Homesteader, First Coast Edition Inc. sought relief under
Subchapter_V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D.
Fla. Case No. 24-03249) on October 25, 2024. In the petition filed
by Aaron Canaday, as vice-president, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Bankruptcy Judge Jason A. Burgess handles the case.
The Debtor is represented by:
William B McDaniel, Esq.
Lansing Roy, PA
7224 Golden Wings Road
Jacksonville, FL 32244
TRUE VALUE: Announces Plan to Lay Off Hundreds of Illinois Workers
------------------------------------------------------------------
Talia Soglin of Chicago Tribune reports that following its
bankruptcy filing, True Value announced it may lay off hundreds of
employees in Illinois.
Chicago-based hardware retailer True Value, which filed for Chapter
11 bankruptcy on October 14, 2024 may lay off nearly 900 employees
in Illinois if the company isn't sold during bankruptcy
proceedings, according to state-required filings.
True Value, operating about 4,500 stores, filed in federal court in
Delaware, revealing that Indiana-based competitor Do It Best has
offered to purchase the company for $153 million. In compliance
with Illinois' Worker Adjustment and Retraining Notification Act
(WARN), which requires advance notice of mass layoffs, True Value
disclosed that approximately 870 Illinois jobs are at risk if the
Do It Best deal doesn't go through.
In a letter to the state, Irma Quintana, True Value's head of human
resources, noted, "While we remain committed to completing the
Chapter 11 sale process, we must inform you of potential actions if
we are unable to finalize the sale to Do It Best or find other
buyers."
Potential layoffs would impact True Value's Chicago office at 8600
W. Bryn Mawr Ave., which houses a retail support center and
corporate staff, as well as a manufacturing site in Cary and two
facilities in Harvard, where most affected employees work as
merchandise handlers.
Of the Illinois employees affected, around 215 are members of the
International Brotherhood of Teamsters Local 781, working at True
Value's Harvard distribution center, according to Pasquale Gianni,
spokesperson for Teamsters Joint Council 25, which includes Local
781.
About True Value Company
True Value Company, LLC and its affiliates are hardlines
wholesalers, serving approximately 4,500 stores worldwide. A
globally recognized retail brand, the Debtors provide customers in
over 55 countries an expansive product set across key categories
such as Hardware Lumber and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on October 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
TRUE VALUE: Court Approves Interim Use of Cash Collateral
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted True
Value Company, LLC and its affiliates authorization to use cash
collateral on an interim basis.
The interim order authorized the companies to use cash collateral
to pay their operating expenses as set forth in their budget, with
a 10% variance.
PNC Bank, National Association, a secured creditor, was granted
replacement liens on the companies' cash collateral and
post-petition property, with the same priority as their
pre-bankruptcy liens.
About True Value Company
True Value Company, LLC and its affiliates are hardlines
wholesalers, serving approximately 4,500 stores worldwide. A
globally recognized retail brand, the Debtors provide customers in
over 55 countries an expansive product set across key categories
such as Hardware Lumber and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on October 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases.
TRUE VALUE: Russell R. Johnson III Represents Utility Companies
---------------------------------------------------------------
Russell R. Johnson III of the Law Firm of Russell R. Johnson III,
PLC filed a verified statement pursuant to Rule 2019 of the Federal
Rules of Bankruptcy Procedure to disclose that in the Chapter 11
cases of True Value Company, LLC and its affiliates, the firm
represents utility companies (the "Utilities") that provided
prepetition utility goods/services to the Debtors.
The names and addresses of the Utilities represented by the Firm
are:
1. The Cleveland Electric Illuminating Company
Attn: Kathy M. Hofacre
FirstEnergy Corp.
76 S. Main St., A-GO-15
Akron, Ohio 44308
2. Commonwealth Edison Company
Attn: Lynn R. Zack, Esq.
Assistant General Counsel
Exelon Corporation
2301 Market Street, S23-1
Philadelphia, Pennsylvania 19103
3. Georgia Power Company
Attn: Daundra Fletcher
2500 Patrick Henry Parkway
McDonough, GA 30253
4. UNS Electric, Inc.
UNS Gas, Inc.
Attn: Adam D. Melton, Esq.
Assistant General Counsel – Litigation
88 E. Broadway Blvd.
HQE910
Tucson, Arizona 85701
The Cleveland Electric Illuminating Company, Commonwealth Edison
Company, UNS Electric, Inc. and UNS Gas, Inc. have unsecured claims
against the Debtors arising from prepetition utility usage.
Georgia Power Company held prepetition cash deposits that wholly
secured prepetition debt.
The Law Firm of Russell R. Johnson III, PLC was retained to
represent the Utilities in October 2024.
The law firm can be reached at:
Russell R. Johnson III, Esq.
LAW FIRM OF RUSSELL R. JOHNSON III, PLC
2258 Wheatlands Drive
Manakin-Sabot, Virginia 23103
Telephone: (804) 749-8861
Email: russell@russelljohnsonlawfirm.com
About True Value Company
True Value Company, LLC and its affiliates are hardlines
wholesalers, serving approximately 4,500 stores worldwide. A
globally recognized retail brand, the Debtors provide customers in
over 55 countries an expansive product set across key categories
such as Hardware Lumber and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on October 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
UNDEAD PRODUCTIONS: Gets Final OK to Use Cash Collateral
--------------------------------------------------------
Undead Productions, Inc. received final approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to use
its cash collateral.
The final order, signed by Judge John Melaragno, authorized the
company to use cash collateral in the ordinary course of its
business in accordance with its budget. Undead Productions must
operate within 10% of the approved budget and failure to comply may
result in the termination of the company's authorization to use
cash collateral.
Undead Productions has a loan agreement with The Huntington
National Bank, which is secured by a first priority security
interest in all assets of the company. The pre-bankruptcy liens of
Huntington are continued post-petition but the value of the liens
should not be greater post-petition than the value at the time of
the filing of the bankruptcy case. In addition, Undead Productions
will remit monthly payments to Huntington in the amount of $3,295,
starting on the fifth business day of each month.
In the event of a default or violation of the order, Huntington is
entitled to request a hearing within 14 days or an emergency
hearing within 72 hours.
About Undead Productions
Undead Productions, Inc. is a creator of ScareHouse, Bold Escape
Rooms and Steel City Axes in Pittsburgh.
Undead Productions filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
24-22057) on August 22, 2024, with $1 million to $10 million in
assets and $100,000 to $500,000 in liabilities. Scott A. Simmons,
president, signed the petition.
Christopher M. Frye, Esq., at Steidl & Steinberg, P.C. represents
the Debtor as legal counsel.
UNIMODE WOODWORKING: Matthew Brash Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for Unimode
Woodworking, Inc.
Mr. Brash will be paid an hourly fee of $415 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
About Unimode Woodworking
Unimode Woodworking, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15017) on
October 9, 2024, with $100,001 to $500,000 in assets and $500,001
to $1 million in liabilities.
Judge Timothy A. Barnes presides over the case.
David Freydin, Esq., at the Law Offices of David Freydin Ltd.
represents the Debtor as legal counsel.
UNITED DENTAL: Case Summary & Six Unsecured Creditors
-----------------------------------------------------
Debtor: United Dental Wilshire Corporation
3800 Wilshire Blvd.
Los Angeles, CA 90010
Chapter 11 Petition Date: October 29, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-18873
Judge: Hon. Julia W Brand
Debtor's Counsel: Jaenam Coe, Esq.
LAW OFFICES OF JAENAM COE PC
3731 Wilshire Blvd 500
Los Angeles CA 90010
Tel: (213) 389-1400
E-mail: coelaw@gmail.com
Total Assets: $2,000,000
Total Liabilities: $3,565,248
The petition was signed by Jeong H. Kim as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/IQQNRGQ/UNITED_DENTAL_WILSHIRE_CORPORATION__cacbke-24-18873__0001.0.pdf?mcid=tGE4TAMA
VALENCIA HOSPITALITY: Jarrod Martin Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Jarrod Martin, Esq., a
practicing attorney in Houston, as Subchapter V trustee for
Valencia Hospitality Group, LLC.
Mr. Martin will be paid an hourly fee of $600 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Martin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jarrod B. Martin, Esq.
1200 Smith Street, Suite 1400
Houston, TX 77002
Phone: 713-356-1280
Email: JBM.Trustee@chamberlainlaw.com
About Valencia Hospitality Group
Valencia Hospitality Group, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34705)
on October 6, 2024, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities.
Judge Stephen L. Johnson oversees the case.
Walter J. Cicack, Esq., at Hawash Cicack & Gaston, LLP represents
the Debtor as legal counsel.
VANGUARD MEDICAL: No Decline in Patient Care, 2nd PCO Report Says
-----------------------------------------------------------------
Arthur Peabody, Jr., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the District of Massachusetts his second
report regarding the quality of patient care provided by Vanguard
Medical, LLC.
In his report, which covers the period from August 3 to October 7,
the PCO appreciates the full cooperation of Vanguard's executive
management and legal counsel.
On October 3, the PCO conducted substantial interviews by Zoom with
Ivan Nussberg, the Chief Operating Officer (COO) and the Product
Specialist Supervisor for the purpose of obtaining a review of how
Vanguard trains new Product Specialists and how the Product
Specialist subsequently train patients to use the DME that their
physician has ordered to facilitate their care and treatment.
The PCO cited that the substance of the materials that Vanguard has
developed to train Product Specialists and for Product Specialists
to train patients will serve to ensure that the entity consistently
meets these standards.
The PCO noted that there is no evidence that the provision of DME
services to patient by Vanguard "is declining significantly or is
otherwise being materially compromised" based on the scope of his
review of training policies for the training of Product Specialists
and their subsequent fitting and training of patients.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=BG0tft from PacerMonitor.com.
The ombudsman may be reached at:
Arthur E. Peabody, Jr.
Arthur E. Peabody, Jr. PLLC
600 Cameron St.
Alexandria, VA 22314
Phone: (703) 798-1002
Email: arthurpeabody@mindspring.com
About Vanguard Medical
Vanguard Medical, LLC is a Connecticut limited liability company
formed in September 2018. It conducts business throughout New
England including significant business in the Commonwealth of
Massachusetts.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-10561) on March 25,
2024. In the petition signed by Clancy Purcell, chief executive
officer, the Debtor disclosed $7,796,609 in assets and $6,694,550
in liabilities.
Judge Janet E. Bostwick oversees the case.
Peter N. Tamposi, Esq., at the Tamposi Law Group, PC, represents
the Debtor as bankruptcy counsel.
Arthur E. Peabody, Jr. of Arthur E. Peabody, Jr. PLLC was appointed
as patient care ombudsman in the Debtor's case.
VERTEX ENERGY: Sidley Austin Advises Consenting Term Loan Lenders
-----------------------------------------------------------------
The law firm of Sidley Austin LLP filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 cases of Vertex Energy, Inc. and
affiliates, the firm represents the Ad Hoc Group of Consenting Term
Loan Lenders.
In July 2024, the Ad Hoc Group retained Sidley Austin as counsel in
connection with their holdings of the outstanding indebtedness of
the debtors, including with respect to any financing or
restructuring discussions with the Debtors and their affiliates.
The members of the Ad Hoc Group, collectively, are either the
beneficial holders of, or the investment advisors or managers to,
funds and/or accounts that hold disclosable economic interests in
relation to the Debtors.
Counsel represents only the members of the Ad Hoc Group in
connection with the Debtors' chapter 11 cases. Counsel does not
undertake to represent the interests of, and is not a fiduciary
for, any other creditor, party in interest that has not signed a
retention agreement with Sidley Austin. No member of the Ad Hoc
Group represents or purports to represent any other member in
connection with the Debtors' chapter 11 cases.
The Ad Hoc Group Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors as
of October 24, 2024 are:
1. Certain funds and accounts managed by BlackRock Financial
Management, Inc., or its affiliates
50 Hudson Yards,
New York, NY 10001
Attn: Zachary Viders & William Im
* Prepetition Term Loan Claims ($119,340,419.97)
* DIP Claims ($22,231,142.54)
* Roll-Up Claims ($20,647,964.19)
* Equity Interests (Warrants) (3,728,831)
2. CrowdOut Capital, LLC
812 San Antonio Street, Suite 105,
Austin, TX 78701
Attn: Ken Chuang, Alexander Schoenbaum, and Brian Gilmore
* Prepetition Term Loan Claims ($3,948,840.16)
* DIP Claims ($551,702.61)
* Roll-Up Claims ($683,217.89)
* Equity Interests (Warrants) (83,495)
3. CrowdOut Credit Opportunities Fund LLC
812 San Antonio Street, Suite 105,
Austin, TX 78701
Attn: Ken Chuang, Alexander Schoenbaum, and Brian Gilmore
* Prepetition Term Loan Claims ($9,145,091.37)
* DIP Claims ($1,277,684.23)
* Roll-Up Claims ($1,582,259.56)
* Equity Interests (Warrants) (147,486)
4. 1992 Master Fund Co-Invest SPC – Series 4 Segregated
Portfolio
Highbridge Capital Management, LLC
277 Park Avenue, 23rd Floor,
New York, NY 10172
Attn: Damon Meyer & Steve Ardovini
* Prepetition Term Loan Claims ($1,037,408.29)
* DIP Claims ($193,251.97)
* Roll-Up Claims ($179,489.64)
* Equity Interests (Warrants) (32,746)
5. Highbridge SCF II Loan SPV, L.P.
Highbridge Capital Management, LLC
277 Park Avenue, 23rd Floor,
New York, NY 10172
Attn: Damon Meyer & Steve Ardovini
* Prepetition Term Loan Claims ($4,556,409.12)
* DIP Claims ($848,783.51)
* Roll-Up Claims ($788,337.87)
6. Highbridge SCF II Special Situations SPV, L.P.
Highbridge Capital Management, LLC
277 Park Avenue, 23rd Floor,
New York, NY 10172
Attn: Damon Meyer & Steve Ardovini
* Equity Interests (Warrants) (143,822)
7. Highbridge Tactical Credit Institutional Fund, Ltd.
Highbridge Capital Management, LLC
277 Park Avenue, 23rd Floor,
New York, NY 10172
Attn: Damon Meyer & Steve Ardovini
* Prepetition Term Loan Claims ($4,779,276.62)
* DIP Claims ($890,300.04)
* Roll-Up Claims ($826,897.82)
* Equity Interests (Warrants) (178,785)
* Short Positions (58,268)
8. Highbridge Tactical Credit Master Fund, L.P.
Highbridge Capital Management, LLC
277 Park Avenue, 23rd Floor
New York, NY 10172
Attn: Damon Meyer & Steve Ardovini
* Prepetition Term Loan Claims ($20,583,300.33)
* DIP Claims ($3,834,327.74)
* Roll-Up Claims ($3,561,268.23)
* Equity Interests (759,354)
* Short Positions (228,774)
9. Pandora Select Partners, LP
Whitebox Advisors LLC
3033 Excelsior Boulevard, Suite 500,
Minneapolis, MN 55416
Attn: Andrew Thau and Parker Tornell
* Prepetition Term Loan Claims ($1,576,483.04)
* DIP Claims ($293,672.66)
* Roll-Up Claims ($272,758.94)
* Equity Interests (53,473)
* Short Positions (30,922)
10. Whitebox GT Fund, LP
Whitebox Advisors LLC
3033 Excelsior Boulevard, Suite 500,
Minneapolis, MN 55416
Attn: Andrew Thau and Parker Tornell
* Prepetition Term Loan Claims ($2,708,659.67)
* DIP Claims ($504,578.41)
* Roll-Up Claims ($468,645.14)
* Equity Interests (77,094)
* Short Positions (44,980)
11. Whitebox MultiStrategy Partners, LP
Whitebox Advisors LLC
3033 Excelsior Boulevard, Suite 500,
Minneapolis, MN 55416
Attn: Andrew Thau and Parker Tornel
* Prepetition Term Loan Claims ($28,779,509.06)
* DIP Claims ($5,361,145.61)
* Roll-Up Claims ($4,979,354.62)
* Equity Interests (830,936)
* Short Positions (477,841)
12. Whitebox Relative Value Partners, LP
Whitebox Advisors LLC
3033 Excelsior Boulevard, Suite 500,
Minneapolis, MN 55416
Attn: Andrew Thau and Parker Tornell
* Prepetition Term Loan Claims ($16,929,123.00)
* DIP Claims ($3,153,615.06)
* Roll-Up Claims ($2,929,032.13)
* Equity Interests (469,237)
* Short Positions (281,089)
Attorneys to the Ad Hoc Group:
SIDLEY AUSTIN LLP
Maegan Quejada, Esq.
1000 Louisiana Street, Suite 5900
Houston, Texas 77002
Telephone: (713) 495-4500
Facsimile: (713) 495-7799
Email: mquejada@sidley.com
And
Genevieve Weiner, Esq.
1999 Avenue of the Stars, 17th Floor
Los Angeles, California 90067
Telephone: (310) 595-9500
Facsimile: (310) 595-9501
Email: gweiner@sidley.com
And
Ian C. Ferrell, Esq.
One South Dearborn
Chicago, Illinois 60603
Telephone: (312) 853-7000
Facsimile: (312) 853-7036
Email: iferrell@sidley.com
About Vertex Energy
Vertex Energy, Inc., together with its subsidiaries, is an energy
transition company and marketer of refined products and renewable
fuels in Houston.
Vertex Energy filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
24-90507) on September 24, 2024, listing $772,368,000 in assets and
$642,819,000 in liabilities. The petitions were signed by R. Seth
Bullock as chief restructuring officer.
Judge Christopher M. Lopez oversees the case.
Jason G. Cohen, Esq., at Bracewell, LLP represents the Debtors as
counsel.
VERTIV GROUP: Moody's Ups CFR to Ba2 & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Ratings has upgraded the ratings of Vertiv Group
Corporation, including the corporate family rating to Ba2 from Ba3,
probability of default rating to Ba2-PD from Ba3-PD and senior
secured notes and senior secured term loan ratings to Ba2 from Ba3.
Moody's also changed the outlook to positive from stable. The SGL-1
speculative grade liquidity rating remains unchanged.
The upgrade of the ratings reflects Moody's expectation that recent
improvement in Vertiv's credit metrics will be sustained and
continue to improve over the next 12 months. The company's
operating performance will benefit from solid organic revenue
growth from demand for its products to support the strong growth in
data centers resulting in growing EBITDA margin and significant
free cash flow.
The positive outlook reflects Moody's expectation that Vertiv's
leverage will decrease further over the next 12-18 months
underpinned by higher earnings. Revenue growth will come from both
increasing volumes and pricing while profit margin will continue to
improve from strong cost and expense controls. Moody's also expect
the company to maintain very good liquidity and measured approach
to shareholder returns and acquisitions.
RATINGS RATIONALE
Vertiv's ratings reflect the company's geographic diversification
and increasing scale in the rapidly growing data center thermal
management market. The growth is driven by increasing digitization,
artificial intelligence (AI) and high performance computing. Demand
for cloud/hyperscale and co-location products will remain solid to
support the data center growth. Pricing initiatives and operational
leverage together with productivity improvements will continue to
drive margin expansion. However, Moody's estimate that the
magnitude of price increases will moderate relative to the last few
years. Demand from telecom customers remains soft, increasing
reliance on the data center market. Growing manufacturing capacity
to support strong customer demand will require significant capital
investment and limit free cash flow.
Moody's expect the company to maintain prudent financial policies
as Vertiv has a publicly stated net leverage target of 1-2 times.
However, Moody's believe that given its growing cash balance, the
company will increasingly focus on shareholder initiatives,
including dividends and share buybacks, and acquisitions.
Moody's forecast that Vertiv's debt-to-EBITDA and EBITA-to-interest
expense will continue to improve to 2.0 times and 7.7 times,
respectively, over the next 12-18 months, largely supported by
strong earnings growth. Moody's expect Vertiv to see organic
revenue growth of about 8.0% per year in the next 12-18 months,
driven by continued demand for its products to support the solid
growth in data centers, especially for AI. Its backlog has grown
over the last 18 months and reached $7.4 billion at the end of
September 2024, underpinning revenue growth for the next 12
months.
Vertiv's liquidity will remain very good over the next 12 months as
reflected by its SGL-1 speculative grade liquidity rating.
Liquidity is supported by Moody's expectation for free cash flow of
more than $630 million over the next 12 months. Vertiv also had
about $909 million in cash and cash equivalents and $584 million of
availability on its $600 million asset-based lending (ABL) facility
as of September 30, 2024 (net of about $15.8 million for
outstanding letters of credit and borrowing base limitations).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Vertiv continues to experience
healthy organic revenue growth, debt-to-EBITDA is maintained around
3.0 times and EBITA-to- interest expense is sustained above 6.0
times. In addition, Vertiv would be expected to maintain very good
liquidity and a measured approach to shareholder returns and
acquisition activity for a rating upgrade.
The ratings could be downgraded if debt-to-EBITDA is sustained
above 4.0 times or EBITA-to-interest expense is sustained below 4.0
times. In addition, the ratings could be downgraded if the company
makes a large debt financed acquisition, financial policy becomes
increasingly aggressive, or liquidity weakens.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Vertiv Group Corporation ("Vertiv" or NYSE: VRT), headquartered in
Westerville, Ohio, provides various infrastructure technologies and
equipment for power and thermal management and infrastructure
monitoring services used in data centers, communication networks,
and commercial and industrial environments.
VIANT MEDICAL: S&P Affirms 'B-' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings revised its assessment of medical device
manufacturer Viant Medical Holdings Inc.'s liquidity to adequate
from less than adequate and affirmed all its ratings, including the
'B-' issuer credit rating, on the company.
The stable outlook reflects S&P's view that the company's new
product wins will support high-single-digit to low-teen percent
organic revenue growth, leverage reduction to around 6x, and
improved cash flow generation through 2025.
S&P said, "The revision of our liquidity assessment to adequate
follows Viant's successful refinancing transaction. Viant
completed the previously announced refinancing of its debt with a
with a new $680 million first-lien term loan due 2031, $75 million
first-lien delayed-draw term loan due 2031, $245 million
second-lien term loan due 2032, and $25 million second-lien
delayed-draw term loan due 2032. The transaction also provided the
company with a new $100 million revolving credit facility due 2029
(undrawn) and added $31 million of cash to its balance sheet. With
the close of the transaction, Viant has addressed its debt
maturities and significantly improved its liquidity position. We
now expect the company's liquidity sources to cover its uses by
about 4x over the next 12 months.
"The stable outlook reflects our view that the company's new
product wins will support high-single digit to low-teen percent
organic revenue growth, leverage reduction to around 6x, and
improved cash flow generation through 2025.
"We could lower the rating if the company's performance
deteriorates, or its capital structure becomes unsustainable. In
this scenario, the company's free cash flow deficits increase
sharply, resulting in tightening liquidity.
"We could raise the rating if we believe the company can
consistently sustain its S&P Global Ratings-adjusted leverage below
6x and free operating cash flow to debt above 3%."
WELLPATH HOLDINGS: Moody's Affirms 'Caa3' CFR, Outlook Stable
-------------------------------------------------------------
Moody's Ratings downgraded Wellpath Holdings, Inc.'s Probability of
Default Rating to D-PD from Caa3-PD, and concurrently affirmed the
Caa3 Corporate Family Rating, the Caa3 on the backed senior secured
first lien revolving credit facility, Caa3 backed senior secured
first lien term loan and the C on the backed senior secured second
lien term loan. These actions follow Wellpath entering into a
forbearance agreement with its first and second lien lenders, which
Moody's view as a default. The outlook remains stable.
The downgrade of the PDR to D-PD reflects Wellpath's failure to
repay its revolver at expiry on October 1, 2024 and the deferral of
interest payments on its first and second lien debt, pursuant to
the forbearance agreement. The affirmations of the Caa3 CFR, the
Caa3 ratings on the senior secured first lien revolver and term
loan, and the C rating on the senior secured second lien term loan
reflect Moody's expectations of likely recovery rates. Governance
was a key consideration in this ratings action due to the company
entering a forbearance agreement.
RATINGS RATIONALE
Wellpath's ratings reflect its high leverage and the ongoing
process of debt restructuring following a recent forbearance
agreement with lenders. The company's key credit challenges stem
largely from high labor costs resulting in insufficient earnings
capacity and liquidity to support its debt burden. The company's
rating benefits from its large scale and good diversity across
customers and geographies.
The stable outlook reflects Moody's view that the ratings are
properly positioned based on expected recoveries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to a downgrade include lowering Moody's
view on expected recoveries. Wellpath's instrument ratings are
unlikely to be upgraded in light of the forbearance agreement. The
company's CFR and PDR could be upgraded if the company meaningfully
reduces debt to achieve a sustainable capital structure.
Wellpath Holdings, Inc. ("Wellpath"), headquartered in Nashville,
Tennessee, provides medical, dental, and behavioral health services
to patients in local detention facilities, federal and state
prisons and behavioral healthcare facilities. Wellpath is privately
owned by H.I.G. Capital. The company generated revenues of
approximately $2.4 billion for the twelve months ended June 30,
2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
WEST HARWICH: Hires Paul E. Saperstein Co. Inc. as Auctioneer
-------------------------------------------------------------
West Harwich Holdings LLC seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts to employ Paul E.
Saperstein Co., Inc. as auctioneer.
The firm will sell the Debtor's real property a 22 unit motel and
is known and numbered as 212 Route 28, Harwich, Massachusetts at a
public auction.
The firm will be paid as follows:
a. 10 percent of the first $50,000 realized in excess of the
amount of encumbrances, plus 2.5 percent of the balance of the
equity; or
b. $500.
Samantha Saperstein, a partner at Paul E. Saperstein Co., 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:
Samantha Saperstein
Paul E. Saperstein Co., Inc.
144 Centre Street,
Holbrook, MA 02343
Tel: (617) 227-6553
About West Harwich Holdings
West Harwich Holdings, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
24-11294) on July 1, 2024.
The Law Office of Peter M. Daigle represents the Debtor as counsel.
WFO LLC: Trustee Hires Patrick Kelley PLLC as Counsel
-----------------------------------------------------
Mark Andrews, the Trustee for WFO, LLC, seeks approval from the
U.S. Bankruptcy Court for the Western District of Texas to employ
Patrick Kelley, PLLC as its counsel.
The firm will appear for, prosecute, and defend in the bankruptcy
proceeding, including as necessary the sale or other disposition of
assets in accordance with appropriate bankruptcy procedures, the
response to and appearance at hearings on contested matters, and
for any further matters which may arise.
Patrick Kelley will be paid at these rates:
Attorney $575 per hour
Paraprofessionals $125 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Patrick Kelley, Esq., a partner at Patrick Kelley, 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:
Patrick Kelley, Esq.
Patrick Kelley, PLLC
112 E. Line Street, Suite 203
Tyler, TX 75702
Telephone: (903) 630-5151
Facsimile: (903) 630-5760
Email: pat@patkelleylaw.com
About WFO, LLC
WFO, LLC filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-50824) on May 6,
2024. In the petition signed by Frank Shumate, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
James S. Wilkins, PC serves as the Debtor's bankruptcy counsel.
WILLOUGHBY EQUITIES: Hires Wilk Auslander LLP as Legal Counsel
--------------------------------------------------------------
Willoughby Equities, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Wilk Auslander
LLP as counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to the powers and
duties as debtor in possession;
b. prepare applications, answers, orders, reports and other
legal documents on behalf of the Debtor in connection with the
chapter 11 proceeding;
c. attend meetings and negotiate with representatives of
creditors and other parties in interest, attend court hearings, and
advise the Debtor on the conduct of this chapter 11 case;
d. perform all other legal services for the Debtor which may
be necessary in this chapter 11 case; and
e. advise and assist the Debtor regarding aspects of the plan
confirmation process, including, but not limited to, negotiating
and drafting a plan of reorganization and securing confirmation of
the plan.
The firm will be paid at these rates:
Partners $725 to $1200 per hour
Of Counsel $675 to $725 per hour
Associates $450 to $690 per hour
Paralegals $330 to $435 per hour
The firm was paid a retainer in the amount of $32,000.
Wilk Auslander LLP will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Eric J. Snyder, Esq., a partner at Wilk Auslander 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:
Eric J. Snyder, Esq.
Wilk Auslander LLP
825 Eighth Avenue, 29th Floor
New York, NY 10019
Tel:(212) 981-2300
About Willoughby Equities, LLC
Willoughby Equities LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). The Debtor is the owner of
real property located at 599-601 Willoughby St. valued at $3
million.
Willoughby Equities LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44217)
on October 10, 2024. In the petition filed by Abraham Lowenstein,
as president/sole member, the Debtor reports total assets of
$3,000,000 and total liabilities of $2,864,604.
The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Eric Snyder, Esq.
WILK AUSLANDER LLP
825 Eight Avenue
Suite 2900
New York, NY 10019
Tel: (212) 981-2300
Fax: (212) 752-6380
E-mail: esnyder@wilkauslander.com
WINSTON DEVELOPMENT: Salvatore LaMonica Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Salvatore LaMonica, Esq.,
at LaMonica Herbst & Maniscalco, LLP, as Subchapter V trustee for
Winston Development, LLC.
Mr. LaMonica will be paid an hourly fee of $725 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMonica declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Salvatore LaMonica, Esq.
LaMonica Herbst & Maniscalco, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Phone: (516) 826-6500
Email: sl@lhmlawfirm.com
About Winston Development
Winston Development, LLC operates in the residential building
construction industry. It is the fee simple owner of the real
property located at 709 Montauk Highway, Amagansett, N.Y., with an
appraised value of $1.1 million.
Winston Development sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-73882) on
October 10, 2024, with total assets of $1,100,001 and total
liabilities of $2,151,708. Winston L. Mitchell, managing member,
signed the petition.
Judge Louis A. Scarcella handles the case.
The Debtor is represented by Mark E. Cohen, Esq., at Pryor &
Mandelup, LLP.
XPLORE INC: Moody's Raises CFR to 'B3', Outlook Stable
------------------------------------------------------
Moody's Ratings upgraded Xplore Inc.'s (Xplore) corporate family
rating to B3 from Ca, probability of default rating to B3-PD from
Ca-PD, and assigned a Ba3 rating to the company's new $72.45
million (C$100 million equiv.) backed first-out super senior
secured first lien term loan and a B3 rating to its $239 million
(C$330 million equiv.) backed senior secured first lien term loan
(take-back). The Ca ratings of the company's prior senior secured
first lien revolving credit facility and senior secured first lien
term loan, and the C rating on its prior senior secured second lien
term loan remain unchanged and will be withdrawn afterwards as
these have been cancelled. The outlook remains stable.
On October 24, 2024, Xplore closed a recapitalization transaction
that reduced total debt to C$460 million from C$1.91 billion. As
part of the transaction, the company also raised C$452 million of
new funding (C$100 million term loan and C$352 million of preferred
and common equity).
"The rating upgrade considers that the material debt reduction and
the new funding will provide the company with flexibility to
continue with its fibre investments in order to expand EBITDA and
facilitate deleveraging", said Peter Adu, Moody's Ratings analyst.
RATINGS RATIONALE
Xplore's B3 CFR is constrained by: (1) challenging business
environment characterized by increasing competition and declining
subscribers in its rural/remote target market, which has limited
its ability to sufficiently monetize its fibre and fixed wireless
investments; (2) ongoing negative free cash flow due to network
capital expenditures (capex) to support future growth; (3) small
scale relative to peers; and (4) increasing debt levels to fund
ongoing significant capital investments and PIK interest expenses.
The rating benefits from: (1) improved liquidity position following
its recapitalization transaction, which offers flexibility to
pursue growth initiatives; (2) a good position in its rural/remote
Canada target market with good long term growth prospects as there
are about 1.5 million households in its target market that do not
have high speed internet; (3) government subsidies; which continues
to support its investments in fibre and fixed wireless; (4) a
regulatory framework that provides it with favorable bidding
conditions for wireless spectrum auctions; and (5) stronger margins
relative to larger rated peers.
Xplore has two classes of debt following its recapitalization
transaction - (1) Ba3-rated $72.45 million (C$100 million equiv.)
super senior first-out secured term loan due 2029 and unrated $65.2
million first-out secured delayed draw term loan due 2029; and (2)
B3-rated $239 million (C$330 million equiv.) first lien take-back
term loan due 2031. Moody's rate the super senior term loan three
notches above the CFR to reflect its senior ranking and the loss
absorption cushion provided by the take-back term loan. Moody's
rate the take-back term loan at the same level as the CFR because
it represents a sizeable portion of the debt in the capital
structure.
Moody's changed Xplore's ESG credit impact score to CIS-4 (highly
negative) from CIS-5 (very highly negative) to reflect reduced
exposure to governance risks stemming from its material debt
reduction, lower cash interest burden, elimination of refinancing
risk and improved liquidity position following its debt
restructuring.
Xplore has adequate liquidity through October 31, 2025 with sources
approximating C$1 billion versus about C$600 million of negative
free cash flow due to network capex. Sources include C$126 million
of cash at the close of the recapitalization transaction, C$352
million of new preferred and common equity investments from lenders
and Stonepeak, more than C$250 million of provincial government
subsidies, a loan of more than C$300 million from the Canada
Infrastructure Bank, and potential proceeds from spectrum
monetization. The company does not have a revolving credit
facility. Xplore has limited flexibility to generate liquidity from
asset sales.
The stable outlook reflects Moody's expectation that the company
will maintain adequate liquidity to support its fibre and fixed
wireless investments and will demonstrate improving operating
performance over time.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Xplore generates positive free
cash flow and sustains Debt/EBITDA below 6x.
The ratings could be downgraded if Xplore's liquidity becomes weak,
if subscriber and EBITDA declines accelerate or if it sustains
Debt/EBITDA above 7.5x or EBITDA/Interest below 1x.
The principal methodology used in these ratings was
Telecommunications Service Providers published in November 2023.
Xplore Inc., headquartered in Woodstock, New Brunswick offers
broadband internet to residential and commercial customers in rural
areas in Canada using fibre, fixed wireless and satellite
technology platforms. Stonepeak Infrastructure Partners maintains
majority voting control after the debt recapitalization
transaction.
XTI AEROSPACE: Issues 2.8M Common Shares to Preferred Stockholder
-----------------------------------------------------------------
XTI Aerospace, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it issued 2,802,491 shares
of common stock to a holder of shares of the Company's Series 9
Preferred Stock, at an effective price per share of $0.1124, in
exchange for the return and cancellation of 300 shares of Series 9
Preferred Stock with an aggregate stated value of $315,000,
pursuant to the terms and conditions of an exchange agreement dated
Oct. 23, 2024. The Preferred Exchange Shares were issued in
reliance on the exemption from registration provided by Section
3(a)(9) of the Securities Act of 1933, as amended, on the basis
that (a) the Preferred Exchange Shares were issued in exchange for
other outstanding securities of the Company; (b) there was no
additional consideration delivered by the holder in connection with
the exchange; and (c) there were no commissions or other
remuneration paid by the Company in connection with the exchange.
As of Oct. 24, 2024, the Company had 56,775,250 shares of Common
Stock outstanding.
About XTI Aerospace
XTI Aerospace (XTIAerospace.com) is the parent company of XTI
Aircraft Company (XTIAircraft.com), headquartered near Denver,
Colorado. The Company is developing a vertical takeoff and landing
("VTOL") aircraft that takes off and lands like a helicopter and
cruises like a fixed-wing business aircraft. The Company believes
its initial configuration, the TriFan 600, will be one of the first
civilian fixed-wing VTOL aircraft that offers the speed and comfort
of a business aircraft and the range and versatility of VTOL for a
wide range of customer applications, including private aviation for
business and high net worth individuals, emergency medical
services, and commuter and regional air travel. Since 2013, the
Company has been engaged primarily in developing the design and
engineering concepts for the TriFan 600, building and testing a
two-thirds scale unmanned version of the TriFan 600, generating
pre-orders for the TriFan 600, and seeking funds from investors to
enable the Company to build full-scale piloted prototypes of the
TriFan 600, and to eventually engage in commercial development of
the TriFan 600.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
YELLOW CORP: Judge Admits $6.5-Bil. Pension Ruling Mistake
----------------------------------------------------------
Evan Ochsner and Steven Church of Bloomberg News report that a
recent court ruling that likely eliminated any potential recovery
for shareholders of the bankrupt trucking company Yellow Corp.
contained an error that may necessitate reversing a key decision
against the company, a judge stated on Monday, October 28, 2024.
US Bankruptcy Judge Craig T. Goldblatt informed Yellow and its
primary shareholder, MFN Partners LP, that he made a mistake by
determining that the company had defaulted on its pension
obligations before it shut down and filed for bankruptcy last 2023.
The timing of this default is critical, as it could influence how
much Yellow owes for its withdrawal from an employee pension,
according to court records.
During Monday's hearing, the judge indicated that if he overturns
his prior ruling, a new trial might be required to ascertain the
exact date of Yellow's default on its pension obligations. He noted
that the outcome could significantly affect the case.
"We're talking about hundreds of millions of dollars," Goldblatt
remarked during a session in US Bankruptcy Court in Wilmington,
Delaware.
Pension officials, who assert that Yellow owes them $6.5 billion,
contended that the error is irrelevant and urged Goldblatt not to
amend his September ruling. Conversely, Yellow and MFN argued that
the judge's ruling improperly exaggerated the pension liability.
Goldblatt has requested both parties to submit written arguments on
the matter, which he will review to determine his next course of
action.
Last September 2024, Judge Goldblatt ruled that Yellow's pension
withdrawal liability should not be discounted to its present value
due to the company's default. Yellow contested this finding,
claiming it was a factual error since it had not defaulted on the
debt.
Yellow argued that Goldblatt's ruling would "massively increase"
the calculations of its withdrawal liability and "drastically and
unfairly diminish distributions" to non-pension unsecured
creditors, as stated in a recent filing.
MFN Partners contended that Goldblatt's decision improperly
inflated the pension liability by determining that funds received
by pension plans during the COVID era, under the American Rescue
Plan Act, should not be factored into the calculation of a plan’s
unfunded vested benefits.
Pension officials countered that Yellow did not raise the issue of
its default until after Goldblatt issued his ruling. They argued
that because the company waited so long to dispute the matter,
Goldblatt should deny Yellow's request for reconsideration.
If Goldblatt's September ruling stands, it significantly reduces
the likelihood that any cash will remain for shareholders, such as
MFN, after Yellow completes the sale of its real estate portfolio
and settles the pension penalty.
While Goldblatt has yet to determine a payment amount, his ruling
indicates that the 11 pension funds involved will have considerable
influence over how that debt is calculated. Last year, Yellow sold
its trucking terminals for $1.9 billion, sufficient to cover all of
its secured debt, but not enough to address pension claims.
The Pension Benefit Guaranty Corporation, which oversees retirement
funds like those established for Yellow's union workers, noted that
if Yellow were to prevail, other companies with traditional pension
plans might be incentivized to cancel their retirement benefits, as
shareholders would not be liable for penalties.
The case is Yellow Corp., 23-11069, US Bankruptcy Court, District
of Delaware (Wilmington)
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
ZHANG MEDICAL: No Decline in Patient Care, 7th PCO Report Says
--------------------------------------------------------------
David Crapo, the court-appointed patient care ombudsman, filed with
the U.S. Bankruptcy Court for the Southern District of New York his
seventh report regarding the health care facility operated by Zhang
Medical P.C., doing business as New Hope Fertility Center.
The PCO filed his sixth patient care ombudsman report on October 1
and filed his seventh report to address information received by the
PCO and operations at Zhang Medical's facility during the seventh
reporting period.
During the seventh reporting period (from August 2 to October 10),
Zhang Medical provided additional information concerning the status
of litigation claims against it. One claim was resolved. None of
the information made available to the PCO indicated a decline in
the quality of either patient care or safety at Zhang Medical's
facility. The PCO is not aware of claims asserted against the
healthcare relating to the care and safety of patients during the
seventh reporting period.
The PCO has determined that Zhang Medical's physicians, physician
assistant and nurses have retained their licenses and are not
currently facing disciplinary actions. The PCO's due diligence
during the seventh reporting period did not uncover any new
litigation filed against the healthcare provider. Similarly, there
were no new negative reviews of Zhang Medical during the seventh
reporting period alleging deficiencies and patient care or safety.
The PCO observed that the current performance of Zhang Medical and
its existing structures reveals a facility that apparently
continues to provide the same level of patient care and safety it
historically provided since before its bankruptcy filing.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=ddM2uO from PacerMonitor.com.
The ombudsman may be reached at:
David N. Crapo, Esq.,
Gibbons P.C.
One Gateway Center
Newark, NJ 07102-5310
Phone: (973) 596-4523
Fax: (973) 639-6244
Email: dcrapo@gibbonslaw.com
About Zhang Medical
New York-based Zhang Medical P.C. specializes in low and no-drug
infertility solutions that help women conceive with minimal
invasiveness. It conducts business under the name New Hope
Fertility Clinic.
Zhang Medical filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10678) on April
30, 2023, with $1 million to $10 million in both assets and
liabilities. Eric Huebscher has been appointed as Subchapter V
trustee.
Judge Philip Bentley oversees the case.
The Debtor tapped Joseph D. Nohavicka, Esq., at Pardalis &
Nohavicka, LLP as legal counsel.
David N. Crapo, Esq., at Gibbons P.C. is the patient care ombudsman
appointed in the Debtor's Chapter 11 case.
[*] BOOK REVIEW: The Heroic Enterprise
--------------------------------------
The Heroic Enterprise: Business and the Common Good
Author: John Hood
Publisher: Beard Books (reprint of book published by The Free
Press/Division of Simon and Schuster in 1996).
Paperback: 266 pages
List Price: $34.95
Order your copy at https://bit.ly/3awLUV3
Hood writes as a counterbalance to ideas that business should be
expected to contribute to the common good along the lines of
charities, say, or public health. He writes too against the highly
partisan, pernicious perspective that business activity is
antisocial and disruptive which at times gains some degree of
credibility.
Critiques of business have been around as long as commerce and
business have been around. These come usually from religious or
political zealots seeking dictatorial hold over all significant
kinds of human activity and enterprise. In this work, Hood aims to
counterbalance latter-day versions of such critiques arising in
American society. The counterculture, antiestablishment 1960s was
a time when such critiques were particularly strong. They have
moderated since, yet remain a persistent chorus which influences
politics and imagery and public affairs of business.
Hood does not aim to stifle or eliminate debate about the effects
of business on society or how business should engage in business.
What he aims for is dismissing once and for all myopic and almost
utopian conceptions about business and related erroneous purposes
and values of it. Such conceptions are worrisome to
businesspersons not because they believe they have any foundation,
but because they waste resources and energy in having to
continually correct them so business can function properly. And to
the extent such myopic conceptions are believed or entertained by
the public, they hamper the public and politicians in working out
policies by which the greatest benefits of business can be reaped
by society.
The author clarifies the place and role of business by contrasting
business with other parts of society. A standard, self-evident
tenet of sociologists going back to the time of Plato is that
society is made up of different parts fulfilling different roles
for the varied needs of society and so that a society will function
smoothly and survive. Business is distinguished from government
and philanthropy. "Businesses exist to make and sell things,
whereas by contrast "governments exist to take and protect things
[and] charities exist to give things away." The social
responsibility for each category of institution is inherent in its
purposes and activities. For example, businesses alone cannot
solve environmental problems. Whatever problems which can be
attached to business are related to government policies and
business's operations to satisfy consumer interests. Hence,
business alone cannot solve environmental problems, and should not
be expected to. Critics requiring that business solve
environmental problems without similarly requiring changes in
government policies and consumer interests are shortsightedly and
unreasonably tarnishing business while not making any relevant or
productive arguments for dealing with environmental problems.
In elucidating business's proper place in and contributions to
society, Hood is not unmindful that some businesses fail to fulfill
their role in good faith and beneficially. But instead of
criticizing business fundamentally, he proffers questions critics
can ask before targeting particular businesses. Two of these are
"Are corporations obtaining their profits through force or fraud?"
and "Are corporations putting investments at their disposal to the
most economically productive use?" Hood's perspective in support
of business against unfair and irrelevant criticisms is based on
the acknowledgment that business is operating productively, for the
common good, and is open to cooperative activities with other parts
of society in trying to resolve common problems.
"The Heroic Enterprise" is not an argument for business -- for as a
fundamental aspect of any society, business does not need an
argument to justify it. The book mostly takes the approach of
reviewing why business is necessary and therefore must be
naturally, easily accepted -- namely, because of the manifold
benefits business provides for society and because it along with
good government and respectable morals has been a primary engine
for the betterment of human life.
John Hood has much experience in the media and communication as a
syndicated columnist, TV commentator, and radio host. Author of
seven nonfiction books on subjects as business, advertising, public
policy, and political history, and many articles for national
publications such as the Wall Street Journal, Hood is President of
the John William Pope Foundation, a Raleigh, N.C.-based grantmaker
that supports public policy organizations, educational
institutions, arts and cultural programs, and humanitarian relief
in North Carolina and beyond. Hood also serves on the board of the
John Locke Foundation, the state policy think tank he helped found
in 1989 and led as its president for more than two decades. He
teaches at Duke University's Sanford School of Public Policy.
[*] Jon F Weber & Co to be Featured in November 7 Webinar
---------------------------------------------------------
Jon F Weber & Co., LLC will be featured in a webinar associated
with the 2024 Distressed Investing Conference on Thursday, November
7 at 11:00 a.m.-12:00 (ET).
Designed for creditors, legal counsel, and financial advisors, the
session offers practical insights and recommendations on
governance, board selection, and pitfalls to avoid during the
restructuring process.
The webinar will dive deep into how creditors of a restructuring
company can enhance the likelihood that their newly appointed board
will fulfill investors’ investment objectives.
Jon Weber will moderate this webinar with the following expert
panelists:
* Alvaro Aguirre -- Lead director of J. Crew, board member of
Avianca and Curinos
* Ben Duster -- Board leader at Chesapeake and Weatherford
* Jeff Goldberg -- Chair of Lannett and board member of ATI and
Banza
Approaches and tactics for the following topics will be addressed:
-- Clarifying expectations for the role of the post-reorg board
-- Core competencies and requisite experiences for impactful
post-reorg board members
-- Avoiding common traps for creditors when evaluating board
candidates
-- Establishing governance and ground rules for an effective
board
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Capital Properties and Home Services LLC
Bankr. E.D. Cal. Case No. 24-24743
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/O22L7FI/Capital_Properties_and_Home_Services__caebke-24-24743__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Alexander A. Clerk and Cynthia V. Clerk
Bankr. N.D. Cal. Case No. 24-51601
Chapter 11 Petition filed October 22, 2024
represented by: James Pagano, Esq.
In re Maria T Brooks
Bankr. N.D. Cal. Case No. 24-30788
Chapter 11 Petition filed October 22, 2024
represented by: Lars Fuller, Esq.
THE FULLER LAW FIRM PC
In re Tony Mehmet Gundogdu and Aynur Vural Gundogdu
Bankr. N.D. Cal. Case No. 24-30784
Chapter 11 Petition filed October 22, 2024
represented by: Chris Kuhner, Esq.
In re George E. Robb, Jr.
Bankr. S.D. Fla. Case No. 24-20951
Chapter 11 Petition filed October 22, 2024
represented by: Alexandra Oriol-Bennett, Esq.
In re Osteria Del Teatro, LLC
Bankr. S.D. Fla. Case No. 24-20959
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/IH7KIZI/Osteria_Del_Teatro_LLC__flsbke-24-20959__0001.0.pdf?mcid=tGE4TAMA
represented by: Bradley S. Shraiberg, Esq.
SHRAIBERG PAGE PA
E-mail: bss@slp.law
In re Mark Seidenfeld and Gela Seidenfeld
Bankr. S.D. Fla. Case No. 24-20941
Chapter 11 Petition filed October 22, 2024
represented by: Philip Landau, Esq.
In re Victoria Produce LLC
Bankr. S.D. Fla. Case No. 24-20915
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/JDYYQEI/Victoria_Produce_LLC__flsbke-24-20915__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 109 Ave Holding Corp
Bankr. E.D.N.Y. Case No. 24-74033
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/JSQCGJI/109_Ave_Holding_Corp__nyebke-24-74033__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Bluesky Marketing Group, Inc.
Bankr. E.D.N.C. Case No. 24-03681
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/WJTRZPA/Bluesky_Marketing_Group_Inc__ncebke-24-03681__0001.0.pdf?mcid=tGE4TAMA
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re SNS OG, LLC
Bankr. E.D.N.C. Case No. 24-03685
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/JR7NBPQ/SNS_OG_LLC__ncebke-24-03685__0001.0.pdf?mcid=tGE4TAMA
represented by: JM Cook, Esq.
J.M. COOK, P.A.
E-mail: j.m.cook@jmcookesq.com
In re Kyle L. Young
Bankr. S.D. Ohio Case No. 24-32046
Chapter 11 Petition filed October 22, 2024
represented by: Paul Minnillo, Esq.
In re Ms Holmes LLC
Bankr. D. Wyo. Case No. 24-20413
Chapter 11 Petition filed October 22, 2024
See
https://www.pacermonitor.com/view/IRJHQXY/Ms_Holmes_LLC__wybke-24-20413__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Anna Kathryn Boucher
Bankr. N.D. Cal. Case No. 24-30790
Chapter 11 Petition filed October 23, 2024
represented by: Matthew Metzger, Esq.
In re Dlinas Properties LLC
Bankr. D. Col. Case No. 24-00355
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/SPXJGBI/Dlinas_Properties_LLC__dcbke-24-00355__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Gilberto Brandolezi, Jr.
Bankr. M.D. Fla. Case No. 24-05728
Chapter 11 Petition filed October 23, 2024
represented by: Robert Zipperer, Esq.
In re 2101 Commercial Inc
Bankr. S.D. Fla. Case No. 24-20978
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/3KGV7HQ/2101_Commercial_Inc__flsbke-24-20978__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re La Notte Ventures, Inc.
Bankr. N.D. Ill. Case No. 24-15860
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/CYA5AKA/La_Notte_Ventures_Inc__ilnbke-24-15860__0001.0.pdf?mcid=tGE4TAMA
represented by: David Herzog, Esq.
DAVID R HERZOG
E-mail: drh@dherzoglaw.com
In re KB Development Group, LLC
Bankr. S.D. Ill. Case No. 24-30769
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/FM5DUXA/KB_Development_Group_LLC__ilsbke-24-30769__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven M. Wallace, Esq.
GOLDENBERG HELLER & ANTOGNOLI, P.C.
E-mail: Steven@ghalaw.com
In re BHNV Realty 2 Corp.
Bankr. E.D.N.Y. Case No. 24-44386
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/ZO2JLRI/BHNV_Realty_2_Corp__nyebke-24-44386__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re James Dwight Holland
Bankr. M.D. Tenn. Case No. 24-04091
Chapter 11 Petition filed October 23, 2024
represented by: Jay Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ, PLLC
In re Frisco Chic Nails and Spa Corp.
Bankr. E.D. Tex. Case No. 24-42506
Chapter 11 Petition filed October 23, 2024
See
https://www.pacermonitor.com/view/ERPC2JY/Frisco_Chic_Nails_and_Spa_Corp__txebke-24-42506__0001.0.pdf?mcid=tGE4TAMA
represented by: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
E-mail: btittle@tittlelawgroup.com
In re Elle Nicole Wood
Bankr. D. Ariz. Case No. 24-09063
Chapter 11 Petition filed October 24, 2024
In re Art Luxury Home Builder, Inc.
Bankr. E.D. Cal. Case No. 24-24792
Chapter 11 Petition filed October 24, 2024
See
https://www.pacermonitor.com/view/K4OUEYY/Art_Luxury_Home_Builder_Inc__caebke-24-24792__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter G. Macaluso, Esq.
LAW OFFICE OF PETER G. MACALUSO
E-mail: info@pmbankruptcy.com
In re 188 03 Pineville Lane Corp.
Bankr. E.D.N.Y. Case No. 24-44433
Chapter 11 Petition filed October 24, 2024
See
https://www.pacermonitor.com/view/MAUKXEY/188_03_Pineville_Lane_Corp__nyebke-24-44433__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 25343 LLC
Bankr. E.D.N.Y. Case No. 24-44442
Chapter 11 Petition filed October 24, 2024
See
https://www.pacermonitor.com/view/6D3KRWY/25343_LLC__nyebke-24-44442__0001.0.pdf?mcid=tGE4TAMA
represented by: Joshua Reid Bronstein, Esq.
THE LAW OFFICES OF JOSHUA BRONSTEIN &
ASSOCIATES, PLLC
E-mail: jbrons5@yahoo.com
In re MK Shore LLC
Bankr. E.D.N.Y. Case No. 24-44434
Chapter 11 Petition filed October 24, 2024
See
https://www.pacermonitor.com/view/M574F7I/MK_Shore_LLC__nyebke-24-44434__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Jose Luis Reyes Ayala and Chiarelis Rivas Torres
Bankr. D.P.R. Case No. 24-04556
Chapter 11 Petition filed October 24, 2024
represented by: Jesus Batista Sanchez, Esq.
In re Tampa Bay Speech-Language & Reading Clinic, LLC
Bankr. M.D. Fla. Case No. 24-06271
Chapter 11 Petition filed October 25, 2024
See
https://www.pacermonitor.com/view/7Y2ARSI/Tampa_Bay_Speech-Language__Reading__flmbke-24-06271__0001.0.pdf?mcid=tGE4TAMA
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: All@tampaesq.com
In re Square One Preservation LLP
Bankr. N.D. Ill. Case No. 24-16033
Chapter 11 Petition filed October 25, 2024
See
https://www.pacermonitor.com/view/6XN7LHA/Square_One_Preservation_LLP__ilnbke-24-16033__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Schechter, Esq.
LAW OFFICES OF JOEL A. SCHECHTER
E-mail: joelschechter1953@gmail.com
In re L.A.R.E. Partners Network Inc.
Bankr. W.D.N.Y. Case No. 24-20651
Chapter 11 Petition filed October 25, 2024
See
https://www.pacermonitor.com/view/Z5IE5XI/LARE_Partners_Network_Inc__nywbke-24-20651__0001.0.pdf?mcid=tGE4TAMA
represented by: David H. Ealy, Esq.
CRISTO LAW GROUP LLC
E-mail: dealy@trevettcristo.com
In re Mofongo & Steakhouse, Inc.
Bankr. E.D. Va. Case No. 24-11988
Chapter 11 Petition filed October 25, 2024
See
https://www.pacermonitor.com/view/IAFVF4I/Mofongo__Steakhouse_Inc__vaebke-24-11988__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffery T. Martin, Jr., Esq.
MARTIN LAW GROUP PC
E-mail: jeff@martinlawgroup.com
In re Q'Bole Inc.
Bankr. E.D. Cal. Case No. 24-24816
Chapter 11 Petition filed October 26, 2024
See
https://www.pacermonitor.com/view/4Y7LRIY/QBole_Inc__caebke-24-24816__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter G. Macaluso, Esq.
LAW OFFICE OF PETER G. MACALUSO
Email: info@pmbankruptcy.com
In re Juan Bonilla
Bankr. N.D. Ga. Case No. 24-11451
Chapter 11 Petition filed October 27, 2024
represented by: William Rountree, Esq.
In re GMB Transport, LLC
Bankr. N.D.N.Y. Case No. 24-60857
Chapter 11 Petition filed October 27, 2024
See
https://www.pacermonitor.com/view/FAXSOHI/GMB_Transport_LLC__nynbke-24-60857__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael Boyle, Esq.
BOYLE LEGAL LLC
Email: mike@boylebankruptcy.com
In re Patricia Ladd
Bankr. N.D. Cal. Case No. 24-51621
Chapter 11 Petition filed October 28, 2024
In re Steven Tolkan and Sylvia Tolkan
Bankr. E.D. Cal. Case No. 24-24836
Chapter 11 Petition filed October 28, 2024
represented by: Robert L. Goldstein, Esq.
In re ReThink Human Capital Management, Inc.
Bankr. S.D. Fla. Case No. 24-21214
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/5IXQYGQ/ReThink_Human_Capital_Management__flsbke-24-21214__0001.0.pdf?mcid=tGE4TAMA
represented by: Isaac Marcushamer, Esq.
DGIM LAW PLLC
E-mail: isaac@dgimlaw.com
In re James Lee Franklin, Jr and Addie Christine Franklin
Bankr. S.D. Ill. Case No. 24-30772
Chapter 11 Petition filed October 28, 2024
In re Nahim Hassan
Bankr. D. Md. Case No. 24-19085
Chapter 11 Petition filed October 28, 2024
represented by: Richard Rosenblatt, Esq.
In re Enoch Capital, LLC
Bankr. D.N.J. Case No. 24-20649
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/NLY4ACY/Enoch_Capital_LLC__njbke-24-20649__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Nisenson, Esq.
ROBERT C. NISENSON, L.L.C.
E-mail: rnisenson@aol.com
In re Nephilim Imobiliare LLC
Bankr. E.D.N.Y. Case No. 24-44472
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/VZPJQQY/Nephilim_Imobiliare_LLC__nyebke-24-44472__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re BAC Hauling & Transport LLC
Bankr. S.D. Ohio Case No. 24-12500
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/4OOSVYI/BAC_Hauling__Transport_LLC__ohsbke-24-12500__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric W. Goering, Esq.
GOERING & GOERING
E-mail: eric@goering-law.com
In re BAC Hauling & Transport LLC
Bankr. S.D. Ohio Case No. 24-12500
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/4OOSVYI/BAC_Hauling__Transport_LLC__ohsbke-24-12500__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric W. Goering, Esq.
GOERING & GOERING
Email: eric@goering-law.com
In re Evelyn Pascual
Bankr. C.D. Cal. Case No. 24-18868
Chapter 11 Petition filed October 29, 2024
represented by: Vanessa Haberbush, Esq.
In re ZDK Company
Bankr. M.D. Fla. Case No. 24-06368
Chapter 11 Petition filed October 29, 2024
See
https://www.pacermonitor.com/view/53GDIEI/ZDK_Company__flmbke-24-06368__0001.0.pdf?mcid=tGE4TAMA
represented by: Katelyn M. Vinson, Esq.
DAVID JENNIS, PA D/B/A JENNIS MORSE
Email: ecf@JennisLaw.com
In re Kiel Joseph Green
Bankr. S.D. Fla. Case No. 24-21260
Chapter 11 Petition filed October 29, 2024
represented by: Daniel Etlinger, Esq.
In re Venice Hospitality LLC
Bankr. E.D. La. Case No. 24-12131
Chapter 11 Petition filed October 29, 2024
See
https://www.pacermonitor.com/view/EOHT42I/Venice_Hospitality_LLC__laebke-24-12131__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Johanna T Carfagno
Bankr. S.D.N.Y. Case No. 24-22948
Chapter 11 Petition filed October 29, 2024
represented by: H. Bronson, Esq.
In re JETSON LLC
Bankr. D.P.R. Case No. 24-04623
Chapter 11 Petition filed October 29, 2024
See
https://www.pacermonitor.com/view/6HHA7EQ/JETSON_LLC__prbke-24-04623__0001.0.pdf?mcid=tGE4TAMA
represented by: Jesus Enrique Batista Sanchez, Esq.
THE BATISTA LAW GROUP, PSC
Email: jeb@batistasanchez.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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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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Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
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