/raid1/www/Hosts/bankrupt/TCR_Public/241107.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, November 7, 2024, Vol. 28, No. 311
Headlines
A.B.A.N.E. PROPERTIES: Trustee to Sell El Paso Property for $1.05M
ADVANCED URGENT: Sells Centennial Assets to University of Colorado
AGRO RESEARCH: Gets Interim OK to Use Cash Collateral
ALGORHYTHM HOLDINGS: Secures $2MM in Securities Purchase Agreement
ANER HOMES: Seeks Cash Collateral Access
ASHFIELD ACTIVE: Fitch Affirms 'BB-' Rating on $111MM Revenue Bonds
ASHFORD HOSPITALITY: CEO Zsigray Gets $704K Bonus, 509K Shares
ATLANTIC HOME: Aleida Martinez Molina Named Subchapter V Trustee
BAKERS DEPOT: Mark Politan Named Subchapter V Trustee
BALL CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
BAY RIDGE KICKBOXING: Samuel Dawidowicz Named Subchapter V Trustee
BON WORTH: Fine-Tunes Plan Documents
BONE CONSTRUCTION: Donald Brady Named Subchapter V Trustee
BONITA SOL: Amy Denton Mayer Named Subchapter V Trustee
BOOTH EXCAVATING: Jodi Dubose Named Subchapter V Trustee
BRICK CITY INVESTMENT: Mark Politan Named Subchapter V Trustee
CANVAS PROS: Gets Interim Approval to Use Cash Collateral
CENTURY ALUMINUM: Egan-Jones Retains B Senior Unsecured Ratings
CHAMP ACQUISITION: Moody's Affirms 'B2' CFR, Outlook Stable
CHART INC: Egan-Jones Retains BB Senior Unsecured Ratings
CLEAN HARBORS: Egan-Jones Retains BB+ Senior Unsecured Ratings
CLOVER HOLDINGS 2: Moody's Rates New First Lien Term Loan 'B2'
COMMERCIAL FURNITURE: Brenda Brooks Named Subchapter V Trustee
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
CT TECHNOLOGIES: Moody's Withdraws B3 CFR Following Debt Repayment
CTF CHICAGO: Janice Seyedin Named Subchapter V Trustee
CYT MAINTENANCE: Holly Miller Named Subchapter V Trustee
DELUXE CORP: Egan-Jones Retains B Senior Unsecured Ratings
DENNY'S INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
EMPLOYBRIDGE HOLDING: Moody's Cuts CFR to Caa1, Outlook Negative
ERNIE'S AUTO: Mark Politan Named Subchapter V Trustee
FINANCE OF AMERICA: Fitch Subsequently Hikes Rating to CCC on DDE
FOOT LOCKER: Egan-Jones Cuts Senior Unsecured Ratings to BB
GANNETT CO: Fitch Affirms 'B' LongTerm IDR, Off Watch Negative
GOKADA INC: David Klauder Named Subchapter V Trustee
HAMMOCK COMMUNITIES: Aaron Cohen Named Subchapter V Trustee
HANEY INC: Claims to be Paid From Disposable Income
HELIX ENERGY: Reports Net Income of $29.5 Million in Fiscal Q3
ICEY-TEK USA: Case Summary & 15 Unsecured Creditors
IDEAL PROPERTY: K&L Gates Advises Committee of Unsecured Creditors
INTEGRITY CARBON: Plan Exclusivity Period Extended to Nov. 24
IR4C INC: Gets Interim OK to Use Cash Collateral
JB'S BBQ: Seeks to Extend Plan Exclusivity to November 18
KIMO TILE: Nicole Nigrelli Named Subchapter V Trustee
L & F GULLO: Case Summary & 20 Largest Unsecured Creditors
L.C.S. UNLIMITED: Seeks Court Nod to Use Cash Collateral
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
LEFT COAST: Ex-CEO Seeks Appointment of Receiver
LOMA LINDA UNIVERSITY: Fitch Rates Series 2024A/B Bonds 'BB+'
LOUKYA INC: Brian Hofmeister Named Subchapter V Trustee
LSF11 A5 HOLDCO: Nippon Paint Deal No Impact on Moody's 'B2' CFR
LUGG INC: Unsecured Creditors Will Get 46% of Claims in Plan
MACERICH CO: Egan-Jones Retains BB+ Senior Unsecured Ratings
MARKOV CORPORATION: Michael Markham Named Subchapter V Trustee
MERCER INTERNATIONAL: Egan-Jones Retains BB- Sr. Unsecured Ratings
MICHAEL J. WEISS: Mark Politan Named Subchapter V Trustee
MONTICELLO CONSTRUCTION: To Sell Ridgeland Property to Leia Harper
MOUNTAIN SPORTS: Seeks to Extend Plan Exclusivity to Jan. 14, 2025
NATHAN'S FAMOUS: Egan-Jones Lowers Senior Unsecured Ratings to BB-
NJ MOBILE: Unsecured Creditors Will Get 10% to 100% of Claims
NUZEE INC: Xiang Zhang Reports 8.6% Stake as of Oct. 18
NUZEE INC: Yumei Liu Holds 6.6% Equity Stake as of Oct. 18
OLIVER POINT: Case Summary & Six Unsecured Creditors
ONCOCYTE CORP: Bio-Rad Laboratories Holds 8.97% Stake
OPGEN INC: John Tan Honjian Holds 73% Stake Via AEI Capital
P&L DEVELOPMENT: Moody's Alters Outlook on 'Caa2' CFR to Positive
PEBBLEBROOK HOTEL: Egan-Jones Retains B- Senior Unsecured Ratings
PITNEY BOWES: Egan-Jones Retains B- Senior Unsecured Ratings
POLAR US: Moody's Affirms 'Caa1' CFR, Outlook Negative
PROCOM SERVICES: Gets OK to Use Cash Collateral Until Nov. 12
R.RIVETER LLC: Jami Nimeroff Named Subchapter V Trustee
REMARK HOLDINGS: Sets 2024 Annual Meeting for Dec. 16
RLB FOOD: Mark Politan of Politan Law Named Subchapter V Trustee
RLJ LODGING: Moody's Affirms 'B3' CFR, Outlook Remains Stable
ROSA'S SPORTS: Mark Politan Named Subchapter V Trustee
RYDER SYSTEM: Egan-Jones Retains BB+ Senior Unsecured Ratings
SALUS MEDICAL: UST Appoints Michael Carmel as Chapter 11 Trustee
SHENANDOAH TELECOM: Egan-Jones Cuts Senior Unsecured Ratings to BB
SINCLAIR BROADCAST: Egan-Jones Retains CCC+ Sr. Unsecured Ratings
SKYMINTH: Equipment Up for Auction on Nov. 12 & 13
SKYWEST INC: Egan-Jones Retains B Senior Unsecured Ratings
SM ENERGY: Egan-Jones Hikes Senior Unsecured Ratings to BB+
SOLCIUM SOLAR: Aaron Cohen Named Subchapter V Trustee
SOUTHWESTERN ENERGY: Egan-Jones Retains BB- Sr. Unsecured Ratings
SPIRIT AIRLINES: Sells 23 Aircraft to GA Telesis for $519MM
STERLING CREDIT: Gets OK to Use Cash Collateral Until Dec. 11
TAMPA BAY SPEECH-LANGUAGE: Seeks Cash Collateral Access
TECTUM ROOFING: Mark Dennis Named Subchapter V Trustee
TW MEDICAL: Seeks Cash Collateral Access
UNITED AIRLINES: Fitch Alters Outlook on 'BB-' IDR to Positive
UPTOWN DENTAL: Gets Interim OK to Use Cash Collateral
UROGEN PHARMA: BlackRock Holds 5.9% Equity Stake
VECTOR GROUP: Egan-Jones Retains CCC+ Senior Unsecured Ratings
VENUS CONCEPT: Registers $30.4M in Securities for Possible Offering
VERINT SYSTEMS: Egan-Jones Retains BB Senior Unsecured Ratings
VERIS RESIDENTIAL: Egan-Jones Retains BB- Senior Unsecured Ratings
VIVAKOR INC: Appoints Jeremy Gamboa as Logistics Division President
VOIP-PAL.COM INC: 200K Shares Designated Series A Preferred Stock
VOIP-PAL.COM INC: Updates on Director and Officer Appointments
XEROX CORP: Egan-Jones Retains B+ Senior Unsecured Ratings
YUNHONG GREEN: Fails to Meet Nasdaq Minimum Bid Price Rule
[^] Recent Small-Dollar & Individual Chapter 11 Filings
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A.B.A.N.E. PROPERTIES: Trustee to Sell El Paso Property for $1.05M
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Ronald E. Ingalls, Trustee in the Chapter 11 case of A.B.A.N.E.
Properties Ltd., seeks approval from the U.S. Bankruptcy Court for
the Western District of Texas, El Paso Division, to sell property,
free and clear of liens.
The Property for sale is known as Westside Drive1 in El Paso,
Texas.
The Property had previous buyers, however, they failed to close the
sale transaction.
The Trustee has obtained a new contract for the Property from Minor
Monopoly LLC, for contract price of $1,050,000.
Vantage Bank Texas has claimed a lien on the Property for
$1,103,778.
The Trustee was represented by Sue Woo of Sandy Messer &
Associates, as his real estate broker. The sale will be subject to
2.5% real estate broker commission, with an additional 2.5%
commission for the buyer's broker.
The ad valorem taxes for year 2024 pertaining to the Property shall
be prorated in accordance with the Earnest Money Contract and shall
become the responsibility of the Purchaser and the year 2024 ad
valorem tax lien shall be retained against the Property until the
taxes are paid in full.
About A.B.A.N.E. Properties Ltd.
A.B.A.N.E. Properties, Ltd., in El Paso, Texas, filed its voluntary
petition for Chapter 11 protection (Bankr. W.D. Tex. Case No.
23-31398) on December 29, 2023, listing as much as $1 million to
$10 million in both assets and liabilities. Nora Herrera, as
managing member, signed the petition.
The Honorable Christopher G. Bradley presides over the case.
Carlos A. Miranda, Esq., at MIRANDA & MALDONADO, PC, serves as the
Debtor's legal counsel.
ADVANCED URGENT: Sells Centennial Assets to University of Colorado
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Advanced Urgent Care, LLC, also known as Advanced Urgent Care and
Occupational Medicine, and The Pegton Building LLC seek approval
from the U.S. Bankruptcy Court for the District of Colorado to sell
assets to University of Colorado Health for $550,000.
Advanced Urgent Care owns several urgent care clinics and its
primary operations consist of providing acute non-life-threatening
illnesses and injuries to walk-in patients.
The Pegton Building LLC is the lessee under five commercial office
leases and subleases the offices to Advanced Urgent Care.
Advanced Urgent Care wants to dispose of its business assets
located at 2241 E. Arapahoe Road in Centennial, Colorado, which are
comprised of property, machinery, equipment, supplies, customer and
patient lists, active medical records, telephones, fax numbers,
warranties, other records, permits and licenses.
Not included in the sale are cash, bank accounts, certificates of
deposit, investment and brokerage accounts and capital stock,
employee benefit plans, pension and profit sharing plans and any
other retirement, goodwill associated with the Debtor, any
prescription drugs and any other pharmaceuticals that may not be
legally transferred under law, accounts receivable for professional
services rendered by the employees or agents prior to the closing
effective date, personal property specifically excluded from the
Assets, and any security deposits deposited in connection with any
lease between the Debtor and a third party for the Premises or any
equipment leases.
The Debtor has appointed Allen Mooney & Barnes Brokerage Services,
LLC as investment banker. The firm will be entitled to a sale
transaction fee of 5.5% of the purchase price of the Property and
any unpaid retainer fees that have accrued since the Petition
Date.
The purchase price will be adjusted for any personal property taxes
and other taxes, or with respect to the Assets, the amount of
rents, additional rents, taxes and other items payable by or to the
Debtor under any assumed contract.
The Debtor asserts that the proposed sale is an appropriate
exercise of business judgment based on several factors including
sound business reasons, adequate and reasonable notice, fair
proposal sale, and the buyer has acted in good faith.
The Debtors further seeks approval of the sale without ordering the
appointment of an Ombudsman indicating that Section 332 of the
Bankruptcy Code requires the appointment only when a Debtor seeks
to sell or transfer Personally Identifiable Information in
contravention of the Debtor's privacy policy.
About Advanced Urgent Care
Advanced Urgent Care LLC is a locally owned and operated urgent
care services provider. It also offers on-site laboratory services,
x-ray services, and physical exams.
Advanced Urgent Care LLC and The Pegton Building sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead
Case No. 24-14536) on August 7, 2024. In the petition filed by
Anthony G. Euser, as managing member, AUC reports total liabilities
of $7,261,749 and under $50,000 in estimated assets.
The Hon. Joseph G Rosania Jr., presides over the cases.
The Debtors are represented by David J. Warner, Esq., at Wadsworth
Garber Warner Conrardy, PC as counsel.
AGRO RESEARCH: Gets Interim OK to Use Cash Collateral
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Agro Research International, LLC received interim approval from the
U.S. Bankruptcy Court for the Middle District of Florida, Orlando
Division to use the cash collateral of its lenders.
The interim order authorized the company to use cash collateral to
pay operating expenses set forth in its budget, which shows total
projected expenses of $12,269.64.
As adequate protection for the use of cash collateral, the lenders
were granted a replacement lien on all post-petition property of
the company that is of the same nature and type as the lender's
pre-bankruptcy collateral.
The next hearing is scheduled for Dec. 10.
About Agro Research International
Agro Research International, LLC, a company in Sorrento, Fla., is
committed to the constant development of unique and eco-friendly
formulations that will help the world grow better quality food
through research, innovation and unique alliances worldwide.
Agro Research International filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03122) on June 20, 2024, with $117,645 in assets and $3,546,069
in liabilities. Marc Lajeunesse, managing member, signed the
petition.
Judge Lori V. Vaughan presides over the case.
Robert A. Stiberman, Esq., at Stiberman Law, P.A. represents the
Debtor as bankruptcy counsel.
ALGORHYTHM HOLDINGS: Secures $2MM in Securities Purchase Agreement
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Algorhythm Holdings, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Company
entered into a Securities Purchase Agreement, pursuant to which the
Company agreed to issue and sell to each purchaser:
(i) an Original Issue Discount Senior Secured Note with a
principal amount equal to such purchaser's subscription amount
divided by 0.85, and
(ii) a number of shares of common stock of the Company, par
value $0.01 equal to 2,300,000 multiplied by such purchaser's
subscription amount divided by $2,000,000.
The aggregate gross proceeds to the Company were approximately $2.0
million, before deducting placement agent fees and expenses. The
Company intends to use the net proceeds from the Offering for
working capital and other general corporate purposes.
The Company agreed to certain registration rights with respect to
the Shares, as described in the SPA. The Company also granted the
purchasers a right to participate up to an amount of 20% in any
issuance by the Company of common stock or common stock equivalents
for cash, subject to certain exceptions, during the 90 days after
the closing of the Offering.
Univest Securities LLC served as the placement agent in the
Offering and received 7% of the gross proceeds received by the
Company and reimbursement of the legal fees of its counsel.
The Offering closed on October 24, 2024. At the closing, the
Company issued to the purchasers an aggregate of 2,300,000 shares
of its common stock and Notes in the aggregate principal amount of
$2,352,941. Immediately prior to the Company's entry into the SPA,
the Company had 11,896,273 shares of common stock issued and
outstanding.
Original Issue Discount
Senior Secured Note
At the closing, pursuant to the SPA, the Company issued a Note to
each purchaser equal to such purchaser's subscription amount
divided by 0.85. The Notes were issued with an original issue
discount of 15%. No interest shall accrue on the Notes unless and
until an Event of Default has occurred, upon which interest shall
accrue at a rate of 14.0% per annum and shall be computed on the
basis of a 360-day year and twelve 30-day months and shall be
payable on the maturity date, which is 90 days from the issuance
date of October 24, 2024.
The Notes contain certain Events of Default, including:
(i) the Company's failure to pay any amount of principal,
interest, redemption price or other amounts due under the Notes,
(ii) any default under or redemption or acceleration of any
indebtedness of the Company, as such term is defined in the
transaction documents,
(iii) bankruptcy of the Company or its subsidiaries,
(iv) a final judgement or judgements for the payment of money
in excess of $100,000, which is not discharged or stayed pending
appeal within 10 days, and
(v) any breach or failure to comply with any provision of the
Note or any other transaction document.
Upon the occurrence of any Event of Default and at any time
thereafter, the Purchasers shall have the right to exercise all of
the remedies under the Notes. Change of Control may result in
Redemption at Option of Holder.
The Notes also provide for redemption upon a change of control, as
such term is defined under the Notes and mandatory redemption upon
the receipt of net proceeds from any offering of equity or debt by
the Company. The Company also has the right to prepay the Notes.
The Notes are secured by a security interest in the assets and
property of the Company and its subsidiaries and guaranteed by the
Company's subsidiaries, pursuant to the terms of a Guarantee
Agreement entered into among the purchasers and the Company and
each of its subsidiaries.
The Offering was not registered under the Securities Act of 1933,
as amended, pursuant to an exemption from registration under the
Securities Act.
About Algorhythm
Algorhythm Holdings, Inc. (fka The Singing Machine Company, Inc.)
seeks to continue to leverage the strong brand recognition of the
Singing Machine for its legacy consumer electronics product
portfolio, and SemiCab for its scaling AI logistics business. The
Company's expanded business model is centered on making investments
in AI driven technology companies focused on solving challenges for
some of the largest global industry verticals.
"Based on cash flow projections from operating and financing
activities and the existing balance of cash, management is of the
opinion that the Company has insufficient funds to sustain
operations for at least one year after the date of this report, and
it may not be able to meet its payment obligations from operations
and related commitments, if the Company is not able to obtain
outside financing to allow the Company to continue as a going
concern. Based on these factors, the Company has substantial doubt
that it will continue as a going concern for the twelve months
following the issuance date of the financial statements included
elsewhere in this report," Singing Machine said in its Quarterly
Report for the period ended June 30, 2024.
ANER HOMES: Seeks Cash Collateral Access
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Aner Homes, LLC asked the U.S. Bankruptcy Court for the Western
District of Tennessee, Western Division, for authority to use cash
collateral in accordance with its agreement with lender, Mortgage
Funding 04, LLC, and James Bailey III, the Subchapter V trustee.
Aner Homes and the lender have reached an agreement for the company
to provide adequate protection to the lender for its use of the
rents in the form of a replacement lien on the company's
post-petition assets, subject to a carveout, and a monthly payment
of $8,000. As additional adequate protection, the lender will be
granted an allowed superpriority administrative expense claim.
Prior to the petition date, Aner Homes was indebted to Mortgage
Funding 04 in the approximate amount of $1.2 million. Pursuant to
security documents, the lender purports to hold a valid, perfected,
first priority lien against and security interest in, 12 parcels of
real property located in Memphis, Shelby County, Tenn., and the
rents and leases associated with the property.
A court hearing is scheduled for Nov. 19.
About Aner Homes
Aner Homes, LLC is a privately owned building and remodeling
company based in Memphis, Tenn.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-22804) on June 12,
2024, with $1 million to $10 million in both assets and
liabilities. James Bailey, III of Butler Snow, LLP serves as
Subchapter V trustee.
Judge Denise E. Barnett presides over the case.
Bo Luxman, Esq., at Luxman Law Firm represents the Debtor as
bankruptcy counsel.
ASHFIELD ACTIVE: Fitch Affirms 'BB-' Rating on $111MM Revenue Bonds
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Fitch Ratings has affirmed the 'BB-' rating on about $111 million
of series 2017A revenue bonds issued by the Industrial Development
Authority of the City of Kirkwood, MO on behalf of Ashfield Active
Living and Wellness Communities, Inc., d/b/a Aberdeen Heights
(Aberdeen). Fitch has also affirmed Aberdeen's Issuer Default
Rating (IDR) at 'BB-'.
The Rating Outlook is revised to Stable from Negative.
Entity/Debt Rating Prior
----------- ------ -----
Ashfield Active Living
and Wellness Communities,
Inc. dba Aberdeen
Heights (MO) LT IDR BB- Affirmed BB-
Ashfield Active Living
and Wellness Communities,
Inc. dba Aberdeen
Heights (MO) /General R
evenues/1 LT LT BB- Affirmed BB-
The revision of the Outlook to Stable reflects an improved trend in
independent living (IL) sales, debt service coverage above the 1.2x
covenant in FY24 (June 30 year end), and good unrestricted
liquidity for the rating level. The unrestricted liquidity position
provides Aberdeen with a measure of cushion as it executes on its
initiatives to reach 90% IL occupancy and strengthen the overall
operational performance. The momentum of sales has continued into
Q1 FY25, with Aberdeen management reporting 208 IL units either
occupied or sold (211 units would get Aberdeen to 90% occupancy).
In making its coverage covenant in FY24, Aberdeen was able to cure
a FY23 debt service covenant violation, which eases a major credit
concern, as Aberdeen had been unable to negotiate a waiver with
bondholders. This has also cleared the way for Aberdeen to release
its FY23 audit.
Fitch's forward look shows Aberdeen's financial profile
incrementally improving, with unrestricted liquidity remaining
stable and capital spending staying below depreciation. Debt
service coverage is expected to remain thin, near the 1.2x
covenant. However, Aberdeen's parent, Presbyterian Manors of
Mid-America (PMMA), has the ability to waive a portion of its
management fee to improve coverage which lends further support to
the stable outlook.
In FY24, PMMA waived $600,000 of its management fee, which raised
Aberdeen's debt service coverage to 1.33x from 1.23x. The thin debt
service coverage despite the improving IL occupancy and operating
performance reflects Aberdeen's elevated debt burden as indicated
by maximum annual debt service (MADS) as a percentage of revenue of
31.1% at year-end FY24.
SECURITY
The bonds are secured by a pledge of unrestricted receivables, a
first deed of trust lien on certain property, and a debt service
reserve fund.
KEY RATING DRIVERS
Revenue Defensibility - 'bb'
IL Occupancy on an Improving Trend, Near 90%
In FY24, Aberdeen had 44 deposits and 45 move ins, a significant
increase over FY23 when Aberdeen had 28 deposits and 29 move ins.
The improved numbers of deposits and sales reflect the successful
execution of a sales and marketing plan that was developed with a
consultant in late FY23. The multi-pronged plan focused on
discovery and closing and included improving the use of technology,
better follow-up on leads, and marketing events such as hosting on
site gatherings with the friends of new residents.
Aberdeen also restructured some of its contract prices and
increased services in IL to enable residents to stay independent
longer. As a 12-year-old community, Aberdeen continues to manage
through a wave of IL turnover due to first generation residents
aging though the continuum of care. In FY24, Aberdeen experienced
33 turnovers, above the typical sector average of about 15%.
At Sept. 30, 2024, IL occupancy stood at 86.3%, which is a material
improvement from the end of FY23 when IL occupancy was at 79.5% and
the sales and marketing plan was just being finished. Aberdeen has
hired an additional sales person to handle the increase in demand
and reports five additional IL sales in process. Assisted living,
memory care, and skilled nursing occupancies have remained solid
and averaged 86.8%, 84.3%, and 92.6%, respectively, in FY24.
Aberdeen recently hired a new director of AL and has increased its
outreach to local sources for referrals directly into AL, memory
care and skilled nursing.
Aberdeen's weighted average entrance fees are approximately
$485,000, which is relatively affordable compared with resident net
worth levels and local real estate values. Aberdeen operates in a
competitive market with other life plan communities (LPC) and
standalone IL, AL, and skilled nursing facilities in the local
service area.
Operating Risk - 'bb'
Improved FY24 Results; High Leverage
The weaker operating risk assessment primarily reflects Aberdeen's
elevated debt burden. Along with the higher MADS as a percent of
revenue, debt to net available, while improved, remained elevated
at 10.8x in FY24. It averaged 13.6x in the five years leading up to
FY24, and would need to stabilize below 8x to be assessed at
midrange. Fitch expects both MADS as a percent of revenue and debt
to net available to moderate further as revenue grows and cash flow
improves.
In FY 24, resident service revenue increased by about 7% reflecting
the improved occupancy and rate increases. Expense growth was only
2.7% which reflects a beneficial year for employee healthcare costs
and the reduction in management fees. However, management has
reported an improvement in agency use through the second half of
FY24 and a flattening of the inflationary pressures. Fitch also
expects revenue growth to continue over the next few years as
occupancy improves and stabilizes at higher levels. Net operating
margins - adjusted continues to remain a credit strength averaging
28.7% over the last five years.
Aberdeen's average age of plant is good at 11.7 years at year-end
2024, reflecting the community being open for only about 12 years.
Capital spending has been well under depreciation; however, Fitch
does not believe the lower capital spending is affecting Aberdeen's
competitive position, given the young age of the campus. The
largest focus of the capital spending is the renovating of turned
over apartments. As cash flow improves, Fitch expects capital
spending to increase slightly to closer to $1.5 million a year.
Aberdeen's management also reports that an expansion plan to add 14
cottages remains on hold.
Financial Profile - 'bb'
Moderate Stress Handled Despite Thinner Financial Profile
Aberdeen ended FY24 (unaudited) with unrestricted cash and
investments of about $30 million, which was a year-over-year
increase of about 15%. This equated to 34.3% cash to adjusted
(inclusive of an $8.1 million debt service reserve fund) and 450
days cash on hand (DCOH). Fitch's baseline scenario, which is a
reasonable forward look of financial performance over the next five
years given current economic expectations, assumes a slight
improvement to the operating performance, with operating ratios
sustained below 105% and net operating margins - adjusted above
25%.
The base case assumes IL occupancy continuing to improve and
stabilizing at a higher level. Capital spending is expected to
remain below depreciation. The base case results show stability in
Aberdeen's liquidity and coverage metrics that are consistent with
the 'bb' financial profile.
Fitch's stress scenario uses a liquidity stress specific to
Aberdeen's asset allocation and separate operational and entrance
fee stresses. The stress scenario shows Aberdeen handling the
moderate stress as its key financial profile metrics are stressed
early in the stress case but then recover. Cash to adjusted debt
remains just below the 'bb' threshold, but shows a good trajectory
of recovery. Both debt service coverage and cash to adjusted debt
remain consistent with the current rating level.
DCOH remains above 350 days throughout the stress scenario, which
is neutral to the rating outcome. The ability of Aberdeen to handle
the moderate stress scenario shows that it has the business or
financial flexibility to support the servicing of its financial
commitments, which, according to Fitch's rating definitions, is
consistent with the 'bb' category rating.
Asymmetric Additional Risk Considerations
There are no asymmetric risks associated with the rating.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to sustain the improved levels of IL occupancy;
- A weakening of cash to adjusted debt such that it is expected to
stabilize below 25%;
- Failure to make its 1.2x debt service coverage covenant without
support from PMMA for two consecutive years.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- ILU occupancy above 90%;
- Operating ratios consistently below 100%;
- Cash to adjusted debt that stabilizes above 35%.
PROFILE
Aberdeen is a Type-A CCRC located on a 21.7-acre site in Kirkwood,
MO. Its current unit mix consists of 234 ILUs, 30 ALUs, 15 MCUs,
and 38 SNF beds. Most resident agreements include 90%-95%
refundable entrance fee contracts. The refundable portion of the
entrance fee is refunded upon re-occupancy of the unit and receipt
of sufficient proceeds from resale. Aberdeen had total operating
revenue of approximately $24.9 million in FY24 (unaudited).
Aberdeen is a controlled affiliate of PMMA. Presbyterian Manors,
Inc. (PMI) is another controlled affiliate of PMMA, which owns 14
of the PMMA-managed communities and one hospice. The Salina
Presbyterian Manor Endowment Fund is also under the PMI structure.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
ASHFORD HOSPITALITY: CEO Zsigray Gets $704K Bonus, 509K Shares
--------------------------------------------------------------
Ashford Hospitality Trust, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
October 18, 2024, Ashford Inc., external advisor to the Company,
entered into a compensatory arrangement with Stephen Zsigray, the
Company's President and Chief Executive Officer. The Compensatory
Arrangement is effective as of July 1, 2024.
The Company is not a party to the Compensatory Arrangement and all
of Mr. Zsigray's base compensation and employee health and welfare
benefits are provided by the Advisor. However, in connection with
the Advisor's entry into the Compensatory Arrangement with Mr.
Zsigray, the Board of Directors of the Company has agreed to pay
Mr. Zsigray a one-time sign on bonus consisting of a $704,110
deferred cash award and grant Mr. Zsigray a one-time award of
509,000 shares of restricted common stock of the Company. The
Deferred Cash Award is payable:
(i) 25% in the fourth quarter of 2024;
(ii) 50% upon repayment of all amounts owing under the
Company's corporate strategic financing with Oaktree Capital
Management, L.P.; and
(iii) 25% on successful completion of a process to review
potential value creation strategies for the Company, as determined
by the Compensation Committee of the Company's Board of Directors.
The Equity Grant is eligible to vest in three equal installments on
each of July 1, 2025, 2026 and 2027. Payment of the Deferred Cash
Award and vesting of the Equity Grant are generally subject to Mr.
Zsigray's continued employment through each applicable milestone.
About Ashford Hospitality
Headquartered in Dallas, Texas, Ashford Hospitality Trust, Inc.
operates as a self-advised real estate investment trust focusing on
the lodging industry.
Ashford Hospitality Trust reported a net loss of $180.73 million
for the year ended Dec. 31, 2023, compared to a net loss of $141.06
million for the year ended Dec. 31, 2022. As of Dec. 31, 2023, the
Company had $3.46 billion in total assets, $3.69 billion in total
liabilities, $22.01 million in redeemable noncontrolling interests
in operating partnership, $79.98 million in Series J Redeemable
Preferred Stock, $0.01 par value (3,475,318 shares issued and
outstanding at December 31, 2023), $4.78 million in Series K
Redeemable Preferred Stock, $0.01 par value (194,193 shares issued
and outstanding at December 31, 2023), and $331.04 million in total
deficit.
* * *
Egan-Jones Ratings Company, on May 5, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Ashford Hospitality Trust, Inc.
On March 1, 2024, the Company received notice that the hotel
properties securing the KEYS Pool A and KEYS Pool B loans had been
transferred to a court-appointed receiver.
On March 6, 2024, the Company sold the Residence Inn Salt Lake City
in Salt Lake City, Utah, for $19.2 million in cash. As reported by
the TCR on April 22, the Company closed on the sale of the 390-room
Hilton Boston Back Bay in Boston, Massachusetts, for $171 million.
On April 29, it closed on the sale of the 85-room Hampton Inn in
Lawrenceville, Georgia, for $8.1 million. On May 27, Ashford closed
a $267 million refinancing of the mortgage loan for the 673-room
Renaissance Hotel in Nashville, Tennessee, which had a final
maturity date of March 2026. On June 14, the Company closed on the
sale of the 90-room Courtyard located in Manchester, Connecticut,
for $8 million.
ATLANTIC HOME: Aleida Martinez Molina Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Aleida Martinez Molina,
Esq., as Subchapter V trustee for Atlantic Home FL, LLC.
Ms. Molina 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. Molina declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aleida Martinez Molina, Esq.
2121 NW 2nd Avenue, Suite 201
Miami, FL 33127
Telephone: (305) 297-1878
Email: Martinez@subv-trustee.com
About Atlantic Home FL
Atlantic Home FL, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20795) on
October 18, 2024, with up to $50,000 in assets and up to $1 million
in liabilities.
Judge Mindy A. Mora presides over the case.
Kevin Comer, Esq., represents the Debtor as legal counsel.
BAKERS DEPOT: Mark Politan Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for Bakers Depot, LLC.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About Bakers Depot
Bakers Depot, LLC, is a wholesale food distributor specializing in
bakery ingredients.
The Debtor filed Chapter 11 petition (Bankr. D.N.J. Case No.
23-17425) on Aug. 25, 2023, with $500,000 to $1 million in assets
and $1 million to $10 million in liabilities. Brian Negron,
president, signed the petition.
Vincent Roldan, Esq., at Mandelbaum Barrett, PC, is the Debtor's
legal counsel.
BALL CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on November 1, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Ball Corporation. EJR also withdrew rating on
commercial paper issued by the Company.
Headquartered in Westminster, Colorado, Ball Corporation provides
metal packaging for beverages, foods, and household products.
BAY RIDGE KICKBOXING: Samuel Dawidowicz Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as
Subchapter V trustee for Bay Ridge Kickboxing, LLC.
Mr. Dawidowicz will be paid an hourly fee of $525 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dawidowicz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Samuel Dawidowicz
215 East 68th Street
New York, NY 10065
Phone: (917) 679-0382
About Bay Ridge Kickboxing
Bay Ridge Kickboxing, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44247) on October
15, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Nancy Hershey Lord presides over the case.
Gregory A. Flood, Esq., at the Law Offices of Gregory A. Flood
represents the Debtor as bankruptcy counsel.
BON WORTH: Fine-Tunes Plan Documents
------------------------------------
Bon Worth Holdings, Inc., submitted a Third Amended Plan of
Reorganization dated September 18, 2024.
This Plan of Reorganization proposes to pay creditors of the Debtor
funded by cash on hand, a new value contribution by the Debtor's
principal Don Young in the sum of $60,000.00, and funds from future
operations.
This Plan provides for three classes of secured claims, one class
of unsecured claims, and one class of equity security holders.
General unsecured creditors are classified in Class 4 and will
receive a distribution of 15% of their allowed claims payable over
60 months. The Class 1 secured claim of Crossroads Funding II LLC
will receive monthly payments, pursuant to a new amended and
restated loan and secured agreement, in the amount of $18,000.00
per month with a balloon payment representing the balance due at
the end of the 60-month plan period, plus interest and fees and
expenses.
On account of the unsecured portion of the claim, claimant will
receive a 15% distribution, payable monthly over 5 years (which
means monthly payments in the amount of $4,716.67 per month for 5
years, for a total of $283,000.20. No interest shall accrue on such
obligations.
The Debtor shall assume the executory contracts or unexpired leases
listed on Exhibit H to the Disclosure Statement, a copy of which is
annexed hereto as Exhibit 1. Any other executory contract or
unexpired lease of the Debtor which has not been assumed or
rejected by Final Order of the Bankruptcy Court, or which is not
the subject of a pending motion to assume or reject on the
Confirmation Date, shall be deemed rejected by the Debtor on the
Effective Date.
The Debtor shall make distributions to creditors over time payable
over 60 months funded by a new value contribution by the Debtor's
principal Don Young and future income of the Debtor. The Debtor
shall be the disbursing agent under the Plan.
A full-text copy of the Third Amended Plan dated September 18, 2024
is available at https://urlcurt.com/u?l=Gpe8bs from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Lawrence F. Morrison, Esq.
Brian J. Hufnagel, Esq.
Morrison-Tenenbaum, PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
Email: bjhufnagel@m-t-law.com
About Bon Worth Holdings
Bon Worth Holdings, Inc., operates a retail clothing business and
owns 28 brick and mortar stores and one online store and maintains
an office in Brooklyn, New York.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-43213) on Dec. 29,
2022. In the petition signed by Dan Young, its president, the
Debtor disclosed up to $50,000 in assets and up to $20 million in
liabilities.
Judge Jil Mazer-Marino oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum PLLC, is the
Debtor's legal counsel.
BONE CONSTRUCTION: Donald Brady Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Donald Brady, Jr.,
Esq., at Brady Law Firm as Subchapter V trustee for Bone
Construction Company, Inc.
Mr. Brady will be paid an hourly fee of $300 for his services as
Subchapter V trustee and $60 per hour for actual travel time. In
addition, the Subchapter V trustee will receive reimbursement for
work-related expenses incurred.
Mr. Brady declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Donald A. Brady, Jr.
Brady Law Firm
P.O. Box 8816
Springdale, AR 72766
479-935-2632
don@bradylaw-nwa.com
About Bone Construction Company
Bone Construction Company, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 24-71734) on
October 18, 2024, with $100,001 to $500,000 in assets and $1
million to $10 million in liabilities.
Judge Bianca M. Rucker presides over the case.
Marc Honey, Esq., at Honey Law Firm, P.A. represents the Debtor as
bankruptcy counsel.
BONITA SOL: Amy Denton Mayer Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed Amy Denton Mayer of
Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee for
Bonita Sol LLC.
Ms. Mayer will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mayer declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Amy Denton Mayer
Stichter Riedel Blain & Postler P.A.
110 East Madison Street, Suite 200
Tampa, FL 33602
Phone: (813)229-0144
Email: amayer@subvtrustee.com
About Bonita Sol
Bonita Sol LLC is primarily engaged in renting and leasing real
estate properties.
Bonita Sol sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01582) on
October 18, 2024. In the petition filed by Marcelo Mattschei,
manager, the Debtor reported total assets of $2,850,000 and total
liabilities of $4,483,248.
Judge Caryl E. Delano handles the case.
The Debtor is represented by Mike Dal Lago, Esq., at Dal Lago Law.
BOOTH EXCAVATING: Jodi Dubose Named Subchapter V Trustee
--------------------------------------------------------
Mark S. Zimlich, the U.S. Bankruptcy Administrator for the Southern
District of Alabama, appointed Jodi D. Dubose as Subchapter V
Trustee for Booth Excavating & Construction, LLC.
Ms. Dubose 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. Dubose declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jodi Daniel Dubose, Esq.
Stichter, Riedel, Blain & Postler P.A.
41 N. Jefferson Street, Suite 111
Pensacola, FL 32502
Phone: (850) 637-1836
Email: jdubose@srbp.com
About Booth Excavating & Construction
Booth Excavating & Construction, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No.
24-12655) on October 18, 2024, with $100,001 to $500,000 in assets
and $50,001 to $100,000 in liabilities.
Vallee V. Connor, Esq. at Hollinger Connor, LLC represents the
Debtor as legal counsel.
BRICK CITY INVESTMENT: Mark Politan Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for Brick City
Investment Group, LLC.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About Brick City Investment
Brick City Investment Group, LLC, a company in Bloomfield, N.J.,
filed Chapter 11 petition (Bankr. D.N.J. Case No. 23-18750) on Oct.
6, 2023, with up to $50,000 in assets and up to $10 million in
liabilities. Evangelos Drosos, managing member, signed the
petition.
Marc C. Capone, Esq., at Gillman, Bruton & Capone, LLC represents
the Debtor as legal counsel.
CANVAS PROS: Gets Interim Approval to Use Cash Collateral
---------------------------------------------------------
Canvas Pros, Inc. received third interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida to use the cash
collateral of Fairwinds Credit Union to pay its operating expenses.
The company's cash and accounts receivable generated by the
operation of its business before and after its Chapter 11 filing
constitute cash collateral of Fairwinds Credit Union. As of May 20,
Canvas Pros owes the lender $357,568.53.
As adequate protection, the interim order granted Fairwinds Credit
Union a replacement lien on assets acquired by Canvas Pros on or
after its Chapter 11 filing to the same extent and with the same
priority as its pre-bankruptcy lien.
In addition, the order approved the monthly payment of $2,375 to
Fairwinds Credit Union, which started on July 1.
The next hearing is scheduled for Jan. 9, 2025.
About Canvas Pros
Canvas Pros, Inc. filed voluntary Chapter 11 petition (Bankr. M.D.
Fla. Case No. 24-02518) on May 20, 2024, listing under $1 million
in both assets and liabilities.
Judge Tiffany P. Geyer oversees the case.
Law Offices of Mickler & Mickler, LLP serves as the Debtor's
bankruptcy counsel.
CENTURY ALUMINUM: Egan-Jones Retains B Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on October 14, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Century Aluminum Company. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Chicago, Illinois, Century Aluminum Company
produces primary aluminum, in both molten and ingot form, through
facilities located in the United States.
CHAMP ACQUISITION: Moody's Affirms 'B2' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Ratings affirmed Champ Acquisition Corporation B2 Corporate
Family Rating, B2-PD Probability of Default Rating, and the B1
rating on the existing senior secured first lien bank credit
facility, which consists of a term loan and revolving credit
facility. Moody's also affirmed the Caa1 ratings on the second lien
senior secured term loan. Moody's assigned a B2 rating to the new
senior secured first lien term loan due 2031 and assigned a Ba2
rating to the new senior secured super priority cash flow revolving
credit facility expiring in 2029. The outlook remains stable.
Champ is issuing a $450 million first lien senior secured term loan
that along with $500 million of other secured borrowing and a $450
million minority equity investment from Koch Equity Development LLC
will be used to finance repayment of the existing $741 million of
debt and fund a $617 million dividend to Platinum Equity. The
company is also entering into a new $125 million committed super
priority cash flow revolver.
The transactions are credit negative because the increase in debt
to partially fund the dividend to Platinum will increase cash
interest and leverage. Moody's nevertheless affirmed the ratings
because Moody's believe that the company's good operating
performance is sufficient to fund step-up in interest and increased
debt burden while maintaining good free cash flow. The transactions
as proposed will increases debt-to-EBITDA leverage to 4.2x pro
forma for the incremental debt from 3.3x while also increasing
interest expense by roughly $3-5 million. Moody's project free cash
flow will remain healthy in a $90-95 million annual range. Required
annual debt service is also declining because a reduction in annual
term loan amortization is greater than the step-up in interest.
Annual term loan amortization will decline to around $11.25
million, stepping up to $22.5 million after four years, from $39
million currently. This debt service reduction improves liquidity
but provides more flexibility for the sponsors to utilize cash for
something other than debt repayment. The larger upsized revolver
also improves liquidity.
The Ba2 rating on the super priority cash flow revolver is three
notches higher than the CFR and reflects Moody's expectation that
the credit agreement will contain provisions that provide for
obligations under the cash flow revolver to be repaid in full from
collateral proceeds prior to the obligations under the term loan
and other first lien secured debt in the event of a default. The B2
rating on the term loan is equal to the CFR and reflects its second
out position with respect to allocation of collateral proceeds in
default relative to the revolver. The ratings on the secured term
loan and the super priority cash revolver reflect Moody's estimates
of recovery in default based on the payment priority
notwithstanding that both instruments have the same first lien
secured claim on the collateral.
RATINGS RATIONALE
Champ Acquisition's B2 CFR reflects its narrow product focus in
school related affinity products and its moderate exposure to
cyclical downturns. Champ's financial leverage is high following
the proposed debt funded shareholder distribution to Platinum
equity. The high leverage creates some vulnerability to debt
service when considering the seasonality of earnings and cash flow,
and secular demand pressure in products such as printed materials
and jewelry. Nevertheless, Moody's expect that debt-to-EBITDA of
4.2x pro forma for the November 2024 dividend transaction, up from
3.3x for the last 12 months ending June 30, 2024, will decline
below 4.0x over the next 12 months. Moody's expect Champ will gain
market share through market penetration and new account wins,
partly because of stronger operating performance in relation to
peers. However, risks remain to consumer spending due to
inflationary pressures and high interest rates that could impact
demand for the company's more discretionary products. Governance
factors primarily relate to the company's aggressive financial
policies under private equity ownership, including its high
financial leverage and concentrated control that could lead to
activities such as acquisitions and shareholder distributions.
Champ's ratings are supported by the company's breadth of product
and service capabilities, including a high degree of
personalization and strong sales support, customer service and
delivery performance. The company benefits from long-standing
relationships with individual schools and colleges through its
large network of independent sales representatives. These factors
along with good cost management lead to good free cash flow.
Liquidity is good and supported by Moody's projection for free cash
flow of around $90-$95 million over the next 12 months. Access on
the company's newly upsized $125 million cash flow revolving credit
facility expiring in 2029 provides additional liquidity support.
Moody's expect the revolver will be undrawn at year-end 2024. The
revolver is sufficient to fund seasonal working capital borrowings
and the cash flow sources provide good coverage of the $11.25
million of annual debt amortization. The reduction in term loan
amortization following the proposed refinancing improves liquidity
but is partially offset by the increase in interest expense. Champ
uses revolver borrowings to fund seasonal working capital which may
trigger the springing financial maintenance covenant during peak
seasonal working capital period, but Moody's expect that the
company will maintain good cushion within the covenant.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that Champ's
revenue and earnings will remain stable. Healthy demand across most
of the company's achievement products and new client wins will help
support low-to-mid single digit revenue and EBITDA growth and
offset declining unit volumes in jewelry. The stable outlook also
reflects Moody's expectation that liquidity will remain good with
annual free cash flow of around $90-95 million and that the company
will focus on reducing leverage following the dividend
transaction.
The ratings could be downgraded if the company's operating results
deteriorate through weaker demand or market share losses, pricing
pressure or increased costs. The ratings could also be downgraded
if debt-to-EBITDA is sustained above 5.5x, free cash flow declines,
liquidity deteriorates, or if EBITDA-capital spending/interest
expense is sustained below 1.5x. A shift towards more aggressive
financial policies including actions such as a large debt-financed
acquisition or a dividend distribution could also lead to a lower
rating.
The ratings could be upgraded if the company is able to
consistently grow its revenue organically and expand its operating
margin. A higher rating would also require the company to maintain
a financial policy that keeps the debt-to-EBITDA leverage below
4.0x. Champ would also need to generate strong free cash flow, at a
high single-digit percentage relative to debt, and maintain at
least good liquidity.
Marketing terms for the new credit facilities (final terms may
differ materially) include the following:
Incremental pari passu debt capacity up to the greater of $250
million and 100% of EBITDA, plus unlimited amounts subject to a
3.8x first lien net leverage, with an inside maturity sublimit up
to $125 million. Up to $175 million of the incremental capacity may
be secured on a super priority basis as a revolver. The credit
agreement is expected to provide some limitations on up-tiering
transactions, requiring consent of each affected lender for
amendments that subordinate or have the effect of subordinating the
debt or lien priority unless such lenders can ratably participate
in such priming debt. The final loan documents are expected to
contain "Chewy " and "J. Crew " protections.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FACTORS
Champ's CIS-4 ESG credit impact score indicates the rating is lower
than it would have been if ESG risk exposures did not exist. The
CIS score primarily reflects governance risks stemming from
concentrated control and decision making and use of high leverage
under majority private equity ownership, including the use of debt
to fund a sizable shareholder distribution. Environmental and
social risks are present but have less influence on the rating and
CIS score than governance.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Headquartered in Minneapolis, MN, Champ Acquisition Corporation
owns Jostens, which is a manufacturer and seller of yearbooks,
publications, jewelry, and other school-related affinity products
that serve the K--12 educational, college, and professional sports
segments. The company was acquired by private equity firm Platinum
Equity in December 2018 from Newell Brands for approximately $1.1
billion, and revenue for the last 12 months ending June 30, 2024
was $920 million. Koch Equity Development is acquiring a minority
interest in the company.
CHART INC: Egan-Jones Retains BB Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on October 15, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Chart, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Ball Ground, Georgia, Chart, Inc. manufactures
engineered products and systems for variety of cryogenic and heat
transfer applications.
CLEAN HARBORS: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on October 25, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Clean Harbors Environmental Services, Inc.
Headquartered in Norwell, Massachusetts, Clean Harbors
Environmental Services, Inc. provides hazardous and non-hazardous
material management and disposal services.
CLOVER HOLDINGS 2: Moody's Rates New First Lien Term Loan 'B2'
--------------------------------------------------------------
Moody's Ratings assigned a B2 rating to the 7.75% fixed rate senior
secured first lien term loan B due 2031 of Clover Holdings 2, LLC
(d/b/a Cohesity), a leading software provider for data security and
management. Cohesity intends to combine with Veritas' Data
Protection (Veritas DP) business, a subsidiary of Veritas NL
Intermediate Holdings B.V. (Veritas, B3 negative). The company's
existing ratings, including its B2 Corporate Family Rating and
B2-PD Probability of Default Rating are unchanged. The outlook is
positive.
Cohesity reduced the size of its term loan B launched last week by
$450 million and amended its financing to include a $450 million
7.75% fixed-rate term loan. Proceeds from the term loans along with
new cash equity will be used to repay a portion of Veritas'
existing debt, provide a $600 million margin loan to Veritas, repay
Cohesity's existing debt, pay transaction-related fees and
expenses, and add cash to the balance sheet. The transaction is
expected to close in the fourth quarter of 2024, subject to
regulatory approvals and other customary closing conditions.
The assigned rating is subject to review of final documentation and
no material change to the size, terms and conditions of the
transaction as advised to us.
RATINGS RATIONALE
Cohesity's B2 CFR benefits from the combined company's
market-leading position as a provider of backup and recovery
software and entrenched position within enterprise customers'
critical IT infrastructure, its diversified blue-chip customer
base, and strong net revenue retention rates. The favorable growth
outlook for the backup and recovery software industry support
Moody's expectation for at least high-single digit percentage
annual revenue growth from Cohesity as a standalone business unit
for at least the next three years, consistent with historical
revenue trends. Furthermore, the combined company's asset-lite
business model requires limited capital intensity supporting
Moody's expectation of good free cash flow generation and
profitability.
The B2 CFR is constrained by high pro-forma debt to EBITDA that
Moody's estimate to be 6.4x for the fiscal year ended July 31, 2024
(5.8x when giving addback credit for stock-based compensation) and
by operational challenges, including Cohesity's need to integrate
Veritas DP, the third largest data protection and replication
software provider. Competition is intense across the industry, and
Cohesity must continue meaningfully investing in technological
innovation and value-added capabilities to remain competitive, to
thwart the increasing complexity of cyberattacks, and to address
clients' needs, including Cohesity offering its hyperconvergence
stack to Veritas DP's existing customers. The merger provides
greater scale to fund such growth investments, somewhat mitigating
this risk.
Cohesity is targeting approximately $200 million of run-rate cost
synergies to be achieved 18+ months after transaction close, with
nearly 60% of synergies expected to be actioned the day of
transaction close. The majority of day one synergies are expected
from headcount reductions with remaining synergies resulting from
reduced marketing spend. Severance costs from Veritas' DP business
headcount reductions are expected to be paid by Veritas. Moody's
believe the synergy targets are achievable, but the merger still
introduces significant integration risk given Veritas' DP business'
large revenue size and operating scope relative to Cohesity and it
being Cohesity's largest acquisition to date. As with any
carve-out, there are risks around operating disruptions that could
result in challenges with customer relationships. Further, Veritas'
DP business had periods of lower annual revenue growth rates than
Cohesity including flat revenue growth for the LTM period ended
June 30, 2024. Lastly, larger, well capitalized competitors could
exert pricing pressure or bundle their solutions with other
services that Cohesity does not offer, which could lower growth and
profitability rates.
All financial metrics cited reflect Moody's standard adjustments.
Moody's expect the debt capital to be comprised of a $300 million
revolving credit facility expiring 2029, a $2.35 billion term loan
B due 2031, and a $450 million 7.75% fixed-rate term loan due 2031.
The B2 bank credit facility ratings, the same as the B2 CFR,
reflect the preponderance of debt represented by the term loans and
revolver. The term loans and revolver are guaranteed by the
borrower's direct and indirect, existing and future, wholly-owned
U.S. subsidiaries (except unrestricted and immaterial
subsidiaries), as defined by the credit agreement. The term loans
and revolver also have a 1st priority security interest in
substantially all assets of the borrower and guarantors.
The positive outlook reflects Moody's expectation that Cohesity's
credit metrics will be strong for the B2 CFR if the company remains
on track to successfully integrate Veritas' DP business and achieve
targeted synergy benefits with limited business disruption while
also maintaining a very good liquidity profile. Over the next 12
months post-transaction close, Moody's expect Cohesity to generate
at least mid-single digit percentage annual revenue growth, improve
debt to EBITDA to the mid-5x range when giving addback credit for
costs to achieve synergies (but above 6x when expensing costs to
achieve synergies), and generate free cash flow to debt of at least
the mid-single digit percentages. The company can further reduce
financial leverage and improve cash flow metrics if voluntary debt
payments are made over the same period.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Cohesity's ratings could be upgraded if the integration of Veritas'
DP business and realization of synergies remain on track and the
company maintains a balanced financial policy, which includes
sustaining debt to EBITDA below 6x and maintaining high
single-digit percentage free cash flow to debt.
The ratings could be downgraded if operating performance slows
materially including due to integration issues, market share
deteriorates, debt to EBITDA exceeds 7.5x, or free cash flow to
debt is expected to be sustained below 3%.
The principal methodology used in this rating was Software
published in June 2022.
Clover Holdings 2, LLC (d/b/a Cohesity), the combined company of
Cohesity, Inc. and Veritas' Data Protection business, is a leading
software provider for data security and management. The combined
company generated nearly $1.8 billion pro-forma revenue for the
fiscal year ended July 31, 2024.
COMMERCIAL FURNITURE: Brenda Brooks Named Subchapter V Trustee
--------------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Brenda Brooks of
Moore & Brooks as Subchapter V trustee for Commercial Furniture
Services, LLC.
Ms. Brooks will be paid an hourly fee of $300 for her services as
Subchapter V trustee and an hourly fee of $95 for paralegal
services. In addition, the Subchapter V trustee will receive
reimbursement for work-related expenses incurred.
Ms. Brooks declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brenda Brooks
Moore & Brooks
6223 Highland Place Way
Suite 102
Knoxville, TN 37919
Phone: (865) 450-5455 | Fax: (865) 622-8865
Email: bbrooks@moore-brooks.com
About Commercial Furniture Services
Commercial Furniture Services, LLC offers office furniture
installation, asset management (safe storage) and logistics
services.
Commercial Furniture Services filed its voluntary petition for
Chapter 11 protection (Bankr. E.D. Tenn. Case No. 24-12642) on Oct.
18, 2024. In the petition signed by Jim McMenimen, co-managing
member, the Debtor disclosed up to $500,000 in assets and up to $10
million in liabilities.
Wright, Cortesi & Gilbreath serves as the Debtor's legal counsel.
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on October 17, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by CoreCivic, Inc.
Headquartered in Nashville, Tennessee, CoreCivic, Inc. provides
detention management and correctional services to governmental
agencies.
CT TECHNOLOGIES: Moody's Withdraws B3 CFR Following Debt Repayment
------------------------------------------------------------------
Moody's Ratings withdrew all of CT Technologies Intermediate
Holdings, Inc.'s ("Datavant") ratings including the B3 corporate
family rating, B3-PD probability of default rating, and B3 senior
secured bank credit facilities ratings. Prior to the withdrawal,
the outlook was stable. This action follows the repayment of the
company's rated debt after refinancing.
RATINGS RATIONALE
Moody's have withdrawn the ratings as a result of the repayment and
termination of the rated credit facilities due in 2025.
Datavant, headquartered Phoenix, Arizona, is a large provider of
healthcare information services and technology solutions to
hospitals, health systems, physician practices and authorized
recipients of protected health records in the United States.
CTF CHICAGO: Janice Seyedin Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 11 appointed Janice Seyedin as
Subchapter V trustee for CTF Chicago Inc.
Ms. Seyedin will be paid an hourly fee of $295 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Seyedin declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
About CTF Chicago
CTF Chicago Inc. is a fitness center that offers group fitness
classes and personal training.
CTF Chicago Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Lead Case No. 24-15580)
on October 18, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Charles Graff, managing member, signed the
petition.
Judge Janet S. Baer handles the case.
The Debtor is represented by Richard G Larsen, Esq., at
SpringerLarsen, LLC.
CYT MAINTENANCE: Holly Miller Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Holly Miller, Esq.,
at Gellert Scali Busenkell & Brown, LLC as Subchapter V trustee for
CYT Maintenance, LLC.
Ms. Miller will be paid an hourly fee of $425 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Miller declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Holly S. Miller, Esq.
Gellert Scali Busenkell & Brown, LLC
1628 John F. Kennedy Boulevard, Suite 1901
Philadelphia, PA 19103
Telephone: (215) 238-0012
Facsimile: (215) 238-0016
Email: hsmiller@gsbblaw.com
About CYT Maintenance
CYT Maintenance, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-13743) on October 18,
2024, with $0 to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Patricia M. Mayer presides over the case.
David W. Tidd, Esq. represents the Debtor as legal counsel.
DELUXE CORP: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on October 21, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Deluxe Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Minneapolis, Minnesota, Deluxe Corporation
operates as a payments and business technology company.
DENNY'S INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on October 25, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Denny's Inc.
Headquartered in Spartanburg, South Carolina, Denny's Inc. operates
as a restaurant.
EMPLOYBRIDGE HOLDING: Moody's Cuts CFR to Caa1, Outlook Negative
----------------------------------------------------------------
Moody's Ratings downgraded EmployBridge Holding Company's corporate
family rating to Caa1 from B3, its probability of default rating to
Caa1-PD from B3-PD, and downgraded ratings on EmployBridge's backed
senior secured term loan B due 2028 to Caa3 from Caa1. EmployBridge
is a Georgia-based provider of temporary and contract staffing
services, mainly in the light industrial space. The outlook has
been changed to negative from stable.
The ratings action is based on continued pressure on revenue as
demand for workers hours declines. As a result of lower earnings,
leverage increased to over 9x as of the end of 2Q 2024 and Moody's
expect it to remain elevated over the next 18 months. Free cash
flow has been negative and as a consequence liquidity has
deteriorated. Moody's do not expect revenue to recover
significantly in 2025 to levels seen during the strong labor
markets of 2021 and 2022. The negative outlook reflects Moody's
weakening liquidity expectations as a result of ongoing cash flow
deficits, which increases default risk. Additionally Moody's view
is that free cash flow will be negative this year and will only
modestly improve in 2025.
RATINGS RATIONALE
EmployBridge's Caa1 CFR reflects the company's high debt to EBITDA
leverage of over 9.0x as of the end of June 2024, which Moody's
expect will remain elevated over the next 18 months. Moody's expect
revenue to grow modestly in 2025 driven by economic growth and a
more favorable labor market compared to 2024. Margins will be
stable as the company continues its cost restructuring plan.
The rating also considers Moody's view of EmployBridge's modest
profitability, with EBITDA margins likely to be slightly below 4%,
which is low compared to some other temporary staffing companies.
Moody's believe free cash flow to debt will be negative this year
and liquidity will be constrained. Moody's also expect that free
cash flow will be limited in 2025 and will be sensitive to changes
in working capital. The staffing industry is exposed to
macroeconomic conditions that can result in substantial revenue and
earnings swings. Given the thin margin profile of the company and
concentration in the light industrial segment and geographical
concentration in the US, EmployBridge's credit profile is more
sensitive to economic cycles compared to larger global and more
diversified competitors. The staffing industry is mature and highly
competitive with several significantly larger staffing companies as
well as established niche players. However, Moody's believe that
over the long term secular trends towards greater workforce
outsourcing remain supportive of the company.
All financial metrics cited reflect Moody's standard adjustments.
EmployBridge's credit profile is supported by the company's
competitive size and national branch network, enabling the company
to serve national multi-site clients and to invest in technology
and talent. The company has a diverse customer base but there is
concentration in certain end markets such as distribution and
logistics, food services, autos and retail, which tend to be very
cyclical. However, revenue concentration is with a high-quality
roster of large logistics and light-manufacturing-related
companies. Moreover, EmployBridge is growing its on-site presence
at many of its largest clients' facilities and also increasing its
digital channel to source talent and fill positions, which Moody's
anticipate will increase client retention and establish stronger
competitive barriers over time.
Moody's consider EmployBridge's liquidity profile to be weak.
Liquidity consists of a $360 million asset-based revolving credit
agreement (ABL) due 2027 that had availability of $73 million as of
the end of June 2024 and cash on hand of approximately $22 million.
The ABL revolver is subject to a borrowing base that currently is
below the notional amount of $360 million. The company also has a
$160 million letter of credit facility that supports its workers'
compensation insurance program. Negative free cash flow for this
year contributes to a weak liquidity profile. EmployBridge's cash
flow is seasonal, with working capital typically decreasing in the
first fiscal quarter, thereby driving positive free cash flow, and
then building throughout the course of the rest of the year,
driving low or negative free cash flow. Given thin EBITDA margins
and low capex requirements, working capital is a significant
determinant of overall cash flow. There are no financial covenants
applicable to the term loan. The ABL is subject to a springing
minimum fixed charge coverage ratio (as defined in the loan
documentation) of at least 1x time when the availability is less
than the greater of (i) 10% of the lesser of the borrowing base and
the line cap and (ii) $30 million.
The Caa3 rating on the senior secured term loan reflects both the
overall probability of default rating of Caa1-PD and Moody's Loss
Given Default assessment, reflecting its second priority lien on
all current assets (pledged on a first priority basis to the ABL
and FILO term loan) and first priority lien on all other property.
The two notch differential between the CFR and term loan rating is
due to the asset-lite nature of the business and because the large
receivables balance is pledged to the ABL revolver and FILO term
loan, which diminishes Moody's recovery expectations for the term
loan. The credit facilities are guaranteed by the parent company
and all material existing and future wholly-owned domestic
subsidiaries.
The negative outlook reflects Moody's expectations for revenue
decline this year and low single-digit revenue growth next year,
EBITDA margins of less than 4% and debt to EBITDA to remain
elevated and over 9.0x over the next 12 months. Moody's expect that
free cash flow will be negative this year and will improve very
modestly next year. Additionally Moody's believe that liquidity
will remain very tight given the overall cash obligations of the
company, including interest costs and capital expenditures, which
increases default risk and will drive the company to look for
alternative sources of liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, it is unlikely that an upgrade will
occur in the next 12 months. The ratings could be upgraded if: 1)
EmployBridge demonstrates stable revenue growth while improving
profit margins; 2) Moody's expect meaningful debt leverage
reduction and sustained positive free cash flow generation; and 3)
the company significantly improves its liquidity profile and
maintains less aggressive financial policies.
The ratings could be downgraded if Moody's expect: 1) continued
revenue declines or margin deterioration; 2) free cash flow
continues to be negative; or 3) EmployBridge's liquidity profile
deteriorates further.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
EmployBridge, based in Atlanta, GA, is a provider of temporary and
contract staffing services through company owned and franchised
locations throughout the US The company offers temporary staffing,
temp-to-hire, and direct placement services and derives most of its
revenues from the placement of light industrial, transportation and
clerical staff. The company is controlled by affiliates of Apollo
Global Management, Inc. Moody's expect revenue of around $3.0
billion in FY 2024.
ERNIE'S AUTO: Mark Politan Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for Ernie's Auto
Detailing, Inc.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About Ernie's Auto Detailing
Ernie's Auto Detailing, Inc. provides auto detailing services for
automotive dealerships in New York and New Jersey.
The Debtor filed Chapter 11 Petition (Bankr. D.N.J. Case No.
21-19015) on November 22, 2021, with $500,001 to $1 million in
assets and $100,001 to $500,000 in liabilities.
Judge Vincent F. Papalia oversees the case.
The Debtor is represented by Donald F. Campbell, Jr., Esq., at
Giordano, Halleran & Ciesla, P.C.
FINANCE OF AMERICA: Fitch Subsequently Hikes Rating to CCC on DDE
------------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDRs) of Finance of America Companies Inc. and its subsidiaries,
Finance of America Equity Capital LLC and Finance of America
Funding LLC (together, FOA) to 'RD' (Restricted Default) from 'C'.
The action follows the completion of the company's debt
restructuring on Oct. 31, 2024, which Fitch views as a distressed
debt exchange (DDE).
Fitch has also upgraded FOAs IDRs to 'CCC' from 'RD' subsequent to
the DDE.
Fitch has assigned a rating of 'CCC-' with a Recovery Rating of
'RR5' to Finance of America Funding, LLC's new $196 million senior
secured notes due in 2026 and $147 million convertible senior
secured notes due in 2029 issued as part of the exchange.
Concurrently, Fitch has also downgraded Finance of America Funding
LLC's unsecured debt rating to 'RD'' from 'C'/'RR6' and withdrawn
the rating as 98% of the notes were exchanged into the new secured
notes.
Key Rating Drivers
Ratings Downgraded on DDE: The downgrade to 'RD' reflects Fitch's
view that FOA's debt exchange constitutes a DDE as it imposes a
material reduction in terms compared with the existing contractual
terms and is being done to avoid an otherwise likely eventual
default. The material reduction in terms are reflected in the
extension of the original maturity of the unsecured debt via the
exchange into new notes, and the elimination of substantially all
restrictive covenants and events of default on the remaining
unsecured notes.
Fitch believes FOA's weak operating performance, limited liquidity
and highly encumbered balance sheet suggest that the company would
be unable to meet the 2025 note maturity without the exchange
offer. Available liquidity at June 30, 2024 was well-below $350
million, and raising sufficient proceeds through asset sales would
entail meaningful execution risk.
Exchange Improves Financial and Operating Flexibility: The
subsequent upgrade of the ratings reflects FOA's improved financial
and operating flexibility following the debt exchange as
refinancing risk has been reduced and near-term liquidity needs are
limited given the extension of debt maturities to 2026.
FOA's ratings remain supported by its established market position
within the reverse mortgage sector and experienced senior
management team.
Ratings Constrained by Weak Liquidity: Ratings remain constrained
by low liquidity, high leverage, weak profitability, a fully
secured funding profile, and elevated key person risk related to
founder and Chairman, Brian Libman.
While sufficient to meet its near-term operating needs, Fitch
continues to believe FOA has a weak liquidity profile. At 2Q24,
available liquidity consisted of $47 million of unrestricted cash
and $32 million of available borrowing capacity on its non-funding
secured lines of credit, which represented 5% of total debt. Fitch
believes FOA's ability to meet its upcoming $45 million November
2025 amortization payment and $147 million November 2026 secured
note maturity may be dependent on favorable rate levels and
positive operating results in the near term, which highlights
significant interest rate risk to the credit profile.
Limited Funding Flexibility: The debt exchange removed all
unsecured funding from FOA's capital structure, which Fitch
believes reduces its funding flexibility. Fitch would view an
increase in contingent liquidity resources and the addition of an
unsecured funding component favorably for the funding profile. In
Fitch's view, regulatory efforts to support reverse mortgage
originators will be positive for industry participants. This
includes Ginnie Mae's HMBS 2.0 proposal which will allow for
pooling of currently ineligible loans, improving the liquidity for
these assets and lessening the funding needs for servicers.
Very High Leverage: Total debt, excluding Home Equity Conversion
Mortgage-Backed Securities (HMBS) obligations and non-recourse
debt, to tangible equity was 93x at 2Q24 as FOA's capital base was
eroded by negative earnings from 2021 through 1H24. Fitch believes
improved profitability could begin to rebuild capital levels over
the medium term but leverage levels will likely be volatile during
the interim periods due to the movement in interest rates.
Earnings to Benefit from Rate Easing Cycle: FOA reported a $78
million pre-tax loss in 1H24. Profitability has historically been
weak as the company recorded fair value write-downs to residual
interest in its loan securitizations in FY23 and FY22 due to rising
interest rates, and incurred elevated expenses related to its
business transformation. Fitch believes FOA's profitability should
benefit from a reduction in interest rates, as this will likely
drive higher mortgage origination volumes and improve the valuation
of the company's residual investments in its securitizations.
Fitch believes profitability should also benefit from FOA's
transition to a monoline reverse mortgage lender, which has reduced
operating costs to $85 million in 2Q24 from $400 in 2Q21; prior to
the initiated transition. Management has guided to positive
adjusted profitability in coming quarters, which could help rebuild
capital levels and reduce leverage. Still, Fitch believes there is
meaningful execution risk as earnings will be closely tied to
interest rate movements and origination volume.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to improve the liquidity profile ahead of the upcoming
amortization payment in 2025 and note maturities in 2026;
- Sustained operating losses;
- Leverage maintained above 15x;
- Inability to refinance secured funding facilities or avoid
covenant breaches;
- Regulatory scrutiny resulting in FOA incurring substantial fines
that negatively affect its franchise or operating performance;
- The departure of Brian Libman, who has led the growth and
direction of the company.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improved liquidity and funding flexibility, including an
extension of funding duration, an increase in committed facilities,
and increased aggregate liquidity resources;
- Improved profitability as demonstrated by an ROAA sustained above
1% and positive cash flow generation;
- Sustained reduction in leverage below 10x;
- Unsecured debt approaching 15% of total debt and a commensurate
increase in unencumbered assets;
- Continued growth of the business that enhances FOA's franchise;
- Demonstrated effectiveness of corporate governance policies,
including enhanced management team depth and/or clearly articulated
succession planning for key management positions.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior secured debt rating is one notch below FOA's IDR and
reflects below-average recovery prospects in a stressed scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The secured debt rating is primarily sensitive to changes in the
IDR and secondarily to the funding mix and available collateral. A
material increase in unencumbered assets and recovery prospects
could result in the unsecured debt rating being equalized with the
IDR.
ADJUSTMENTS
The Standalone Credit Profile has been assigned below the implied
Standalone Credit Profile due to the following adjustment
reason(s): Weakest Link - Funding, Liquidity & Coverage (negative).
The Business Profile score has been assigned below the implied
score due to the following adjustment reason(s): Business model
(negative). The Funding, Liquidity & Coverage score has been
assigned below the implied score due to the following adjustment
reason(s): Historical and future metrics (negative).
ESG Considerations
FOA has an ESG Relevance Score of '4' for Governance Structure due
to elevated key-person risk related to its founder and Chairman,
Brian Libman, who has led the growth and strategic direction of the
company. This has a negative impact on the credit profile and is
relevant to the rating in conjunction with other factors.
FOA has an ESG Relevance Score of '4' for Customer Welfare - Fair
Messaging, Privacy and Data Security, due to its exposure to
compliance risks that include fair lending practices, debt
collection practices and consumer data protection. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Finance of America
Companies Inc. LT IDR RD Downgrade C
LT IDR CCC Upgrade
Finance of America
Equity Capital LLC LT IDR RD Downgrade C
LT IDR CCC Upgrade
Finance of America
Funding LLC LT IDR RD Downgrade C
LT IDR CCC Upgrade
senior unsecured LT RD Downgrade C
senior unsecured LT WD Withdrawn
senior secured LT CCC- New Rating RR5
FOOT LOCKER: Egan-Jones Cuts Senior Unsecured Ratings to BB
-----------------------------------------------------------
Egan-Jones Ratings Company on October 25, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Foot Locker, Inc. to BB from BB+.
Headquartered in New York, Foot Locker, Inc. retails footwear.
GANNETT CO: Fitch Affirms 'B' LongTerm IDR, Off Watch Negative
--------------------------------------------------------------
Fitch Ratings has removed the Rating Watch Negative and
simultaneously affirmed both Gannett Co, Inc.'s (GCI) and Gannett
Holdings Ltd's (Gannett) Long-Term Issuer Default Ratings (IDR) at
'B' with a Negative Rating Outlook. Fitch has also downgraded
Gannett's first-lien secured debt to 'BB-' from 'BB' and has
revised their Recovery Rating to 'RR2' from 'RR1'. Fitch has also
assigned a new rating of 'BB-'/'RR2' to the new delay-draw term
loan.
The downgrade of the existing first-lien bonds to 'BB-', along with
the assignment of the new pari passu delay-draw term loan of 'BB-',
is based on the increase in first-lien debt to an estimated
pro-forma balance of $854 million from $576 million as of Sept. 30,
2024, resulting in a pro-forma first-lien leverage increase of
approximately one full turn, to 3.2x from 2.1x. Further, the
potential for an approximate $50 million in additional first-lien
borrowings reduces recovery expectations to 'RR2' from 'RR1'.
Key Rating Drivers
Operational Headwinds: Gannett has faced significant macroeconomic
and operational headwinds over the past two years, including an
advertising recession from 2H22 to 1Q24. The recession reduced
digital revenues and accelerated the decline in linear advertising
in the newspaper sector, causing a significant drag in 2022 and
2023. Operating performance has also been dampened by the decline
in linear circulation, which has been faster than Fitch expected.
Debt Reduction: Gannett has engaged in aggressive debt reduction
efforts using a mix of FCF, asset sale proceeds and cash on hand.
These efforts saw debt fall by $258 million over the past two years
to $1.06 billion as of Sept. 30, 2024, despite the operational
headwinds. Overall, the company has cut debt by 40% from a peak of
$1.76 billion following its 2019 acquisition by New Media
Investment Group, Inc.
Gannett's debt exchange transaction materially improves the
credit's maturity profile, as it pushes the vast majority of prior
2026 and 2027 maturity dates off to 2029 and 2031. The transaction
also improves pro-forma liquidity as the new term loan provides an
incremental $50 million available to draw down if needed.
However, Fitch believes, based on the current pro forma liquidity
and expected FCF, Gannett will not likely require additional
capital markets access for another four years in order to meet its
upcoming debt maturities. Further, Fitch expects the company's
recent positive operating trajectory and aggressive debt repayment
efforts to continue and for Gannett to return to within its EBITDA
leverage sensitivities over the next 18 months.
Elevated Leverage: Fitch-calculated EBITDA leverage of 3.9x at
Sept. 30, 2024 is higher than Fitch's prior expectation of 3.5x and
continues to exceed negative sensitivities. However, Fitch expects
leverage to return to within the sensitivities in 2025 due to
continued operating improvements and debt repayment.
Operating Recovery: Gannett's operating performance has improved as
digital revenue continues to be a larger contributor of total
revenue and cost rationalization has led to better EBITDA trends
over the recent two quarters.
Digital to Drive Growth: Gannett's steady transition to digital
sphere through its digital marketing services (DMS) and circulation
and advertising segments is a credit positive, as it counters the
structural decline of its traditional linear business. Fitch
expects total digital revenue contribution to exceed 50% of total
revenue by 2025, up from 43% in the 12 months ended Sept. 30, 2024
and about 28% in 2020. The DMS segment offers the strongest growth
potential, given the large base of untapped small-to-medium sized
businesses.
DMS provides a cloud-based platform, LocaliQ, which offers digital
advertising and marketing solutions to businesses located primarily
in the U.S. along with the U.K., Australia, New Zealand and Canada.
DMS has approximately 14,300 clients and accounted for 19% of
Gannett's total revenue in the 12 months ended Sept. 30, 2024,
against 13% in 2020. Gannett plans to continue to grow this segment
by developing its product portfolio with artificial
intelligence-based solutions and moving into smaller verticals.
Derivation Summary
Gannett is a global multimedia company consisting of publishing and
digital media solutions segments in the U.S. and U.K. Although
Gannett faces the same industry challenges as News Corporation's
(BBB-/Stable) print media segment, Gannett has a smaller scale,
lower diversification and higher leverage. This leads to the
multi-notch rating differentiation.
Gannett's rating reflects its substantially smaller size and higher
leverage relative to larger and more diversified media peers, like
The Walt Disney Company (A-/Stable), Warner Bros. Discovery, Inc.
(BBB-/Stable) and Paramount Global (BBB-/Negative). Gannett has
lower leverage than Gray Television Inc. (BB-/Negative) and The
E.W. Scripps Company (B/Stable), but this is offset by its narrower
margin, greater operating volatility, smaller advertising market
share and greater industry-related challenges.
Key Assumptions
- Revenue declines continue decelerating in 2024, as digital
revenue maintains its positive growth trajectory and linear revenue
declines moderate. Margin to improve driven by revenue growth
deceleration and stabilizing operating leverage;
- Revenue to rise in the low-single-digits annually from 2025 on
the continued deceleration in linear revenue losses and
high-single-digit annual digital growth. Total revenue momentum is
driven by aggregate digital revenue, which continue to take share
from linear, and are likely to exceed 50% of total revenue in
2025;
- EBITDA margin to see a slow annual improvement, reaching about
11.6% by 2027 on improving operating leverage from both linear,
which benefits from a smaller cost base, and digital;
- Capex intensity between 1.3%-2.0%;
- Improving FCF generation over the medium term, with the margin
nearly tripling to 6.0% in 2027 (2023: 2.1%);
- Real estate and non-strategic asset sales totaling $45 million in
2024, with proceeds used to pay down debt;
- Proposed Apollo term loan and debt exchange transactions are
completed at end of October 2024;
- Shareholder returns remain paused.
RATING SENSITIVITIES
Fitch could revise the Outlook back to Stable based on evidence of
consistent digital revenue growth, such that digital revenue is
more than half of total revenue and offsetting losses from
traditional print revenue, and the company maintaining total
leverage less than 3.5x on a sustained basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Downgrade
- Successful execution of strategic operating transformation
leading to sustainable total digital revenue growth that
meaningfully offsets the decline in legacy revenues;
- Consistent EBITDA and FCF margin improvement;
- EBITDA leverage declines below 2.0x on a sustainable basis.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Upgrade
- Digital revenue growth slows or declines and is insufficient to
meaningfully offset print subscriber declines;
- EBITDA leverage exceeds 3.5x without a creditable plan to return
leverage within sensitivities.
Liquidity and Debt Structure
Adequate Liquidity: The company had $102 million in cash and cash
equivalents as of Sept. 30, 2024, and generated $67 million in FCF
for the 12 months ended Sept. 30, 2024. Gannett does not have a
revolving credit facility as it typically generates FCF. Fitch
expects FCF to increase over the medium term due to EBITDA growth,
which is consistent with company's guidance for FCF to accelerate
in the 2025-2026 timeframe. Apollo's new term loan requires annual
amortization of $68 million which will thereby require the company
to use majority of its FCF to be directed to loan repayment.
Issuer Profile
Gannett is a global media company offering a broad array of digital
and linear news and media brands in the U.S., where it has the
largest aggregate circulation, and the U.K. It also provides
digital advertising and marketing solutions to SMB clients.
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Gannett Co., Inc. LT IDR B Affirmed B
Gannett Holdings LLC LT IDR B Affirmed B
senior secured LT BB- New Rating RR2
senior secured LT BB- Downgrade RR2 BB
GOKADA INC: David Klauder Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed David Klauder, Esq.,
at Bielli & Klauder, LLC as Subchapter V trustee for Gokada Inc.
Mr. Klauder will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Klauder declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
David M. Klauder, Esq.
Bielli & Klauder, LLC
1204 N. King Street
Wilmington, DE 19801
Phone: (302) 803-4600
Fax: (302) 397-2557
Email: dklauder@bk-legal.com
About Gokada Inc.
Gokada Inc. is a mile delivery service in Nigeria.
Gokada Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12377) on October
18, 2024, with total assets of $564,132 and total liabilities of
$5,436,522. Olutosin Oni, chief executive officer, signed the
petition.
The Debtor is represented by Gregory W. Hauswirth, Esq., at
Carothers & Hauswirth, LLP.
HAMMOCK COMMUNITIES: Aaron Cohen Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Hammock Communities Inc.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Hammock Communities
Hammock Communities Inc., doing business as HC Builds, specializes
in creating unique residential communities, they offer a range of
housing options for individuals and families looking to settle in
the area.
Hammock Communities Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03101) on October 15, 2024, with up to $50,000 in assets and up
to $10 million in liabilities. Richard J. Smith, president, signed
the petition.
Judge Jason A. Burgess handles the case.
The Debtor is represented by Scott W. Spradley, Esq., at The Law
Offices of Scott W. Spradley.
HANEY INC: Claims to be Paid From Disposable Income
---------------------------------------------------
Haney Inc. filed with the U.S. Bankruptcy Court for the Southern
District of Ohio a Plan of Reorganization under Subchapter V dated
September 19, 2024.
The Debtor was founded in Cincinnati, Ohio in 1990 by two brothers,
Matthew and Daniel Haney. Initially, the company focused on
providing graphic design services for print and marketing materials
to local businesses.
Over time, the company shifted its focus to specializing in package
design and prototyping services across the country. Haney pioneered
an innovative digital print registration method that allowed for
precise prototypes on flexible packaging materials like plastic and
specialty substrates. Haney expanded its workforce and invested in
advanced print and converting technologies to accommodate higher
volumes for tests and learn applications.
The Debtor is a packaging development firm, and its assets reside
primarily in its personnel and the ability to offer services to
businesses developing new products. While the Debtor has been
successful in collecting its receivables since large institutions
are involved, there are often delays in payments due to extended
and delayed payment terms.
The total unsecured debt pool, including the unsecured portions of
the claims of G.E. Credit Union and US Bank, and the claims of the
SBA and the MCA lenders is estimated to be $3,305,752.
In addition to the Senior Secured Obligations, the SBA has the next
secured position and there are an additional 15 UCC filings from
Merchant Cash Advance companies that the Debtor believes have no
secured status. The SBA obligation and the MCA's shall be paid in
Class 6 and are included in the unsecured pool.
The Debtor will make monthly payments of no less than $50,000.00
(the "Scheduled Minimum Payments") for 49 months after the
Effective Date which will be disbursed quarterly beginning on the
First Distribution Date. The case will be further funded by any
funds recovered in avoidance actions. Priority tax claims will be
paid by the Debtor in full on the Effective Date of the plan.
Total unsecured claims are estimated at $3,305,752.00 for a 10%
distribution. The percentage may be increased, but not reduced,
depending on the profitability of the company and the payment of
any Additional Profit-Sharing Distributions and any Net
Recoveries.
The Debtor anticipates that they will be able to pay current
operation expenses and fund the Chapter 11 Subchapter V plan
payments. The financial projections for the next 49 months reflect
disposable income which is sufficient to fund the Plan during the
term. With the assumption that the business will remain consistent,
the Debtor will be able to fund the plan for the 49 months.
Class 6 consists of all Allowed Unsecured Claimants. The Class 6
creditors will receive payments under the Plan from the Debtor's
net disposable income over the commitment period. The Debtor has
provided projections with the Plan indicating its general projected
monthly performance over the life of the Plan, and, based on those
projections, Class 6 creditors shall receive at least 10% of their
Allowed Unsecured Claims. In addition, this Class will potentially
receive Additional Profit Sharing Distributions and 50% of the Net
Recoveries. Class 6 is impaired under the Plan.
Class 7 consists of the Equity Interests of the Shareholders,
Daniel and Matthew Haney. Class 7 will retain their equity
interests but will receive no dividends or stock related benefits
until creditors have been paid as required in this Plan.
During the period from the Confirmation Date up to and including
the Effective Date, the Debtor may continue to operate the
business, subject to all applicable orders of the Bankruptcy
Court.
A full-text copy of the Plan of Reorganization dated September 19,
2024 is available at https://urlcurt.com/u?l=osWYd5 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Eric W. Goering, Esq.
Goering & Goering, LLC
220 West Third Street
Cincinnati, OH 45202
Telephone: (513) 621-0912
Email: eric@goering-law.com
About Haney Inc.
Haney, Inc., is a consumer packaging micro-supply chain which
handles all aspects of small-batch packaging projects, from
concepting and prototyping, to packing and fulfillment.
Haney Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-11405) on June
21, 2024, listing $1,965,433 in assets and $4,079,770 in
liabilities. The petition was signed by Matthew Haney as CEO.
Judge Beth A Buchanan presides over the case.
Eric W. Goering, Esq., at GOERING & GOERING represents the Debtor
as counsel.
HELIX ENERGY: Reports Net Income of $29.5 Million in Fiscal Q3
--------------------------------------------------------------
Helix Energy Solutions Group, Inc. reported net income of $29.5
million, or $0.19 per diluted share, for the third quarter 2024
compared to net income of $32.3 million, or $0.21 per diluted
share, for the second quarter 2024 and net income of $15.6 million,
or $0.10 per diluted share, for the third quarter 2023. Helix
reported adjusted EBITDA1 of $87.6 million for the third quarter
2024 compared to $96.9 million for the second quarter 2024 and
$96.4 million for the third quarter 2023.
For the nine months ended September 30, 2024, Helix reported net
income of $35.5 million, or $0.23 per diluted share, compared to
net income of $17.5 million, or $0.11 per diluted share, for the
nine months ended September 30, 2023. Net income for the nine
months ended September 30, 2024, included a pre-tax loss of $20.9
million related to the retirement of our Convertible Senior Notes
due 2026, and net income for the nine months ended September 30,
2023 included a pre-tax loss of $31.3 million due to the increase
in the value of the contingent consideration related to the
Alliance acquisition. Adjusted EBITDA for the nine months ended
September 30, 2024, was $231.5 million compared to $202.8 million
for the nine months ended September 30, 2023.
Owen Kratz, President and Chief Executive Officer of Helix, stated,
"Helix's third quarter 2024 results reflect its strength
financially, operationally and commercially. Our Robotics segment
continues to perform at a high level, benefitting from strong
trenching and renewables operations in the North Sea and Asia
Pacific. Our Well Intervention segment performed well even though
impacted by 105 mobilization days on the Q4000 transiting to West
Africa and the Q7000 transiting in Australia. We achieved our
strong third quarter results despite significant weather
disruptions in the Gulf of Mexico, which have negatively impacted
our Shallow Water Abandonment segment during the quarter, and lower
oil and gas production due to shut-ins on some of our offshore
wells. During the quarter, we also entered into three well
intervention contracts that increased our backlog by over $800
million and provide contract coverage for multiple years into the
future. Overall, we believe our third quarter performance and
achievements display our steadfast execution of our strategy, the
confidence our customers have in our services and the strength of
this market."
As of September 30, 2024, the Company had $2.7 billion in total
assets, $1.1 billion total liabilities, and $1.6 billion in total
shareholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3vykajf9
About Helix Energy
Helix Energy Solutions Group, Inc. is an American oil and gas
services company headquartered in Houston, Texas.
For the full year 2023, Helix reported a net loss of $10.8 million,
compared to a net loss of $87.8 million for the full year 2022. As
of June 30, 2024, Helix had $2.6 billion in total assets, $1.1
billion in total liabilities, and $1.5 billion in total
shareholders' equity.
* * *
Egan-Jones Ratings Company on September 21, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Helix Energy Solutions Group, Inc.
ICEY-TEK USA: Case Summary & 15 Unsecured Creditors
---------------------------------------------------
Debtor: Icey-Tek USA LLC
454 Swanson Dr
Dresden, TN 38225
Case No.: 24-11470
Chapter 11 Petition Date: November 2, 2024
Court: United States Bankruptcy Court
Western District of Tennessee
Judge: Hon. Jimmy L Croom
Debtor's Counsel: Steven N. Douglass, Esq.
HARRIS SHELTON, PLLC
40 S. Main Street, Suite 2210
Memphis, TN 38103-2555
Tel: (901) 525-1455
Fax: (901) 526-4084
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Patrick Mudge as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/W5EPXXQ/Icey-Tek_USA_LLC__tnwbke-24-11470__0001.0.pdf?mcid=tGE4TAMA
IDEAL PROPERTY: K&L Gates Advises Committee of Unsecured Creditors
------------------------------------------------------------------
In the Chapter 11 case of Ideal Property Investments LLC, the
Official Committee of Unsecured Creditors filed a verified
statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure.
On October 7, 2024, the Office of United States Trustee for Region
18 appointed three members to the Committee pursuant to sections
1102(a) and 1102(b) of the Bankruptcy Code. The Committee currently
consists of the following members: (a) Sterling A. Davis, Big Boy
Tools LLC (b) Ronald N. Cole, Colewstech LLC & RCWSTECH1157 LLC;
and (c) David Schroeder, Indiana Water Technology, LLC.
The Committee members hold claims against the Debtor's estate
arising from business relationships with the Debtor. The claims and
claim amount have been provided by the applicable Committee members
and by filing this Verified Statement, the Committee makes no
representation regarding the amount, allowance or priority of such
claims and reserves all rights with respect thereto.
Attorneys for the Official Committee of Unsecured Creditors:
K&L GATES LLP
Michael J. Gearin, Esq.
John T. Bender, Esq.
Michael W. Meredith, Esq.
925 Fourth Avenue, Suite 2900
Seattle, WA 98104-1158
Telephone: (206) 623-7580
Email: michael.gearin@klgates.com
john.bender@klgates.com
ruby.nagamine@klgates.com
About Ideal Property Investments
Ideal Property Investments, LLC is primarily engaged in renting and
leasing real estate properties. The company is based in Everett,
Wash.
Ideal Property Investments filed Chapter 11 petition (Bankr. E.D.
Wash. Case No. 24-01421) on September 5, 2024, with $50 million to
$100 million in assets and $100 million to $500 million in
liabilities.
Judge Frederick P. Corbit oversees the case.
Laurie Thornton, Esq., at DBS Law is the Debtor's bankruptcy
counsel.
INTEGRITY CARBON: Plan Exclusivity Period Extended to Nov. 24
-------------------------------------------------------------
Judge Gregory R. Schaaf of the U.S. Bankruptcy Court for the
Eastern District of Kentucky extended Integrity Carbon Solutions
LLC and Bluegrass Resources, LLC's exclusive periods to file a plan
of reorganization and obtain acceptance thereof to November 24,
2024 and February 23, 2025, respectively.
As shared by Troubled Company Reporter, prior to the Petition Date,
the Debtors conducted coal mining operations in Letcher County
Kentucky; however, operations are currently idled.
The Debtors explain that their bankruptcy proceedings involve legal
disputes with several different constituencies. The Debtors have
made progress since the commencement of these proceedings resolving
some of these disputes and have engaged litigation counsel to
resolve other outstanding disputes.
Since the Petition Date, the Debtors have, among other things,
prepare and file their schedules, statements of financial affairs,
engagement professionals to assist in the litigation of certain
matters key to the Debtors' reorganization efforts, and have begun
to formulate options for exit from chapter 11.
Lead Counsel to the Debtors:
T. Kent Barber, Esq.
EMBRY MERRITT WOMACK NANCE, PLLC
201 East Main Street, Suite 1402
Lexington, KY 40507
Tel: (859) 543-0453
Email: kent.barber@emwnlaw.com
About Integrity Carbon Solutions
Integrity Carbon Solutions LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ky.
Case No. 24-70259) on June 26, 2024, listing $1 million to $10
million in assets and $10 million to $50 million in liabilities.
The petition was signed by Paul Lopez, managing member.
Judge Gregory R Schaaf presides over the case.
T. Kent Barber, Esq., at Embry Merritt Womack Nance PLLC, is the
Debtor's counsel.
IR4C INC: Gets Interim OK to Use Cash Collateral
------------------------------------------------
IR4C, Inc. received interim approval from the U.S. Bankruptcy Court
for the Middle District of Florida, Tampa Division to use its
secured creditors' cash collateral.
The interim order authorized the company to use cash collateral to
pay ordinary business expenses set forth in its budget, which
include software subscriptions, utilities, payroll, marketing, and
shipping costs.
Secured creditors will have post-petition liens on cash collateral
to the same extent and with the same validity and priority as their
respective pre-bankruptcy liens.
The next hearing is scheduled for Nov. 21.
About IR4C Inc.
IR4C, Inc., a company in Lakeland, Fla., is the owner and operator
of a mobile application fitness program using augmented reality to
create virtual "races." It conducts business under the name Yes.Fit
and Make Yes Happen.
IR4C filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case
No. 24-05458) on Sept. 13, 2024, before Judge Roberta A. Colton. In
its petition, IR4C listed total assets of $4,280,839 and total
liabilities of $7,922,422. IR4C President Kevin D. Transue signed
the petition.
Samantha L. Dammer, Esq., at Bleakley Bavol Denman & Grace, serves
as the Debtor's legal counsel.
JB'S BBQ: Seeks to Extend Plan Exclusivity to November 18
---------------------------------------------------------
JB's BBQ and More LLC asked the U.S. Bankruptcy Court for the
Southern District of Mississippi to extend its exclusivity period
to file a chapter 11 plan of reorganization to November 18, 2024.
The Debtor claims that its exclusive right to propose a plan of
reorganization in a Chapter 11 bankruptcy case terminates 120 days
after the petition date. After this date, any party in interest may
propose a competing plan of reorganization.
The Debtor asserts that this motion is not intended to cause undue
delay in this proceeding, and granting it additional time to file a
Plan will not prejudice any party in interest.
JB's BBQ and More LLC is represented by:
Eileen N. Shaffer, Esq.
Eileen N. Shaffer, Attorney at Law
Post Office Box 1177
Jackson, MS 39215-1177
Tel: (601) 969-3006
Email: eshaffer@eshaffer-law.com
About JB's BBQ and More LLC
JB's BBQ and More LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 24-01443) on
June 21, 2024, listing up to $50,000 in assets and $50,001 to
$100,000 in liabilities.
Judge Katharine M Samson presides over the case.
Eileen N. Shaffer, Esq. represents the Debtor as counsel.
KIMO TILE: Nicole Nigrelli Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Nicole Nigrelli,
Esq., at Ciardi, Ciardi & Astin as Subchapter V trustee for KIMO
Tile @ Marble, LLC.
Ms. Nigrelli 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. Nigrelli declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nicole M. Nigrelli, Esq.
Ciardi, Ciardi & Astin
1905 Spruce Street
Philadelphia, PA 19103
Phone: (215) 557-3550 ext. 115
Email: nnigrelli@ciardilaw.com
About KIMO Tile @ Marble
KIMO Tile @ Marble LLC, doing business as KIMO Tile LLC, installs
tiles and marble for residential, commercial, municipal and
property management projects.
KIMO Tile @ Marble sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-20009) on
Oct. 9, 2024, with total assets of $279,726 and total liabilities
of $1,017,173. Sasha Richard Kissoondath, managing member, signed
the petition.
The Debtor is represented by Edmond M. George, Esq., at Obermayer
Rebmann Maxwell & Hippel, LLP.
L & F GULLO: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: L & F Gullo Service Corp.
DBA Gullo Specialty Foods
520 Main Street
Westbury, NY 11590
Case No.: 24-74215
Business Description: The Debtor is a seafood wholesaler in
Westbury, NY.
Chapter 11 Petition Date: November 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Louis A Scarcella
Debtor's Counsel: Gary C. Fischoff, Esq.
BERGER, FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP
6901 Jericho Turnpike
Suite 230
Syosset, NY 11791
Total Assets: $809,507
Total Liabilities: $4,319,272
The petition was signed by Frank Gullo as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/727TZWA/L__F_Gullo_Service_Corp__nyebke-24-74215__0001.0.pdf?mcid=tGE4TAMA
L.C.S. UNLIMITED: Seeks Court Nod to Use Cash Collateral
---------------------------------------------------------
LCS Unlimited, LLC asked the U.S. Bankruptcy Court for the Middle
District of Alabama for authority to use cash collateral to pay its
operating expenses.
Over the last two years, LCS has suffered financial problems
believed to be related, at least in part, to the lack of capital
improvements by existing business and the decline in the
construction and development of new businesses, which results in a
decrease in the sales of construction-related products. LCS has
defaulted on various debts and faced the threat of imminent
repossession as of the petition date. Further, the company has
incurred various obligations related to certain state or federal
taxes.
LCS' inability to use its cash collateral will significantly
interfere with its relationships with suppliers and other third
parties, and ultimately, with its ability to successfully
reorganize, according to the company's attorney, Anthony Bush,
Esq., at The Bush Law Firm, LLC.
Arvest Bank, Commercial Credit Group, Inc. and the Internal Revenue
Service may have interest in the cash collateral. As protection,
LCS proposed adequate protection for these creditors in the form of
a replacement lien on its post-petition receivables and projected
positive cash flow.
About L.C.S. Unlimited
L.C.S. Unlimited, LLC filed Chapter 11 petition (Bankr. M.D. Ala.
Case No. 24-32330) on Oct. 15, 2024, with $1 million to $10 million
in both assets and liabilities. The petition was signed by Lisa C.
Sweeney as member.
Anthony B. Bush, Esq., at The Bush Law Firm, LLC is the Debtor's
bankruptcy counsel.
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on October 15, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Lamar Advertising Company. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Baton Rouge, Louisiana, Lamar Advertising Company
owns and operates outdoor advertising structures in the United
States.
LEFT COAST: Ex-CEO Seeks Appointment of Receiver
------------------------------------------------
Adam Jackson of greenmarketreport.com reports that Dominique
Villela, who served briefly as interim CEO of Left Coast Financial
Solutions, is seeking the appointment of a court receiver to
supervise the distribution of funds and perform a forensic audit
before handling claims. He asserts that numerous businesses are
owed money and is urging a federal court not to release the
remaining sums to a single company seeking repayment.
According to greenmarketreport.com, Villela stated in court
documents obtained by Law360 that approximately 64 cannabis
companies never recouped their deposits following the platform's
collapse. Villela opposes the bid by CBD company Killa Beez
Distribution to recover $127,000. He emphasized the need for
"equitable distribution of these funds, overseen by a
court-appointed receiver, to ensure fairness for all claimants."
The payment platform had positioned itself as an online "neobank"
service for cannabis businesses but operated under a money
transmitter license rather than a bank charter. Its primary
accounts were maintained at City Trust Bank in the Commonwealth of
the Northern Mariana Islands, where former executives Daniel
Herrington and Casey Nye-Herrington continued to be principal
account holders, the report relays.
According to the report, court documents reveal that City Trust
Bank froze those accounts due to multiple bounced checks,
noncompliance with banking regulations in the Northern Mariana
Islands where the accounts were located, and the bank's provision
of services despite only having permission to facilitate money
transfers.
In January 2023, the Oregon Division of Financial Regulation
suspended Left Coast's license, citing reporting deficiencies and
an "inadequate" net worth, according to the Portland Business
Journal. The regulatory order highlighted issues from previous
ownership, such as overdrawn accounts and checks returned for
insufficient funds, reports greenmarket.com.
The Herringtons acknowledged that they had combined customer
deposits with operational funds, resulting in estimated losses
ranging from $900,000 to $1.2 million. According to the report,
Villela said he was appointed as interim CEO in October 2022 to
investigate the financial issues, but the former leadership never
relinquished control of the City Trust Bank accounts, despite
claiming to have resigned.
"While defrauding additional businesses, including Killa Beez, the
former leadership maintained control and used the defendant's
position to evade accountability for the company's insolvency,"
Villela stated, according to the report.
In November 2023, Killa Beez sued Left Coast, alleging that
multiple checks had bounced, including a $30,000 withdrawal
attempt. The lawsuit named several executives, including company
founder Nicholas Rupp.
The report notes Rupp sought to have the case dismissed, contending
that his status as a founder does not make him personally liable.
He attributed the fund freeze to City Trust Bank, despite the
company's efforts to comply with banking requirements.
The case is currently pending in U.S. District Court in Oregon.
About Left Coast Financial Solutions
Left Coast Financial Solutions specializes in banking cannabis
business.
LOMA LINDA UNIVERSITY: Fitch Rates Series 2024A/B Bonds 'BB+'
-------------------------------------------------------------
Fitch Ratings has assigned 'BB+' ratings to $56.8 million of series
2024A tax-exempt variable rate bonds and $66.8 million series 2024B
taxable variable rate bonds issued by the California Statewide
Communities Development Authority (CSCDA) on behalf of Loma Linda
University Medical Center (LLUMC). Fitch has also affirmed LLUMC's
Issuer Default Rating (IDR) at 'BB+'. Fitch has additionally
affirmed the ratings on existing revenue bonds issued by the CSCDA
on behalf of LLUMC at 'BB+'.
Proceeds from the series 2024A were for reimbursement of prior
capital expenditures. Proceeds from the series 2024B repaid a
portion of the series 2014B bonds. The series 2014B bonds were
redeemed on October 3, 2024. The series 2024A&B bonds were a direct
purchase by Bank of America, N.A.
The Rating Outlook has been revised to Positive from Stable.
Entity/Debt Rating Prior
----------- ------ -----
Loma Linda University
Medical Center (CA) LT IDR BB+ Affirmed BB+
Loma Linda University
Medical Center (CA)
/General Revenues/1 LT LT BB+ Affirmed BB+
The Outlook revision to Positive reflects Fitch's expectation that
LLUMC's financial profile will improve in the coming years, even in
a forward-looking stress case. Balance sheet growth should be
supported by sound cash flow generation and manageable capital
spending.
The 'BB+' ratings reflect LLUMC's expanding reach for high-acuity
services anchored by its major new hospital campus, balanced
against the system's high leverage position. LLUMC has a
track-record of recording generally sound operating EBITDA margins
(for a below investment grade health system). As the only academic
medical center (AMC) and only children's hospital serving a large
population base in the Inland Empire, LLUMC remains well positioned
competitively.
LLUMC's debt load relative to its liquidity remains a limit on the
rating in the near term. With continued sufficient operating
performance, the system's capital-related metrics should improve
over time, even under a stress case, supporting the Positive
Outlook.
SECURITY
The bonds are secured by a gross receivables pledge and a mortgage
pledge of the obligated group (OG). There are also debt service
reserve funds (DSRF) in place. The OG includes LLUMC, LLU
Children's Hospital, and the LLUMC - Murrieta hospital. The OG
accounts for almost all of the consolidated system assets and
revenues. Fitch's analysis is based on the consolidated system.
KEY RATING DRIVERS
Revenue Defensibility - 'bbb'
High Acuity AMC and Children's Hospital with Broad Reach
LLUMC's has a broad reach for tertiary and quaternary services as
the only AMC and only children's hospital covering a broad
geography and population base in the Inland Empire service area.
The service area includes the population centers of San Bernardino
County and northern Riverside County. While competing hospitals are
present and inpatient market share is dispersed among multiple
providers, LLUMC is the exclusive or distinctly leading provider of
many high-acuity cases.
While Medi-Cal (Medicaid) and self-pay represent a very high
approximately 41% of LLUMC's gross revenue (including 41.8% in FY
2024), this is common for AMCs, particularly those that are
designated trauma centers and include large children's hospitals
(LLUMC's children's hospital represents about one-quarter of system
total operating revenue).
Demographic indicators of the service area are considered to be
stable. Both San Bernardino and Riverside counties are experiencing
population growth just below the U.S. average. The unemployment
rates in the counties are just above the national average.
LLUMC's revenue defensibility is bolstered by its strong
relationship with Loma Linda University (LLU; IDR, A+). LLUMC's and
LLU's campuses are adjacent. The University operates eight schools,
seven of which are focused on healthcare education and research.
While LLU and LLUMC are separate legal organizations and not
obligated on each other's debt, they are tightly aligned and the
medical system is integral to the University's teaching and
research. Both LLUMC and LLU are a part of Loma Linda University
Health (LLUH).
Operating Risk - 'a'
Variable but Generally Sound Operating EBITDA Margins; Favorable
Results in FY 2024
While variable, LLUMC's operating EBITDA margins have been
generally sound. Between FY 2018 and FY 2024, the operating EBITDA
margin averaged 7.0% (treating cash transfers to LLU/LLUH as an
operating expense, and moving investment income from operating
revenue to non-operating). While the transfers are considered an
expense, they represent an investment in physicians and clinical
research that ultimately benefit LLUMC. Excluding the transfers
from operating expenses results in an average operating EBITDA
margin of nearly 10% between FY 2018 and FY 2024.
Operating results improved in audited FY 2024 (June 30 FYE), as the
operating margin and operating EBITDA margin measured 1.0% and
8.4%, respectively, compared to -3.8% and 4.7%, respectively in FY
2023 (moving investment income to non-operating and treating
transfers to LLU/LLUH as and operating expense) (excluding
transfers from operations the operating EBITDA margin improved to
10.8% in FY 2024 from 7.7% in FY 2023).
FY 2024 benefited from continued volume growth including outpatient
visits (up 1.5% over FY 2023) and discharges (up nearly 1%),
improved labor cost management (including reduced contract labor
and greater productivity), lower average length of stay (ALOS), a
nearly $25 million increase in net California Hospital Quality
Assurance Fee (HQAF) funding, and recognition of about $10 million
in FEMA funds
Looking forward, Fitch expects that while top-line revenue will be
variable due to the timing of HQAF funding, in general LLUMC should
generate generally sound operating EBITDA margins, in the 8% range
on average (treating transfers as operating expenses). Management
has identified more than $100 million in improvements to drive
continued cash flow generation, including revenue cycle, labor cost
management, and supply chain savings. Through unaudited Q1 FY25
LLUMC recorded an operating EBITDA margin of 6.1%, compared to 3.5%
in Q1 FY24 (treating transfers as an operating expense).
Capital Spending: With the opening of the Dennis and Carol Troesh
Medical Campus hospital in 2021, capital spending plans are
manageable, much of which is funded from significant external
support. For example, the LLUMC children's outpatient center is
slated to receive as much as $135 million in voter approved state
Proposition 4 funding and fundraising. Other ongoing and planned
capex includes an ambulatory infusion center, a new cellular
therapy lab, and an inpatient rehab joint venture with LifePoint.
LLUMC does not have new money debt plans in the near term.
LLUMC and LLU have a history of successful fundraising; combined
they are currently engaged in the Stronger Together campaign. The
campaign has a target of $300 million (approximately $145 million
for clinical priorities affecting LLUMC); management reports that
the campaign is ahead of schedule and more than 40% has been raised
as of August 2024.
Financial Profile - 'bb'
Modest Financial Profile Should Improve Over Time
LLUMC's financial profile is still modest given its heavy debt load
and consistent with a below investment grade rating, but key
capital-related metrics should improve over time as the system
benefits from cash flow generation, state support, and limited
capex.
At audited FYE 2024, LLUMC's unrestricted cash and investments
measured $799 million and total debt was more than $2.2 billion.
This translated to cash-to-debt of 43% (including DSRFs in the
numerator).
LLUMC participates in the North American Division of Seventh-day
Adventist multiemployer defined benefit (DB) pension plan (which is
exempt from ERISA and has been frozen since 1992). While the frozen
DB plan was only 50.9% funded as of the most recent measurement
date (Jan. 1, 2023), LLUMC has less than 13% share of the plan's
net $362 million underfunded obligation, and therefore LLUMC's
exposure to this debt equivalent is limited.
Due to high leverage, LLUMC's capital-related ratios remain in
keeping with a high below investment grade credit. Based on FY 2024
results, cash-to-adjusted debt measures about 43% and net adjusted
debt-to-adjusted EBITDA was nearly 5x. The Outlook revision to
Positive reflects Fitch's expectation that over time these ratios
should strengthen and be more consistent with an investment-grade
health system, even in a stress case. In Fitch's forward-looking
stress scenario by year five net adjusted debt-to-adjusted EBITDA
falls below 4x and cash-to-adjusted reaches 50%.
Asymmetric Additional Risk Considerations
There are no asymmetric risks associated with the rating.
LLUMC has a new CEO, Dr. Anthony Hilliard, serving as acting CEO
pending board approval of permanent status in December 2024. Dr.
Hilliard has been with LLUH, most recently having served as COO of
the LLU Faculty Medical Group and LLU Healthcare
Financial covenants in LLUMC's MTI include a minimum debt service
coverage ratio (DSCR) of 1.1x and minimum cash on hand of 60 days.
Per management calculations, LLUMC's DSC was 2.72x in FY 2024
(2.75x for the OG).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weaker cash-to-adjusted debt that is expected to remain below 40%
for a sustained period;
- Sustained thinner operating EBITDA margins that were expected to
remain below 5%-6% (treating transfers as an operating expense).
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustained cash-to-adjusted debt above 50% even in a stress case,
particularly if the operating EBITDA margin is sustained in the 8%
range (treating transfers as an operating expense).
PROFILE
LLUMC is part of LLUH, which also includes LLU and several other
related organizations, and is affiliated with the LLU Faculty
Medical Group (LLUFMG). There is one unified board for LLUH.
LLUMC, located approximately 60 miles east of Los Angeles in Loma
Linda, CA. The system operates 1,046 beds, including 364 Children's
Hospital beds. LLUMC offers tertiary and quaternary services and
has a level I trauma center and level IV neonatal intensive care
unit. LLUMC recorded more than $2.9 billion in operating revenue in
audited FY 2024.
LLU is a private university affiliated with the Seventh-day
Adventist Church. It is the flagship health sciences university for
the Church and its extensive network of health systems.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
LOUKYA INC: Brian Hofmeister Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Brian Hofmeister,
Esq., as Subchapter V trustee for Loukya, Inc.
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 Loukya Inc.
Loukya, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-20055) on October 10,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Manu Rajvanshi, Esq., at Justice On Time, LLC represents the Debtor
as legal counsel.
LSF11 A5 HOLDCO: Nippon Paint Deal No Impact on Moody's 'B2' CFR
----------------------------------------------------------------
Moody's Ratings said that LSF11 A5 HoldCo LLC's (dba AOC) planned
sale to Nippon Paint Holdings Co., Ltd. (Nippon Paint; not rated)
by its owner the Lone Star Funds (Lone Star) has no immediate
impact on AOC's stable outlook and ratings, including its B2
corporate family rating, B1 rating on the senior secured first lien
revolving credit facility, B1 rating on the senior secured first
lien term loan as well as Caa1 rating on the senior unsecured
notes. AOC is a global CASE and colorants leader and the acquiring
party, Nippon Paint, has not disclosed its plans on AOC's
post-acquisition capital structure and financial policies.
Based on the separate announcements by Lone Star and Nippon Paint,
both parties reached a definitive agreement on the sale of AOC for
a total enterprise value of $4.35 billion including $2.3 billion
for Lone Star's equity. Nippon Paint will finance the transaction
with cash on hand and new debt which has been secured with
commitment from a Japanese bank. The acquisition is strategic for
Nippon Paint because AOC will become a new pillar business and
drive continued growth under its new owner. The transaction is
subject to certain closing adjustments and conditions, including
regulatory clearances, and is expected to close in the first half
of 2025.
Headquartered in Collierville, TN, AOC is a global CASE and
colorants leader. AOC manufactures and formulates unsaturated
polyester resins (UPR) and vinyl ester resins (VER) as well as
solutions for applications in Coatings & Protective Barriers,
Colorants & Visual Effects, Adhesives & Other and Conventional
Composite Resins. Through the company's 14 manufacturing
facilities, AOC serves customers in the transportation,
construction, infrastructure and recreation end markets. AOC was
acquired by Lone Star Funds in 2021. AOC had sales of approximately
$1.4 billion for the 12 months ended June 30, 2024.
LUGG INC: Unsecured Creditors Will Get 46% of Claims in Plan
------------------------------------------------------------
Lugg Inc. submitted a Small Business First Amended Plan of
Reorganization dated September 19, 2024.
The Debtor was founded by Eric Kreutzer and Jordan Brown (referred
to as the "Founders").
Brown was the individual designated by the Debtor to receive
service of process or other notifications that were served on
Corporation Service Company ("CCC") as the Debtor's registered
agent. Unfortunately, due to family and personal problems, Brown
did not timely forward the mail directed to Lugg by CCC to the
appropriate Lugg team members. The Debtor's directors and unrelated
shareholder reviewed the matter and determined that it was not
advisable to pursue any action against Brown in connection with the
internal failures.
Included in those notices and papers were lawsuits filed against
Lugg along with related pleadings. Consequently, several default
judgments were entered against the Debtor, some in amounts that are
significant.
Additionally, the following employment related litigation matters
were threatened or commenced against Lugg by independent
contractors who have alleged employee status and related benefits,
all of which are claims disputed by the Debtor and for which the
Debtor has obtained counsel: C. Lincoln; D. Toscano; F. Martinez;
J. Alcantra; R. Berry; S. Martinez; J. Stevens; B. Osorio; J.
Boyle; CA Labor Commissioner; and A. Mejia.
Under the Plan, the Debtor will devote all of its Projected
Disposable Income toward the payment of Creditors. The Plan will be
funded with funds that are not expended for the payment of
expenditures necessary for the continuation, preservation, or
operation of the business of the Debtor.
The Plan provides for payment of Priority Tax Claims in accordance
with the Bankruptcy Code, and projects payment to Allowed Secured
Claims and Allowed General Unsecured Claims from Projected
Disposable Income. Allowed Administrative Claims will be paid under
the terms of the Plan and the Debtor's Projected Disposable Income
projections in accordance with section 1191(e) of the Bankruptcy
Code. Furthermore, Holders of Equity Interests will retain their
Equity Interests as they existed on the Commencement Date.
The liabilities asserted against the Debtor as of the Petition Date
consist of (i) secured claims of approximately $330,000 (ii)
priority unsecured claims of approximately $46,382 and (iii) non
priority unsecured claims of approximately $3,300,000.
The secured claims are comprised of (i) five default judgments
obtained against the Debtor that became judicial liens, in a total
amount of approximately $218,000, and (ii) four state tax
assessments that became liens, in a total amount of approximately
$112,000.
Class 2 consists of General Unsecured Claims. Allowed General
Unsecured Claims will be paid over the Plan Payment Period from the
Debtor's Projected Disposable Income over the Plan Payment Period.
The payments will be made quarterly. Payments will commence on the
later of the first day of the first full quarter following the
Effective Date, or on the first day of the first full quarter
following the date that the respective General Unsecured Claim
becomes Allowed.
To the extent that Debtor's actual Disposable Income for a given
calendar quarter is insufficient to satisfy payment the Projected
Disposable Income for the calendar quarter, then the Debtor shall
utilize its available cash on hand to satisfy any such deficiency.
Plan payments of Projected Disposable Income may be prepaid at any
time without penalty. The allowed unsecured claims total
$3,000,000. This Class will receive a distribution of 46% of their
allowed claims.
The Plan will be funded by the Projected Disposable Income realized
from the operations of the Debtor. On Confirmation of the Plan, all
property of the Debtor, tangible and intangible, including, without
limitation, will revert, free and clear of all Claims and Equitable
Interests, to the Debtor, except as may otherwise be expressly
provided in the Plan.
The officers and directors of the Debtor immediately prior to the
Effective Date shall serve as the initial officers and directors of
the Reorganized Debtor on and after the Effective Date. Each
officer and director shall serve in accordance with applicable
non-bankruptcy law and the Debtor's corporate governance documents,
as each of the same may be amended from time to time. The officers
and directors shall be: Eric Kreutzer, President and Director;
Jordan Brown, CEO and Director.
A full-text copy of the First Amended Plan dated September 19, 2024
is available at https://urlcurt.com/u?l=vLkS0b from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Paul N. Mascia, Esq.
Nardella & Nardella, PLLC
135 W. Central Blvd., Suite 300
Orlando, FL 32801
Tel: (407) 966-2680
Email: pmascia@nardellalaw.com
About Lugg Inc.
Lugg, Inc. is a provider of on-demand same-day moving and delivery
solutions based in San Francisco, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11032) on May 17, 2024,
with $1,940,289 in assets and $173,950 in liabilities. Eric
Kreutzer, president, signed the petition.
Judge Karen B. Owens presides over the case.
The Debtor tapped Nardella & Nardella as bankruptcy counsel and
Baker & Hostetler, LLP as Delaware counsel. GGG Partners, LLC, is
the Debtor's financial advisor.
MACERICH CO: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on October 24, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Macerich Company. EJR also withdrew rating on
commercial paper issued by the Company.
Headquartered in Santa Monica, California, Macerich Company is a
fully integrated self-managed and self-administered real estate
investment trust.
MARKOV CORPORATION: Michael Markham Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for Markov Corporation.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
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. Markham 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 C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About Markov Corporation
Markov Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01575) on October 17,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Caryl E. Delano presides over the case.
Jonathan M. Bierfeld, Esq., at Martin Law Firm PL represents the
Debtor as bankruptcy counsel.
MERCER INTERNATIONAL: Egan-Jones Retains BB- Sr. Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on October 29, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Mercer International, Inc. EJR also withdrew
rating on commercial paper issued by the Company.
Headquartered in Vancouver, Canada, Mercer International, Inc. owns
and operates three modern pulp mills.
MICHAEL J. WEISS: Mark Politan Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for Michael J. Weiss,
Inc.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About Michael J. Weiss
Michael J. Weiss Inc. is a personal injury law firm.
Michael J. Weiss Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-20249) on October 16,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
The Debtor is represented by Scott D. Sherman, Esq., at Minion &
Sherman.
MONTICELLO CONSTRUCTION: To Sell Ridgeland Property to Leia Harper
------------------------------------------------------------------
Monticello Construction and Real Estate LLC seeks approval from the
U.S. Bankruptcy Court for the Southern District of Mississippi to
sell its Property to Lea Harper free and clear of liens, claims,
and interests.
The Property for sale is located at Lot 1, Bridgewater, Eleven-D,
Ridgeland, MS 39157.
The Debtor is selling the Property to Leia Harper for the purchase
price of $85,000, saying the purchaser is a good faith purchaser
and the sale transaction is an arm's-length transaction.
The ad valorem taxes will be prorated at closing on the Property
based on possession as between the Purchaser and the Debtor.
The Debtor seeks to sell the Property free and clear of liens,
claims, and security interests with the exception of ad valorem tax
claims which shall be prorated based upon possession, and paid at
closing, and with the exception of customary seller's costs of
closing, with all valid liens and claims to attach to the sale
proceeds.
About Monticello Construction and Real Estate LLC
Monticello Construction & Real Estate, LLC, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.
24-00872) on April 10, 2024, with up to $10 million in both assets
and liabilities. Moe Chowdhury, managing member, signed the
petition.
Judge Jamie A. Wilson oversees the case.
The Law Offices of Craig M. Geno, PLLC, is the Debtor's legal
counsel.
MOUNTAIN SPORTS: Seeks to Extend Plan Exclusivity to Jan. 14, 2025
------------------------------------------------------------------
Mountain Sports, LLC and its affiliates asked the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to January 14, 2025 and March 17, 2025, respectively.
The Debtors claim that extension of the Exclusive Periods is
justified by the good faith progress they are making toward
locating additional assets that may formulate the basis of a viable
plan in these cases. Now that the Debtors have paid PNC in full,
they have an opportunity to review what assets remain, and whether
a path to a viable plan is possible. The Debtor asserts that there
is sufficient "cause" for an extension of the Exclusive Periods.
The Debtors explain that the extension of the Exclusive Periods
will afford them and all other parties in interest an opportunity
to fully develop the grounds upon which a plan can be based
following the payment in full of PNC. Terminating the Exclusive
Periods prematurely would defeat the very purpose of section 1121
of the Bankruptcy Code, to afford the Debtors a meaningful and
reasonable opportunity to negotiate with creditors and propose and
confirm a consensual plan.
Accordingly, the Debtors should be afforded a full and fair
opportunity to propose, negotiate, and seek acceptances of a
chapter 11 plan. The Debtors believe that the requested extension
of the Exclusive Periods is warranted and appropriate under the
circumstances.
The Debtors submit that the requested extension is realistic and
necessary, will not prejudice the legitimate interests of creditors
and other parties in interest, and will afford it a meaningful
opportunity to pursue a consensual plan, all as contemplated by
chapter 11 of the Bankruptcy Code.
Counsel for the Debtors:
GOLDSTEIN & MCCLINTOCK LLLP
Maria Aprile Sawczuk, Esq.
501 Silverside Road, Suite 65
Wilmington, DE 19809
Telephone: (302) 444-6710
Email: marias@goldmclaw.com
-and-
Matthew E. McClintock, Esq.
William Thomas, Esq.
111 W. Washington Street, Suite 1221
Chicago, IL 60602
Telephone: (312) 337-7700
Email: mattm@goldmclaw.com
willt@goldmclaw.com
About Mountain Sports
Mountain Sports LLC, doing business as Bob's Stores, Eastern
Mountain Sports, EMS, and Sport Chalet, is a sporting goods, hobby
and musical instrument retailer.
Mountain Sports LLC and its affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-11385) on June 18, 2024. In the petitions filed by David Barton,
authorized representative, Mountain Sports disclosed between $10
million and $50 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goldstein & McClintock LLLP as counsel and
Silverman Consulting as financial advisor.
The Office of the United States Trustee for the District of
Delaware appointed an official committee of unsecured creditors.
The committee tapped Lowenstein Sandler, LLP as bankruptcy counsel
and Morris James LLP as Delaware counsel.
NATHAN'S FAMOUS: Egan-Jones Lowers Senior Unsecured Ratings to BB-
------------------------------------------------------------------
Egan-Jones Ratings Company on October 15, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Nathan's Famous, Inc. to BB- from B+. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Jericho, New York, Nathan's Famous, Inc. operates,
franchises, and licenses Nathan's Famous, Miami Subs, Kenny Rogers
Roasters, and Arthur Treachers Fish & Chips fast-food restaurants.
NJ MOBILE: Unsecured Creditors Will Get 10% to 100% of Claims
-------------------------------------------------------------
NJ Mobile HealthCare LLC filed with the U.S. Bankruptcy Court for
the District of New Jersey a Small Business Plan of Reorganization
dated September 18, 2024.
NJ Mobile Health Care LLC ("NJMHC") was formed in 2014 and has
since been serving the communities of the northern New Jersey area.
The Debtors operate an emergency and non-emergency medical services
and ambulance transportation business in the Northern New Jersey
area.
The Debtors' services include, among other things: (i) non
emergency medical transportation for patients to/from healthcare
facilities, hospitals, and residential homes, on both a recurring
or one-time basis, (ii) emergency medical services and
transportation, and (iii) onsite medical support solutions and care
for public and special events.
Each holder of a Claim in Classes 1(a)-(c) to receive Cash in an
amount equal to the Allowed amount of its respective Claim in equal
semi-annual installments over a period of three (3) years, or such
other time not to exceed five (5) years as fixed by the Bankruptcy
Court, beginning on the later of: (x) the Effective Date, and (y)
the date on which each respective Class 1(a)-(c) Claim becomes an
Allowed Claim, or as soon thereafter as practicable, to be paid
from the disposable income from the Debtors' operations, after
payment in full of all Allowed Administrative Claims and all
Allowed Claims in Classes 5 and 6.
Each holder of a Claim in Classes 2(a)-(b) to receive Cash in an
amount equal to the Allowed amount of its respective Claim in equal
semi-annual installments over a period of three (3) years, or such
other time not to exceed five (5) years as fixed by the Bankruptcy
Court, beginning on the later of: (x) the Effective Date, and (y)
the date on which each respective Class 2(a)-(b) Claim becomes an
Allowed Claim, or as soon thereafter as practicable, to be paid
from the disposable income from the Debtors' operations, after
payment in full of all Allowed Administrative Claims and all
Allowed Claims in Classes 1(a)-(c), 5, and 6.
Each holder of a Class 3 Claim to receive Cash in an amount equal
to the Allowed amount of its Class 3 Claim in equal semi-annual
installments over a period of three years, or such other time not
to exceed five years as fixed by the Bankruptcy Court, beginning on
the later of: (x) the Effective Date, and (y) the date on which
each Class 3 Claim becomes an Allowed Claim, or as soon thereafter
as practicable, to be paid from the disposable income from the
Debtors' operations, after payment in full of all Allowed
Administrative Claims and all Allowed Claims in Classes 1(a)-(c),
2(a)-(b), 5, and 6.
Each holder of a Class 4(a)-(b) Claim will receive Cash in an
amount equal to the Allowed amount of its respective Claim on the
later of (i) the Debtors' successful sale of the applicable
collateral securing said Claimant’s Claim, such sales each being
subject to Bankruptcy Court approval, and (ii) within fifteen (15)
Business Days after the date on which the Bankruptcy Court enters
an order allowing such Claim, or upon such later date as the
Debtors and the holder of such Allowed Class 4(a)-(b) Claims
otherwise agree in writing.
Each holder of a Class 5 Claim to receive Cash in an amount equal
to the Allowed amount of its Class 5 Claim in equal semi-annual
installments over a period of three years, or such other time not
to exceed five years as fixed by the Bankruptcy Court, beginning on
the later of: (x) the Effective Date, and (y) the date on which
each Class 5 Claim becomes an Allowed Claim, or as soon thereafter
as practicable, to be paid from the disposable income from the
Debtors' operations, after payment in full of all Allowed
Administrative Claims.
Each holder of a Class 6 Claim to receive Cash in an amount equal
to the Allowed amount of its Class 6 Claim in equal semi-annual
installments over a period of three years, or such other time not
to exceed five years as fixed by the Bankruptcy Court, beginning on
the later of: (x) the Effective Date, and (y) the date on which
each Class 6 Claim becomes an Allowed Claim, or as soon thereafter
as practicable, to be paid from the disposable income from the
Debtors' operations, after payment in full of all Allowed
Administrative Claims and all Allowed Claims in Class 5.
Each holder of a Class 7 Claim shall receive a pro rata share based
on the Allowed amount if its Class 7 Claim in semi-annual
installments over a period of three years, or such other time not
to exceed five years as fixed by the Bankruptcy Court, beginning on
the later of (x) the Effective Date and (y) the date on which each
Class 7 Claim becomes an Allowed Claim, or as soon thereafter as
practicable, to be paid from the disposable income from the
Debtors' operations available after payment in full of all Allowed
Claims in Classes 1(a)-(c), 2(a)-(b), 3, 4(a)-(b), 5, and 6,
Priority Tax Claims, and other costs of administration, including
all Allowed Administrative Claims. The Debtors project that pro
rata distributions to holders of Allowed Class 7 Claims will total
approximately 10% to 100% of each holder's respective Allowed Class
7 Claim.
Class 6 consists of General Unsecured Claims related to unpaid
wages previously earned by current and former employees. Each
holder of a Class 6 Claim to receive Cash in an amount equal to the
Allowed amount of its Class 6 Claim in equal semi-annual
installments over a period of three years, or such other time not
to exceed five years as fixed by the Bankruptcy Court, beginning on
the later of: (x) the Effective Date, and (y) the date on which
each Class 6 Claim becomes an Allowed Claim, or as soon thereafter
as practicable, to be paid from the disposable income from the
Debtors' operations, after payment in full of all Allowed
Administrative Claims and all Allowed Claims in Class 5.
Class 7 consists of all other General Unsecured Claims against the
Debtors. Each holder of a Class 7 Claim shall receive a pro rata
share based on the Allowed amount if its Class 7 Claim in semi
annual installments over a period of three years, or such other
time not to exceed five years as fixed by the Bankruptcy Court,
beginning on the later of (x) the Effective Date and (y) the date
on which each Class 7 Claim becomes an Allowed Claim, or as soon
thereafter as practicable, to be paid from the disposable income
from the Debtors' operations available after payment in full of all
Allowed Claims in Classes 1(a)-(c), 2(a)-(b), 3, 4(a) (b), 5, and
6, Priority Tax Claims, and other costs of administration,
including all Allowed Administrative Claims.
The Debtors project that pro rata distributions to holders of
Allowed Class 7 Claims will total approximately 10% to 100% of each
holder's respective Allowed Claim. This Class is impaired.
The Debtors have reached an agreement with Tri-State Medical
whereby TriState will be providing staffing and management services
to the Debtors. Specifically, Tri-State will be the entity which
will house employees and fund the operating expenses related to
said employees, including, but not limited to, employee payroll.
Tri-State will fund these employee-related operating expenses and
then issue monthly invoices to the Debtors which will be payable on
sixty-day terms.
The Debtors anticipate that through this arrangement with Tri
State, they will be able to recall approximately thirty employees
and increase operations from one unit operating a daily twelve hour
shift to two units operating daily twenty-four hour shifts. Such
increased operations will enable the Debtors to recapture the jobs
being called in by their municipal and "call for service" partners
thereby significantly increasing revenue generated. This increased
revenue will be utilized to fund the payments outlined under the
Plan.
A full-text copy of the Plan of Reorganization dated September 18,
2024 is available at https://urlcurt.com/u?l=BYQDCo from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Tracy L. Klestadt, Esq.
KLESTADT WINTERS JURELLER SOUTHARD & STEVENS,
LLP
200 West 41st Street
17th Floor
New York, NY 10036
Tel: (212) 972-3000
Fax: (212) 972-2245
Email: tklestadt@klestadt.com
About NJ Mobile HealthCare
NJ Mobile HealthCare, LLC, a company in Mahwah, N.J., provides
compliance-focused, state-of the-art emergency medical services
(EMS) and ambulance transportation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-16239) on June 20, 2024,
with $1 million to $10 million in both assets and liabilities.
Louis V. Greco III, manager, signed the petition.
Judge John K. Sherwood oversees the case.
Tracy L. Klestadt, Esq. at Klestadt Winters Jureller Southard &
Stevens, LLP represents the Debtor as legal counsel.
NUZEE INC: Xiang Zhang Reports 8.6% Stake as of Oct. 18
-------------------------------------------------------
Xiang Zhang disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that he beneficially owned
736,737 shares of Nuzee, Inc.'s common stock, representing 8.6% of
the 8,542,987 shares of common stock issued and outstanding (as of
October 18, 2024), as set forth in Nuzee's current report on Form
8-K as filed with the Securities and Exchange Commission on October
23, 2024.
On October 18, the Mr. Xiang Zhang exercised his cashless option to
purchase 34,983 shares of common stock pursuant to warrants issued
by Nuzee sold under the convertible note and warrant purchase
agreement dated April 27, 2024. On October 22, Nuzee issued 701,754
shares of common stock to Mr. Xiang pursuant to the closing of the
securities purchase agreement entered into on September 24, 2024.
A full-text copy of Mr. Xiang Zhang's SEC Report is available at:
https://tinyurl.com/dsk7vtva
About Nuzee Inc.
Headquartered in Vista, California, Nuzee, Inc. is a digital
marketing, sales, and distribution company for various consumer
products with focuses on food and beverages. Dedicated to reshaping
the digital marketing and distribution with technological
applications, the Company endeavors to create greater commercial
value for its business partners and therefore enhance its own
enterprise value and shareholders' value of their stake in the
Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve their connection, management, and operation of marketing
channels domestically and globally.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of June 30, 2024, Nuzee had $2.75 million
in total assets, $2.94 million in total liabilities, and a total
stockholders' deficit of $193,613.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single-serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses, and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The Company's continued existence is
dependent upon management's ability to develop profitable
operations and to raise additional capital for the further
development and marketing of the Company's products and business."
NUZEE INC: Yumei Liu Holds 6.6% Equity Stake as of Oct. 18
----------------------------------------------------------
Yumei Liu disclosed in a Schedule 13G/A report filed with the U.S.
Securities and Exchange Commission that, as of October 18, 2024,
she beneficially owned an aggregate amount of 563,507 shares of
NuZee, Inc.'s common stock, representing 6.596% of the 8,542,987
shares of common stock issued and outstanding (as of October 18,
2024), as set forth in Nuzee's current report on Form 8-K as filed
with the Securities and Exchange Commission on October 23, 2024.
Yumei Liu beneficially owns 20,990 shares of common stock through
her indirect 100% ownership of Future science and Technology Co.
Ltd. On October 18, 2024, Future Science and Technology Co. Ltd
exercised its cashless option to purchase 20,990 shares of common
stock pursuant to warrants issued by the Issuer sold under the
convertible note and warrant purchase agreement dated April 27,
2024; Yumei Liu also beneficially owns 542,517 shares of common
stock through her direct 100% ownership of JOYER INVESTMENT
LIMITED.
A full-text copy of Yumei Liu's SEC Report is available at:
https://tinyurl.com/294hnuxk
About Nuzee Inc.
Headquartered in Vista, California, Nuzee, Inc. is a digital
marketing, sales, and distribution company for various consumer
products with focuses on food and beverages. Dedicated to reshaping
the digital marketing and distribution with technological
applications, the Company endeavors to create greater commercial
value for its business partners and therefore enhance its own
enterprise value and shareholders' value of their stake in the
Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve their connection, management, and operation of marketing
channels domestically and globally.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of June 30, 2024, Nuzee had $2.75 million
in total assets, $2.94 million in total liabilities, and a total
stockholders' deficit of $193,613.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single-serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses, and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The Company's continued existence is
dependent upon management's ability to develop profitable
operations and to raise additional capital for the further
development and marketing of the Company's products and business."
OLIVER POINT: Case Summary & Six Unsecured Creditors
----------------------------------------------------
Debtor: Oliver Point Apartments, LLC
5825 Glenridge Dr
Atlanta, GA 30328-5393
Business Description: The Debtor owns and operates an apartment
complex.
Chapter 11 Petition Date: November 4, 2024
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 24-61781
Debtor's Counsel: Milton Jones, Esq.
MILTON D JONES, ATTORNEY
12252 Styron Drive
Hampton GA 30228
Email: miltondjonesatty@gmail.com
Total Assets: $7,000,000
Total Debts: $6,933,359
The petition was signed by Olivia Chevannes as managing member.
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/P3D6ILQ/Oliver_Point_Apartments_LLC__ganbke-24-61781__0001.0.pdf?mcid=tGE4TAMA
ONCOCYTE CORP: Bio-Rad Laboratories Holds 8.97% Stake
-----------------------------------------------------
Bio-Rad Laboratories, Inc. disclosed in a Schedule 13G/A Report
that as of October 4, 2024, it beneficially owned 1,510,944 shares
of Oncocyte Corporation's common stock, representing 8.97% of the
16,835,247 outstanding Common Shares of Oncocyte as of October 4,
2024, as provided by the Company to Bio-Rad Laboratories.
A full-text copy of Bio-Rad Laboratories' SEC Report is available
at:
https://tinyurl.com/3xmd38tv
About Oncocyte Corp.
Irvine, Calif.-based Oncocyte Corporation is a molecular
diagnostics technology company. The Company's tests are designed to
help provide clarity and confidence to physicians and their
patients. VitaGraft is a clinical blood-based solid organ
transplantation monitoring test. GraftAssure is a research use only
(RUO) blood-based solid organ transplantation monitoring test.
DetermaIO is a gene expression test that assesses the tumor
microenvironment to predict response to immunotherapies. DetermaCNI
is a blood-based monitoring tool for monitoring therapeutic
efficacy in cancer patients.
Costa Mesa, Calif.-based Marcum LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 15, 2024, citing that the Company has incurred operating
losses and negative cash flows since inception and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, Oncocyte had $74.72 million in total assets,
$52.02 million in total liabilities, and $22.70 million in total
shareholders' equity.
OPGEN INC: John Tan Honjian Holds 73% Stake Via AEI Capital
-----------------------------------------------------------
John Tan Honjian disclosed in a Schedule 13G Report filed with the
U.S. Securities and Exchange Commission that as of August 8, 2024,
he beneficially owned 6,566,494 shares of OpGen's common stock,
representing 73% of the shares outstanding.
The securities are held of record by AEI Capital Ltd, a wholly
owned subsidiary of AEI Capital Group Sdn. Bhd. John Tan Honjian, a
director and CEO of AEI Capital Ltd, owns 80% of AEI Capital Group
Sdn. Bhd. Mr. Tan shares beneficial ownership of the securities
held on record by AEI Capital Ltd.
A full-text copy of Mr. Tan's SEC Report is available at:
https://tinyurl.com/4hz73349
About OpGen
OpGen, Inc. (Rockville, Md., U.S.A.) -- www.opgen.com -- is a
precision medicine company harnessing the power of molecular
diagnostics and bioinformatics to help combat infectious disease.
The Company distributes molecular microbiology solutions that help
guide clinicians with more rapid and actionable information about
life-threatening infections to improve patient outcomes and
decrease the spread of infections caused by multidrug-resistant
microorganisms, or MDROs.
West Palm Beach, Florida-based Beckles & Co., Inc., the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated June 3, 2024, citing that the Company has incurred
recurring losses from operations since inception and has stated
that substantial doubt exists about the Company's ability to
continue as a going concern.
For the years ended December 31, 2023 and 2022, OpGen had net
losses of $32.7 million and $37.3 million, respectively. As of June
30, 2024, Opgen had $2.87 million in total assets, $14.54 million
in total liabilities, and a total stockholders' deficit of $11.67
million.
P&L DEVELOPMENT: Moody's Alters Outlook on 'Caa2' CFR to Positive
-----------------------------------------------------------------
Moody's Ratings affirmed P&L Development, LLC's (PLD) Caa2
Corporate Family Rating and its Caa2-PD Probability of Default
Rating following the completion of the previously announced note
exchange. Moody's appended a limited default designation (/LD) to
the Caa2-PD PDR as Moody's considered the transaction a distressed
exchange. Concurrently, Moody's assigned a Caa2 rating to the new
backed senior secured notes that mature in May 2029. The Caa3
rating on the 7.75% secured notes due November 2025 is unchanged at
this time and will be withdrawn when the remaining amount of the
notes are redeemed. Moody's will remove the "/LD" designation from
the company's PDR in approximately three business days. Moody's
also changed the rating outlook to positive from negative.
In October 2024, PLD announced a transaction to exchange up to $350
million of the $465 million of previously outstanding 7.75% notes
that mature in November 2025 into new senior secured notes that
mature in May 2029. By the October 23, 2024 early tender date,
holders of approximately 99% of the existing notes (including
ad-hoc bondholder group) agreed to exchange their 2025 notes for
the new 2029 notes at a ratio of $1,053 of new notes for each
$1,000 of existing notes. The company completed the exchange for
$350 million of the notes at the end of October and intends to
redeem the remaining $115 million of notes at par plus accrued
interest in November. PLD is funding the redemption through
issuance of additional May 2029 notes to the ad-hoc bondholder
group. The 12% interest on the $500 million of new notes is payable
in cash except that the company can elect to pay interest at a rate
of 9% cash plus 3.5% paid-in-kind in the first two years. Moody's
view the exchange transaction as a distressed exchange because it
delays the period it would take for lenders to receive principal
repayment. PLD's weak free cash flow and high leverage also limited
the company's ability to address the maturity without a distressed
exchange transaction. Concurrently, the ABL revolving credit
facility (unrated) will be extended to December 2027 from June
2025.
The affirmation of the Caa2 CFR reflects PLD's modest scale,
limited free cash flow, and execution risk to generate the
significant increase in earnings necessary to improve still weak
credit metrics including above 10.0x debt-to-EBITDA for the 12
months ending June 30, 2024. The proposed transaction extends the
debt maturities and improves the company's liquidity, which
provides much needed time for the company to execute its plans to
improve the company's operating performance and credit metrics.
Nevertheless, the high cash interest costs will limit the company's
free cash flow and the company needs to execute its strategies well
to materially improve the operating performance. In addition, cash
interest will increase as a result of the transaction.
Moody's changed the rating outlook to positive because the
transactions improve liquidity by addressing the 2025 revolver and
note maturities. PLD will have adequate liquidity for the next
12-18 months to continue its business turnaround plans. The
adequate liquidity is supported by an estimated $13 million of cash
as of September 30, 2024, and approximately $62 million
availability under the $125 million committed new revolver at the
transaction close. Moody's estimate free cash flow would be limited
until more of the company's growth projects generate returns.
The Caa2 rating on the 2029 notes is the same as the CFR and
reflects that the notes represent the preponderance of debt in the
capital structure. The notes are secured by a second lien on the
collateral pledged to PLD's unrated asset based revolver on a first
lien basis (accounts receivable and inventory) and a first lien on
other assets including intangibles and property and equipment. The
collateral package was bolstered by the contribution of a royalty
stream on certain products (Rogue Products) by the Singer family.
RATINGS RATIONALE
The Caa2 CFR reflects PLD's modest scale, limited free cash flow,
improving but still weak credit metrics including above 10.0x
debt-to-EBITDA for the 12 months ending June 30, 2024, and
execution risk to generate the increase in earnings to reduce
leverage to a more sustainable level. PLD has limited geographic
diversity with the majority of its revenues derived from US markets
where competitor Perrigo Company plc has a strong position in store
brand over-the-counter products ("OTC"). PLD continues to win new
business and expand products in its portfolio, including recent US
Food and Drug Administration approval for Omeprazole, which should
support revenue and EBITDA growth. However, PLD's revenue and
profit realization in the last few years from new business wins has
lagged expectations, leading to leverage being sustained at a very
high level and persistent negative free cash flow aside from
working capital inflows. Besides higher raw materials and labor
cost, earnings and operating cash flow are impacted by delays and
operational issues on new product launches and reduced demand from
certain customers. The company's earnings have materially improved
since the beginning of 2024, as PLD increased focus on
profitability and free cash flow. Assuming that the operating
performance achieved in the first half of 2024 is sustained,
Moody's estimate that PLD's financial leverage will improve to a
high-single-digit range in 2025 through EBITDA growth. Earnings
growth will be achieved through recently implemented price
increases, new product launches, ramp-up of recently launched
products, and cost savings through its logistics optimization
programs. The company's ratings are supported by its attractive
growth prospects including nicotine replacement therapy products,
product expansion and volume growth with existing customers. PLD
implemented several pricing increases, restructured certain
agreements and executed a series of initiatives to improve the cost
structure, operational efficiency and working capital management to
improve profitability and free cash flow. PLD also has favorable
relationships with key retailers and with large consumer packaged
goods clients.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if PLD's operating results do not
meaningfully improve to allow for lower leverage and sustainable
free cash flow. A deterioration in liquidity including increasing
revolver reliance, or a decline in recovery prospects could also
lead to a downgrade.
The ratings could be upgraded if leverage materially declines
driven by improvement in operating results and less reliance on
external sources of liquidity. The company would also need to
improve liquidity including better interest coverage and free cash
flow generation to be upgraded.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Headquartered in Westbury, NY, P&L Development, LLC manufactures,
packages and distributes over-the-counter private label products
across multiple categories. The company provides contract
manufacturing and contract packaging services to major OTC and
nutritional companies in the United States. PLD is majority owned
by the Singer family with Stephens Inc., a long-term equity holder
of PLD, as a minority shareholder. The company generated revenues
of $638 million for the last 12 months ending June 30, 2024.
PEBBLEBROOK HOTEL: Egan-Jones Retains B- Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on October 29, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Pebblebrook Hotel Trust. EJR also withdrew rating on
commercial paper issued by the Company.
Headquartered in Maryland, Pebblebrook Hotel Trust is an internally
managed hotel investment company that acquires and invests in hotel
properties located in large United States cities, with an emphasis
on major coastal markets.
PITNEY BOWES: Egan-Jones Retains B- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on October 21, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Pitney Bowes Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Stamford, Connecticut, Pitney Bowes Inc. sells,
finances, rents, and services integrated mail and document
management systems.
POLAR US: Moody's Affirms 'Caa1' CFR, Outlook Negative
------------------------------------------------------
Moody's Ratings affirmed Polar US Borrower, LLC's (dba SI Group)
Caa1 Corporate Family Rating, Caa1-PD probability of default
rating, and the Caa3 ratings on its backed senior unsecured notes.
At the same time, Moody's assigned B3 ratings to the $218 million
senior secured first lien revolving credit facility, Caa1 rating to
the $1,224.3 million senior secured first lien term loan B1, Caa1
rating to the $207.4 million senior secured first lien term loan B1
and the Caa2 rating to the $183 million senior secured first lien
term loan B2. The ratings on the existing senior secured 1st lien
revolving credit facility and senior secured 1st lien term loan
were withdrawn with the refinancing of both debts post SI Group's
exchange transaction. The outlook is negative.
RATINGS RATIONALE
The rating affirmation reflects the improvement in SI Group's debt
maturity and liquidity profile after it completed the exchange
offer on Oct 23. With the exchange offer, SI Group issued three new
priority debts along with obtaining $100 million new capital, in
addition to the $50 million that was previously received, from its
sponsor SK Capital Partners, to exchange most of its existing debt.
The newly issued debt include a first lien first out revolving
credit facility due Aug 2028, a first lien second out term loan B1
due Oct 2028, and a first lien third out term loan B2 due Oct 2030.
All lenders in its existing revolving credit facility, all but $1
million of the existing term loan, and about 89% of the existing
senior unsecured notes participated in the exchange offer under
different account. The exchange transaction successfully extended
maturities to Aug 2028 or later for most its debts, amounting to
more than $1.7 billion or about 89% of its total adjusted debts by
Moody's estimate. The transaction also modestly reduced SI Group's
cash interest payments through the PIK features of the first lien
term loans. Subsequent to the transaction, the company's liquidity
improved to $133 million, which included $33 million cash and $100
million availability under its revolver, compared with effective
liquidity of $27 million at end of Q2 2024. Moody's believe the
improving debt profile and liquidity will provide some room for SI
Group's management to refocus on its business operations and
improve performance.
The negative outlook reflects SI Group's still elevated debt
leverage and interest expense, weak business and financial
performance, and negative free cash flow generation. Despite
refinancing most of its debts, the exchange transaction only
reduced SI Group's debts modestly by about $40 million or less than
2% of its total adjusted debts. Pro forma for the transaction and
Moody's adjustments, leverage remained very high at more than 20x
in the LTM June 2024. While SI Group has announced and implemented
series of measures to cut costs and counter the competitive market
pressures and weak demand recovery, it is uncertain whether such
measures will be sufficient to improve its earnings in a timely
manner and to restore its capital structure to a more sustainable
level. With the market challenges, SI Group recorded large negative
free cash flows at -$135 million in LTM June 2024. In the absence
of a meaningful recovery in company's financial performance in
2025, its free cash flow generation will remain challenged and
liquidity is likely to weaken until there is a meaningful rebound
in demand. In Moody's base case projection, under the assumptions
that SI Group's earnings will modestly improve driven by some cost
cutting benefits and a modest demand growth, Moody's expect that SI
Group's leverage will remain weak at more than 10x with narrowing
but continued negative free cash flows in 2025. The lack of
positive free cash flow would create further pressure on its
rating.
SI Group's credit profile is supported by its good geographic scope
with slightly more than half of its sales coming from outside North
America. SI Group exhibits good end market diversification despite
the exposure to several cyclical industries including aerospace,
automotive and construction. The business profile is further
underpinned by its long-term relationships with a broad customer
base.
SI Group's liquidity improved due to the exchange transaction as
its existing revolver and term loan were set to mature in 2025.
Subsequent to the transaction, Moody's estimate that SI Group had
adequate liquidity with about $100 million of availability under
its revolver and approximately $33 million of balance sheet cash.
The revolving credit facility is subject to a maximum leverage
covenant of 2.5x on revolver drawings, and Moody's expect the
company to remain in compliance. Moody's expect its improved
liquidity will help cover the cash needs including a narrowing
negative free cash flows and modest debt amortization in the next
12 months.
SI Group's debt capital includes a B3 rated $218 million first lien
first out revolving credit facility due August 2028, which has a
payment priority and a springing maturity 3 months before the Caa1
rated $1,224.3 million and $207.4 million first lien second out
term loan B1 due October 2028. The first lien term loan B1 is rated
Caa1 and commensurate with the CFR because it accounts for majority
of SI Group's debts and has a priority status only after 1st lien
first out revolver in the capital structure. SI Group also has a
$183 million first lien third out term loan B2 rated Caa2. The one
notch differential from the CFR is due to the preponderance of
revolver and term loan B1 ahead of the term loan B2. SI Group also
has $33 million senior unsecured notes due May 2026, rated Caa3.
The two notch differential from the CFR reflects limited recovery
prospects given the amount of secured debt in the capital
structure. The term loan B1 and B2 do not contain financial
maintenance covenants.
RATING OUTLOOK
The negative outlook reflects that credit metrics are likely to
remain weak and if free cash flow does not improve significantly
there could be further downside to the rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Although highly unlikely, Moody's would consider an upgrade if
financial leverage, including Moody's standard adjustments, is
below 7.5x for an extended period, revenue and free cash flow
growth remain positive and liquidity improves to an amount greater
than $200 million.
Moody's would likely consider a downgrade if financial performance
remains weak, free cash flow remains negative for extended period
of time, leverage remains well in excess of 10x or there is a
further deterioration in liquidity.
ESG CONSIDERATIONS
Environmental, social, and governance factors are important factors
influencing SI Group's credit quality, but not driver of the
actions. SI Group's (CIS-5) score indicates that the rating is
lower than it would have been if ESG risk exposures did not exist.
The credit profile is tempered by its exposure to governance risks
given its elevated debt leverage and weak cash flow generation.
Environmental risks reflect mainly its physical climate risks and
carbon transition risks, mitigated partly the company's precautious
actions on managing such risks and its committed goals to reduce
carbon emissions.
Polar US Borrower, LLC is the pass-through entity of ultimate
parent, SK Blue Holdings, LP, an affiliate of private investment
firm, SK Capital Partners. SI Group manufactures performance
additives for use in polymer, rubber, lubricants, fuels, adhesives
applications, surfactants in addition to some specialty chemicals.
The company serves a broad array of industries including plastics,
automotive, fuel and lubricants, construction and oil and gas. SI
Group generated revenue of approximately $1.5 billion for the last
twelve months ended June 30, 2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
PROCOM SERVICES: Gets OK to Use Cash Collateral Until Nov. 12
-------------------------------------------------------------
Procom Services, Inc. received interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division to use the cash collateral of its secured creditors until
Nov. 12.
The interim order authorized the company to use the cash collateral
of the U.S. Small Business Administration and, to the extent
necessary, that of ODK Capital, LLC to pay expenses set forth in
its budget. The expenses totaling $43,309 include payments of
quarterly U.S. Trustee fees.
The order granted SBA and ODK Capital a replacement lien on the
cash collateral to the same extent and with the same validity and
priority as their pre-bankruptcy lien.
The next hearing is scheduled for Nov. 12.
About Procom Services
Procom Services, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02414) on May
14, 2024, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities. Aaron Cohen, Esq., a practicing attorney
in Jacksonville, Fla., serves as Subchapter V trustee.
Judge Lori V. Vaughan presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw PLLC represents the Debtor
as bankruptcy counsel.
R.RIVETER LLC: Jami Nimeroff Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Jami Nimeroff, Esq.,
at Brown McGarry Nimeroff, LLC as Subchapter V trustee for
R.Riveter, LLC.
Ms. Nimeroff will be paid an hourly fee of $400 for her services as
Subchapter V trustee while paralegals will be compensated at $185
per hour.
Ms. Nimeroff declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jami Nimeroff, Esq.
Brown McGarry Nimeroff, LLC
919 N. Market Street, Suite 420
Wilmington, DE 19801
Telephone: (302) 428-8142
Fax: (302) 351-2744
Email: jnimeroff@bmnlawyers.com
About R.Riveter LLC
R.Riveter, LLC is a handbag company based in Southern Pines.
R. Riveter sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-12378) on Oct. 21, 2024, with
assets between $500,000 and $1 million and liabilities between $1
million and $10 million. Lisa Bradley, chief executive officer,
signed the petition.
Judge Thomas M. Horan oversees the case.
The Debtor is represented by Joseph Charles Barsalona II, Esq., at
Pashman Stein Walder Hayden, P.C.
REMARK HOLDINGS: Sets 2024 Annual Meeting for Dec. 16
-----------------------------------------------------
Remark Holdings, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that it has set the record
date for its 2024 annual meeting of stockholders as October 31,
2024 and set the meeting date for the 2024 Annual Meeting as
December 16, 2024.
The Company expects to begin delivering and making available the
proxy materials for the 2024 Annual Meeting on or about November
15, 2024. Because the Company was unable to hold an annual meeting
during 2023, any previously-disclosed deadlines regarding the
submission of stockholder proposals pursuant to Rule 14a-8 under
the Securities Exchange Act of 1934, as amended, for the 2024
Annual Meeting are no longer applicable.
About Remark Holdings
Remark Holdings, Inc. (NASDAQ: MARK) --
http://www.remarkholdings.com-- is a diversified global technology
business with leading artificial intelligence and data analytics,
as well as a portfolio of digital media properties. The Company's
innovative artificial intelligence and data analytics solutions
continue to gain worldwide awareness and recognition through
comparative testing, product demonstrations, media exposure, and
word of mouth. The Company continues to see positive responses and
increased acceptance of its software and applications in a growing
number of industries.
Remark Holdings reported a net loss of $29.15 million for the year
ended Dec. 31, 2023, compared to a net loss of $55.48 million for
the year ended Dec. 31, 2022. As of March 31, 2024, the Company had
$10.14 million in total assets, $52.57 million in total
liabilities, and a total stockholders' deficit of $42.44 million.
Los Angeles, California-based Weinberg & Company, P.A., the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated April 15, 2024, citing that the
Company has suffered recurring losses from operations and negative
cash flows from operating activities and has a negative working
capital and a stockholders' deficit that raise substantial doubt
about its ability to continue as a going concern.
RLB FOOD: Mark Politan of Politan Law Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for RLB Food
Distributors LP.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About RLB Food Distributors
RLB Food Distributors LP is a supplier of organic produce,
fresh-cuts, deli items, cheese, chilled foods and other products
related to the perishable food arena.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-12110) on Feb. 28,
2024. In the petition signed by Pat Mele III, executive VP, CFO,
the Debtor disclosed $4,738,212 in assets and $5,432,706 in
liabilities.
Judge John K. Sherwood oversees the case.
Donald W. Clarke, Esq., at Genova Burns, LLC, is the Debtor's legal
counsel.
RLJ LODGING: Moody's Affirms 'B3' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Ratings affirmed the Ba3 corporate family rating of RLJ
Lodging Trust, L.P., the main operating subsidiary of RLJ Lodging
Trust (collectively "RLJ" or "the REIT"). Moody's also affirmed the
REIT's Ba3 senior unsecured debt ratings. The Speculative Grade
Liquidity rating was upgraded to SGL-2 from SGL-3 and the outlook
remains stable.
RATINGS RATIONALE
RLJ's Ba3 CFR reflects its size and scale as one of the largest
leisure and business transient-oriented lodging REITs with a
portfolio of 96 premium-branded, upper upscale focused-service and
compact full-service hotels. The portfolio is granular and
geographically diversified across major high demand/high
barrier-to-entry, urban and dense suburban markets that attract
demand from business, group and leisure travel. RLJ continues to
demonstrate positive operating trends, driven by growth in both
group and business travel in its urban markets.
Key credit challenges include RLJ's elevated net debt/EBITDA, which
remains higher than pre-pandemic levels and the REIT's targeted
range. Moody's expect net debt/EBITDA will trend down over the next
few years with continued EBITDA growth, although growth is
moderating amidst a slowing economic environment. The REIT also has
significant brand concentration with its franchise partnerships.
RLJ's ratings also reflect the inherent cyclicality of the lodging
sector, characterized by high cash flow and profit volatility due
to its sensitivity to consumer demand and sentiment, which could
weigh on future performance in a potential economic downturn.
The stable outlook reflects Moody's expectation that RLJ's earnings
and operating cash flows will continue to improve over the next
twelve to eighteen months, driven by growth in both group and
business travel in its urban markets.
RLJ's SGL-2 rating reflects the REIT's good liquidity as Moody's
assess its cash needs over the next 12-18 months. As of October 1,
2024, RLJ had $871 million of liquidity, consisting of $371 million
cash and $500 million available capacity on its unsecured revolver
that expires in May 2027 (not including two six-month extension
options that may be exercised at its discretion). The REIT has no
material debt maturities until $181 million of secured loans mature
in April 2026 and $500 million of bonds mature in July 2026.
Additional capital needs related to the REIT's maintenance capital
expenditure requirements and its conversion pipeline are modest.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the REIT demonstrates solid operating
performance, as well as growth in EBITDA margins. Net debt to
EBITDA below 5.0x and fixed charge coverage greater than 3.5x would
also support a ratings upgrade. Maintenance of strong liquidity
would also be necessary for a ratings upgrade.
Ratings could be downgraded should RLJ experience any challenges
arising from the performance of its largest operator and markets.
Net debt/EBITDA approaching 7x, fixed charge coverage below 2.5x or
material deterioration in liquidity could also result in a
downgrade.
RLJ Lodging Trust [NYSE: RLJ] is a vertically-integrated,
internally-managed lodging REIT that owns, acquires and invests
primarily in premium-branded, compact full-service and
focused-service hotels, which typically have an efficient footprint
of less than 12,000 square feet and 2,000 square feet of meeting
space, respectively. The REIT's wholly-owned portfolio comprises 96
hotels with over 21,000 guest rooms.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in February 2024.
ROSA'S SPORTS: Mark Politan Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
at Politan Law, LLC, as Subchapter V trustee for Rosa's Sports Bar,
LLC.
Mr. Politan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Politan 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 J. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
Cell: (973) 768-6072
Email: mpolitan@politanlaw.com
About Rosa's Sports Bar
Rosa's Sports Bar, LLC is a single member limited liability company
created under the laws of the State of New Jersey on October 23,
2003.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-13853) on April 16,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Vincent F. Papalia presides over the case.
Steven D. Pertuz, Esq., at the Law Offices of Steven D. Pertuz,
LLC, is the Debtor's bankruptcy counsel.
RYDER SYSTEM: Egan-Jones Retains BB+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on October 17, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Ryder System, Inc.
Headquartered in Miami, Florida, Ryder System, Inc. provides a
continuum of logistics, supply chain, and transportation management
solutions worldwide.
SALUS MEDICAL: UST Appoints Michael Carmel as Chapter 11 Trustee
----------------------------------------------------------------
Ilene Lashinsky, the U.S. Trustee for the District of Arizona,
asked the U.S. Bankruptcy Court for the District of Arizona to
approve the appointment of Michael Carmel as Chapter 11 trustee for
Salus Medical, LLC.
Mr. Carmel disclosed in a court filing that he is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Salus Medical
Salus Medical, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-08193) on September 27, 2024, listing $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Hernan H. Alvarez as manager.
M. Preston Gardner, Esq., at Davis Miles McGuire Gardner, PLLC
represents the Debtor as legal counsel.
SHENANDOAH TELECOM: Egan-Jones Cuts Senior Unsecured Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company on October 25, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Shenandoah Telecommunications Company to BB from
BB+.
Headquartered in Edinburg, Virginia, Shenandoah Telecommunications
Company provides telecommunications services through its
subsidiaries.
SINCLAIR BROADCAST: Egan-Jones Retains CCC+ Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on November 1, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Sinclair Broadcast Group, LLC of Maryland. EJR
also withdrew rating on commercial paper issued by the Company.
Headquartered in Cockeysville, Maryland, Sinclair Broadcast Group,
LLC of Maryland, operates as a media company.
SKYMINTH: Equipment Up for Auction on Nov. 12 & 13
--------------------------------------------------
MJBizDaily reports that a two-day auction is set this month to sell
the remaining equipment assets previously owned by Michigan-based
cannabis company Skymint, which went into receivership in March
2023 after failing to meet its loan obligations.
The report notes Skymint held over $125 million in senior debt and
more than $130 million in lease commitments as of February 2023.
The Court appointed Gene Kohut of Trust Street Advisors as receiver
for Skymint's assets on March 3, 2023.
Robert Levy Associates and Solid Asset Solutions said in a press
release that an online auction for various marijuana cultivation,
production, lab, and warehouse equipment will be held from November
12-13, 2024.
According to the report, the auction follows nearly after
Alberta-based Tropics LP acquired most of Skymint's assets with a
$109.4 million stalking-horse bid. Tropics LP is owned by an
affiliate of SunStream Bancorp, a joint venture that includes
Canadian cannabis company SNDL.
The auction will showcase over 1,000 items, including:
* Loynds candy machinery
* Distillation equipment, centrifuges, and crystallization
chambers
* Homogenizers, freezers, and ovens
* 150 laptops and numerous label printers
* Gas chromatographs, lab scales, and bioreactors
"The Skymint auction offers one of the largest and most advanced
selections of cannabis-related equipment available on the secondary
market," Robert Levy, president of Robert Levy Associates, said in
a statement.
Following the auction of Skymint's other assets, SNDL announced
that Tropics would decline to acquire the Michigan operator's
"uneconomic cultivation facilities, equipment, and retail leases,
which account for over $12 million in annual fixed costs," the
report states.
About Skyminth
SunStream is a joint venture sponsored by SNDL Inc. that leverages
a strategic financial and operational partnership to target
attractive risk-return opportunities in the cannabis industry in
order to provide exposure to a broad portfolio of investments.
SKYWEST INC: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on October 29, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by SkyWest, Inc. EJR also withdrew rating on commercial
paper issued by the Company.
Headquartered in St. George, Utah, SkyWest, Inc. operates regional
airlines that offer scheduled passenger service to destinations in
the United States, Canada, Mexico, and the Caribbean.
SM ENERGY: Egan-Jones Hikes Senior Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company on October 22, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by SM Energy Company to BB+ from BB.
Headquartered in Denver, Colorado, SM Energy Company is an
independent energy company that explores for and produces natural
gas and crude oil.
SOLCIUM SOLAR: Aaron Cohen Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Solcium Solar, LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Solcium Solar
Solcium Solar, LLC is a privately owned and operated solar energy
company specializing in residential solar solutions, commercial
solar solutions, EV solar solutions, and battery storage
solutions.
Solcium Solar sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05611) on
October 18, 2024. In the petition filed by Michelle Solano, as CEO,
the Debtor reports estimated assets between $100,000 and $500,000
and estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Grace E. Robson oversees the case.
The Debtor is represented by Scott W. Spradley, Esq., at The Law
Offices of Scott W. Spradley.
SOUTHWESTERN ENERGY: Egan-Jones Retains BB- Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on October 16, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Southwestern Energy Company. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, Southwestern Energy Company is an
independent energy company.
SPIRIT AIRLINES: Sells 23 Aircraft to GA Telesis for $519MM
-----------------------------------------------------------
Spirit Airlines, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a binding term sheet with GA Telesis, LLC for the sale of 23
A320ceo/A321ceo aircraft to GAT for an expected total purchase
price of approximately $519 million. The Aircraft are planned for
delivery beginning in October 2024 through February 2025. The Sale
is subject to, among other things, the execution of definitive
documentation and other customary conditions precedent.
The Company estimates the net proceeds of the Sale, combined with
discharging the Aircraft-related debt from its balance sheet, will
benefit its liquidity by approximately $225 million through
year-end 2025.
The Company estimates its third quarter 2024 adjusted operating
margin will come in approximately three hundred basis points better
than the mid-point of its previous guidance range, primarily due to
stronger-than-expected revenue with early results from its
transformation plan exceeding initial expectations.
The Company's third quarter 2024 capacity was down 1.2 percent year
over year, and the Company estimates its fourth quarter 2024
capacity will be down approximately 20 percent year over year.
The Company plans to provide additional details regarding its third
quarter 2024 performance in conjunction with reporting its third
quarter results which it plans to release in mid-November.
For the full year 2025, the Company estimates its capacity will be
down mid-teens year over year. This decrease takes into account the
sale and removal from scheduled service of the Aircraft, a
year-over-year increase in the estimated number of neo aircraft
removed from scheduled service due to the reduced availability of
Pratt & Whitney geared turbofan engines, the retirement of the
Company's remaining A319ceo aircraft and the addition of six new
A321neo aircraft scheduled for delivery in 2025.
As part of its continued strategy to return to profitability, the
Company has identified approximately $80 million of annualized cost
reductions that it plans to begin implementing in early 2025. These
cost reductions are driven primarily by a reduction in workforce
commensurate with the Company's expected flight volume.
As previously disclosed, the Company remains in active and
constructive discussions with holders of its senior secured notes
due 2025 and convertible senior notes due 2026 with respect to
their respective maturities.
Consistent with its previously provided guidance, the Company
expects to end the year 2024 with over $1.0 billion of liquidity,
including unrestricted cash and cash equivalents, short-term
investment securities and additional liquidity initiatives,
assuming that the Company is able to consummate those initiatives
that are currently in process.
About Spirit Airlines
Spirit Airlines Inc. is a major United States ultra-low cost
airline headquartered in Miramar, Florida, in the Miami
metropolitan area.
As of March 31, 2024, the Company had $9.5 billion in total assets,
$8.5 billion in total liabilities, and $1 billion in total
stockholders' equity.
* * *
In June 2024, S&P Global Ratings lowered its issuer credit rating
on Spirit Airlines Inc. to 'CCC' from 'CCC+'. S&P also lowered its
ratings on Spirit's enhanced equipment trust certificates (EETCs)
by one notch, in line with the lower issuer credit rating. The
negative outlook reflects the uncertainty around the company's
ability to address its upcoming 2025 maturities, the sustainability
of its capital structure over the longer term, and S&P's view that
a distressed exchange is likely.
In January 2024, Moody's Investors Service downgraded its ratings
of Spirit Airlines, including the corporate family rating to Caa2
from Caa1 and probability of default rating to Caa2-PD from
Caa1-PD. Moody's also downgraded the backed senior secured rating
assigned to Spirit IP Cayman Ltd.'s 8% senior notes, which are
secured by the company's loyalty program and brand IP, to Caa2 from
B2. The speculative grade liquidity rating remains unchanged at
SGL-3 and the rating outlook remains negative.
The downgrade of the corporate family rating to Caa2 reflects
Moody's belief that the potential of a default has increased since
Judge William Young ruled in January that the agreed acquisition by
JetBlue Airways Corp. would be anti-competitive and a violation of
the Clayton Act. The downgrades of the CFR, as well as of the
senior notes secured by Spirit's loyalty program IP and brand IP,
reflect the increased potential of a default and less than a full
recovery, whether in a formal reorganization or if the senior
secured notes are refinanced or retired for less than face value.
The Caa2 instrument rating incorporates a negative one notch
override of the LGD model to reflect the potential for a more than
nominal loss on the instrument in a restructuring or exchange
scenario. Following the ruling on January 16, the market price of
the notes fell to around 50 from the low to mid-70s since
mid-November. The notes price has increased to the low 60s
following the announcement that Spirit and JetBlue would appeal the
District Court's ruling.
Moody's continues to expect Spirit's operations to generate an
operating loss in 2024 and again in 2025 on a reported basis.
Moody's forecasts about breakeven operating cash flow in 2024, an
improvement from its forecast for negative $150 million in 2023.
Moody's projects cash to fall from the $1.1 billion on hand on
September 30, 2023, towards $700 million by the end of 2024.
The Company's $300 million revolver expires on September 30, 2025.
Alternate sources of liquidity are very limited.
In September 2023, Egan-Jones Ratings Company maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Spirit Airlines, Inc.
STERLING CREDIT: Gets OK to Use Cash Collateral Until Dec. 11
-------------------------------------------------------------
Sterling Credit Corp. received interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division to use the cash collateral of Park National Bank and other
secured creditors.
The interim order authorized the company to use the secured
creditors' cash collateral solely to facilitate the purchase of
accounts receivables and to pay $614,752 expenses incurred in the
ordinary course of business as outlined in the company's budget.
Sterling cannot utilize the cash collateral to pay loans or other
advances, salary and benefits to affiliates, and professional fees
without court approval.
As adequate protection, Park National Bank and other creditors with
valid pre-bankruptcy liens were granted replacement liens. In
addition, the bank will receive payment of $140,000.
The next hearing is scheduled for Dec. 11.
About Sterling Credit Corp.
Sterling Credit Corp., a company in Altamonte Springs, Fla.,
provides capital and collection services to customers.
Sterling Credit sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02830) on June 4,
2024, with $10 million to $50 million in both assets and
liabilities. William R. Ward, president, signed the petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Robert Drake Wilcox, Esq., at Wilcox
Law Firm.
On July 17, 2024, the U.S. Trustee for the Middle District of
Florida appointed an official committee of unsecured creditors in
this Chapter 11 case. The committee tapped Shuker & Dorris, PA as
its counsel.
TAMPA BAY SPEECH-LANGUAGE: Seeks Cash Collateral Access
-------------------------------------------------------
Tampa Bay Speech-Language & Reading Clinic, LLC asked the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa Division
for authority to use the cash collateral of its secured creditor,
retroactive to the petition date.
The company requires the use of cash collateral to fund its
operating expenses and costs of administration for
the duration of its Chapter 11 case.
Cash, accounts receivable and other income derived from the
company's operations constitute the cash collateral of OnDeck, also
known as ODK Capital, LLC. The claim of OnDeck is secured by
$44,525 in assets, consisting of $42,075 in cash.
The company proposed to provide OnDeck with adequate protection for
the use of its cash collateral in the form of a post-petition
replacement lien on the assets to the same extent and with the same
validity and priority as its pre-bankruptcy lien.
About Tampa Bay Speech-Language
& Reading Clinic
Tampa Bay Speech-Language and Reading Clinic, LLC sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case
No. 24-06271) on October 25, 2024, with up to $50,000 in assets and
up to $500,000 in liabilities. Julie L. Kogut, director, signed the
petition.
Judge Roberta A. Colton oversees the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A., represents the Debtor
as legal counsel.
TECTUM ROOFING: Mark Dennis Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 19 appointed Mark Dennis, a certified
public accountant at SL Biggs, as Subchapter V trustee for Tectum
Roofing, LLC.
Mr. Dennis will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dennis 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 D. Dennis, CPA
SL Biggs, A Division of SingerLewak, LLP
2000 S. Colorado Blvd., Tower 2, Ste. 200
Denver, CO 80222
Phone: 303-226-5471
Email: mdennis@slbiggs.com
About Tectum Roofing
Tectum Roofing, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-16169) on October 17,
2024, with $1 million to $10 million in both assets and
liabilities.
Judge Michael E. Romero presides over the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C.
represents the Debtor as legal counsel.
TW MEDICAL: Seeks Cash Collateral Access
----------------------------------------
TW Medical Group, LLC and Taylor G. Wright, P.C. received interim
approval from the U.S. Bankruptcy Court for the District of Utah,
Central Division to use cash collateral to pay their operating
expenses.
The interim order, signed by Judge Joel Marker, approved the use of
cash collateral for the period from Oct. 23 to Nov. 15 in
accordance with the companies' budget, with a 10% variance.
Cache Valley Bank, Secured Lender Solutions, LLC, CT Corporation
System, Corporation Service Company, Old Mill Common LLC, CC
Representative, and J B & B Capital, LLC assert an interest in the
cash collateral.
Secured creditors will be granted a replacement lien on the
post-petition assets of the companies to the extent the use of cash
collateral results in the diminution of their collateral.
The final hearing is scheduled for Nov. 15.
About TW Medical Group
TW Medical Group, LLC is a podiatry practice offering
state-of-the-art care across many locations in the United States.
The Company provides care for patients of all ages, from infants to
older adults. Its podiatry team specializes in diagnosing and
treating many foot and ankle conditions, including plantar
fasciitis, tendonitis, ingrown toenail, toenail fungus, bunions,
and flat feet.
TW Medical Group and Taylor G. Wright, P.C. filed Chapter 11
petitions (Bankr. D. Utah Lead Case No. 24-25495) on October 23,
2024. Zachary Paul, chief financial officer, signed the petitions.
At the time of the filing, TW Medical Group reported $10 million to
$50 million in both assets and liabilities while Taylor G. Wright
reported $100,001 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge Joel T. Marker oversees the cases.
George B. Hofmann, Esq., at Cohne Kinghorn, P.C., represents TW
Medical Group while Ted F. Stokes, Esq., at Stokes Law, PLLC
represents Taylor G. Wright.
UNITED AIRLINES: Fitch Alters Outlook on 'BB-' IDR to Positive
--------------------------------------------------------------
Fitch Ratings has revised United Airlines Rating Outlook to
Positive from Stable and has affirmed its Long-Term Issuer Default
Rating (IDR) at 'BB-'.
The Positive Outlook reflects Fitch's expectations for continued
credit metric improvement and solid financial performance relative
to peers. The company is paying down debt while maintaining
substantial liquidity and financial flexibility. Fitch also
believes United will benefit from capacity constraints at
struggling low-cost competitors.
The company's considerable multi-year capital spending program and
pressured FCF remain rating concerns. However, expected aircraft
delivery delays should ease the company's capital spending in the
forecast compared to prior estimates. United's substantial
financial flexibility, provided by its liquidity and unencumbered
assets, help temper concerns around upcoming capital spending
commitments.
Fitch has revised the recovery ratings of United's senior secured
facilities to 'BB+' with a Recovery Rating of 'RR1' from
'BB+'/'RR2'. The change is driven by the large reduction in
outstanding MileagePlus debt, which has a priority claim on
royalty-related cashflows. The recovery rating is also supported by
the expectation that gross leverage will decline through debt
repayment over the forecast.
Key Rating Drivers
Credit Metrics Improving: United's credit metrics are improving due
to debt prepayment, positive results from strategic initiatives,
lower fuel prices, and a healthy operating environment. EBTIDAR
leverage ended the third quarter at 3.9x, down from over 6x at YE
2022, aided by term loan prepayments totaling over USD3.5 billion
in 2024. United has reduced its gross debt to $33.4 billion from a
peak of over $41 billion during the pandemic. Fitch's rating case
forecasts leverage will decline toward the mid-to-low 3x range over
the next one to two years on modestly declining debt balances.
There is potential upside to the forecast if United hits its margin
expansion goals, compared to Fitch's forecast for flat near-term
margins. United retains elevated liquidity, resulting in net
metrics roughly in line with higher-rated Delta Air Lines, although
Fitch expects Delta to produce better FCF over the next several
years. United aims to reduce net leverage below 2x over the next
few years, down from 2.7x at 3Q23. EBITDAR fixed charge coverage
has also improved to the mid-3x range, near Fitch's positive rating
sensitivity. Fitch expects incremental EBITDAR coverage improvement
going forward.
Constructive Environment: Fitch anticipates that demand for air
travel will remain healthy into 2025, sd evidenced by recent
reports of solid booking trends through the fourth quarter and the
ongoing improvement in business and premium travel. Although Fitch
expects slower U.S. economic growth next year, consumers are likely
to continue prioritizing travel spending.
Fitch expects airline pricing power to be supported by limits on
seat supply due to reduced capacity by domestic carriers and by
original equipment manufacturer (OEM) production delays and engine
maintenance issues. Examples include Southwest's commitment to
limit capacity growth to 1%-2% and Spirit's expectations for
reduced capacity next year. However, cost inflation remains a
headwind. Unit cost increases have outpaced unit revenues this
year, driven by higher labor rates.
Steady Profitability with Potential Upside: Profit margins are down
modestly this year but have performed well compared with peers.
Fitch expects flat or slightly increasing margins in the next few
years. Although margins would remain below pre-pandemic levels,
they will generate sufficient cash flows and continued improving
credit metrics over time. Additionally, there is potential upside
to Fitch's forecast. Recent industry capacity restraint and
benefits from United's ongoing United Next program may lead to more
significant unit revenue gains in 2025 compared to the modest
growth in Fitch's forecast, potentially supporting further positive
rating actions.
Capital Program-Linked FCF Profile: Capital spending is expected to
be less intense than previously anticipated in 2024 and 2025 due to
aircraft delivery delays. These delays will be exacerbated by the
ongoing Boeing strike and certification delays for the MAX 10.
Fitch now expects United to generate more than $1 billion in FCF in
2024 and roughly neutral FCF over the next three years. United
management now emphasizes FCF generation even as it works through
its fleet renewal, suggesting a keener focus on preserving and
improving its financial flexibility.
United Next Benefits To Be Realized: United is benefiting from its
"United Next" fleet renewal plan, with significant improvement
still to come. By the end of the third quarter, the company had
firm commitments for 686 aircraft to be delivered through 2033,
equal to more than 70% of its current mainline fleet count. Fitch
believes this fleet transformation will positively impact United's
cost structure and competitive position in domestic markets. The
new aircraft will be significantly more fuel- efficient, both in
engine technology and seats per departure. This renewal is
particularly impactful for United's regional operations, which rely
heavily on small, inefficient regional jets compared to
competitors.
Derivation Summary
United's 'BB-' rating is one notch above American Airlines
(B+/Stable). The rating differential is driven, in part, by
United's total debt burden, which remains lower than American's,
along with a higher liquidity balance. However, Fitch believes
United has lower de-leveraging capacity and greater execution risk
relative to American, due to the company's capital spending and
fleet renewal program.
United is three notches below Delta Air Lines (BBB-/Stable), with
the difference driven by United's higher gross leverage. Delta also
benefits from higher operating margins and pre-pandemic track
record of FCF generation.
Key Assumptions
- United's capacity grows around 7% in 2024 and in the low to
mid-single digits annually thereafter;
- Continued travel demand growth keeps load factors in the 83%-84%
range;
- Flat to modestly increasing unit revenues;
- Jet fuel prices averaging around $2.80/gallon in 2024, implying
Brent crude prices in the mid-$70/barrel range, while crack spreads
remain above historical averages;
- Capital spending in line with the company's public guidance.
RATING SENSITIVITIES
Factors That Could, Individually Or Collectively, Lead To Positive
Rating Action/Upgrade
- Adjusted debt/EBITDAR trending to 3.5x and EBITDAR fixed-charge
coverage towards 3.5x;
- Neutral to positive sustained FCF;
- EBITDAR margins maintained in the mid-teens or better
- Progress towards United's fleet renewal efforts while maintaining
financial flexibility, including maintaining or increasing
unencumbered assets.
Factors That Could, Individually Or Collectively, Lead To Negative
Rating Action/Downgrade
- Adjusted debt/EBITDAR sustained above 4.5x or FFO fixed-charge
coverage sustained below 2.5x;
- EBITDAR margins deteriorating into the low double-digit range;
- Persistently negative or negligible FCF.
Liquidity and Debt Structure
Liquidity Provides Downside Protection: United's 3Q24 cash and
short-term investments totaled $14.1 billion and $2.97 billion
available under its revolver, equivalent to 31% of United's LTM
revenue. United's liquidity balance was higher than either of its
major peers, and provides a material amount of protection against
potential economic pressure. Pre-pandemic, United targeted a
minimum of $5 billion-$6 billion in total liquidity.
Fitch expects the company's current liquidity balance and improving
operating cash flows to be more than sufficient to cover near-term
obligations. Fitch expects United to direct cash towards aircraft
deliveries and scheduled debt maturities. As such, unencumbered
assets are expected to rise through the forecast period, rebuilding
after United utilized much of its unencumbered asset base to raise
funds during the pandemic.
Debt Structure: United's upcoming debt maturities are sizeable but
manageable. Principal repayments total $3 billion in 2025, $4.8
billion in 2026 and $2.3 billion in 2027. Fitch expects maturities
to be met through a combination of cash generated from operations,
drawing down the current cash balance, and financing upcoming
aircraft deliveries.
United's debt structure primarily consists of aircraft backed
EETCs, secured term loan and notes backed by the company's
slots/gates/routes collateral, and a secured note backed by its
loyalty program. United has a limited amount of unsecured notes as
well as unsecured obligations that arose as part of the government
Payroll Support Program.
Revenue Bonds: Fitch also rates a series of special facility
revenue bonds guaranteed by United. Funds from the bonds financed
the construction of a multi-terminal baggage handling system,
tenant and other improvements at International passenger terminal
(Terminal E) and related airport facilities for use by United
(formerly Continental Airlines) at George H. Bush International
Airport/Houston.
Although the revenue bonds benefit from a security interest in
United's lease payments, Fitch views the risk profile of these
revenue bonds as closer to United's unsecured issuances. United
does not have a master lease at Houston International Airport.
Instead, United has multiple leases in place tied to various
terminals and facilities. In a bankruptcy scenario, it is possible
select leases could take priority and leave other leases to be
rejected or consolidated. As such, Fitch rates these revenue bonds
at 'BB-/RR4' in line with United's unsecured debt ratings.
Issuer Profile
United Airlines is one of the largest airlines in the world. The
company maintains hubs at Newark Liberty International Airport,
Chicago O'Hare International Airport, Denver International Airport,
George Bush Intercontinental Airport in Houston, and Los Angeles
International Airport, among others.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
United Airlines, Inc. LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
senior secured LT BB+ Affirmed RR1 BB+
United Airlines
Holdings, Inc. LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
UPTOWN DENTAL: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Uptown Dental Solutions, PLLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Texas, Dallas
Division, to use the cash collateral of its secured lenders.
The interim order authorized the company to use the cash collateral
of UMB Bank, the U.S. Small Business Administration, and Readycap
Lending, LLC to fund the operation of its business.
As of the petition date, UMB Bank is owed $1.1 million; SBA,
$459,823; and Readycap, $450,000.
As adequate protection for any diminution in the value of their
collateral, secured lenders were granted replacement liens on their
collateral. In addition, UMB will receive a monthly payment of
$8,500, with the first payment due no later than Nov. 24.
The final hearing is scheduled for Nov. 20.
About Uptown Dental Solutions
Uptown Dental Solutions, PLLC is a full-service practice offering
comprehensive range of dental services including, cosmetic,
general, and family dentistry in Rockwall, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33352) on October
25, 2024, with $1 million to $10 million in both assets and
liabilities. Rashid Beirute-Prada, sole member, signed the
petition.
Brandon Tittle, Esq., at Tittle Law Group, PLLC, represents the
Debtor as bankruptcy counsel.
UROGEN PHARMA: BlackRock Holds 5.9% Equity Stake
------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G Report filed with the
U.S. Securities and Exchange Commission that as of September 30,
2024, it beneficially owned 2,497,943 shares of UroGen Pharma
Ltd.'s common stock, representing 5.9% of the shares outstanding.
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/5n6veew2
About UroGen Pharma Ltd.
Headquartered in Princeton, N.J., UroGen Pharma Ltd. --
http://www.urogen.com-- is a biotechnology company dedicated to
developing and commercializing innovative solutions that treat
urothelial and specialty cancers. The Company has developed RTGel
reverse-thermal hydrogel, a proprietary sustained release,
hydrogel-based technology that has the potential to improve
therapeutic profiles of existing drugs. The Company's technology is
designed to enable longer exposure of the urinary tract tissue to
medications, making local therapy a potentially more effective
treatment option.
Florham Park, N.J.-based PricewaterhouseCoopers LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 14, 2024, citing that the Company has incurred
losses and experienced negative operating cash flows since its
inception that raise substantial doubt about its ability to
continue as a going concern.
UroGen Pharma reported net losses of $102.2 million and $109.8
million for the years ended December 31, 2023, and 2022,
respectively. As of June 30, 2024, UroGen Pharma had $281.8 million
in total assets, $251.5 million in total liabilities, and $30.3
million in total stockholders' equity.
VECTOR GROUP: Egan-Jones Retains CCC+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on October 29, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Vector Group Ltd. EJR also withdrew rating on
commercial paper issued by the Company.
Headquartered in Miami, Florida, Vector Group Ltd. operates as a
holding company.
VENUS CONCEPT: Registers $30.4M in Securities for Possible Offering
-------------------------------------------------------------------
Venus Concept Inc. filed a registration statement on Form S-3 with
the Securities and Exchange Commission using a "shelf" registration
process to replace its prior registration statement on Form S-3
(File No. 333-260267) originally filed on October 15, 2021 and
declared effective on October 25, 2021, in accordance with
applicable SEC regulations.
Under this shelf registration statement, the Company may, from time
to time, sell any combination of the securities, in one or more
offerings, up to a maximum aggregate offering price of
$30,368,647.94. Pursuant to Rule 415(a)(5)(ii) under the Securities
Act of 1933, as amended, by filing this shelf registration
statement, the Company may issue and sell securities covered by the
Prior Registration Statement until the earlier of (i) the effective
date of this shelf registration statement and (ii) April 22, 2025,
which is 180 days after the third-year anniversary of the effective
date of the Prior Registration Statement.
Venus Concept Inc. may offer and sell up to $30,368,647.94 in the
aggregate of the securities such as its Common Stock, Preferred
Stock. Debt Securities, Warrants, and Units from time to time in
one or more offerings.
Each time the Company offers and sells securities, it will provide
a supplement to the prospectus that contains specific information
about the offering and the amounts, prices and terms of the
securities offered. Any prospectus supplement may also add, update
or change information contained in this prospectus with respect to
the applicable offering.
The Company may offer and sell the securities described in this
prospectus and any prospectus supplement to or through one or more
underwriters, dealers and agents, or directly to purchasers, or
through a combination of these methods. If any underwriters,
dealers or agents are involved in the sale of any of the
securities, their names and any applicable purchase price, fee,
commission or discount arrangement between or among them will be
set forth, or will be calculable from the information set forth, in
the applicable prospectus supplement.
A full-text copy of the registration statement is available at:
https://tinyurl.com/yc2c5yzu
About Venus Concept
Toronto, Ontario-based Venus Concept Inc. is an innovative global
medical technology company that develops, commercializes, and
delivers minimally invasive and non-invasive medical aesthetic and
hair restoration technologies and related services. The Company's
systems have been designed on cost-effective, proprietary, and
flexible platforms that enable the Company to expand beyond the
aesthetic industry's traditional markets of dermatology and plastic
surgery, and into non-traditional markets, including family
medicine and general practitioners and aesthetic medical spas.
Toronto, Canada-based MNP LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has reported recurring net losses and
negative cash flows from operations that raise substantial doubt
about its ability to continue as a going concern.
Venus Concept reported a net loss of $37.1 million for the year
ended December 31, 2023, compared to a net loss of $43.6 million
for the year ended December 31, 2022. As of June 30, 2024, the
Company had $79.8 million in total assets, $75.4 million in total
liabilities, $662,000 in non-controlling interests, and $3.7
million in total stockholders' equity.
VERINT SYSTEMS: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on October 22, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Verint Systems Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Huntington, New York, Verint Systems Inc. provides
analytic solutions for communications, interception, digital video
security and surveillance, and enterprise business intelligence.
VERIS RESIDENTIAL: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on October 29, 2024, maintained its
'BB-' local currency senior unsecured ratings on debt issued by
Veris Residential, Inc.
Headquartered in Jersey City, New Jersey, Veris Residential, Inc.
operates as a real estate investment trust (REIT).
VIVAKOR INC: Appoints Jeremy Gamboa as Logistics Division President
-------------------------------------------------------------------
Vivakor, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that Vivakor Administration,
LLC, a subsidiary of Vivakor. Inc., pursuant to the approval of its
Board of Directors, on the recommendation of the Compensation
Committee of the Board entered into that certain Executive
Employment Agreement with Jeremy Gamboa to join the Company as its
Division President, Logistics.
The Gamboa Agreement provides for an annual base salary of
$325,000, payable in equal installments every two weeks. In
addition, the Gamboa Agreement provides for annual incentive cash
and equity compensation of up to $780,000 based on certain
performance goals as further set forth therein. As an inducement to
enter into the Gamboa Agreement, Mr. Gamboa shall receive a
one-time signing grant of Vivakor common stock equivalent in value
to $150,000, which are priced per share based on the
volume-weighted average price for the preceding five trading days
prior to the execution date of the Gamboa Agreement, subject to an
18-month lockup period and a conditional clawback obligation
concurrent therewith, which shall be granted within 30 days after
the Start Date, as defined therein. Pursuant to the Gamboa
Agreement, Mr. Gamboa's employment is at-will under Texas law,
except as modified therein.
Jeremy Gamboa is a seasoned operations executive with more than
three decades of management experience with midstream trucking,
terminaling, and marketing companies, including for several
business units recently acquired by Vivakor, as previously
announced. Mr. Gamboa previously served as President of Endeavor
Crude, LLC since 2024, prior to that as Chief Operating Officer of
Ridgeback Energy Partners, LLC from 2018-21, and prior to that as
Executive Vice President and Chief Operating Officer of Bridger
Logistics, LLC from 2013-16.
The Board believes that Mr. Gamboa's experience in management and
operations and his extensive knowledge in the midstream petroleum
industry make him ideally qualified to help lead Vivakor towards
continued growth and success.
There are no arrangements or understandings between Mr. Gamboa and
any other person pursuant to which he was selected as an officer.
There are no existing relationships between Mr. Gamboa or Vivakor
or any of their respective subsidiaries that would require
disclosure pursuant to Item 404(a) of Regulation S-K or any
familial relationship that would require disclosure under Item
401(d) of Regulation S-K.
About Vivakor Inc.
Coralville, Iowa-based Vivakor, Inc. is a socially responsible
operator, acquirer, and developer of technologies and assets in the
oil and gas industry, as well as related environmental solutions.
Currently, the Company's efforts are primarily focused on operating
crude oil gathering, storage and transportation facilities, as well
as contaminated soil remediation services.
Houston, Texas-based Marcum LLP, the Company's auditor since 2022,
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.
As of June 30, 2024, Vivakor had $73.68 million in total assets,
$58.65 million in total liabilities, and $15.03 million in total
stockholders' equity.
VOIP-PAL.COM INC: 200K Shares Designated Series A Preferred Stock
-----------------------------------------------------------------
VoIP-Pal.Com Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company filed an
amendment to a Certificate of Designation dated May 25, 2022, as
previously amended on March 6, 2023, with the Nevada Secretary of
State in order to designate an additional 200,000 shares of the
Company's authorized preferred stock, par value $0.01 per share, as
Series A preferred stock, thereby increasing the total number of
shares of Preferred Stock designated as Series A Stock from 800,000
to 1,000,000.
The Series A Stock has the voting powers, designations,
preferences, limitations, restrictions and relative rights set
forth in the Certificate of Designation, a copy of which was filed
as Exhibit 3.3 to the Company's current report on Form 8-K dated
May 27, 2022.
The material features of the Series A Stock are as follows:
1. Holders of Series A Stock are entitled to 1,550 votes per
share of Series A Stock on any matter submitted to a vote of the
Company's stockholders, and are generally entitled to vote together
as one class with holders of the Company's common stock;
2. Holders of Series A Stock are not entitled to receive any
dividends or other distributions in respect of any shares of Series
A Stock held by them;
3. Holders of Series A Stock are not entitled to receive any
assets of the Company upon a liquidation, dissolution or winding up
of the Company;
4. Shares of Series A Stock are not redeemable;
5. Shares of Series A Stock are not convertible or
exchangeable into shares of the Company's common stock; and
6. Shares of Series A Stock are not transferrable or
assignable without the prior written consent of the Company.
As of October 9, 2024, Nil shares of the Preferred Stock remain
authorized and eligible for designation by the board of directors
of the Company pursuant to the Company's articles of incorporation,
as amended.
Promptly following the filing of the amendment, the Company issued
138,522 shares of Series A Stock to Emil Malak, the Chief Executive
Officer and a director of the Company, for nominal consideration.
The Shares were issued pursuant to the share transfer agreement
between the Company, Digifonica Intellectual Properties (DIP)
Limited and Digifonica (International) Limited dated June 25, 2013,
as amended on July 18, 2013, October 6, 2013, October 31, 2013,
November 25, 2013, March 17, 2014, April 21, 2021 and April 23,
2023, which obligates the Company to, among other things, issue to
DIP that number of shares of Series A Stock that allows DIP to
retain voting rights equivalent to 40% of the Company's outstanding
share capital.
The Shares were offered and sold to Mr. Malak in a private
transaction in reliance upon the exemption from registration
provided by Rule 903 of Regulation S promulgated under the
Securities Act of 1933, as amended. The Company's reliance on Rule
903 of Regulation S was based on the fact that Mr. Malak is not a
"U.S. person" as that term is defined in Rule 902(k) of Regulation
S, that Mr. Malak acquired the Shares for investment purposes for
his own account and not as nominee or agent, and not with a view to
the resale or distribution thereof, and that Mr. Malak understood
that the Shares may not be sold or otherwise disposed of without
registration under the Securities Act and any applicable state
securities laws, or an applicable exemption or exemptions
therefrom.
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com Inc. has developed technology and
patents related to Voice-over-Internet Protocol (VoIP) processes.
All business activities prior to March 2004 have been abandoned and
written off to deficit. Since March 2004, the Company has been in
the development stage of becoming a Voice-over-Internet Protocol
("VoIP") re-seller, a provider of a proprietary transactional
billing platform tailored to the points and air mile business, and
a provider of anti-virus applications for smartphones.
In its Quarterly Report for the three months ended March 31, 2024,
VoIP-PAL.com said that its ability to continue operations as a
going concern is dependent upon raising additional working capital,
settling outstanding debts, and generating profitable operations.
These material uncertainties raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, VOIP-PAL.com had $2,824,969 in total assets,
$103,321 in total liabilities, and $2,721,648 in total equity.
VOIP-PAL.COM INC: Updates on Director and Officer Appointments
--------------------------------------------------------------
VoIP-Pal.Com Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that in order to satisfy
its reporting obligations, the Company is disclosing the completion
of the following director and officer changes:
1. On May 17, 2024, Austin McDonald was appointed as a
director of the Company;
2. On August 18, 2024, Dennis Chang, a director of the
Company, was appointed as the Company's Corporate Secretary;
3. On September 1, 2024, Clif Saylor resigned as a director of
the Company for personal reasons. Mr. Saylor's resignation was not
due to any disagreement with the Company regarding its operations,
policies, practices or otherwise, and he was subsequently
reappointed as a director of the Company on October 10, 2024; and
4. On October 1, 2024, Emil Malak resigned as the President of
the Company and Gavin McMillan was appointed to fill the resulting
vacancy. Mr. Malak's resignation was not due to any disagreement
with the Company regarding its operations, policies, practices or
otherwise, and he remains the Chief Executive Officer and a
director of the Company.
Mr. McDonald has more than 36 years of international business
experience in the United States, the European Union and Asia. His
expertise covers several facets of business expansion including
development, management and oversight. He is also a named inventor
on several issued U.S. and international patents.
Mr. McDonald is a former Adjunct Professor at Stevens Institute of
Technology in Hoboken, NJ, and has dedicated the majority of his
career to working in the pharmaceutical industry.
Mr. McMillan, age 55, is a marketing and growth management
executive with over 30 years of experience across the
telecommunications, FinTech and information and communications
technology (ICT) sectors. He has been responsible for expanding
global market growth, positioning brands on six continents, and
leading teams of 100+ professionals while developing various
patents in the field of modern communications. Mr. McMillan has
worked with governments and enterprises worldwide to create
telecommunications strategies and drive sustainability through
energy-efficient, cloud-based solutions.
In addition to his executive roles, Mr. McMillan provides
independent consulting in sales, marketing, business development,
and investment fundraising. He has played a key role in mergers,
acquisitions, and launching new companies across various
industries, as well as developing financial technology solutions to
support unbanked workers, thereby demonstrating his commitment to
using technology to improve lives globally.
Mr. McMillan has not been a director of any company with a class of
securities registered pursuant to section 12 of the Securities
Exchange Act of 1934, as amended, or subject to the requirements of
section 15(d) of the Exchange Act, or any company registered as an
investment company under the Investment Company Act of 1940, during
the past five years.
There are no family relationships between Mr. McMillan and Mr.
McDonald, and any director, executive officer or person nominated
or chosen by the Company to become a director or executive officer,
and Mr. McMillan was not selected to be an officer of the Company
pursuant to any arrangement or understanding with any person.
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com Inc. has developed technology and
patents related to Voice-over-Internet Protocol (VoIP) processes.
All business activities prior to March 2004 have been abandoned and
written off to deficit. Since March 2004, the Company has been in
the development stage of becoming a Voice-over-Internet Protocol
("VoIP") re-seller, a provider of a proprietary transactional
billing platform tailored to the points and air mile business, and
a provider of anti-virus applications for smartphones.
In its Quarterly Report for the three months ended March 31, 2024,
VoIP-PAL.com said that its ability to continue operations as a
going concern is dependent upon raising additional working capital,
settling outstanding debts, and generating profitable operations.
These material uncertainties raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, VOIP-PAL.com had $2,824,969 in total assets,
$103,321 in total liabilities, and $2,721,648 in total equity.
XEROX CORP: Egan-Jones Retains B+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on October 22, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Xerox Corporation. EJR also withdraws the rating on
commercial paper issued by the Company.
Headquartered in Norwalk, Connecticut, Xerox Corporation develops
document management technology solutions.
YUNHONG GREEN: Fails to Meet Nasdaq Minimum Bid Price Rule
----------------------------------------------------------
Yunhong Green CTI Ltd. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Company,
received written notice from The Nasdaq Capital Market stating that
the Company was not in compliance with Nasdaq Listing Rule
5550(a)(2) because the Company's common stock failed to maintain a
minimum closing bid price of $1.00 for 30 consecutive business
days. The Notice has no immediate effect on the Nasdaq listing or
trading of the Company's common stock.
The Notice provides an initial 180 calendar day period, or until
April 21, 2025, in which to regain compliance, pursuant to Listing
Rule 5810(c)(3)(A). If, at any time before that date the bid price
of the Company's common stock closes at $1.00 per share or more for
a minimum of 10 consecutive business days, Nasdaq will notify the
Company that it has achieved compliance with the Minimum Bid Price
Rule.
The Company intends to actively monitor the closing bid price of
its common stock and will evaluate available options to regain
compliance with the Minimum Bid Price Rule.
About Yunhong Green
Barrington, Ill.-based Yunhong Green CTI Ltd develops, produces,
distributes and sells a number of consumer products throughout the
United States and in several other countries, and it produces film
products for commercial and industrial uses in the United States.
The Company's principal lines of products include: Novelty Products
consisting principally of foil and latex balloons and related gift
items; and Flexible Films for food and other commercial and
packaging applications.
As of March 31, 2024, Yunhong Green CTI had $16.75 million in total
assets, $11.47 million in total liabilities, and $5.28 million in
total shareholders' equity.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
The Company dismissed BF Borgers as its auditor after the firm and
its owner, Benjamin F. Borgers, were charged by the Securities and
Exchange Commission with deliberate and systemic failures to comply
with PCAOB standards in audits and reviews included in over 1,500
SEC filings from January 2021 through June 2023. The charges
included false representations of compliance with PCAOB standards,
fabrication of audit documentation, and false statements in audit
reports. Borgers agreed to a $14 million civil penalty and a
permanent suspension from practicing before the Commission.
The Company appointed Wolf & Company, P.C. as its new auditor,
effective April 1, 2024.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Clements Electric Texas LLC
Bankr. N.D. Tex. Case No. 24-33418
Chapter 11 Petition filed October 30, 2024
See
https://www.pacermonitor.com/view/S72LMMA/Clements_Electric_Texas_LLC__txnbke-24-33418__0001.0.pdf?mcid=tGE4TAMA
represented by: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
E-mail: joyce@joycelindauer.com
In re Freedom Capital Ventures, LLC
Bankr. N.D. Ga. Case No. 24-61515
Chapter 11 Petition filed October 30, 2024
See
https://www.pacermonitor.com/view/B3DCZUQ/FREEDOM_CAPITAL_VENTURES_LLC__ganbke-24-61515__0001.0.pdf?mcid=tGE4TAMA
represented by: Kenneth Mithell, Esq.
GIDDENS MITCHELL & ASSOCIATES P.C.
E-mail: gmapclaw@gmail.com
In re New York Advisory Services, Inc.
Bankr. S.D.N.Y. Case No. 24-11873
Chapter 11 Petition filed October 30, 2024
See
https://www.pacermonitor.com/view/777ZICI/New_York_Advisory_Services_Inc__nysbke-24-11873__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re C&R Commercial, LLC
Bankr. E.D. Va. Case No. 24-50817
Chapter 11 Petition filed October 30, 2024
See
https://www.pacermonitor.com/view/WTD2ZUQ/Alicia_CR_Commercial_LLC__vaebke-24-50817__0001.0.pdf?mcid=tGE4TAMA
represented by: Sherman C. Smith, Esq.
SHERMAN C. SMITH, ATTORNEY AT LAW
E-mail: scsmith18@gmail.com
In re 264 Chestnut Rd Holdings LLC
Bankr. M.D. Pa. Case No. 24-02807
Chapter 11 Petition filed October 30, 2024
See
https://www.pacermonitor.com/view/JC5HNTQ/264_Chestnut_Rd_Holdings_LLC__pambke-24-02807__0001.0.pdf?mcid=tGE4TAMA
represented by: Philip W. Stock, Esq.
LAW OFFICE OF PHILIP W. STOCK
E-mail: pwstock@ptd.net
In re Jason Matthew Rust and Erica LeAnn Rust
Bankr. M.D. Tenn. Case No. 24-04164
Chapter 11 Petition filed October 29, 2024
represented by: Denis Waldron, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
In re Alexander Josowitz
Bankr. E.D.N.Y. Case No. 24-44501
Chapter 11 Petition filed October 30, 2024
represented by: Alla Kachan, Esq.
In re Charles Littleton Fridge III
Bankr. S.D. Tex. Case No. 24-35056
Chapter 11 Petition filed October 30, 2024
represented by: Richard Fuqua, Esq.
In re Stephen T Lam
Bankr. D. N.J. Case No. 24-20826
Chapter 11 Petition filed October 31, 2024
represented by: Andre Kydala, Esq.
In re Elina Aulikki Niemela
Bankr. D. Ore. Case No. 24-33028
Chapter 11 Petition filed October 31, 2024
In re Allen V Petrossian
Bankr. C.D. Calif. Case No. 24-12787
Chapter 11 Petition filed October 31, 2024
In re James Joseph Antich and Cynthia Leigh Antich
Bankr. D. Ariz. Case No. 24-09340
Chapter 11 Petition filed October 31, 2024
represented by: Patrick F Keery, Esq.
KEERY MCCUE, PLLC
In re 106 Livonia LLC
Bankr. E.D.N.Y. Case No. 24-44524
Chapter 11 Petition filed October 31, 2024
See
https://www.pacermonitor.com/view/2JCCCGQ/106_Livonia_LLC__nyebke-24-44524__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re The Link Up, LLC
Bankr. W.D. Tenn. Case No. 24-25404
Chapter 11 Petition filed October 31, 2024
See
https://www.pacermonitor.com/view/KAU65QI/The_Link_Up_LLC__tnwbke-24-25404__0001.0.pdf?mcid=tGE4TAMA
represented by: Curtis Johnson, Esq.
JOHNSON and JOHNSON PC
E-mail:
cjohnson@johnsonandjohnsonattys.com
In re Perryville Realty LLC
Bankr. S.D.N.Y. Case No. 24-11891
Chapter 11 Petition filed October 31, 2024
See
https://www.pacermonitor.com/view/L7TJAUA/Perryville_Realty_LLC__nysbke-24-11891__0001.0.pdf?mcid=tGE4TAMA
represented by: Carlos J. Cuevas, Esq.
CARLOS J. CUEVAS, ESQ.
E-mail: ccuevas576@aol.com
In re Harbor Drive LLC
Bankr. E.D.N.Y. Case No. 24-44525
Chapter 11 Petition filed October 31, 2024
See
https://www.pacermonitor.com/view/2TRBIIA/Harbor_Drive_LLC__nyebke-24-44525__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Flores Pediatrics, LLC
Bankr. W.D. Okla. Case No. 24-13144
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/LAS3EEQ/Flores_Pediatrics_LLC__okwbke-24-13144__0001.0.pdf?mcid=tGE4TAMA
represented by: Amanda R. Blackwood, Esq.
BLACKWOOD LAW FIRM, PLLC
E-mail: amanda@blackwoodlawfirm.com
In re Kam Realty, LLC
Bankr. W.D. Pa. Case No. 24-22697
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/J4UKFRA/Kam_Realty_LLC__pawbke-24-22697__0001.0.pdf?mcid=tGE4TAMA
represented by: Rodney D. Shepherd, Esq.
LAW OFFICES OF RODNEY SHEPHERD
E-mail: rodsheph@cs.com
In re Hyperion Education Bloomingdale, LLC
Bankr. S.D. Fla. Case No. 24-21553
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/GCZAGRY/Hyperion_Education_Bloomingdale__flsbke-24-21553__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C Furr, Esq.
FURR & COHEN
E-mail: rfurr@furrcohen.com
In re Hyperion Education Missouri, LLC
Bankr. S.D. Fla. Case No. 24-21554
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/CDGBJ3I/Hyperion_Education_Missouri_LLC__flsbke-24-21554__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C Furr, Esq.
FURR & COHEN
E-mail: rfurr@furrcohen.com
In re Hyperion Education Apollo Beach, LLC
Bankr. S.D. Fla. Case No. 24-21552
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/57AEZ6A/Hyperion_Education_Apollo_Beach__flsbke-24-21552__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C Furr, Esq.
FURR & COHEN
E-mail: rfurr@furrcohen.com
In re P Maio Construction, LLC
Bankr. D. N.J. Case No. 24-20885
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/TDS6IPI/P_Maio_Construction_LLC__njbke-24-20885__0001.0.pdf?mcid=tGE4TAMA
represented by: Mark J. Politan, Esq.
POLITAN LAW, LLC
E-mail: mpolitan@politanlaw.com
In re LSR Canyon, LLC
Bankr. W.D. Tex. Case No. 24-52211
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/EVWDYRA/LSR_Canyon_LLC__txwbke-24-52211__0001.0.pdf?mcid=tGE4TAMA
represented by: William R. Davis , Jr., Esq.
LANGLEY & BANACK
E-mail: wrdavis@langleybanack.com
In re Peachy Athletic, LLC
Bankr. M.D. Fla. Case No. 24-06501
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/HOSTCAI/Peachy_Athletic_LLC__flmbke-24-06501__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott A. Stichter, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: sstichter@srbp.com
In re LSR Tanglewood, LLC
Bankr. W.D. Tex. Case No. 24-52213
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/4IDIIKY/LSR_Tanglewood_LLC__txwbke-24-52213__0001.0.pdf?mcid=tGE4TAMA
represented by: William R. Davis , Jr., Esq.
LANGLEY & BANACK
E-mail: wrdavis@langleybanack.com
In re Islands International Group, Inc.
Bankr. M.D. Fla. Case No. 24-05973
Chapter 11 Petition filed November 1, 2024
See
https://www.pacermonitor.com/view/SVT5LIY/Islands_International_Group_Inc__flmbke-24-05973__0001.0.pdf?mcid=tGE4TAMA
represented by: R.Scott Shuker, Esq.
SHUKER & DORRIS, P.A.
E-mail: rshuker@shukerdorris.com
In re An Dinh Ho
Bankr. N.D. Tex. Case No. 24-33508
Chapter 11 Petition filed November 1, 2024
represented by: Joyce Lindauer, Esq.
In re Jim Edwin Cortazar
Bankr. E.D.N.Y. Case No. 24-74199
Chapter 11 Petition filed November 1, 2024
In re Van Mark Lee
Bankr. M.D. Tenn. Case No. 24-04246
Chapter 11 Petition filed November 1, 2024
represented by: Henry Hildebrand, Esq.
In re Aaron Micah Jamison
Bankr. D.S.C. Case No. 24-03957
Chapter 11 Petition filed November 1, 2024
represented by: Michael Conrady, Esq.
CAMPBELL LAW FIRM, PA
In re Star Transportation A, Inc.
Bankr. S.D. Fla. Case No. 24-21560
Chapter 11 Petition filed November 2, 2024
See
https://www.pacermonitor.com/view/G32U5LQ/Star_Transportation_A_Inc__flsbke-24-21560__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph A. Pack, Esq.
PACK LAW
E-mail: joe@packlaw.com
In re Star Truck Service, Inc.
Bankr. S.D. Fla. Case No. 24-21559
Chapter 11 Petition filed November 2, 2024
See
https://www.pacermonitor.com/view/GQD7TWI/Star_Truck_Service_Inc__flsbke-24-21559__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph A. Pack, Esq.
PACK LAW
E-mail: joe@packlaw.com
In re Finance Solutions LLC
Bankr. S.D. Fla. Case No. 24-21561
Chapter 11 Petition filed November 2, 2024
See
https://www.pacermonitor.com/view/HDJ7XYQ/Finance_Solutions_LLC__flsbke-24-21561__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph A. Pack, Esq.
PACK LAW
E-mail: joe@packlaw.com
In re US Express Line LLC
Bankr. S.D. Fla. Case No. 24-21563
Chapter 11 Petition filed November 2, 2024
See
https://www.pacermonitor.com/view/HSZJ3ZY/US_Express_Line_LLC__flsbke-24-21563__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph A. Pack, Esq.
PACK LAW
E-mail: joe@packlaw.com
In re MDL Business Group LLC
Bankr. S.D. Fla. Case No. 24-21562
Chapter 11 Petition filed November 2, 2024
See
https://www.pacermonitor.com/view/HLB27OA/MDL_Business_Group_LLC__flsbke-24-21562__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph A. Pack, Esq.
PACK LAW
E-mail: joe@packlaw.com
In re 1814 S. 20th Street
Bankr. E.D. Pa. Case No. 24-13971
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/3G34PPA/1814_S_20th_Street__paebke-24-13971__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 2193 Park Terrace LLC
Bankr. N.D. Ga. Case No. 24-61724
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/ARVC4EA/2193_Park_Terrace_LLC__ganbke-24-61724__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Rabah, LLC
Bankr. N.D. Tex. Case No. 24-33530
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/ES7KQCQ/Rabah_LLC__txnbke-24-33530__0001.0.pdf?mcid=tGE4TAMA
represented by: James B. Jameson, Esq.
JAMESON & ASSOCIATES
E-mail: jbjameson@jamesonlaw.net
In re BBCT Investments & Holding LLC
Bankr. N.D. Ga. Case No. 24-61741
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/DRULXLA/BBCT_Investments__Holding_LLC__ganbke-24-61741__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re FT Do It Enterprises, LLC
Bankr. S.D. Tex. Case No. 24-35201
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/6IAXGHI/FT_Do_It_Enterprises_LLC__txsbke-24-35201__0001.0.pdf?mcid=tGE4TAMA
represented by: Wai Ping Cheung, Esq.
CARMEN WAI PING CHEUNG PLLC
E-mail: lawjustice@sbcglobal.net
In re Building Blocks Child Development Center, Inc.
Bankr. N.D. Fla. Case No. 24-30922
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/CBZOV3Q/Building_Blocks_Child_Development__flnbke-24-30922__0001.0.pdf?mcid=tGE4TAMA
represented by: Jodi Daniel Dubose, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: jdubose@srbp.com
In re SRP Capital LLC
Bankr. D. N.J. Case No. 24-20971
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/CSAO4CI/SRP_Capital_LLC__njbke-24-20971__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Nisenson, Esq.
ROBERT C. NISENSON, LLC
E-mail: rnisenson@aol.com
In re Cross Country Holdings LLC
Bankr. N.D. Ga. Case No. 24-11499
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/IHAJ5ZI/Cross_Country_Holdings_LLC__ganbke-24-11499__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Greenville Investments LLC
Bankr. N.D. Ga. Case No. 24-11500
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/PLZWHJI/Greenville_Investments_LLC__ganbke-24-11500__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Critical Rehab Corporation
Bankr. N.D. Fla. Case No. 24-40444
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/TRPO54A/Critical_Rehab_Corporation__flnbke-24-40444__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
E-mail: jluna@lathamluna.com
In re CarePoint Health Systems, Inc.
Bankr. D. Del. Case No. 24-12534
Chapter 11 Petition filed November 3, 2024
See
https://www.pacermonitor.com/view/VFS7FWQ/CarePoint_Health_Systems_Inc__debke-24-12534__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter C. Hughes, Esq.
DILWORTH PAXSON LLP
E-mail: phughes@dilworthlaw.com
In re American Contractors of Baltimore, Inc.
Bankr. D. Md. Case No. 24-19293
Chapter 11 Petition filed November 3, 2024
See
https://www.pacermonitor.com/view/ZGN7EGA/American_Contractors_of_Baltimore__mdbke-24-19293__0001.0.pdf?mcid=tGE4TAMA
represented by: Aryeh E. Stein, Esq.
MERIDIAN LAW, LLC
E-mail: astein@meridianlawfirm.com
In re E & H Enterprises, Inc.
Bankr. N.D. Ill. Case No. 24-16549
Chapter 11 Petition filed November 3, 2024
See
https://www.pacermonitor.com/view/7C2HM3Q/E__H_Enterprises_Inc__ilnbke-24-16549__0001.0.pdf?mcid=tGE4TAMA
represented by: David Freydin, Esq.
LAW OFFICES OF DAVID FREYDIN
E-mail: david.freydin@freydinlaw.com
In re IMS Group LLC
Bankr. M.D. Fla. Case No. 24-05994
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/VTVOXTA/IMS_Group_LLC__flmbke-24-05994__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Taste of Trelawny LLC
Bankr. E.D. Va. Case No. 24-12065
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/H74DOZY/Taste_of_Trelawny_LLC__vaebke-24-12065__0001.0.pdf?mcid=tGE4TAMA
represented by: Ashvin Pandurangi, Esq.
VIVONA PANDURANGI, PLC
E-mail: ashvinp@vpbklaw.com
In re MCPZ Foods Corp
Bankr. E.D.N.Y. Case No. 24-44581
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/YLBLXKQ/MCPZ_Foods_Corp__nyebke-24-44581__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re ASM Holdings 64, LLC
Bankr. N.D. Ga. Case No. 24-61772
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/E623JZQ/ASM_Holdings_64_LLC__ganbke-24-61772__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Vilrose Ventures, LLC
Bankr. N.D. Tex. Case No. 24-44071
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/AAOS5KA/Vilrose_Ventures_LLC__txnbke-24-44071__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 1260 S 9th Street Realty LLC
Bankr. S.D.N.Y. Case No. 24-22974
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/D7QXDXA/1260_S_9th_Street_Realty_LLC__nysbke-24-22974__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re BBG Souza Enterprises, Inc.
Bankr. D. Mass. Case No. 24-41128
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/YBGLEQI/BBG_Souza_Enterprises_Inc__mabke-24-41128__0001.0.pdf?mcid=tGE4TAMA
represented by: James L. O'Connor, Esq.
NICKLESS, PHILLIPS AND O'CONNOR
E-mail: joconnor@npolegal.com
In re James Allen Brown, Jr.
Bankr. S.D. Ga. Case No. 24-40948
Chapter 11 Petition filed November 4, 2024
represented by: Jon Levis, Esq.
In re Marlon L. Fleming
Bankr. S.D. Fla. Case No. 24-21589
Chapter 11 Petition filed November 4, 2024
represented by: Chad Van Horn, Esq.
In re David Corey Croom and Alicia Dawn Croom
Bankr. W.D. La. Case No. 24-80672
Chapter 11 Petition filed November 4, 2024
represented by: L. Henry, Esq.
In re Marcus Patrelle Speed, Sr.
Bankr. N.D. Tex. Case No. 24-33531
Chapter 11 Petition filed November 4, 2024
represented by: J. Blanco, Esq.
In re Shaun Michael Leclerc
Bankr. C.D. Calif. Case No. 24-16645
Chapter 11 Petition filed November 4, 2024
represented by: W. May, Esq.
In re Jason W Fulton and James W Mercer
Bankr. W.D. Tex. Case No. 24-11394
Chapter 11 Petition filed November 4, 2024
represented by: Amy Wilburn, Esq.
GRAVIS LAW, PLLC
E-mail: awilburn@gravislaw.com
In re Melissa A Brooks-Blakesley and Neil Brooks-Blakesley
Bankr. E.D. Tex. Case No. 24-42683
Chapter 11 Petition filed November 5, 2024
In re Molly Ellen Catanzaro
Bankr. N.D. Calif. Case No. 24-30828
Chapter 11 Petition filed November 5, 2024
In re Su Mya Lin
Bankr. D. Md. Case No. 24-19379
Chapter 11 Petition filed November 5, 2024
represented by: Joseph Selba, Esq.
In re Kristian Eboreime Fitz
Bankr. C.D. Calif. Case No. 24-11864
Chapter 11 Petition filed November 5, 2024
represented by: Onyinye Anyama, Esq.
In re Hydn Rousseau
Bankr. S.D. Fla. Case No. 24-21604
Chapter 11 Petition filed November 5, 2024
represented by: Brian McMahon, Esq.
*********
Monday's edition of the TCR delivers a list of indicative prices
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obtained by TCR editors from a variety of outside sources during
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