/raid1/www/Hosts/bankrupt/TCR_Public/241114.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 14, 2024, Vol. 28, No. 318
Headlines
161-17NC LLC: Case Summary & 20 Largest Unsecured Creditors
1847 HOLDINGS: Closes $11.1 Million Public Offering of Securities
511 ALABAMA: Unsecureds Will Get 10% of Claims over 5 Years
568 REALTY LLC: Sec. 341(a) Meeting of Creditors on Dec. 5
703 BAKERY: Unsecureds Will Get 10% of Claims over 60 Months
738 RT196: Sec. 341(a) Meeting of Creditors on Dec. 5
742 LEX INC: Sec. 341(a) Meeting of Creditors on Dec. 2
ACCORD LEASE INC: Seeks Chapter 11 Bankruptcy in Illinois
ACCURIDE CORP: Appointment of Retiree Committee Sought
ADVANTAGE WEST: Hires Michael G. Spector as Legal Counsel
AFRITEX VENTURES: Hires Elliott Thomason & Gibson as Counsel
AIR FORCE: Fitch Affirms 'BB+' Rating on $117MM Revenue Bonds
ALAMO PREMIUM: Case Summary & 11 Unsecured Creditors
ALL IN ONE: Kicks Off Subchapter V Bankruptcy Proceeding
ALLEN MEDIA: Minority Lenders Sign Cooperation Agreement
AMATA LLC: Case Summary & 20 Largest Unsecured Creditors
AMTECH SYSTEMS: Dimensional Fund Holds 6.5% Stake as of Sept. 30
ANTIA'S TENDER: Seeks to Hire GT Ajayi CPA PC as Accountant
APEX AG SOLUTIONS: Seeks Cash Collateral Access
APPLE CENTRAL: Starts Subchapter V Bankruptcy Proceeding
ASHLAND CITY: Amends 1st Avenue Secured Claim Pay
ASPEN ELECTRONICS: Sec. 341(a) Meeting of Creditors on Dec. 4
ASSETS HOLDING: Amends Frost Bank Secured Claims Pay
ASSOCIATION MOTOR: Hires Capital Solutions CPA PC as Accountant
AUDACY INC: Court Issues Ruling Closing Bankruptcy Case
B. RILEY: Faces Challenges Amid Franchise Group Bankruptcy
BASIC FUN: Toy Maker Emerges from Chapter 11 Before Holidays
BAUSCH HEALTH: Lowers Net Loss to $85 Million in Fiscal Q3
BBG SOUZA: Seeks Cash Collateral Access
BEECHAM GROUP: Files Bare-Bones Bankruptcy Petition
BEECHAM GROUP: Seeks Cash Collateral Access
BIG FEET: Case Summary & Five Unsecured Creditors
BLINK FITNESS: Creditors Object to PureGym Sale After Higher Bid
BODY OASIS: Seeks Cash Collateral Access
BOY SCOUTS: Contests Bid to Overturn Bankruptcy Plan in 3rd Circuit
BRADFORD KIRK BOHMAN: Court Says Can't Proceed Under Subchapter V
BROUDY GROUP: Gets Interim OK to Use Cash Collateral
BURGERFI INTL:Court Okays Sale of Anthony's Coal Fire Pizza to TREW
C&S GROUP: Moody's Lowers CFR to B1, Under Review for Downgrade
CADUCEUS PHYSICIANS: Hires Stretto Inc. as Noticing Agent
CAPITAL COMMERCIAL: Sec. 341(a) Meeting of Creditors on December 3
CAREPOINT HEALTH: Antitrust Case Delay Bid Denied Despite Ch.11
CHAMPION HEALTHCARE: Unsecureds to Split $90K over 5 Years
CLEARWATER PAPER: Moody's Cuts CFR to Ba3, Alters Outlook to Stable
COACH USA INC: Finalizes Sale to The Renco Group
COMBAT ARMORY: Ongoing Operations to Fund Plan Payments
COMMSCOPE: Concludes Debt Talks With Creditors w/o Agreement
COMTECH TELECOMMUNICATIONS: John Ratigan Named New CEO, Director
CONTAINER STORE: Moody's Cuts CFR to Caa3, Outlook Negative
CORSAIR GAMING: Moody's Withdraws 'B2' Corporate Family Rating
CRITICAL REHAB: Files Emergency Bid to Use Cash Collateral
CUBITAC CORP: Kicks Off Bankruptcy Protection in New Jersey
CYPRUS MINES: Fine-Tunes Plan Documents
DBMP LLC: Court Won't Lift Automatic Stay in Herlihy, et al. Suit
DEGNAN SCOTTSDALE: Seeks Cash Collateral Access
DELTA APPAREL: Dimensional Fund Ceases Ownership of Common Shares
DENALI COMMUNITY SERVICES: Files for Chapter 11 Bankruptcy
DOMTAR CORP: Moody's Lowers CFR to B1 & Alters Outlook to Stable
DORETHA WARD: Seeks Chapter 11 Bankruptcy in Illinois
DOVETAIL DEVELOPMENT: Unsecured Claims, If Any, to Get 100%
ECHOSTAR CORP: Dimensional Fund Reduces Stake, Owns 0.8% of Shares
EDMOUNDSON STEEL: Seeks Cash Collateral Access
EIG MANAGEMENT: Moody's Alters Outlook on 'Ba2' CFR to Stable
ELLUCIAN HOLDINGS: S&P Affirms 'B-' ICR on Recapitalization
ENTECCO FILTER: Committee Hires Fox Rothschild LLP as Counsel
EQUIPSOURCE LLC: Hires Brister Law Firm PLLC as Attorney
EVOFEM BIOSCIENCES: Forbearance Deal With Future Pak Terminated
EVOFEM BIOSCIENCES: Secures Investor Support for Merger With Aditxt
FILM FINANCES: Seeks Chapter 11 Bankruptcy w/ Sale Plans
FIRSTBASE.IO INC: Taps Quinn and Dilworth as Special Counsels
FLORES PEDIATRICS: Files Emergency Bid to Use Cash Collateral
FRANCHISE GROUP: Closes American Freight Store as Part of Ch.11
FRANCHISE GROUP: Creditors Clash Over Bankruptcy Case
FRANCHISE GROUP: Gets Temporary Court Okay to Tap $250M Loan
FRANCHISE GROUP: Owes Top 50 Creditors Over $64.5 Million
FRANCHISE GROUP: Seeks $750MM DIP Loan from Wilmington Trust
FTX TRADING: Aims to Recover $98.8M from Digital Market Ex-Head
FTX TRADING: Co-Founder Gary Wang Asks Court for No Prison Time
FTX TRADING: Court Narrows Claims in Alameda, et al. Lawsuits
FTX TRADING: Sues Genesis Block to Recover $105 Million
GAUCHO GROUP: Case Summary & 20 Largest Unsecured Creditors
GIRARDI & KEESE: Feds Say Tom's Conduct at Trial Shows Competence
GLORY PROJECT: Hires Lazerus Properties as Real Estate Broker
GOGO INC: Moody's Affirms 'B1' CFR on Satcom Transaction
GOGO INC: S&P Affirms 'B+' ICR on Acquisition of Satcom Direct
GOL LINHAS: Nears Bankruptcy Exit, Reaches Deal with Abra
GRAXCELL PHARMACEUTICAL: Unsecureds Will Get 48% of Claims
GREENBRIER COS: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
GRESHAM WORLDWIDE: Gets Final Approval to Use Cash Collateral
GRITSTONE BIO: Taps Pachulski,Fenwick to Help Ch.11 Process
GULF FINANCE: Moody's Withdraws 'B3' CFR on Debt Extinguishment
HAGEN CONSTRUCTION: Gets Interim Use of Cash Collateral
HALL OF FAME: HOF Waterpark Lease Terminated Over $2.6MM Default
HAWTHORNE FOOD: U.S. Trustee Appoints Creditors' Committee
HEALTHCARE HOLDINGS OF FLORIDA: Hits Chapter 11 Bankruptcy
HEALTHCARE HOLDINGS: Hires Pack Law P.A. as Counsel
HERITAGE HOME: Seeks Cash Collateral Access
HIRSCH GLASS CORP: Hits Chapter 11 Bankruptcy Protection
HIRSCH GLASS: Has Deal on Cash Collateral Access
HYPERION EDUCATION TOWN: Commences Subchapter V Bankruptcy Process
ICEY-TEK USA: Commences Subchapter V Bankruptcy Process
ICON AIRCRAFT: Receives New Proposal for Investor Claims
iHEARTMEDIA INC: Layoffs Cut $150 Million from 2024 Costs
IMERYS TALC, CYPRUS MINES: Get Clearance to Get Ch.11 Plan Votes
IMERYS TALC: U.S. Court Approves Reorganization Plan for Talc Units
INDOCHINE RESTAURANT: Restaurants Remain Open Despite Chapter 11
J.A. WALL TRUCKING: Creditors to Get Proceeds From Liquidation
JAZN PROPERTIES: Commences Subchapter V Bankruptcy Proceeding
JML ENGINEERING: Sec. 341(a) Meeting of Creditors on Nov. 25
JOHN H. HAJJAR: District Judge Wants Update on Bankruptcy Stay
KANSAI INC: American Woodworking Seeks Bankruptcy Protection
KARAS FOOD: Case Summary & 20 Largest Unsecured Creditors
KB DEVELOPMENT: Lender Seeks to Prohibit Cash Collateral Access
KIDDE-FENWAL: Sullivan & Cromwell Fees Under Scrutiny in Ch. 11
KIPP CHARLOTTE: Moody's Affirms Ba1 Rating on 2020A/B Bonds
KLX ENERGY: Reports $8.2 Million Net Loss in Fiscal Q3
L & F GULLO SERVICE: Seeks Bankruptcy Protection in New York
L AND L CARE: Updates Restructuring Plan Disclosures
LA LOBA DE WALL ST: Case Summary & Two Unsecured Creditors
LAND AND LAWN: Case Summary & 14 Unsecured Creditors
LEGACY ENTERPRISES: Seeks Approval to Hire David Faulk as President
LGI HOMES: S&P Rates New Senior Unsecured Notes Rated 'BB-'
LI-CYCLE HOLDINGS: Signs Deal for MHP Production at Rochester Hub
LOUISIANA APPLE: U.S. Trustee Unable to Appoint Committee
LOVING KINDNESS HEALTHCARE: Hits Chapter 11 Bankruptcy Protection
M.P.M. PROPERTY: Disposable Income to Fund Plan Payments
MAGNOLIA OIL: S&P Rates New $400MM Senior Unsecured Notes 'BB-'
MAGNOLIA ROSE: Amends Several Secured Claims Pay
MALIA REALTY LLC: Ends in Filing Chapter 11 Bankruptcy Protection
MALIA REALTY: Files Emergency Bid to Use Cash Collateral
MARIN SOFTWARE: Reports Q3 2024 Revenue of $4.3MM, Reduces Losses
MARINUS PHARMACEUTICALS: Franklin Resources Holds 8.6% Stake
MDM RESTORATION: Seeks to Hire Richard G. Hall as Attorney
MEDTRULY INC: Claims to be Paid From Asset Sale Proceeds
MOMENTUM CONSULTING: Seeks Cash Collateral Access Thru Nov 30
NEUROONE MEDICAL: Receives $3-Mil. Upfront Payment From Zimmer Deal
NEXT LEVEL PIZZA: Oath Pizza Files for Chapter 7 Bankruptcy
NITRO FLUIDS LLC: Gets Court Clearance for $3Million Equipment Sale
NOLAN COUNTY HOSPITAL: Moody's Lowers Issuer & GOLT Ratings to Ba3
OCEANVIEW DEVELOPMENT: Unsecureds to be Paid in Full in Plan
OFFICE PROPERTIES: Reports $58.4 Million Net Loss in Fiscal Q3
OLIVER POINT APARTMENTS: Hits Chapter 11 Bankruptcy in Georgia
PAC BUILD: Unsecureds to Get Share of Income for 3 Years
PACKABLE HOLDINGS: Nimble Loses Bid to Dismiss Adversary Case
PALACE AT WASHINGTON: Hires Binder & Malter LLP as Counsel
PANZER BUILDING: Hires Northgate Real as Real Estate Broker
PARKERVISION INC: All Three Proposals Approved at Annual Meeting
PJP ENTERPRISES: Seeks Cash Collateral Access
POLARIS OPERATING: Court OKs Continued Use of Cash Collateral
POWER REIT: Narrows Net Loss to $325,015 in Fiscal Q3
PRAIRIE KNOLLS: Gets OK to Use Cash Collateral Thru Nov. 30
PRECISION SWISS: Seeks to Use Cash Collateral Thru Nov 15
PREPAID WIRELESS: Seeks to Use T-Mobile's Cash Collateral
PRIMELAND REAL: Agentis Updates List of Deposit Holders
PROJECT ALPHA: S&P Affirms 'B' ICR on Recapitalization
PURDUE PHARMA: Close to Reaching Broad Settlement w/ Sacklers
QUEST IDENTITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
R2 MARKETING: Gets Green Light to Use Cash Collateral
RED RIVER: Insurers Want Chapter 11 Plan Revised
RELIANT LIFE: U.S. Trustee Appoints Creditors' Committee
REMARK HOLDINGS: Issues 150K Series A Preferred Shares to CEO
RHODIUM ENCORE: Debtor, Whinstone Want Early Wins in Dispute
RIGHT SIZE: Case Summary & 13 Unsecured Creditors
RIVERSIDE FARMERS: Seeks Cash Collateral Access
ROCKY MOUNTAIN: Global Value, Affiliates Increases Stake to 24.84%
ROLLER BEARING: Moody's Alters Outlook on 'Ba2' CFR to Positive
ROSE ANIMAL: Amends Unsecured Claims Pay Details
RUDOLPH W. GIULIANI: Judgment Enforcement Motion Granted in Part
SC SJ HOLDINGS: Hotel Operator Files Bankruptcy for 2nd Time
SEDALIA AESTHETICS: Hires Krigel Nugent + Moore P.C as Counsel
SELECT MEDICAL: S&P Rates Amended $750MM 1st-Lien Term Loan 'BB+'
SENSIENCE INC: S&P Lowers ICR to 'SD' on Amended Credit Agreement
SIX RIVERS: Gets Interim OK to Use Cash Collateral Thru Dec. 13
SKID ROW HOUSING TRUST: Files Bare Bones Bankruptcy Protection
SLEEPOX LLC: Hires Weinstein & St. Germain LLC as Counsel
SOBR SAFE: Regains Compliance With Nasdaq Listing Requirements
SPIRIT AEROSYSTEMS: Raises 'Going Concern' Warning
SRHT PROPERTY: Files for Chapter 11 Bankruptcy
STAR TRANSPORTATION: Seeks Bankruptcy Protection in Fla.
STEWARD HEALTH: Court Okays Contract Transition Agreement in Ch. 11
STEWARD HEALTH: More Claimants Support Appointment of Tort Panel
STRUCTURE ONE: Commences Subchapter V Bankruptcy Process
STRUCTURE ONE: Seeks Cash Collateral Access, DIP Loan
SURVWEST LLC: Gets Interim OK to Use Cash Collateral
TA 4 REALTY: Case Summary & 10 Unsecured Creditors
TAKEOFF TECHNOLOGIES: Reaches Deal to Deter Chapter 7 Conversion
TECHGROUPONE INC: Files Emergency Bid to Use Cash Collateral
TEGNA INC: Dimensional Fund Holds 6.2% Equity Stake as of Sept. 30
TLC MEDICAL: Files Emergency Bid to Use Cash Collateral
TOLL ROAD II: Fitch Lowers Rating on $1.1BB 1999/2005 Bonds to 'B+'
TRANSOCEAN LTD: Reports Fiscal Q3 Net Loss of $494 Million
TRUE VALUE: Prepares Closure of Oregon Warehouse Amid Chapter 11
UFC HOLDINGS: Moody's Affirms ‘Ba3’ CFR, Outlook Stable
UNITED AIRLINES: Fitch Rates New Special Facility Bonds 'BB-'
UNITED FIBER: Hires Goe Forsythe & Hodges LLP as Counsel
UNITED FIBER: Seeks Cash Collateral Access
UNIVERSITY OF THE ARTS: Buildings Up for Sale After Ch. 11 Filing
VECTOR GROUP: S&P Withdraws 'B+' ICR on Acquisition by JT Group
VIERA CHARTER: Moody's Affirms 'Ba1' Rating on Revenue Bonds
VINE BEVERAGE: Files Bare Bones Bankruptcy in Ohio
VROOM INC: Case Summary & 20 Largest Unsecured Creditors
WELCOME GROUP: Seeks Cash Collateral Access Thru March 2025
WIDEOPENWEST FINANCE: Moody's Lowers CFR to B3, Outlook Stable
WIN-SC LLC: Hires Lee Augustine CPA as Accountant
WNK LV INC: Case Summary & 20 Largest Unsecured Creditors
WRENA LLC: Announces Sale Process Under Chapter 11
XENIA HOTELS: S&P Rates $365MM Senior Unsecured Notes 'BB-'
XRC LLC: Seeks Bankruptcy Protection in Florida
XTI AEROSPACE: Streeterville Capital Holds 7.70% Equity Stake
YELLOW CORP: Bankruptcy Judge to Reevaluate Pension Debt Decision
YIELD10 BIOSCIENCE: Kristi Snell Resigns as CSO, VP for Research
[*] Davis Polk Adds Restructuring Leaders Cader & Knight in London
[*] Dilworth Paxson Named in Best Law Firms 2025 for Multiple Tiers
[*] October 2024 Commercial Chapter 11 Filings Decline 13% Y/Y
[*] Restaurant Chains That Filed for Bankruptcy in 2024
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
161-17NC LLC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: 161-17NC, LLC
161 N. Clark Street, 17th Floor
Chicago, IL 60601
Business Description: 161-17NC, LLC is primarily engaged in
renting and leasing real estate properties.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-17013
Judge: Hon. Timothy A Barnes
Debtor's Counsel: Jeffrey C. Dan, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
111 W Washington Street
Suite 1221
Chicago, IL 60602
Tel: (312) 337-7700
Fax: (312) 277-2305
E-mail: jeffd@goldmclaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ronald Bockstahler, Manager of Amata
Holdings, LLC, Sole Member/Manager.
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/LFZ7ZCQ/161-17NC_LLC__ilnbke-24-17013__0001.0.pdf?mcid=tGE4TAMA
1847 HOLDINGS: Closes $11.1 Million Public Offering of Securities
-----------------------------------------------------------------
1847 Holdings, LLC disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on October 28, 2024,
the Company entered into a securities purchase agreement with
certain purchasers and a placement agency agreement with Spartan
Capital Securities, LLC, as placement agent, relating to the
Company's public offering of units.
Pursuant to the Purchase Agreement and the Placement Agreement, the
Company agreed to issue and sell to the Purchasers an aggregate of
8,809,512 common units and/or pre-funded units, at a purchase price
of $1.26 per unit (minus $0.01 per pre-funded unit), for total
gross proceeds of approximately $11.1 million, pursuant to the
Company's registration statement on Form S-1 (File No. 333-282201)
under the Securities Act of 1933, as amended.
The units are comprised of:
(i) 7,557,134 common shares and pre-funded warrants for the
purchase of 1,252,378 common shares,
(ii) series A warrants to purchase 8,809,512 common shares at
an exercise price of $1.90 per share and
(iii) series B warrants to purchase 8,809,512 common shares at
an exercise price of $2.52 per share.
On October 30, 2024, the closing of the Offering was completed.
Pursuant to the Placement Agreement, the Placement Agent received a
cash transaction fee equal to 8% of the aggregate gross proceeds, a
non-accountable expense allowance equal to 1% of the aggregate
gross proceeds and reimbursement of certain out-of-pocket expenses.
After deducting these expenses, the Company received net proceeds
of approximately $9.9 million.
The Pre-Funded Warrants are exercisable at any time until they are
exercised in full at an exercise price of $0.01 per share, which
has been pre-paid by the Purchasers in full. The exercise price and
number of common shares issuable upon exercise will adjust in the
event of certain share dividends and distributions, share splits,
share combinations, reclassifications or similar events affecting
the common shares. Notwithstanding the foregoing, a holder will not
have the right to exercise any portion of a Pre-Funded Warrant if
the holder (together with its affiliates) would beneficially own in
excess of 4.99% or 9.99% (at the Purchaser's option) of the number
of common shares outstanding immediately after giving effect to the
exercise, which such percentage may be increased or decreased by
the holder, but not in excess of 9.99%, upon at least 61 days'
prior notice to the Company.
The Series A Warrants are exercisable at any time at an exercise
price of $1.90 per share and will expire five years from the date
of issuance. The Series B Warrants are exercisable at any time at
an exercise price of $2.52 per share and will expire five years
from the date of issuance. Under an alternate cashless exercise
option contained in the Series A Warrants, the holders of the
Series A Warrants will have the right to receive an aggregate
number of shares equal to the product of:
(i) the aggregate number of common shares that would be
issuable upon a cash exercise of the Series A Warrants and
(ii) In addition, the Series A Warrants and the Series B
Warrants contain a reset of the exercise price to a price equal to
the lesser of (a) the then exercise price and (b) lowest volume
weighted average price for the five trading days immediately
preceding and immediately following the date the Company effects a
reverse share split in the future with a proportionate adjustment
to the number of shares underlying the Series A Warrants and the
Series B Warrants, subject to a floor price of $0.10. Finally, with
certain exceptions, the Series B Warrants provide for an adjustment
to the exercise price and number of shares underlying such the
Series B Warrants upon the Company's issuance of common shares or
common share equivalents at a price per share that is less than the
exercise price of the Series B Warrants, subject to a floor price
of $0.10.
The Purchase Agreement, Placement Agreement and Warrants include
customary representations, warranties and covenants by the Company.
They also provide that the Company will indemnify the Purchasers
and the Placement Agent against certain liabilities, including
liabilities under the Securities Act.
About 1847 Holdings
Based in New York, NY, 1847 Holdings LLC -- www.1847holdings.com --
is an acquisition holding company focused on acquiring and managing
a group of small businesses, which the Company characterizes as
those with an enterprise value of less than $50 million, in a
variety of different industries headquartered in North America.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated April 25, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations and has a
working capital deficit, which raises substantial doubt about its
ability to continue as a going concern.
As of June 30, 2024, 1847 Holdings had $34,421,110 in total assets,
$64,945,119 in total liabilities, and $30,524,009 in total
stockholders' deficit.
511 ALABAMA: Unsecureds Will Get 10% of Claims over 5 Years
-----------------------------------------------------------
511 Alabama Ave, LLC filed with the U.S. Bankruptcy Court for the
Northern District of Georgia a Disclosure Statement describing Plan
of Reorganization dated September 27, 2024.
The Debtor is a privately held limited liability company organized
under the laws of the State of Georgia which operates a retail
grocery store at 511 Alabama Avenue, Bremen, Georgia 30110.
The Debtor's business (the "Business") is a fully functional going
concern that operates a full service grocery store to meet the
needs of its customers. Debtor's Plan shall be funded by the
proceeds of Debtor's business and the proceeds of the Equity
Contribution.
As a result of a loss of business during the calendar years 2020,
2021 and 2022 resulting from the Covid 19 Pandemic, and the burden
of particularly high debt service on three hard-money loans
obtained by the Debtor during year 2023, on January 5, 2024, the
Debtor was forced to file a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code.
The Debtors' assets as of the Filing Date included the following:
(a) checking accounts having a balance of approximately $30,078,
(b) business inventory having an estimated value of approximately
$25,000.00, and (c) miscellaneous used fixtures and equipment
having an estimated value of approximately $5,000.00. The Debtors
maintain theft, fire and other casualty insurance with respect to
its equipment in amounts believed by Debtor to be equal to its fair
market values and adequate for the casualty risks attributable to
such assets.
The Debtors' liabilities as of the Filing Date totaled $540,904.78,
which includes (a) secured claims totaling $21,145.34; and (b)
nonpriority unsecured claims estimated at approximately
$519,759.44.
The Plan contemplates the reorganization and ongoing business
operations of Debtor and the resolution of the outstanding Claims
against Debtor pursuant to sections 1129(b) and 1123 of the
Bankruptcy Code. The Plan classifies all Claims against Debtor into
separate Classes.
Class 4 Claims shall consist of all amounts due and owing by Debtor
on unsecured debts including contracts, notes or accounts and any
deficiency amounts on secured claims. Debtor shall pay Holders of
Allowed Class 4 Unsecured Claims aggregate distributions under the
Plan equal to ten percent of their Allowed Class 4 Claims.
Specifically, each Holder of an Allowed Class 4 Claim shall receive
five consecutive annual payments, each in an amount equal to two
percent of such Holder's Allowed Class 4 Claim. The first annual
payment shall be payable on or before December 31, 2024, and
subsequent annual payments shall be payable on or before December
31, 2025, December 31, 2026, December 31, 2027, December 31, 2029
and December 31, 2029. The allowed unsecured claims total
$276,983.48. The Claims of the Class 4 Creditors are Impaired.
Class 5 consists of Interest Claims. All pre-petition Interests
shall be cancelled and Michael C. Smith shall receive 100% of the
newly-issued membership interests in the Reorganized Debtor upon
confirmation of the Plan in exchange for issuance of the promissory
note. Smith shall issue a promissory note to the Reorganized Debtor
in the amount of $5,000.00 (the "Equity Contribution") to be paid
in five equal annual installments of $1,000.00 each. The promissory
note shall be executed on the Effective Date and the first payment
shall be due one year from the Effective Date.
The $5,000.00 contribution by the principal of the Debtor shall
constitute "new value." Purchase of the equity interest of the
reorganized debtor shall be subject to competing bids. Third
parties may be able to purchase the equity interest of the
reorganized debtor by appearing at the confirmation hearing and
submitting a higher bid for the equity interests. The requirement
for and validity and sufficiency of any such bid shall be subject
to the approval and review of the Court. The holders of Class 6
Claims are not entitled to vote to accept or reject the Plan.
The Debtor shall pay all claims from Debtor's post petition income
from the operation of Debtor's business.
A full-text copy of the Disclosure Statement dated September 27,
2024 is available at https://urlcurt.com/u?l=icJ65v from
PacerMonitor.com at no charge.
Counsel to the Debtor:
J. Nevin Smith, Esq.
SMITH CONERLY LLP
402 Newnan Street
Carrollton, GA 30117
Telephone: (770) 834-1160
Facsimile: (770) 834-1190
E-mail: jsmith@smithconerly.com
About 511 Alabama Ave, LLC
511 Alabama Ave, LLC is a privately held limited liability company
organized under the laws of the State of Georgia which operates a
retail grocery store at 511 Alabama Avenue, Bremen, Georgia 30110.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-10032) on January 5,
2024. In the petition signed by Michael C. Smith, manager, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Paul Baisier oversees the case.
J. Nevin Smith, Esq., at Smith Conerly LLP, represents the Debtor
as legal counsel.
568 REALTY LLC: Sec. 341(a) Meeting of Creditors on Dec. 5
----------------------------------------------------------
568 Realty LLC filed Chapter 11 protection in the Southern District
of New York. According to court documents, the Debtor reports
between $100,000 and $500,000 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024 at 1:30 p.m. at Office of UST (TELECONFERENCE
ONLY).
About 568 Realty LLC
568 Realty LLC is primarily engaged in renting and leasing real
estate properties.
568 Realty LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11890) on October 31,
2024. In the petition filed by Joel Fishman, as managing member,
the Debtor reports estimated assets between $1 million and $10
million and estimated liabilities between $100,000 and $500,000.
Bankruptcy Judge John P. Mastando III handles the case.
The Debtor is represented by:
Carlos J. Cuevas, Esq.
CARLOS J. CUEVAS, ESQ.
1250 Central Park Avenue
Yonkers, NY 10704
Tel: 914-964-7060
Fax: 914-423-6117
E-mail: ccuevas576@aol.com
703 BAKERY: Unsecureds Will Get 10% of Claims over 60 Months
------------------------------------------------------------
703 Bakery Corp., filed with the U.S. Bankruptcy Court for the
District of New Jersey a Combined Plan of Reorganization and
Disclosure Statement dated September 27, 2024.
The Debtor is an artisan bakery and café that operates a
manufacturing facility in Lyndhurst, New Jersey as well as retail
stores in New York and New Jersey.
The Debtor is a corporation organized in New Jersey. Oleg Azizov is
the Debtor's President. Azizov owns 99.5% of the Debtor. Jacob
Hammerman owns .5% of the Debtor.
The Debtor's assets are comprised of equipment and vehicles,
deposits, inventory, office furniture and fixtures, receivables and
cash. Its assets are fully set forth on the schedules and statement
of financial affairs and the Debtor opines the assets have a value
of approximately $392,178.82. The assets are fully encumbered by
purchase money security interest lien holders.
The Debtor's liabilities total $4,448,045.39 as of June 24, 2024.
The Debtor intends to reorganize through restructuring its debt to
creditors in this Plan and seeking an equity infusion from a
strategic partner that can also infuse working capital. The goal is
to maximize the distribution to creditors and maintain the Debtor's
assets and business while maintaining employment for over 100
employees. With these strategic moves, the Debtor is wellpositioned
to regain its financial stability and continue towards a
profitable-growth path, leveraging its strengths to service its
customers effectively, and build a sustainable future.
Class 13 consists of General Unsecured Claims. This Class shall
receive dividends over sixty months – 20 quarterly payments. Such
payments shall be 10%. The allowed unsecured claims total
$4,124,812.39 (this amount is subject to objection and
reclassification). This Class is impaired.
Since the Debtor is a corporation, entities holding preferred or
common stock are Equity Interest holders. The Debtor's membership
interests are, (1) Oleg Azizov owned 99.5% of Debtor, and (2) Jacob
Hammerman owned .5% of the Debtor. Mr. Azizov and Mr. Hammerman
shall retain their Equity Interest. The Plan provides for all the
Debtor's assets to revest in the Debtor.
The Plan will be funded by the Debtor's continued monthly income
from operations. The Debtor also is seeking an equity infusion from
a potential partner. There shall be no prepayment penalty for any
priority, administrative or Class of claims.
On Confirmation of the Plan, all property of the Debtor, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equitable Interests except as provided in the Plan, to the
Debtor.
A full-text copy of the Combined Plan and Disclosure Statement
dated September 27, 2024 is available at
https://urlcurt.com/u?l=Ku2O4d from PacerMonitor.com at no charge.
About 703 Bakery Corp.
703 Bakery Corp. -- https://patis.com/ -- doing business as Patis
Bakery, is an artisan bakery and cafe with 15+ locations crafting
European and American Pastries, Sandwiches, Salads, Soups, Breads,
and more.
703 Bakery sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-15150) on May 21,
2024. In the petition filed by Oleg Azizov, as president, the
Debtor reports estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Vincent F. Papalia oversees the case.
The Debtor is represented by:
Anthony Sodono, III, Esq.
MCMANIMON, SCOTLAND & BAUMANN, LLC
75 Livingston Avenue
Second Floor
Roseland, NJ 07068
Tel: 973-622-1800
E-mail: asodono@msbnj.com
738 RT196: Sec. 341(a) Meeting of Creditors on Dec. 5
-----------------------------------------------------
738 RT196 Holdings LLC filed Chapter 11 protection in the Middle
District of Pennsylvania. According to court documents, the Debtor
reports $500,000 and $1 million in debt owed to 1 and 49 creditors.
The petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024 at 10:00 a.m. in Room Telephonically.
About 738 RT196 Holdings LLC
738 RT196 Holdings LLC is engaged in activities related to real
estate.
738 RT196 Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02812) on October 30,
2024. In the petition filed by Shatrughan Sinha, as sole member,
the Debtor reports estimated assets between $1 million and $10
million and estimated liabilities between $500,000 and $1 million.
Honorable Bankruptcy Judge Mark J. Conway handles the case.
The Debtor is represented by:
Philip W. Stock, Esq.
LAW OFFICE OF PHILIP W. STOCK
706 Monroe Street
Stroudsburg PA 18360
Tel: 570-420-0500
E-mail: pwstock@ptd.net
742 LEX INC: Sec. 341(a) Meeting of Creditors on Dec. 2
-------------------------------------------------------
742 Lex Inc. filed Chapter 11 protection in the Eastern District of
New York. According to court documents, the Debtor reports
$1,220,486 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Dec. 2, 2024 at 3:00 p.m. in Room Telephonically on telephone
conference line: (877) 953-2748. participant access code:
3415538#.
About 742 Lex Inc.
742 Lex Inc. owns a mixed use property with two residential
apartments and three commercial stores valued at $1.3 million.
742 Lex Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 24-44503) on October 30, 2024. In
the petition filed by Ranjette Coombs, as president, the Debtor
reports total assets of $1,310,000 and total liabilities of
$1,220,486.
Bankruptcy Judge Jil Mazer-Marino oversees the case.
The Debtor is represented by:
John Emefieh, Esq.
LAW OFFICE OF JOHN EMEFIEH
294 Atlantic Avenue 2
Brooklyn NY 11201
Tel: 718-624-5001
Email: johnemefieh@gmail.com
ACCORD LEASE INC: Seeks Chapter 11 Bankruptcy in Illinois
---------------------------------------------------------
Accord Lease Inc. filed Chapter 11 protection in the Northern
District of Illinois. According to court filing, the Debtor reports
$5,800,404 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
About Accord Lease Inc.
Accord Lease Inc. is engaged in the automotive leasing and renting
business.
Accord Lease Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-16518) on November 1,
2024. In the petition filed by Igor Tsapar, as president, the
Debtor reports total assets of $3,773,857
and total liabilities of $5,800,404.
Honorable Bankruptcy Judge David D. Cleary handles the case.
The Debtor is represented by:
O. Allan Fridman, Esq.
LAW OFFICE OF ALLAN FRIDMAN
555 Skokie Blvd 500
Northbrook, IL 60062
Tel: 847-412-0788
Fax: 847-412-0898
Email: allan@fridlg.com
ACCURIDE CORP: Appointment of Retiree Committee Sought
------------------------------------------------------
Gunite Corporation, an affiliate of Accuride Corporation, is
seeking the appointment of an official committee that will
represent retirees in the company's Chapter 11 case.
Joseph Barry, Esq., the company's attorney, said it is necessary to
appoint a retiree committee now "in order to be in a position to
meet the requirements of Section 1114 of the Bankruptcy Code in the
event that modification or termination of certain retiree benefits"
is required.
Gunite provides benefits to approximately 136 retired workers under
the Gunite Corporation Master Retired Bargained Employee Health
Benefit Plan. On average, the annual cost to the company of
providing benefits under the plan is approximately $740,000.
Gunite and its affiliates are currently marketing their
underperforming "Accuride Wheel Ends Solutions" business including
the assets or equity of the company.
Even if the companies find a buyer, there is no guarantee that the
buyer will be willing to assume the company's benefit plan in its
current form, according to Mr. Barry.
"Prompt appointment of a retiree committee will be necessary to
ensure that the process contemplated under Section 1114 proceeds
expeditiously, fairly, and in a manner that ensures the [companies]
can seek confirmation and emergence on the timeline necessary to
successfully reorganize their business," the attorney said in a
motion filed in court.
Section 1114 of the Bankruptcy Code provides the process for
negotiating or otherwise seeking modification or termination of the
payment of retiree benefits.
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ADVANTAGE WEST: Hires Michael G. Spector as Legal Counsel
---------------------------------------------------------
Advantage West Investment Enterprises, Inc. seeks approval from the
U.S. Bankruptcy Court for the Central District of California to
employ the Law Offices of Michael G. Spector as its bankruptcy
counsel.
The firm will render these legal services:
(a) prepare pleadings, applications and conduct examinations
incidental to administration;
(b) advise the Debtor with respect to its rights, duties and
powers in the administration of its Chapter 11 case;
(c) advise and assist the Debtor with respect to compliance
with the requirements of the Office of the U.S. Trustee;
(d) advise the Debtor regarding matters of bankruptcy law;
(e) advise and represent the Debtor in connection with all
applications, motions or complaints for adequate protection,
sequestration, relief from stays, appointment of a trustee or
examiner and all other similar matters;
(f) develop the relationship of the status of the Debtor to
the claims of creditors in these proceedings;
(g) advise and assist the Debtor in the formulation and
presentation of a reorganization plan;
(h) represent the Debtor in any necessary adversary
proceedings; and
(i) perform other legal services.
The hourly rates of the firm's attorneys and staff are as follows:
Michael G. Spector, Attorney $490 per hour
Vicki L. Schennum, Of Counsel $460 per hour
Law Clerk $110 per hour
Brittany Porter, Paralegal $100 per hour
Michael Spector, Esq., the proprietor of the Law Offices of Michael
G. Spector, disclosed in a court filing that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Michael G. Spector, Esq.
Law Offices of Michael G. Spector
2122 N. Broadway
Santa Ana, CA 92706
Telephone: (714) 835-3130
Facsimile: (714) 558-7435
Email: mgspector@aol.com
About Advantage West Investment Enterprises, Inc.
Advantage West Investment Enterprises Inc., doing business as
Advantage West, Advantage West GPS, and Advantage West Government
Product Solutions, is a product wholesaler.
Advantage West Investment Enterprises Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-16356) on October 24, 2024. In the petition filed by Mitch
Anderson, as president, the Debtor reports estimated assets between
$50,000 and $500,000 and estimated liabilities between $1 million
and $50 million.
Honorable Bankruptcy Judge Wayne E. Johnson handles the case.
The Debtor is represented by Michael G. Spector, Esq., at LAW
OFFICES OF MICHAEL G. SPECTOR.
AFRITEX VENTURES: Hires Elliott Thomason & Gibson as Counsel
------------------------------------------------------------
Afritex Ventures, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Elliott,
Thomason & Gibson, LLP as counsel.
The firm will provide these services:
a. provide legal advice with respect to the Debtor's powers
and duties as debtor-in-possession in the operation of its business
and the management of estate property;
b. take all necessary steps to protect and preserve the
Debtor's bankruptcy estate;
c. serve as counsel of record for Debtor in all aspects of
this Chapter 11 Case, including, without limitation, the
prosecution of actions on behalf of the Debtor, and objections
to claims filed against the Debtor's estate;
d. prepare on behalf of Debtor all necessary motions, orders,
reports, and other legal papers in connection with the
administration of the Debtor's estate;
e. advise the Debtor with respect to corporate and real estate
matters;
f. consult with the Office of the United States Trustee for
the Northern District of Texas, any official committee of unsecured
creditors appointed in this Chapter 11 Case, and all other
creditors and parties-in-interest concerning the administration of
this Chapter 11 Case, if applicable; and
g. provide representation and all other bankruptcy-related
legal services required by Debtor in discharging its duties as
debtor-in-possession or otherwise in connection with this Chapter
11 Case.
Elliott, Thomason & Gibson will be paid at these rates:
Vickie Driver $895 per hour
Cristina Stephenson $845 per hour
Paraprofessionals $225 to 295 per hour
The firm received a retainer in the amount of $150,000.
It will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Vickie L. Driver, a partner at Elliott, Thomason & Gibson, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Vickie L. Driver, Esq.
Elliott, Thomason & Gibson, LLP
511 N. Akard, Suite 202
Dallas, TX 75201
Telephone: (214) 390-2086
Facsimile: (214) 506-1129
Email: vickie@etglaw.com
About Afritex Ventures
Afritex Ventures is a diversified investment holding company
specializing in the seafood industry. Headquartered in Dallas, the
Company develops and markets premium seafood products under
multiple brands.
Afritex Ventures, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-43390) on September 22, 2024, listing $1 million to $10 million
in assets and $1 million to $50 million in liabilities. The
petition was signed by David J. Diamond as director.
Judge Edward L Morris presides over the case.
Vickie L. Driver, Esq. at CROWE & DUNLEVY, P.C. represents the
Debtor as counsel.
AIR FORCE: Fitch Affirms 'BB+' Rating on $117MM Revenue Bonds
-------------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Rating (IDR) of Air
Force Villages (dba Blue Skies of Texas [BST]) at 'BB+'. Fitch has
also affirmed the $117,000,000 Tarrant County Cultural Education
Facilities Finance Corporation retirement facility revenue bonds
series 2016 issued on behalf of BST at 'BB+'.
The Rating Outlook is Stable.
Entity/Debt Rating Prior
----------- ------ -----
Air Force Villages (TX) LT IDR BB+ Affirmed BB+
Air Force Villages
(TX) /General Revenues/1 LT LT BB+ Affirmed BB+
The 'BB+' rating primarily reflects BST's financial profile through
Fitch's forward-looking scenario analysis with good maximum annual
debt service (MADS) coverage and stable, but comparatively more
limited liquidity at approximately 35% cash-to-adjusted debt. Fitch
expects that both metrics will be sustained due to good cost
management, despite BST's history of soft demand.
The midrange revenue defensibility reflects BST's modest national
draw and aggressive marketing, balanced against consistently soft
occupancy. Similarly, the midrange operating risk assessment shows
good expense management practices tempered by an elevated average
age of plant.
SECURITY
The series 2016 bonds are secured by a gross revenue pledge,
mortgage pledge and debt service reserve fund.
KEY RATING DRIVERS
Revenue Defensibility - bbb
Improving Occupancy from Tenacious Marketing
BST operates two life plan communities (LPCs): BST Senior Living
East (BST East) and BST Senior Living West (BST West). Occupancy at
BST East has been challenged historically following a repositioning
project that was completed in 2012. Occupancy at BST East has
consistently been in the mid-60% range over the past several years
and improved to 70% in October of 2024. Independent living (IL)
occupancy at BST West has been stronger, and improved to a good 94%
in October 2024 from 90% in 2023 and 85% in 2022. Health care
occupancy has been consistently somewhat modest at 80% in assisted
living, 85% in memory care, and 63% in skilled nursing at FYE
2024.
Fitch believes BST's demand indicators should support adequate
census levels over the longer term in the IL units. The weighted
average entrance fee is below local home values and rate increases
occur regularly, supporting the midrange assessment.
The local market is competitive, and the location of BST East
results in competition with local for-profit rental facilities,
while BST West competes with other not-for-profit retirement
communities in the area that offer the full continuum of care. BST
differentiates itself with its military affiliation, attracting
former military personnel from across the country.
Operating Risk - bbb
Good Expense Management; Strategic CapEx
BST's midrange operating risk assessment reflects a history of good
operations but only adequate capital related metrics balanced
against elevated capex requirements. Fitch attributes this
performance to good expense management practices and a
predominantly type-B contract type. The fee for service contract
allows BST to pass most health care costs on to residents.
BST's management team continues to focus on strengthening
operations by improving occupancy and expense management. In
audited FY 2024 (June 30 FYE) BST's operating ratio was favorably
below 100% at 98.8% and its net operating margin (NOM) was 5.9% and
NOM-adjusted (NOMA) was 20%. Fitch expects BST's operating ratio,
NOM and NOMA to remain in the mid to upper 90%, below 10% and above
15%, respectively, which support the midrange operating risk
assessment.
BST's capital spending has averaged around 95% of depreciation
expense recently and its average age of plant is relatively
elevated at approximately 16 years. Though capital spending has
been below depreciation, it has been strategic. Management
renovates the campus to attract new residents.
Most capital-related metrics have been adequate with revenue-only
MADS coverage averaging 1.3x and MADS averaging 13.8% of revenue
over the past five years. Debt to net available averaged 7x
supporting the midrange assessment.
Financial Profile - bb
Stable Financial Profile
Fitch expects BST will maintain a financial profile that is
consistent with the 'bb' assessment even during the economic and
financial volatility assumed in Fitch's stress case scenario,
within the context of BST's midrange revenue defensibility and
operating risk assessments. MADS coverage has been stronger than
the weak assessment, averaging 2.1x over the past five years.
BST's balance sheet has been stable and consistent with
unrestricted cash and investments at $39.1 million in 2024, or 36%
cash-to-adjusted debt at FYE 2024. Unrestricted cash represented
279 days cash on hand (DCOH) in 2024, which is neutral to the
assessment of BST's financial profile. BST's financial profile
remains consistent with these levels with cash-to -adjusted debt of
roughly 40% in the recovery years of Fitch's stress case.
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
- Fitch expects BST will maintain a 'BB+' rating through the stress
case scenario, but deterioration in core profitability to operating
ratios above 100%, or depletion of liquidity such that
cash-to-adjusted debt falls below 30%, would negatively pressure
the rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A return to an investment-grade rating or Positive Outlook will
be dependent on growing liquidity with cash-to-adjusted debt
sustained above 60%, while maintaining debt service coverage around
2x.
PROFILE
BST operates two LPCs, BST East and BST West, located in San
Antonio, TX. BST East opened in 1970 and BST West opened in 1987,
and both communities historically served retired officers of all
uniformed services and spouses, widows or widowers. The board
approved the expansion of eligibility to individuals with no prior
military affiliation as of November 2013.
The organization changed its name in May 2014 and the official
launch of a rebranding campaign began in October 2014. BST
predominately offers a Type B contract but also has a small number
of residents in Type A and rental contracts. The large majority of
residents at BST are in Type B non-refundable contracts that
amortize over 42 months. BST had a total of 713 IL units, 57
assisted living units, 72 memory care units, and 80 skilled nursing
facility beds as of June 2024. BST had $57 million in total revenue
in fiscal 2024 (FYE June 30; audited).
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.
ALAMO PREMIUM: Case Summary & 11 Unsecured Creditors
----------------------------------------------------
Debtor: Alamo Premium Distillery Inc.
2030 E Houston St
San Antonio, TX 78202-2934
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 24-52285
Judge: Hon. Craig A Gargotta
Debtor's Counsel: Morris E. "Trey" White, III, Esq.
VILLA & WHITE LLP
100 NE Loop 410 Suite 615
San Antonio TX 78216
Tel: (210) 225-4500
Email: treywhite@villawhite.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Noel Burns as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/WP3HR5Y/Alamo_Premium_Distillery_Inc__txwbke-24-52285__0001.0.pdf?mcid=tGE4TAMA
ALL IN ONE: Kicks Off Subchapter V Bankruptcy Proceeding
--------------------------------------------------------
All In One Management and Services Inc. filed Chapter 11 protection
in the Central District of Illinois. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024 at 1:30 p.m. via Telephonically with Chapter 11
Trustee (Conference Line: 1-888-394-3264, Participant Code:
5992494).
About All In One Management and Services Inc.
All In One Management and Services Inc. provides various Property
Maintenance Services to both Residential & commercial properties.
All In One Management and Services Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-70883)
on October 31, 2024. In the petition filed by Pamela L. Frazier, as
president, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Bankruptcy Judge Mary P. Gorman handles the case.
The Debtor is represented by:
Jeana K. Reinbold, Esq.
SGRO, HANRAHAN, DURR, RABIN & REINBOLD LLP
1119 S. 6th Street
Springfield, IL 62703
Tel: 217-789-1200
Email: jeana@casevista.com
ALLEN MEDIA: Minority Lenders Sign Cooperation Agreement
--------------------------------------------------------
Reshmi Basu of Bloomberg News reports that a group of minority
lenders to Byron Allen's media empire has reached a cooperation
agreement, obligating them to work together as the company manages
its debt, according to sources familiar with the matter who spoke
on the condition of anonymity.
Note: Bloomberg reported last month that the group holds around
$100 million in term loan debt from Allen Media Group and is
receiving debt advisory services from the law firm Glenn Agre
Bergman & Fuentes.
About Allen Media
Allen Media LLC operates as a media company. The Company
specializes in video production, photography, senior pictures,
business portraits, graphic design work, photo editing, and
screenplay analysis services.
AMATA LLC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Amata, LLC
161 N. Clark St., 16th Floor
Chicago, IL 60601
Business Description: Amata is primarily engaged in renting and
leasing real estate properties.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-17012
Judge: Hon. David D Cleary
Debtor's Counsel: Jeffrey C. Dan, Esq.
GOLDSTEIN & McCLINTOCK LLLP
111 W Washington Street
Suite 1221
Chicago, IL 60602
Tel: (312) 337-7700
Fax: (312) 277-2305
E-mail: jeffd@goldmclaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ronald Bockstahler as Manager of Amata
Holdings, LLC, Sole Member/Manager.
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/WU3PKGQ/Amata_LLC__ilnbke-24-17012__0001.0.pdf?mcid=tGE4TAMA
AMTECH SYSTEMS: Dimensional Fund Holds 6.5% Stake as of Sept. 30
----------------------------------------------------------------
Dimensional Fund Advisors LP disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 924,130 shares of Amtech
Systems Inc.'s common stock, representing 6.5% of the shares
outstanding.
A full-text copy of Dimensional Fund's SEC Report is available at:
https://tinyurl.com/bdzhnx49
About Amtech Systems Inc.
Tempe, Ariz.-based Amtech Systems, Inc. is a global manufacturer of
capital equipment, including thermal processing, wafer polishing
and cleaning, and related consumables used in fabricating
semiconductor devices, such as silicon carbide (SiC) and silicon
power devices, analog and discrete devices, electronic assemblies,
and light-emitting diodes (LEDs). It sells these products to
semiconductor device and module manufacturers worldwide,
particularly in Asia, North America, and Europe.
As of June 30, 2024, Amtech Systems had $127.1 million in total
assets, $45.3 million in total liabilities, and $81.7 million in
total shareholders' equity.
As of September 30, 2023, the Company was not in compliance with
the Debt to EBITDA and Fixed Charge Coverage Ratio financial
covenants under its Loan and Security Agreement with UMB Bank, N.A.
dated January 17, 2023. On December 5, 2023, the Company entered
into a Forbearance & Modification Agreement with the lender,
pursuant to which the lender agreed to forbear from exercising its
rights and remedies available as a result of such default. The
Company will be operating under the terms of the Forbearance
Agreement through January 17, 2025.
ANTIA'S TENDER: Seeks to Hire GT Ajayi CPA PC as Accountant
-----------------------------------------------------------
Antia's Tender Touch LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ GT Ajayi CPA
PC as accountant.
The firm will provide these services:
a. advise, assist and represent the Debtor in connection with
analysis of the assets, liabilities and financial condition of the
Debtor and other matters relating to the business of the Debtor and
the preparation of the monthly operating reports and aide in filing
of schedules, lists and statements, compliance with the United
States Trustee's guidelines, and aide in filing of a Plan of
Reorganization
b. provide support and assistance to Debtor with regard to the
proper receipt, disbursement and accounting for funds and property
of the estate; and
c. perform any and all other bookkeeping services incident or
necessary to the proper administration of this case and the
representation of the Debtor in the performance of the Debtor's
duties and exercise of the Debtor's rights and powers under the
Bankruptcy Code and Bankruptcy Rules.
GT Ajayi CPA PC will be paid at the rate of $75 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Gani Tunde Ajayi, a CEO at GT Ajayi CPA PC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Gani Tunde Ajayi, CEO
GT Ajayi CPA PC
2011 Highway 138 SW
Riverdale, GA 30296
Tel: (770) 996-1004
About Antia's Tender Touch LLC
Antia's Tender Touch LLC sought protection for relief under Chapter
11 of the Bankrutpcy Code (Bankr. N.D. Ga. Case No. 24-58635) on
August 19, 2024, listing under $1 million in both assets and
liabilities. Ian M. Falcone, Esq. at THE FALCONE LAW FIRM, P.C.
represents the Debtor as counsel.
APEX AG SOLUTIONS: Seeks Cash Collateral Access
-----------------------------------------------
Apex Ag Solutions, LLC, asks the U.S. Bankruptcy Court for the
Southern District of Indiana, Indianapolis Division, for authority
to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to meet its
postpetition obligations on a timely basis.
The Debtor is subject to a large judgment in excess of $1 million,
the collection of which forced it to file the Chapter 11 case to
preserve the going concern for the benefit of all creditors. While
it cannot satisfy the judgment in present cash payments, the Debtor
believes it operates profitably and can therefore fund an organic
reorganization plan based on such inherent profitability.
Three Rivers Federal Credit Union is the superior properly
perfected secured creditor having an interest in substantially all
of the Debtor's assets.
A copy of the motion is available at https://urlcurt.com/u?l=12uppu
from PacerMonitor.com.
About Apex Ag Solutions
Apex Ag Solutions LLC is a diversified full-service industrial
contractor specializing in grain, aggregate and industrial
maintenance.
Apex Ag Solutions LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 24-05408)
on October 6, 2024. In the petition filed by Torey Hunt, as
president, the Debtor reports total assets of $1,467,920 and total
liabilities of $2,094,515.
The Honorable Bankruptcy Judge James M. Carr handles the case.
The Debtor is represented by KC Cohen, Esq. at KC COHEN, LAWYER,
PC.
APPLE CENTRAL: Starts Subchapter V Bankruptcy Proceeding
--------------------------------------------------------
Apple Central KC LLC filed Chapter 11 protection in the District of
Kansas. According to court documents, the Debtor reports between
$10 million and $50 million in debt owed to 200 and 999 creditors.
The petition states funds will be available to unsecured
creditors.
About Apple Central KC LLC
Apple Central KC LLC is a limited liability company.
Apple Central KC LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 24-21427) on
October 30, 2024. In the petition filed by Michael Rummel, as
authorized signatory, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between $10
million and $50 million.
Bankruptcy Judge Dale L. Somers handles the case.
The Debtor is represented by:
Frank Wendt, Esq.
BROWN & RUPRECHT, PC
2323 Grand Blvd., Suite 1100
Kansas City, MO 64108
Tel: (816) 292-7000
Fax: (816) 292-7050
Email: fwendt@brlawkc.com
ASHLAND CITY: Amends 1st Avenue Secured Claim Pay
-------------------------------------------------
Ashland City Properties, LLC, submitted a First Amended Disclosure
Statement describing First Amended Chapter 11 Plan dated September
27, 2024.
This is a liquidating plan. In other words, the Proponent seeks to
accomplish payments under the Plan by liquidating assets of the
Debtor. The Effective Date of the proposed Plan is 45 days after
confirmation.
The Debtor is actively marketing the real estate for sale and has
two interested buyers. Due to what appears to be credible interest
from these two buyer groups, the Debtor has not listed the property
with a real estate agent at the request of the buyer groups. The
first buyer group is a company that is interested in 14.7 acres in
Coopertown and while the sale price has not been agreed to the
expectation is that it would be for approximately $1,800,000.
The second buyer group is a real estate company that is also
interest in the 14.7 acres in Coopertown and the expectation is to
have a Letter of Intent in the next week for an approximate sale
amount of $1,800,000. Lastly, a fast food company has expressed an
interest in the real estate. At this time, the third prospective
buyer is in the early stages of exploration. With the sale of the
14.7 acres in Coopertown, the Debtor believes it can be sold free
and clear of the lien of 1st Avenue Funding.
Class 1 consists of the Secured Claim of 1st Avenue Funding. By
agreement between 1st Avenue Funding and the Debtor, the Debtor
proposes to be allowed until December 15, 2024 to sell the real
property consisting of 22 acres of unimproved land in Pleasant
View, Tennessee (the "Real Property") free and clear of the lien(s)
pursuant to section 363 of the Code at a net sale price equal to or
above the total claim owed to Creditor or, if less than the total
amount owed, in an amount agreed upon with the Creditor.
The proceeds of the sale shall pay the claim in full, including all
accrued interest and reasonable attorney fees, as provided in the
loan documents. In the event the Debtor obtains a purchase and sale
agreement on or before December 15, 2024, the Debtor shall have an
additional 30 days for closing. Otherwise, if the Debtor's Real
Property is not under contract on or before December 15, 2024, or
the Debtor has not closed on a contract on or before January 14,
2025, then the Automatic Stay shall be lifted and creditor shall be
free to pursue its state law remedies against the Real Property.
The Plan will be funded by the sale of the real estate of the
Debtor.
A full-text copy of the First Amended Disclosure Statement dated
September 27, 2024 is available at https://urlcurt.com/u?l=ehlDfG
from PacerMonitor.com at no charge.
Attorney for the Debtors:
Jay R. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
908 Harpeth Valley Place
Nashville, TN 37221
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: jlefkovitz@lefkovitz.com
About Ashland City Properties
Ashland City Properties owns 22 acres of unimproved land in
Pleasant View, TN, valued at $6 million.
Ashland City Properties, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr M.D. Tenn.
Case No. 24-01798) on May 19, 2024, listing $7,030,750 in assets
and $1,260,000 in liabilities. The petition was signed by Sabin
Ewing as chief manager.
Jay R. Lefkovitz, Esq., at LEFKOVITZ & LEFKOVITZ, is the Debtor's
counsel.
ASPEN ELECTRONICS: Sec. 341(a) Meeting of Creditors on Dec. 4
-------------------------------------------------------------
Aspen Electronics Manufacturing Inc. filed Chapter 11 protection in
the District of Colorado. According to court filing, the Debtor
reports $2,710,940 in debt owed to 1 and 49 creditors. The petition
states that funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 4, 2024 at 1:00 p.m. in Room Telephonically on telephone
conference line: 888-497-4718. participant access code: 6026644#.
About Aspen Electronics Manufacturing
Aspen Electronics Manufacturing Inc. is an electronics manufacturer
in Westminster, Colorado.
Aspen Electronics Manufacturing sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No.
24-16558) on Nov. 1, 2024. In the petition filed by Giao Le, as
president, the Debtor reports total assets of $1,828,289 and total
liabilities of $2,710,940.
Bankruptcy Judge Joseph G. Rosania Jr. handles the case.
The Debtor is represented by:
Jenny M.F. Fujii, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
E-mail: jmf@kutnerlaw.com
ASSETS HOLDING: Amends Frost Bank Secured Claims Pay
----------------------------------------------------
Assets Holding Partnership, Ltd., submitted a Fourth Amended Plan
of Reorganization for Small Business dated September 27, 2024.
Assets Holding currently has ten vehicles. Assets Holding has
proposed to surrender seven of the buses and keep for sale three of
the buses in this Plan. The buses to be retained are a 2017 Van
Hool, a 2014 Van Hool, and a 2019 Freightliner (hereinafter
referred to as "Vehicles" or "Buses").
The Debtor will file a motion to sell the Buses to Limo Palace, LLC
("Purchaser"). Debtor has received an offer from Purchaser to buy
the three Buses for $425,000. After filing of this Plan, the Debtor
will file a Motion for Approval of this sale. The sale of the Buses
shall be a part of this Plan. The proceeds from the sale will be
sufficient to pay off the liens and encumbrances of lenders, the ad
valorem taxes, and the administrative expenses in full. The
remaining proceeds will be distributed to the general unsecured
creditors.
The Debtor values its assets to be retained at approximately
$409,100. The liquidation value is significantly less. Each of the
buses is subject to the liens and encumbrances of lenders.
The Debtor has debts of approximately $1,105,528, for secured and
unsecured claims plus administrative fees and expenses.
The Plan Proponent has provided financial projections. However,
Debtor intends to close on the sale of the Buses and make
distributions within forty-five days of approval of this Plan. The
proceeds from the sale will be sufficient to pay off the liens and
encumbrances of lenders, the ad valorem taxes, and the
administrative expenses in full. The remaining proceeds will be
paid to the general unsecured creditors. Distributions will be made
in a one-time payment to each payee pursuant to the terms of this
Plan.
This Plan of Reorganization proposes to pay Debtor's creditors
primarily from the sale of the Buses.
Class 6 consists of the allowed claim of Frost Bank. The claim is
for a Master Lease of vehicles and secured by certain vehicles. The
Debtor is surrendering all vehicles to Frost Bank. No vehicles will
be retained by the Debtor. The claim was filed in the amount of
$718,697.33. The Debtor is surrendering all vehicles to Frost Bank.
No vehicles will be retained by the Debtor. The claim will be
treated as an unsecured claim and will be paid as an unsecured
claim in class 9.
Like in the prior iteration of the Plan, the Debtor will pay the
projected disposable income for 36 months following the Effective
Date to creditors in Class 9 Unsecured Creditors with allowed
claims.
The Debtor intends to close on the sale of the Buses and make
distributions within forty-five days of approval of this Plan. The
proceeds from the sale will be sufficient to pay off the liens and
encumbrances of lenders, the ad valorem taxes, and the
administrative expenses in full. The remaining proceeds will be
paid to the general unsecured creditors. Distributions will be made
in a one-time payment to each payee pursuant to the terms of this
Plan.
A full-text copy of the Fourth Amended Plan dated September 27,
2024 is available at https://urlcurt.com/u?l=hhgD59 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
About Assets Holding Partnership
Assets Holding Partnership, Ltd., is a Texas partnership that owns
transportation vehicles and leases the vehicles.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31741) on April 18,
2024, with $100,001 to $500,000 in assets and liabilities.
Judge Eduardo V. Rodriguez presides over the case.
Reese W. Baker, Esq., at Baker & Associates, is the Debtor's legal
counsel.
ASSOCIATION MOTOR: Hires Capital Solutions CPA PC as Accountant
---------------------------------------------------------------
Association Motor Club, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Capital
Solutions CPA, PC as accountant.
The firm will provide these services:
a. prepare and finalize the Debtor's 2023 tax return;
b. prepare financial statements;
c. prepare operating reports; and
d. perform any other necessary and beneficial services to the
estate, including monthly bookkeeping.
The firm will be paid at $50 per hour. The firm will prepare and
finalize the 2023 federal tax return for the flat rate of $600.
Capital Solutions CPA will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Creeana P. Jefferson, a CPA at Capital Solutions CPA, PC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Creeana P. Jefferson, CPA
Capital Solutions CPA, PC
3455 Peachtree Road, FL 5
Atlanta, GA 30326
Telephone: (800) 272-0082
About Association Motor Club
Association Motor Club, LLC, doing business as Auto Spa Bistro, is
an Atlanta-based company engaged in cleaning, washing and waxing
automotive vehicles.
Association Motor Club sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-57098) on July 9,
2024, with assets of $100,000 to $500,000 and liabilities of $1
million to $10 million. Lemont Bradley, owner, signed the
petition.
Judge Lisa Ritchey Craig oversees the case.
The Debtor is represented by William Rountree, Esq., at Rountree,
Leitman, Klein & Geer, LLC.
AUDACY INC: Court Issues Ruling Closing Bankruptcy Case
-------------------------------------------------------
InsideRadio reports that after nearly eleven months in Chapter 11
bankruptcy, Audacy has received a final court decree that
officially closes its reorganization. U.S. Bankruptcy Judge
Christopher Lopez signed orders that conclude the various
bankruptcy cases filed by Audacy and its subsidiaries, except for a
few remaining matters in Texas, which will be resolved once a final
decree is issued by the Houston court.
In granting Audacy's Emergency Motion for a Final Decree, filed in
early October 2024, the judge noted that all objections to the
order "have been withdrawn, resolved, or overruled." While the
cases are officially closed, the court will retain jurisdiction
over them, as outlined in an agreed-upon Plan and Combined Order.
Audacy still needs to file a post-confirmation quarterly report for
the final open period and pay its quarterly fees to the U.S.
Treasury. Any unresolved issues will be handled in the Remaining
Case in Texas.
This closure will help reduce ongoing legal and other expenses,
which, according to court filings, have totaled nearly $5 million.
Audacy filed for Chapter 11 bankruptcy on January 7, 2024
presenting a prepackaged plan that included a debt reduction from
$1.9 billion to $350 million. With approval from its creditors, the
plan was quickly approved by the court in February. On September
30, 2024, the Federal Communications Commission also granted
approval, allowing Audacy to close the deal shortly thereafter. As
a result, the company's stock was delisted from the New York Stock
Exchange.
Under the reorganization plan, Audacy is now controlled by Laurel
Tree Opportunities Corporation and MBX Commercial Finance and will
be known as Audacy Ace, though the Audacy brand will continue to be
used publicly. The company will also transition from a Pennsylvania
corporation to a Delaware LLC.
The new owners are providing Audacy with $250 million in loans,
plus a credit revolver of up to $50 million to support any future
changes. As part of its strategy to reduce debt, Audacy has already
sold $224 million in non-essential assets, including tower sites,
buildings, land, and radio stations. Additional asset sales are
expected, particularly in markets such as Boston, Portland,
Buffalo, St. Louis, Minneapolis, and Chicago, with an additional
$60 million in sales planned, as outlined in its pre-bankruptcy
business plan.
About Audacy Inc.
Philadelphia, Pa.-based Audacy Inc., formerly Entercom
Communications Corp., is a multi-platform audio content and
entertainment company with a collection of local music, news, and
sports brands, a premium podcast creator, major event producer, and
digital innovator. As of Sept. 30, 2023, the Company had $2.79
billion in total assets and $2.66 billion in total liabilities.
Audacy did not make the interest payments on its senior secured
first-lien revolving credit facility and term loan, both due 2024
($17 million due Oct. 31, 2023), senior secured second-lien notes
due 2027 ($15 million due Nov. 1, 2023), or senior secured
second-lien notes due 2029 ($18 million due Sept. 30, 2023).
Audacy Inc. and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90004) on
Jan. 7, 2024, with $2,788,943,000 in assets and $2,662,320,000 in
liabilities. Richard J. Schmaeling, executive vice president &
chief financial officer, signed the petitions.
Judge Christopher M. Lopez oversees the case.
Latham & Watkins, LLP and Porter Hedges, LLP, are the Debtors'
legal counsel.
B. RILEY: Faces Challenges Amid Franchise Group Bankruptcy
----------------------------------------------------------
B. Riley Financial warned early November of a bigger exposure after
Franchise Group, a retailer backed by the embattled investment
firm, filed for Chapter 11 bankruptcy.
On Aug. 12, 2024, B. Riley announced that it expected to report for
the quarter ended June 30, 2024, a non-cash markdown of $330
million to $370 million related to its (i) equity investment in
Freedom VCM Holdings, LLC, the parent corporation of Franchise
Group, Inc., and (ii) loan receivable from Vintage Capital
Management, LLC, which is primarily secured by a first priority
perfected security interest in Freedom VCM equity interests owned
by Brian Kahn and his spouse.
On Nov. 3, 2024, Franchise Group, its operating businesses, and
certain other affiliates, including Freedom VCM, commenced
voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for
the District of Delaware.
On Nov. 4, 2024, B. Riley concluded that it is required to record
an additional impairment with respect to the Freedom VCM Investment
and the Vintage Loan Receivable. The Company expects that the
non-cash impairments of the Freedom VCM Investment and the Vintage
Loan Receivable will be approximately $120 million in the
aggregate. The Company said it remains in compliance with the
Nomura credit agreement notwithstanding the recent disclosure.
"The dynamic of FRG's bankruptcy is a confluence of events that
ultimately derailed our original investment thesis. I, along with
300 other investors, plus lenders, many of whom had 20-plus year
relationships with the former FRG CEO, all believed in this
investment opportunity. Unfortunately, the investment was
devastated by the precipitous decline in consumer spending in the
markets served by the FRG brands, and the fallout and uncertainty
from the Prophecy scandal and the related federal investigation
into Brian Kahn. These headwinds changed the economics of the
investment and the timetable for executing on FRG's strategy,
including the potential monetization of assets, in a way that could
not have been anticipated," co-founder and co-CEO Bryant Riley said
in a memo to staff.
"While we could not have foreseen the issues associated with
Prophecy, as our CEO, largest shareholder, and one of the most
significant individual investors in the FRG take-private, I took
ownership of the efforts to address the issues and did everything
in my power to salvage the investment. Ultimately, these efforts
were not enough. After spending 27 years building a firm that I
could not be prouder of, I hate that B. Riley has, for now, been
distilled by many outside the firm into a single investment."
Asset Sales
B. Riley has outlined plans for asset sales to meet its debt
obligations.
B. Riley said mid-October it has struck a deal to sell its
appraisal and valuations unit Great American to asset-management
firm Oaktree Capital for close to $400 million.
In an Oct. 29 announcement, B. Riley said it has raised $236
million by divesting rights to its stable of consumer brands. The
Company said it has transferred and contributed its interests in
the assets and intellectual property related to the licenses of
several brands, including Hurley, Justice, Scotch & Soda, Catherine
Malandrino, English Laundry, Joan Vass, Kensie, Limited Too and
Nanette Lepore to a securitization vehicle, receiving $189 million
in net proceeds in connection with the financing transaction. The
Company also sold its interests in the assets and intellectual
property related to the licenses of the bebe and Brookstone brands
for $47 million in net cash proceeds also at the closing.
B. Riley Financial announced Nov. 1, 2024, it had agreed to sell a
portion its traditional wealth management business to Stifel in a
deal expected to fetch between $27 million and $35 million in cash.
Under the terms of the deal with Stifel, B. Riley expects 40 to 50
advisors, along with the associated customer accounts, to
transition in early 2025. The accounts represent total assets
under management (AUM) of around $3.5 billion to $4.5 billion as of
Sept. 30.
Losses
To recall, B. Riley Financial said in August it expects to report a
second quarter loss topping $400 million, compared with a profit of
$44 million a year earlier. The Company also said it expects to
report negative EBITDA exceeding $300 million, and disclosing it
"will be suspending our common dividend as we prioritize
deleveraging."
At mid-year, the Company had $237 million in cash, with most of its
$2.16 billion debt due to be repaid in less than four years.
B. Riley's March 31 balance sheet reported $4.9 billion in assets
and $4.7 billion in liabilities. The second quarter loss will
render the balance sheet insolvent.
The Los Angeles-based firm has missed its deadline for filing its
second-quarter financial statements and other regulatory filings,
which are still pending.
B. Riley's stock (Nasdaq: RILY), which topped $90 in 2022, now
trades for around $5.08 as of November 12. The shares had a
52-week high of $40.09. Some of the firm's junior debt sells at
deeply distressed prices. According to Bloomberg, shares of B.
Riley have tumbled in recent years as its investments soured and US
authorities probed some of its business deals and disclosures.
About B. Riley Financial
B. Riley Financial -- http://www.brileyfin.com/-- is a diversified
financial services company that delivers tailored solutions to meet
the strategic, operational, and capital needs of its clients and
partners. B. Riley leverages cross-platform expertise to provide
clients with full service, collaborative solutions at every stage
of the business life cycle. Through its affiliated subsidiaries,
B. Riley provides end-to-end financial services across investment
banking, institutional brokerage, private wealth and investment
management, financial consulting, corporate restructuring,
operations management, risk and compliance, due diligence, forensic
accounting, litigation support, appraisal and valuation, auction,
and liquidation services. B. Riley opportunistically invests to
benefit its shareholders, and certain affiliates originate and
underwrite senior secured loans for asset-rich companies.
BASIC FUN: Toy Maker Emerges from Chapter 11 Before Holidays
------------------------------------------------------------
Lisa Fickenscher of the New York Post reports that the CEO of Basic
Fun, the company behind Tonka Trucks and Care Bears, successfully
navigated a four-month bankruptcy process in the last week of
October 2024, ensuring full repayment to all creditors -- while
simultaneously defending against a takeover bid.
Based in Boca Raton, Florida, Basic Fun, known for classic toy
brands like Lincoln Logs, Lite Brite, and TinkerToy, is now set for
one of its strongest holiday seasons, despite the broader toy
industry facing weak sales, co-founder and CEO Jay Forman told The
Post.
This comes after Basic Fun nearly defaulted on $60 million in loans
this summer due to pandemic-related supply chain disruptions,
forcing the company to refinance under challenging terms, according
to filings in U.S. Bankruptcy Court in Delaware.
According to the New York Post, the company, projected to reach
$200 million in sales this year, faced challenges after the Toys R
Us bankruptcy in 2017, which resulted in a $6 million loss in
receivables. It was further impacted by the pandemic, as
skyrocketing shipping container rates in 2021 and 2022 wiped out
its profit margin. Meanwhile, Basic Fun's lender, Falcon Investment
Advisors, was unwilling to restructure the company's debt.
According to filings, "extensive negotiations" over debt
restructuring reached an "impasse."
About Basic Fun
Basic Fun, Inc. -- https://www.basicfun.com/ -- develops and
markets novelty and impulse toys. The Boca Raton-based company
offers collectibles, small dolls, retro and science toys,
pre-school, youth electronics, and construction.
Basic Fun and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11432) on June 28,
2024, with $50,000 to $100,000 in both assets and liabilities.
Frank McMahon, chief financial officer, signed the petitions.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Polsinelli, PC, as counsel and Oppenheimer & Co.
Inc. as financial advisor and investment banker. Stretto, Inc. is
the administrative advisor.
BAUSCH HEALTH: Lowers Net Loss to $85 Million in Fiscal Q3
----------------------------------------------------------
Bausch Health Companies Inc. announced its third quarter 2024
financial results and other key updates from the quarter.
"Our team at Bausch Health continued to execute against our
commitments in the third quarter, delivering a sixth consecutive
quarter of year-over-year growth in both revenue and Adjusted
EBITDA. This was accomplished while we continued to advance our R&D
pipeline, including the approval and launch of CABTREO® in Canada.
These results reflect the strength of our diverse and robust
portfolio of products, both geographically and across therapeutic
areas," said Thomas J. Appio, Chief Executive Officer.
Third Quarter 2024
Revenue Performance
Total consolidated reported revenues were $2.51 billion for the
third quarter of 2024, compared with $2.24 billion in the third
quarter of 2023, an increase of $272 million, or 12%. Excluding the
impact of foreign exchange of $9 million, acquisitions of $96
million, and divestitures and discontinuations of $16 million,
revenue increased by 9% on an organic1 basis compared with the
third quarter of 2023.
Salix Segment
Salix segment reported revenues were $642 million for the third
quarter of 2024, compared with $614 million for the third quarter
of 2023, an increase of $28 million, or 5%. Excluding the impact of
divestitures and discontinuations of $4 million, segment revenues
increased 5% on an organic1 basis. Xifaxan® revenues grew 7%, and
Relistor® and Trulance® revenues each grew 9% compared with the
third quarter of 2023, which were partially offset by declines in
certain non-promoted products.
International Segment
International segment reported revenues were $291 million for the
third quarter of 2024, compared with $275 million for the third
quarter of 2023, an increase of $16 million, or 6%. Excluding the
impact of foreign exchange of $3 million and divestitures and
discontinuations of $2 million, segment revenues increased on an
organic1 basis by 8% compared with the third quarter of 2023, led
by double-digit growth in Canada and solid organic1 growth in Latin
America.
Solta Medical Segment
Solta Medical segment reported revenues were $112 million for the
third quarter of 2024, compared with $83 million in the third
quarter of 2023, an increase of $29 million, or 35%. Excluding the
impact of foreign exchange of $1 million, segment revenues
increased on an organic1 basis by 36% compared with the third
quarter of 2023, led by growth in South Korea and China.
Diversified Segment
Diversified segment reported revenues were $269 million for the
third quarter of 2024, compared with $259 million for the third
quarter of 2023, an increase of $10 million, or 4%. Excluding the
impact of divestitures and discontinuations of $7 million, segment
revenues increased 7% on an organic1 basis, primarily attributable
to increases in revenue in Neurology.
Bausch + Lomb Segment
Bausch + Lomb segment reported revenues were $1,196 million for the
third quarter of 2024, compared with $1,007 million for the third
quarter of 2023, an increase of $189 million, or 19%. Excluding the
impact of foreign exchange of $5 million, acquisitions of $96
million and divestitures and discontinuations of $3 million,
segment revenues increased on an organic1 basis by 10% compared
with the third quarter of 2023, driven by increases across all
business units.
Consolidated Operating Income
Consolidated operating income was $318 million for the third
quarter of 2024, compared with $14 million for the third quarter of
2023, an increase of $304 million. The change was primarily due to
the effect of higher revenues and associated gross profit and the
impact of a $402 million goodwill impairment charge recorded in the
third quarter of 2023, which were partly offset by adjustments to
provisions for certain legacy legal matters and higher selling,
general and administrative expenses.
Consolidated Net Loss
Attributable to Bausch Health
Consolidated net loss attributable to Bausch Health for the third
quarter of 2024 was $85 million, compared with $378 million for the
third quarter of 2023, an improvement of $293 million, primarily
due to the increase in operating income.
Consolidated Adjusted Net Income
Attributable to Bausch Health
Consolidated Adjusted net income attributable to Bausch Health
(non-GAAP)1 for the third quarter of 2024 was $415 million,
compared with $377 million for the third quarter of 2023, an
increase of $38 million, primarily due to higher revenues and gross
profit, partially offset by higher selling, general, and
administrative expenses, and higher interest expense.
Consolidated Loss Per Share
Attributable to Bausch Health
Consolidated GAAP loss per share attributable to Bausch Health for
the third quarter of 2024 was ($0.23), compared with ($1.03) for
the third quarter of 2023.
Consolidated Adjusted EBITDA
Attributable to Bausch Health
Consolidated Adjusted EBITDA attributable to Bausch Health was $909
million for the third quarter of 2024, compared to $830 million for
the third quarter of 2023, an increase of $79 million, or 10%.
Consolidated Cash
Provided by Operating Activities
The Company generated $405 million of cash from operating
activities in the third quarter of 2024 compared with $281 million
in the third quarter of 2023. The increase in cash flow reflected
improved operating results as discussed above as well as favorable
working capital changes.
Balance Sheet Highlights
as of September 30, 2024:
* Consolidated cash and cash equivalents of $719 million.
* Bausch Health (excl. B+L) had availability under its 2027
revolving credit facility of approximately $950 million and Bausch
+ Lomb had availability under its revolving credit facility of
approximately $120 million.
* Bausch Health (excl. B+L) has an accounts receivable credit
facility which provides for up to $600 million of availability,
subject to certain borrowing base tests, $300 million of which was
drawn as of September 30, 2024.
* Bausch Health is focused on strengthening its balance sheet,
including evaluating and utilizing, as appropriate, various tools
and strategies to further reduce the Company's outstanding debt and
enhance its debt maturity profile.
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/477d7k6a
About Bausch Health Companies Inc.
Bausch Health Companies Inc. develops drugs for unmet medical needs
in central nervous system disorders, eye health, and
gastrointestinal diseases, as well as contact lenses, intraocular
lenses, ophthalmic surgical equipment, and aesthetic devices.
As of March 31, 2024, the Company had $26.91 billion in total
assets, $27.09 billion in total liabilities, and $174 million in
total deficit.
* * *
In April 2024, S&P Global Ratings raised its issuer credit rating
on Bausch Health Cos. Inc. to 'CCC+' from 'CCC'. S&P also raised
its issue-level ratings on the senior secured debt to 'B-' from
'CCC+', and its ratings on the second-lien notes and unsecured
notes to 'CCC' from 'CCC-'.
The negative outlook reflects the risk that Bausch Health could
pursue distressed exchanges as it approaches its sizable debt
maturities.
In September 2024, Fitch Ratings has affirmed Bausch Health
Companies' (BHC) and Bausch Health America's (BHA) (collectively:
Bausch Health) Long-Term Issuer Default Ratings (IDRs) at 'CCC' and
first-lien debt at 'B'/'RR1'. Fitch has also affirmed BHC's
second-lien debt at 'CC'/'RR6' and Bausch Health's unsecured debt
at 'C'/'RR6'.
The 'CCC' IDRs reflect BHC's elevated refinancing risk amid the
following two key uncertainties: when and to what degree does
competition impact BHC's XIFAXAN product, and whether and when the
company completes its separation of Bausch + Lomb Corporation
(BLCO). The BLCO separation would reduce diversification and likely
increase leverage.
BBG SOUZA: Seeks Cash Collateral Access
---------------------------------------
BBG Souza Enterprises, Inc., dba Comeketo Brazilian Steakhouse,
asks the U.S. Bankruptcy Court for the District of Massachusetts,
Central District, for authority to use cash collateral in the
amount of $24,929 for a period through December 5, 2024.
The Debtor has as a secured creditor US Small Business
Administration in an unliquidated amount. The Massachusetts
Department of Revenue has recorded a lien in the amount of
$340,852. These creditors assert liens on all assets of the Debtor
including all proceeds.
The Debtor also seeks authority to provide a "roll-over" lien to
the SBA and the DOR to the same extent and validity as they held a
security interest on the filing date.
The Debtor believes its revenue will be adequate to pay all
post-petition expenses.
A copy of the motion is available at https://urlcurt.com/u?l=aH5zHh
from PacerMonitor.com.
About BBG Souza Enterprises, Inc.
BBG Souza Enterprises, Inc., dba Comeketo Brazilian Steakhouse,
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Mass. Case No. 24-41128) on November 5, 2024. In the
petition signed by Rodrigo Souza, president, the Debtor disclosed
up to $100,000 in assets and up to $1 million in liabilities.
James L. O'Connor, Esq., represents the Debtor as legal counsel.
BEECHAM GROUP: Files Bare-Bones Bankruptcy Petition
---------------------------------------------------
The Beecham Group LLC filed Chapter 11 petition in the Western
District of Texas. According to court filing, the Debtor reports
$1,215,210 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 3, 2024 at 9:00 a.m. via Phone: (866)711-2282; Code:
3544189#.
About The Beecham Group LLC
The Beecham Group LLC manufactures clothing and accessories for
young girls.
The Beecham Group LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11385)
on November 1, 2024. In the petition filed by Brittany Beecham, as
owner, the Debtor reports total assets of $54,222 and total
liabilities of $1,215,210.
Bankruptcy Judge Shad Robinson handles the case.
The Debtor is represented by:
Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notification@lanelaw.com
BEECHAM GROUP: Seeks Cash Collateral Access
-------------------------------------------
The Beecham Group LLC asks the U.S. Bankruptcy Court for the
Western District of Texas, Austin Division, for authority to use
cash collateral in accordance with the budget, with a 10%
variance.
The Debtor requires the use of cash collateral for payroll,
insurance, and general operating expenses.
A search in the Texas Secretary of State shows that the cash
lienholders are:
A. Wayflyer Financial LLC (UCC Filing No. 23-0002731826);
B. Unknown Creditor (UCC Filing No. 23-0042181425);
C. Unknown Creditor (UCC Filing No. 24-0010771911);
D. United First (UCC Filing No. 24-0011340429);
E. Retail Capital LLC dba Credibly (UCC Filing No. 24-0020623312);
F. Unknown Creditor (UCC Filing No. 24-0021210961);
G. 8fig Inc (UCC Filing No. 24-0056157797)
A copy of the motion is available at https://urlcurt.com/u?l=dQvSue
from PacerMonitor.com.
About The Beecham Group LLC
The Beecham Group LLC manufactures clothing and accessories for
young girls. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11385) on
November 1, 2024. In the petition signed by Brittany Beecham,
owner, the Debtor disclosed $54,222 in assets and $1,215,210 in
liabilties.
Judge Shad Robinson oversees the case.
Robert C. Lane, Esq, at represents the Debtor as legal counsel.
BIG FEET: Case Summary & Five Unsecured Creditors
-------------------------------------------------
Debtor: Big Feet, Inc.
6801 Greenacres Place SW
Port Orchard, WA 98367-4504
Business Description: Big Feet, Inc. manufactures onesies, footed
pajamas, loungewear, athleisure, and
sleepwear for adults and children.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 24-12880
Judge: Hon. Timothy W Dore
Debtor's Counsel: Jason Wax, Esq.
BUSH KORNFELD LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: 206-292-2110
Fax: 206-292-2104
Email: jwax@bskd.com
Total Assets: $161,259
Total Liabilities: $1,623,202
The petition was signed by John S. Fitzpatrick as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YOD7SCQ/Big_Feet_Inc__wawbke-24-12880__0001.0.pdf?mcid=tGE4TAMA
BLINK FITNESS: Creditors Object to PureGym Sale After Higher Bid
----------------------------------------------------------------
Dorothy Ma and Reshmi Basu of Bloomberg News report that the sale
of Blink Fitness to UK-based PureGym Ltd. is facing opposition
after a group of creditors from the bankrupt gym chain contested
the results of the auction.
According to Bloomberg News, PureGym's $121 million winning bid has
raised concerns among creditors, especially after a higher $142
million offer from Supreme Orange LLC, a Planet Fitness franchisee,
was made during the auction but not accepted.
Blink, a budget-friendly offshoot of luxury gym brand Equinox,
filed for Chapter 11 bankruptcy in August, following a wave of gym
closures in the aftermath of the pandemic, the report relays.
About Blink Holdings
Blink Holdings, Inc., d/b/a Blink Fitness, provides fitness
services in the high value, low price fitness category. The
business was launched in 2011 with only three locations in New York
and New Jersey. By 2019, Blink Fitness had expanded to 92
corporate-owned locations and 10 franchised locations in New York,
New Jersey, Massachusetts, Texas, Illinois, and California, and had
just launched a proprietary mobile application to enhance member
experience.
Blink Holdings and more than 100 of its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead
Case No. 24-11686) on Aug. 12, 2024. In the petition filed by
President Guy Harkless, Blink Holdings disclosed $100 million to
$500 million in assets against $100 million to $500 million in
debt.
The Hon. J. Kate Stickles presides over the cases.
Young Conaway Stargatt & Taylor, LLP serves as the Debtors'
counsel. Moelis & Company is the Debtors' investment banker and
EPIQ Corporate Restructuring LLC is the Debtors' notice and claims
agent.
BODY OASIS: Seeks Cash Collateral Access
----------------------------------------
Body Oasis, LLC, asks the U.S. Bankruptcy Court for the Northern
District of Alabama, Southern Division, for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to pay operating
expenses.
In or around May 2020, during the COVID pandemic, the Debtor
applied for an obtained an EIDL loan through the U.S. Small
Business Administration in the approximate amount of $185,000. The
SBA filed a UCC-1 and took an interest in the all tangible and
intangible personal property of the Debtor.
In August 2022, the Debtor purchased equipment and financed that
equipment through McKesson Corporation. As part of that purchase.
McKesson filed a UCC-1 taking an interest in all assets of the
Debtor.
In February or March 2023, the Debtor obtained a merchant cash
advance loan with CloudFund, LI.C in order for use in the daily
operations of the business. As part of that loan, CloudFund. LLC
filed a UCC-I taking an interest in all accounts.
Additionally, the State of Alabama has a tax lien on the property
of the Debtor for unpaid withholding taxes. However, the Debtor
disputes the amount owed to the State.
The Debtor proposes to provide Creditors with adequate protection
for the use of its cash collateral during course of the bankruptcy
case by extending its pre-petition lien to a rollover lien
including future receivables, inventory cash, and proceeds
therefrom.
A copy of the motion is available at https://urlcurt.com/u?l=4Qd5wb
from PacerMonitor.com.
About Body Oasis, LLC
Body Oasis, LLC operates a body and facial improvements facility,
using advanced non-surgical technologies to make those improvements
on individuals.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-71556-JHH11) on
November 6, 2024. In the petition signed by Jacquelyn Martin,
managing member and sole member, the Debtor disclosed up to $50,000
in assets and up to $500,000 in liabilities.
Robert C. Keller, Esq., at Russo, White & Keller, P.C., represents
the Debtor as legal counsel.
BOY SCOUTS: Contests Bid to Overturn Bankruptcy Plan in 3rd Circuit
-------------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that The Boy Scouts of America
urged a federal appeals court to uphold a landmark $2.46 billion
sex abuse settlement, warning that undoing the bankruptcy deal
would cause substantial harm to both the organization and the many
abuse survivors.
The Chapter 11 plan, which established the largest child sex abuse
settlement in U.S. history, was closely examined on Wednesday by
the U.S. Court of Appeals for the Third Circuit. At issue were
provisions that prevent around 82,000 abuse claimants from suing
third parties linked to scouting activities.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
The Debtors obtained confirmation of their Third Modified Fifth
Amended Chapter 11 Plan of Reorganization (with Technical
Modifications) on September 8, 2022. The Order was affirmed on
March 28, 2023. The Plan was declared effective on April 19, 2023.
The Hon. Barbara J. House (Ret.) has been appointed as trustee of
the BSA Settlement Trust.
BRADFORD KIRK BOHMAN: Court Says Can't Proceed Under Subchapter V
-----------------------------------------------------------------
The Honorable Peggy Hunt of the United States Bankruptcy Court for
the District of Utah sustained the objection filed by Crusher
Rental & Sales, LLC to Bradford Kirk Bohman's election to proceed
under Subchapter V.
Crusher filed its Objection to invalidate the Debtor's Subchapter V
Election, arguing that the Debtor is not engaged in commercial or
business activities as required under Section 1182(1)(A) of the
Bankruptcy Code.
In its timely Objection to the Debtor's Subchapter V Election,
Crusher argues that the Debtor is not eligible for relief under
subchapter V of Chapter 11 because he does not meet the definition
of "debtor" under Section 1182(1)(A). There is no issue that not
less than 50% of the debts scheduled by the Debtor "arose from"
commercial or business activities. The question in this case is
whether the Debtor is a "person engaged in commercial or business
activities."
The Debtor is by profession an anesthesiologist who retired from
the practice of medicine in approximately 2021. In his Schedules
and Statement of Financial Affairs, the Debtor states that he is
not employed and that his primary source of monthly income is
social security.
Crusher is a general unsecured creditor that has been scheduled by
the Debtor as holding a disputed claim in the amount of
approximately $936,000. This claim results from a Judgment entered
against the Debtor and his wholly owned company, Bohman Aggregates,
LLC. The Debtors other significant creditors include family members
and insider Bohman Ranch, LLC.
Aggregates is a Utah limited liability company that was formed in
2014 and was an entity in good standing on the Petition Date. The
Debtor is Aggregates' sole member and manager, and Aggregates is
included in the Debtor's most recent tax returns.
Aggregates was formed for the purpose of extracting sand and gravel
products from land owned by Ranch. It commenced operations in
October 2014, using Crusher's equipment to operate its business. A
contract dispute arose between Aggregates and Crusher and in
February 2015 Crusher filed a Notice of Oil Gas and Mining Lien
against the interests of Aggregates and Ranch.
Aggregates ceased extracting minerals on Ranch's land sometime in
early 2015 after Crusher's Lien was recorded and it has not had any
further mining operations.
Ranch is a limited liability company that owns approximately 3,000
to 4,000 acres of rural land in Morgan County, Utah. The Debtor
owned a 20% interest in Ranch until 2011 or 2012 when his interest
was transferred to Great Western Management LLC, an entity that is
wholly owned by Great Western Management Trust. On the Petition
Date, the Debtor had no membership interest in Ranch and no
beneficiary interest in the GWM Trust.
With his brothers, including Brent, the Debtor is a manager of
Ranch and serves as its registered agent. The Debtor is also a
manager of the GWM Trust and possibly GWM LLC. The Debtor is not an
employee of Ranch or the GWM Entities, he is not compensated for
work he is doing, and he receives no monies from these entities.
The Debtor filed a Plan of Reorganization Dated June 11, 2024,
proposing to pay creditors over a five-year period solely from two
sources: (i) a portion of his social security, until January 2026,
and (ii) then starting in January 2026, a portion of his social
security and minimum distributions from his Retirement Accounts.
The Initial Plan does not discuss the Debtor's potential recoveries
if the Judgment is reversed on appeal and Aggregates is successful
in a third trial against Crusher, and the Debtor does not propose
contributing any recoveries to fund the Initial Plan.
After Crusher's Objection to his Subchapter V Election was filed,
the Debtor amended the Initial Plan by filing a Plan of
Reorganization Dated August 9, 2024. Therein, the Debtor stated
that he would contribute any recoveries that he either directly or
indirectly obtained through Aggregates from Crusher in the State
Court Action. The Second Plan was then amended prior to the hearing
on Crusher's Objection. In a Plan of Reorganization Dated August
28, 2024.
The Debtor maintains that he is engaged in commercial or business
activities through Aggregates.
The Debtor also argues that he engages in commercial or business
activities through Ranch and the GWM Entities. The Debtor admits
that a lot his time is spent working on behalf of Ranch. He states
that he is engaged part-time from January through March and
full-time from April through December actively managing Ranch and
the businesses of Ranch.
The Debtor receives no income for these activities, and none of
these activities will result in income to pay his creditors. He
does the activities on behalf of Ranch for free "out of a sense of
obligation because of the mess [he] created due to the activities
of Bohman Aggregates."
The Court, having examined the totality of the facts and
circumstances in this case as well as the applicable law, concludes
that the Debtor has not met his burden of establishing that he is a
"debtor" within the meaning of Section 1182(1)(A). According to the
Court, the Debtor personally is not engaged in commercial or
business activities. The time and effort he volunteers to Ranch and
the GWM Entities are not commercial or business activities.
Finally, the Debtor did not establish that is engaged in commercial
or business activities through Aggregates. Accordingly, the Court
sustains Crusher's Objection and strikes the Debtor's Subchapter V
Election.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=ATDFx9
Bradford Kirk Bohman filed for Chapter 11 bankruptcy protection
(Bankr. D. Utah Case No. 24-22385) on May 17, 2024, listing under
$1 million in both assets and liabilities.
The Debtor is represented by George Hofmann, Esq., at COHNE
KINGHORN, P.C.
BROUDY GROUP: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
Broudy Group, Inc. received interim approval from the U.S.
Bankruptcy Court for the Eastern District of Texas, Sherman
Division to use cash collateral.
At the hearing on Nov. 5, the court approved the use of cash
collateral to pay the company's operating expenses and set a final
hearing on Dec. 3.
The court previously issued an interim order authorizing the use of
cash collateral of Nissan Motor Acceptance Company, LLC, a Delaware
limited liability company, and granting the creditor replacement
liens and superpriority claims.
About Broudy Group
Broudy Group Inc. is an automobile dealer in Celina, Texas.
Broudy Group sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Texas Case No. 24-42463) on Oct. 18, 2024, with
$1 million to $10 million in both assets and liabilities. Carey E.
Broudy, president and
director, signed the petition.
The Debtor is represented by Howard Marc Spector, Esq., at Specter
& Cox, PLLC.
BURGERFI INTL:Court Okays Sale of Anthony's Coal Fire Pizza to TREW
-------------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that a bankruptcy judge
has approved the sale of BurgerFi International Inc. and its
affiliate, Anthony's Coal Fired Pizza & Wings, to a TREW Capital
Management affiliate. Judge Craig Goldblatt announced the approval
during a bankruptcy hearing on Wednesday, allowing both restaurant
chains to emerge from Chapter 11 and operate under new ownership.
TREW Capital, the largest secured creditor, acquired BurgerFi and
Anthony's by forgiving around $54 million in debt, according to
court filings. The lender also provided $3.5 million in Chapter 11
financing and was owed approximately $60 million.
About BurgerFi Int'l
BurgerFi International, Inc. (NASDAQ:BFI) is a multi-brand
restaurant company that develops, markets, and acquires fast-casual
and premium-casual dining restaurant concepts around the world,
including corporate-owned stores and franchises. BurgerFi
International, Inc. is the owner and franchisor of two brands with
a combined 144 locations: (i) Anthony's, a premium pizza and wing
brand with 51 restaurants (50 corporate-owned casual restaurant
locations and one dual brand franchise location), as of Sept. 10,
2024, and (ii) BurgerFi, among the nation's fast-casual better
burger concepts with 93 BurgerFi restaurants (76 franchised and 17
corporate-owned) as of Sept. 10, 2024.
BurgerFi International, Inc. and 114 affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code on Sept. 11, 2024 (Bankr. D. Del. Lead Case
No. 24-12017). The cases are pending before the Honorable Judge
Craig T Goldblatt.
Raines Feldman Littrell LLP serves as the Debtors' counsel. Force
Ten Partners' Jeremy Rosenthal serves as the Company's Chief
Restructuring Officer. Sitrick And Company serves as strategic
communications advisor to the Company. Stretto is the claims agent.
C&S GROUP: Moody's Lowers CFR to B1, Under Review for Downgrade
---------------------------------------------------------------
Moody's Ratings downgraded C&S Group Enterprises LLC's corporate
family rating to B1 from Ba3 and its probability of default rating
to B1-PD from Ba3-PD. Moody's also downgraded the company's senior
unsecured notes rating to B3 from B2. Additionally, Moody's changed
the direction of its ratings review to review for downgrade from
review with direction uncertain.
RATINGS RATIONALE
The downgrade of the ratings reflects C&S reduced operating
performance, which has led to weaker than expected credit
protection measures and cash flow. Debt to EBITDA increased to 5.3x
for the LTM ended June 24, 2024 from 3.8x in 2023 and EBITA to
interest weakened to 1.2x from 1.9x for the same period, both of
which exceed Moody's downgrade rating triggers. Operating
performance was negatively affected by reduced revenue from the
continued wind down of C&S' contract with Koninklijke Ahold
Delhaize N.V. ("Ahold"). In addition, C&S has had a partial loss of
another material contract which Moody's expect will pressure
earnings going forward. C&S has adequate liquidity largely
supported by about $1.0 billion available under its $1.5Bn asset
based lending facility (ABL; Not Rated) expiring in August 2027.
The review for downgrade reflects C&S' potential acquisition of
certain assets related to The Kroger Co. (Kroger) proposed $25
billion merger with Albertsons Companies, Inc. (Albertsons), as
well as the lack of clarity regarding related revenue and earnings
from those assets. Under the terms of the acquisition agreement,
C&S has agreed to acquire 579 grocery stores, 8 distribution
centers, 2 offices and 5 private label brands across 17 states and
the District of Columbia for about $2.9 billion. The acquisition
of certain assets from Kroger is the largest in the company's
history and will be financed with a combination of debt and new
equity. The success of this transaction is tied to the regulatory
approval of Kroger's merger with Albertsons which is currently
being contested. In addition, the review for downgrade reflects
the impact of the partial loss of a second material contract, which
barring significant cost cutting measures or material new customer
acquisitions, could result in further weakening of credit metrics.
The review will focus on the level of revenue, earnings, cash flow
generated from the assets acquired as well as the lost revenue,
earnings and cash flow from the partial loss of a material
contract. The review will consider the real estate valuation of
the acquired assets, C&S' plans for integrating the assets and its
go forward operating strategies of the combined entity. The review
will also focus on C&S' financial strength, liquidity and pro-forma
capital structure following close of the transaction while taking
into consideration the partial loss of a material contract. Lastly,
the review will also monitor the receipt of all required regulatory
approvals.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Excluding the ratings review, a rating upgrade would require a
stable operating environment, an increase in business volumes which
will offset the loss of material contracts and balanced financial
policies particularly regarding future growth through acquisitions.
Quantitatively, an upgrade would require EBITA/interest sustained
above 2.5x and debt/EBITDA sustained below 3.5x. An upgrade will
also require an improvement in operating margins towards 1% as
evidence that the company's strategy of diversifying its revenue
base with independent grocers is seeing some success.
Excluding the ratings review, failure to improve earnings to offset
the loss of revenues, or negative impact on cash flow from serviced
stores due to closures or divestitures or loss of any other
material customer could result in a downgrade. Quantitatively,
ratings could be downgraded if EBITA/interest is sustained below
1.75x or debt/EBITDA is sustained above 4.5x.
C&S Group Enterprises LLC, issuer of the rated debt, is a financing
subsidiary of C&S Wholesale Grocers, Inc. and four affiliated
operating companies. C&S Wholesale Grocers, Inc. is a private
distributor of groceries to food retailers in the US. The company
is headquartered in Keene, New Hampshire and is owned by the Cohen
family. Consolidated revenue is about $21 billion.
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in February 2023.
CADUCEUS PHYSICIANS: Hires Stretto Inc. as Noticing Agent
---------------------------------------------------------
Caduceus Physicians Medical Group, a Professional Medical
Corporation, dba Caduceus Medical Group seeks approval from the
U.S. Bankruptcy Court for the Central District of California to
employ Stretto, Inc. as claims and noticing agent.
The firm will provide these services:
a. assist the Debtors with the preparation and distribution of
all required notices and documents in accordance with the
Bankruptcy Code and the Bankruptcy Rules in the form and manner
directed by the Debtors and/or the Court, including: (i) notices of
objections to claims and objections to transfers of claims; (ii)
notices of any hearings on confirmation of any plan of
reorganization; (iii) notice of the effective date of any plan; and
(iv) all other notices, orders, pleadings, publications and other
documents as the Debtors, Court, or Clerk may deem necessary or
appropriate for an orderly administration of this chapter 11 case;
b. maintain an official copy of the Debtors' Schedules,
listing the Debtors' known creditors and the amounts owed thereto;
c. maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest and (ii) a "core" mailing
list consisting of all parties described in Bankruptcy Rule
2002(i), (j), and (k) and those parties that have filed a notice of
appearance pursuant to Bankruptcy Rule 9010, and update and make
said lists available upon request by a party-in-interest or the
Clerk;
d. maintain a post office box or address for receiving claims
and returned mail, and process all mail received;
e. for all notices, motions, orders or other pleadings or
documents served, prepare and file or cause to be filed with the
Clerk an affidavit or certificate of service no more frequently
than every 7 days that includes: (i) either a copy of the notice
served or the docket number(s) and title(s) of the pleading(s)
served; (ii) a list of persons to whom it was mailed (in
alphabetical order) with its addresses; (iii) the manner of
service; and (iv) the date served;
f. receive and process all proofs of claim, including those
received by the Clerk, check said processing for accuracy and
maintain the original proofs of claim in a secure location other
than where originals are maintained;
g. provide an electronic interface for filing proofs of
claim;
h. maintain the official claims register for the Debtors (the
"Claims Register") on behalf of the Clerk; upon the Clerk's
request, provide the Clerk with certified, duplicate unofficial
Claims Register; and specify in the Claims Register the following
information for each claim docketed: (i) the claim number assigned;
(ii) the date received; (iii) the name and address of the claimant
and agent, if applicable, who filed the claim; (iv) address for
payment, if different from the notice address; (v) the amount
asserted; (vi) the asserted classification(s) of the claim (e.g.,
secured, unsecured, priority, etc.); and (vii) any disposition of
the claim;
i. provide public access to the Claims Register, including
complete proofs of claim with attachments, if any, without charge,
during regular business hours in a viewing area at the following
address: 410 Exchange, Suite 100, Irvine, California 92602 and on a
case-specific website maintained by Stretto.
j. Allow the Clerk to inspect Stretto's premises at any time
during regular business hours;
k. periodically audit the claims information to assure the
Clerk that the claims information is being appropriately and
accurately recorded in the official claims register;
l. allow the Clerk to independently audit the claims
information during regular business hours;
m. record all transfers of claims and provide any notices of
such transfers as required by Bankruptcy Rule 3001(e);
n. implement reasonable security measures designed to ensure
the completeness and integrity of the Claims Register and the
safekeeping of any proofs of claim;
o. transmit to the Clerk a copy of the claims register on a
weekly basis or at such other times as the Clerk may direct;
p. relocate, by messenger or overnight delivery, all of the
court-filed proofs of claim to the offices of Stretto not less than
weekly;
q. monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the claims register
and any service or mailing lists,
r. identify and correct any incomplete or incorrect addresses
in any mailing or service lists (to the extent such information is
available);
s. assist in the dissemination of information to the public
and respond to requests for administrative information regarding
this chapter 11 case as directed by the Debtors or the Court,
including through the use of a case website and/or call center;
t. provide docket updates via email to parties who subscribe
for such service on the Debtors' case website;
u. comply with applicable federal, state, municipal, and local
statutes, ordinances, rules, regulations, orders, and other
requirements in connection with the Services rendered pursuant to
the Agreement;
v. if this chapter 11 case is converted to a case under
chapter 7 of the Bankruptcy Code, contact the Clerk within 3 days
of notice to Stretto of entry of the order converting the case;
w. 30 days prior to the close of this chapter 11 case, to the
extent practicable, request that the Debtors submit to the Court a
proposed order dismissing Stretto as claims, noticing, and
solicitation agent and terminating its services in such capacity
upon completion of its duties and responsibilities and upon the
closing of this chapter 11 case;
x. within 7 days of notice to Stretto of entry of an order
closing this chapter 11 case, provide to the Court the final
version of the Claims Registers as of the date immediately before
the close of the case;
y. at the close of this chapter 11 case: (i) box and transport
all original documents, in proper format, as provided by the Clerk,
to (A) the Federal Archives Record Administration, or (B) any other
location requested by the Clerk; and (ii) docket a completed SF-135
Form indicating the accession and location numbers of the archived
claims;
z. if necessary or requested, assist the Debtors with, among
other things, plan solicitation services including: (i) balloting;
(ii) distribution of applicable solicitation materials; (iii)
tabulation and calculation of votes; (iv) determining with respect
to each ballot cast, its timeliness and its compliance with the
Bankruptcy Code, Bankruptcy Rules, and procedures ordered by this
Court; (v) preparing an official ballot certification and
testifying, if necessary, in support of the ballot tabulation
results; and (vi) in connection with the foregoing services,
process requests for documents from parties in interest;
aa. provide a confidential data room, if requested;
bb. coordinate publication of certain notices in periodicals
and other media, if requested; and
cc. provide such other claims, noticing, processing,
solicitation, balloting, and other administrative services
described in the Agreement, that may be requested from time to time
by the Debtors, the Court, or the Clerk.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm will be paid a retainer in the amount of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that her firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Caduceus Physicians Medical Group,
a Professional Medical Corporation
dba Caduceus Medical Group
Caduceus Physicians Medical Group is a physician owned and
managedmulti-specialty medical group with locations in Yorba Linda,
Anaheim, Orange, Irvine, and Laguna Beach. It specializes in
primary care, pediatrics, and urgent care.
Caduceus Physicians Medical Group and Caduceus Medical Services,
LLC filed Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No.
24-11946) on August 1, 2024. The petitions were signed by Howard
Grobstein as chief restructuring officer.
At the time of the filing, Caduceus Physicians reported $1 million
to $10 million in both assets and liabilities while Caduceus
Medical reported up to $50,000 in both assets and liabilities.
Judge Theodor Albert presides over the cases.
David A. Wood, Esq., at Marshack Hays Wood, LLP represents the
Debtors as legal counsel.
CAPITAL COMMERCIAL: Sec. 341(a) Meeting of Creditors on December 3
------------------------------------------------------------------
Capital Commercial Holdings LLC filed Chapter 11 protection in the
District of Arizona. According to court filing, the Debtor reports
$773,885 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 3, 2024 at 9:00 a.m. in Room Telephonically.
About Capital Commercial Holdings LLC
Capital Commercial Holdings LLC is the fee simple owner of a vacant
land located in San Juan Capistrano, having a current value of $1.6
million.
Capital Commercial Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09234) on
October 30, 2024. In the petition filed by John Wright, as manager,
the Debtor reports total assets of $1,600,000 and total liabilities
of $773,885.
Honorable Bankruptcy Judge Eddward P. Ballinger Jr. handles the
case.
The Debtor is represented by:
Joseph G. Urtuzuastegui III, Esq.
REI LAW FIRM
4535 E McKellips Rd STE 1093
Mesa, AZ 85213
Tel: 480-505-7044
Email: joe@winsorlaw.com
CAREPOINT HEALTH: Antitrust Case Delay Bid Denied Despite Ch.11
---------------------------------------------------------------
Carla Baranauckas of Law360 reports that a federal magistrate judge
in New Jersey partially denied CarePoint Health Management's
request on Tuesday, November 5, 2024, to delay its antitrust case
against RWJBarnabas Health Inc., despite CarePoint's recent
bankruptcy filing.
About Carepoint Health
CarePoint Health is a New Jersey hospital chain.
Carepoint Health sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12538) on November 3,
2024. In its petition, the Debtor reports estimated assets and
liabilities up to $50,000.
The Debtor is represented by Peter C. Hughes of Dilworth Paxson
LLP.
CHAMPION HEALTHCARE: Unsecureds to Split $90K over 5 Years
----------------------------------------------------------
Champion Healthcare, LLC, submitted a First Amended Plan of
Reorganization under Subchapter V dated September 27, 2024.
This Plan of Reorganization under Chapter 11 of the Code proposes
to pay the creditors of the Debtor from future income of the Debtor
as set forth herein.
Non-priority unsecured creditors holding allowed claims, if any,
will receive pro rata distributions from the ongoing cash flow of
the debtor.
Class 3 consists of the Secured Claim of Cloud Fund. Cloud Fund has
an allowed secured claim in the amount of $11,000.00, secured by a
UCC-1 on accounts receivable which are presently valued at
$35,000.00 at Cloud Fund's lien priority. Accordingly, the Debtor
proposes to the pay the $11,000 claim of Cloud Fund in full at a
monthly payment of $223.04 at 8.0% interest for a period of 60
months.
Class 5 consists of the Secured Claim of Assn Company. Assn Company
has an allowed secured claim in the amount of $5,000.00, secured by
a UCC-1 on accounts receivable which are presently valued at
$60,000.00 at Assn Company's lien priority. Accordingly, the Debtor
proposes to the pay the $5,000 claim of Assn in full at a monthly
payment of $101.38 at 8.0% interest for a period of 60 months.
Class 7 consists of the Secured Claim of Highland Hill Capital.
Highland Hill Capital has an allowed secured claim in the amount of
$20,000.00, secured by a UCC-1 on accounts receivable which are
presently valued at $55,000.00 at Highland Hill's lien priority.
Accordingly, the Debtor proposes to the pay the $20,000 claim of
Highland Hills Capital in full at a monthly payment of $405.53 at
8.0% interest for a period of 60 months.
Class 8 consists of the Secured Claim of United First. United First
has an allowed secured claim in the amount of $72,081.22, secured
by a UCC-1 on accounts receivable which are presently valued at
$60,888.52 at United First’s lien priority. Accordingly, the
Debtor proposes to the pay the $72,081.22 claim of Assn up to a
value of $60,888.52 at a monthly payment of $1234.60 at 8.0%
interest for a period of 60 months. The remaining balance of the
claim in the amount $11,192.70 shall be treated as a general
unsecured claim in Class No. 15 herein.
Class 9 consists of the Secured Claim of CHTD Company. CHTD Company
has an allowed secured claim in the amount of $18,898.01, secured
by a UCC1 on four computers, three chairs, one couch, and four
televisions which are valued at $5,000.00. Accordingly, the Debtor
proposes to pay the $18,898.01 claim of CHTD up to a value of
$5,000.00 at a monthly payment of $101.38 per month at 8.0%
interest for a period of 60 months. The remaining balance of the
CHTD claim in the amount of $13,898.01 shall be treated as a
general unsecured claim in Class No. 15 herein.
Class 11 consists of the Secured Claim of Siemens Healthcare Diag.,
Inc. Siemens Healthcare Diag., Inc., has an allowed secured claim
in the amount of $39,547.05, secured by a UCC-1 on 2022 Siemens
Vita Pro Preliminary Toxicology which is presently valued at
$25,000.00 at Siemen's Healthcare Diag., Inc. lien priority.
Accordingly, the Debtor proposes to pay the $39,547.05 claim of
Siemens Healthcare Diag up to a value of $25,000.00 at a monthly
payment of $506.91 per month at 8.0% interest for a period of 60
months. The remaining balance of the CHTD claim in the amount of
$14,547.05 shall be treated as a general unsecured claim in Class
No. 15 herein.
Class 12 consists of the Secured Claim of Financial Pacific
Leasing. Financial Pacific Leasing has an allowed secured claim in
the amount of $6,000.00, secured by a UCC-1 on an X-Ray machine and
DR plat and software which are valued at $18,000.00. The Debtor
proposed to pay the $6,000 claim of Financial Pacific Leasing in
full at a monthly payment of $121.66 per month at 8.0% interest for
a period of 60 months.
Class 13 consists of the Secured Claim of Small Business
Administration. Small Business Administration has filed an allowed
unsecured secured claim in the amount of $615,973.62, but retains a
UCC-1 on all business assets. Accordingly, the Debtor proposes to
value the UCC-1 at $0.00 pursuant to the proof of claim and void
the lien held by the Small Business Administration. The entire
claim of the Small Business Administration claim shall be treated
as a general unsecured claim in Class No. 15 herein.
Class 15 consists of All Allowed Unsecured Claims. The Debtor shall
pay allowed unsecured claims a pro-rata distribution for a period
of no more than 60 months from entry of the confirmation order in 5
annual payments in the amount of $18,000.00 annually for a total
amount of $90,000.00. Said payments shall commence on the Effective
Date, and shall be paid annually thereafter. The allowed unsecured
claims total $898,669.20. This Class is impaired.
The Debtor anticipates the funds to meet the plan payments shall
come from the daily operations of the Debtor's business.
A full-text copy of the First Amended Plan dated September 27, 2024
is available at https://urlcurt.com/u?l=WvaKAa from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Jay R. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ, PLLC
908 Harpeth Valley Place
Nashville, TN 37221
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: jlefkovitz@lefkovitz.com
About Champion Healthcare
Champion Healthcare, LLC, a company in Lebanon, Tenn., specializes
in office-based mental health and addiction clinic dedicated to
offering comprehensive treatment services for individuals dealing
with mental health disorders and substance abuse challenges. Its
facility provides evidence-based therapies and interventions to
support clients on their path to recovery and improved mental
well-being.
Champion Healthcare filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02956) on
August 5, 2024, with $189,231 in assets and $1,197,758 in
liabilities. Darryl Champion, president, signed the petition.
Judge Charles M. Walker presides over the case.
Jay R. Lefkovitz, Esq., at Lefkovitz & Lefkovitz represents the
Debtor as legal counsel.
CLEARWATER PAPER: Moody's Cuts CFR to Ba3, Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings downgraded Clearwater Paper Corporation's corporate
family rating to Ba3 from Ba2, and probability of default rating to
Ba3-PD from Ba2-PD. The senior unsecured notes rating was confirmed
at B1. Previously, the ratings were on review for downgrade.
Clearwater's Speculative Grade Liquidity Rating (SGL) remains
unchanged at SGL-2. The outlook was revised to stable from ratings
under review.
This rating action concludes the review for downgrade that was
initiated on July 22, 2024 following Clearwater's announcement that
it has signed a definitive agreement with Sofidel America
Corporation (unrated) to sell its tissue business for $1.06
billion. The company has used the net proceeds from the sale to
repay approximately $850 million of debt. This transaction
concludes Clearwater's previously announced review of strategic
options for the tissue business.
"The ratings downgrade, reflects the reduction in Clearwater's
product line diversity, leaving the company to be narrowly focused
as a pure paperboard operator offset by a low debt load.", said
Mikhil Mahore, a Moody's Ratings analyst.
RATINGS RATIONALE
Clearwater's Ba3 CFR benefits from: (1) good North American market
position in high-end consumer paperboard packaging; (2) relatively
stable end market demand for paperboard packaging; (3) efficient
backward-integrated paperboard operations; (4) good liquidity.
Clearwater's rating is constrained by: (1) its relatively small
revenue base; (2) product concentration to the high-end consumer
paperboard packaging market; (3) significant financial exposure to
market downtime and maintenance outages that can cause increased
volatility in financial leverage; and (4) vulnerability to
significantly larger and financially stronger competitors in
paperboard packaging.
Clearwater has good liquidity (SGL-2) with about $500 million of
liquidity sources, compared to no uses. Sources include $35 million
of cash in September 2024 (pro forma for the divestiture), full
availability on a lower borrowing base (estimated to be about $200
million) under the company's $375 million ABL facility expiring in
November 2027 and $270 million farm credit revolver and about $40
million of positive free cash flow through 2025. The company is
subject to a springing fixed charge covenant of 1.1:1 if the ABL
revolver availability falls below the greater of 10% or $19
million. Moody's do not expect it to be applicable over the next 4
quarters (ample cushion if it springs). The company has the ability
to raise liquidity from asset sales given a significantly unsecured
capital structure.
The B1 rating on Clearwater's $275 million senior unsecured notes
is one notch below the CFR, reflecting the note holders'
subordinate position to the $375 million asset based revolving
credit facility and the $270 million farm credit revolving credit
facility.
The stable outlook reflects Moody's expectation that Clearwater's
financial leverage to below 3x in 2025 with improvement in EBITDA
driven by higher operating rates.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company is able to grow its
market position or diversity into additional product lines such
that operating performance is more resilient, adjusted debt to
EBITDA is sustained below 2x, and normalized retained cash flow to
adjusted net debt is sustained above 20%.
The ratings could be downgraded if the company's operational
performance deteriorates significantly such that normalized
retained cash flow to adjusted net debt is sustained below 10%,
adjusted debt to EBITDA are sustained above 3.5x, or liquidity
weakens.
The principal methodology used in these ratings was Paper and
Forest Products published in August 2024.
Headquartered in Spokane, Washington, Clearwater is a leading North
American producer of bleached paperboard.
COACH USA INC: Finalizes Sale to The Renco Group
------------------------------------------------
Bus & Motorcoach News reports that Coach USA has completed its
acquisition by The Renco Group Inc., after filing for Chapter 11
bankruptcy in June.
Company officials noted that the deal secures the company's
financial stability and guarantees the uninterrupted operation of
its 53 commuter routes in New Jersey and New York.
Coach USA's primary commuter services, such as Community Bus Lines,
Suburban Transit, Rockland Coaches, and Olympia Trails, will
continue operating on their regular schedules with no routes being
eliminated.
Dan Rodriguez, Vice President of Public Affairs at Coach USA,
assured customers of the company's commitment to uninterrupted
service.
"All routes will stay in operation, with none being cut," Rodriguez
confirmed. "All buses will carry the Coach USA brand and will be
refurbished as needed to ensure top-notch service."
The acquisition also includes additional Coach USA operations like
Dillon's, Elko, Megabus Retail, Montreal, Olympia, and
Trentway/Ontario (including Megabus Canada), as well as other
assets. The Megabus brand and its retail operations are also part
of the transaction.
"With a solid financial foundation, we're positioned for growth and
service enhancements," said Coach USA CEO Derrick Waters. "The
Renco Group's resources and expertise will help us invest in fleet
upgrades, new technologies, and service improvements, offering a
more efficient and modern experience for our passengers."
In related deals, affiliates of AVALON Transportation LLC acquired
Coach USA's Lenzner, Kerrville, All West, and ACL Atlanta lines,
while Wynne Transportation affiliates took over Powder River and
Butler Motor Transit's body shop in Butler, Pennsylvania.
Coach USA reassured passengers that they will experience no service
disruptions and can continue booking trips and checking schedules
as usual.
About Coach USA
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
COMBAT ARMORY: Ongoing Operations to Fund Plan Payments
-------------------------------------------------------
Combat Armory, LLC filed with the U.S. Bankruptcy Court for the
Eastern District of Michigan a Combined Plan of Reorganization and
Disclosure Statement dated September 27, 2024.
Since the business was established in 2014, Waleed "Wally" J.
Jammal has been the primary individual responsible for the Debtor's
operations.
The Debtor expects that during the life of the Plan, Mr. Jammal
will continue to own all of the Debtor's issued and outstanding
limited liability company member units and consistent with current
compensation, receive compensation and distributions from the
Debtor as and when appropriate.
The Debtor was formed in 2014 to purchase, own, and operate a
firearm manufacturing and retail business, which is presently
located at 3125 Old Farm Lane, Commence, Michigan 49390-1655. The
Debtor's business requires it hold a federal firearm's license
allowing for the manufacture of firearms, and the Debtor holds
federal firearm license no. 4-38-125-07-6f-1179. The Debtor's
operations are its sole source of revenue.
Class IX consists of Holders of Allowed Unsecured Claims. In full
and final satisfaction of Allowed Class IX Claims, Holders of Class
IX Claims shall receive a Pro Rata distribution of the Unsecured
Distribution Pool. Neither pre-confirmation interest nor
post-confirmation interest shall be paid to or for any Class IX
Claims.
The Reorganized Debtor shall make annual distributions from the
Unsecured Distribution Pool to Holders of Allowed Class IX Claims
within ninety days after the second full year after the Effective
Date and each year thereafter through 2029. Upon the Effective Date
and except for Avoidance Actions commenced prior to the Effective
Date, the Debtor and Reorganized Debtor waive any Avoidance Actions
against any Holder of an Allowed Class IX Claim. Class IX is
Impaired.
Class X consists of the Holders of Allowed Interests, which shall
be treated in of two alternative methods:
* If Class IX votes to accept the Plan, then
-- the Holders of Class X Interests shall retain their equity
interests in the Debtor.
-- All Avoidance Actions against Holders of Class X Interests
are waived and released.
* If a Class IX rejects the Plan, and the Court determines that,
as a result of such rejection, the Plan but for this Section 3.10.2
does not comply with the absolute priority rule, the Interests of
the Debtor held by Class X Holders shall be cancelled, and New
Interests shall be issued and sold at the Equity Auction. The
successful purchaser at the Equity Auction shall be bound by the
terms of this Plan and shall be required to use all of the proceeds
of the Equity Auction as set forth in this Plan, and all payments
shall be subject to the terms of, and payments shall be made in
accordance with, the Plan.
The Debtor reasonably believes that ongoing operations shall be
sufficient to fund the Plan. Other sources of cash may be explored
and utilized by the Debtor to the extent that cash infusions are
necessary to meet the obligations of the Plan. To the extent
additional monies are needed, it is presently contemplated that
funds will come from Debtor's principal or any other source as an
interest-bearing loan, which shall be evidenced by a promissory
note, and may be on a secured or unsecured basis.
A full-text copy of the Combined Plan and Disclosure Statement
dated September 27, 2024 is available at
https://urlcurt.com/u?l=7fmOfI from PacerMonitor.com at no charge.
Counsel to the Debtor:
John J. Stockdale, Jr.
Schafer and Weiner, PLLC
40950 Woodward Avenue, Suite 100
Bloomfield Hills, MI 48304
Tel: (248) 540-3340
Email: khillary@schaferandweiner.com
About Combat Armory, LLC
The Debtor specializes in providing a wide range of firearm parts
and accessories, including Glock barrels, Glock slides, Glock
internal parts, and AR-15/AR-10/AR9. It clients include the law
enforcement, military and civilian personnel.
Combat Armory, LLC in Commerce Township, MI, filed its voluntary
petition for Chapter 11 protection (Bankr. E.D. Mich. Case No.
24-47861) on August 15, 2024, listing $673,339 in assets and
$3,919,175 in liabilities. Waleed J. Jammal as member, signed the
petition.
Judge Thomas J Tucker oversees the case.
SCHAFER AND WEINER, PLLC serve as the Debtor's legal counsel.
COMMSCOPE: Concludes Debt Talks With Creditors w/o Agreement
------------------------------------------------------------
Lin Cheng of Bloomberg Law reports that CommScope announced that it
has not reached an agreement on key terms with an ad hoc group of
creditors regarding a potential refinancing or recapitalization of
its debt.
Negotiations with this creditor group have ceased. CommScope's
proposals aimed to address debt maturing in 2025 and 2026. The
company is actively exploring other options to manage these
upcoming maturities and remains in discussions with creditors
outside this group. Future re-engagement with the ad hoc group
remains a possibility.
About CommScope Holding
Headquartered in Hickory, North Carolina, CommScope Holding
Company, Inc. -- https://www.commscope.com/ -- is a global provider
of infrastructure solutions for communication, data center, and
entertainment networks. The Company's solutions for wired and
wireless networks enable service providers, including cable,
telephone, and digital broadcast satellite operators, as well as
media programmers, to deliver media, voice, Internet Protocol (IP)
data services, and Wi-Fi to their subscribers. This allows
enterprises to experience constant wireless and wired connectivity
across complex and varied networking environments.
CommScope reported a net loss of $1.45 billion in 2023, a net loss
of $1.28 billion in 2022, a net loss of $462.6 million in 2021, and
a net loss of $573.4 million in 2020.
* * *
As reported by the TCR on Nov. 22, 2023, S&P Global Ratings lowered
its Company credit rating on CommScope to 'CCC' from 'B-' and
removed the ratings from CreditWatch with negative implications,
where they were placed on Oct. 31, 2023. S&P revised the outlook to
negative. The negative outlook reflects S&P's view that CommScope's
expected weak financial performance, with leverage above the 10x
area and low FOCF generation in 2023 and 2024, will increase the
risk of a distressed exchange or buyback within the next 12 months
to address upcoming maturities.
As reported by the TCR on March 15, 2024, Moody's Ratings
downgraded CommScope's ratings, including the corporate family
rating to Caa2 from B3. The ratings downgrade primarily reflects
the increasing risk of a capital restructuring, including a
distressed exchange of some or all of the company's debt, with
maturities approaching, including the company's senior notes in
June 2025 and secured debt in March and April of 2026.
COMTECH TELECOMMUNICATIONS: John Ratigan Named New CEO, Director
----------------------------------------------------------------
Comtech Telecommunications Corp. announced that its Board of
Directors has appointed John Ratigan as President, Chief Executive
Officer and a member of the Board, effective October 28, 2024. Mr.
Ratigan has been serving as Comtech's interim CEO since March 2024.
In addition, the Comtech Board appointed Kenneth (Ken) H. Traub as
an independent director to the Board, effective October 31, 2024.
Chief Executive Officer Appointment
Mr. Ratigan is an accomplished executive with over three decades of
senior leadership experience and expertise in the global satellite
technology sector. He joined Comtech in November 2023 as the
Company's first Chief Corporate Development Officer. Mr. Ratigan
was previously CEO and President of iDirect Government, LLC, a
provider of satellite communications solutions to the U.S.
Government, and ran East Coast operations for Fairchild Data
Corporation and EF Data Corp., in both instances overseeing
substantial growth and value creation.
"Over the past several months, John has been an important voice in
charting Comtech's strategy to transform into a pure-play satellite
and space communications company," said Mark Quinlan, Chair of the
Comtech Board. "Under his leadership, the Company has initiated
several programs designed to improve operations, including an
intensive review of Comtech's Space & Satellite Communications
product portfolio to identify the most strategic and high-margin
revenue opportunities. The Board is confident that John is the
right leader to oversee the execution of our new strategy as we
work diligently to unlock value for shareholders."
Mr. Ratigan's appointment as CEO follows a comprehensive process
conducted by a leading executive search firm.
Mr. Ratigan said, "I am honored to serve as CEO during this
important time for Comtech. When I stepped into the interim role in
March, I did so with great conviction in the possibilities ahead. I
saw then – and still see – great technology, great people and a
tremendous opportunity. Comtech has market-leading products, a
strong customer base and a compelling path to drive profitable
growth in our large and growing end markets. We are acting with
urgency to build a stronger, more competitive company focused on
providing best-in-class satellite and space communications
solutions."
New Independent Board Director
Mr. Traub brings deep experience as a CEO, independent director,
active investor and consultant to numerous companies at times of
critical business transition and transformation, with a successful
track record of driving strategic, operational, financial and
governance improvements to protect and enhance shareholder value.
"I am thrilled to be joining the Comtech Board of Directors at this
critically important time for the Company," said Mr. Traub. "I look
forward to working with the Comtech Board of Directors and
management team to address current challenges and capitalize on the
significant opportunities available to the Company."
Mr. Quinlan added, "Ken is widely regarded as an expert in
overseeing business transformations and has a long history of
successfully guiding companies through strategic transitions that
benefit shareholders. On behalf of the full Board, we welcome Ken
as our newest independent director and look forward to working
closely with him as we position Comtech for the future."
About John Ratigan
Mr. Ratigan has more than 30 years of leadership experience in
satellite and space communications. He has served as Comtech's
interim CEO since March 2024 after joining the Company in November
2023 as Chief Corporate Development Officer. He previously served
as CEO and President of iDirect Government, LLC and as an Executive
Committee Member of ST Engineering iDirect, Inc. During his tenure,
he grew iDirect Government to over $100 million in annual revenue
and spearheaded the acquisition of GlowLink Communications
Technologies, Inc. and its unique interference mitigation
technology (CSIR), which helped the company become the largest
provider of Time Division Multiple Access (TDMA) SATCOM
capabilities.
Earlier in his career, Mr. Ratigan ran East Coast operations for
Fairchild Data Corporation and EF Data Corp., which is now a part
of Comtech. During his time at EF Data, he was instrumental in
helping the company grow from $20 million to $120 million in
revenue in under eight years. Prior to that, Mr. Ratigan held the
position of Senior Vice President of North and South American sales
for the start-up BroadLogic Network Technologies, Inc. He began his
career in the United States Senate working for Senator Bill
Armstrong (R-Colorado) and held multiple sales positions with the
Xerox Corporation as a member of the legal sales team.
Mr. Ratigan holds a Bachelor of Science in Marketing from the
University of Maryland.
Pursuant to Mr. Ratigan's employment agreement, Mr. Ratigan will
receive an annualized base salary of $750,000. Mr. Ratigan will be
eligible to receive an annual bonus equal to up to 200% of his
annual base salary based on individual and Company performance
goals. Mr. Ratigan will also receive an annual grant of restricted
stock units valued at $400,000, which will vest in equal annual
installments on each of the first three anniversaries of the grant
date, and a target number of long-term performance shares equal to
$800,000, $200,000 of which shall be settled in cash and $600,000
of which shall be settled in common stock, which shall vest on the
third anniversary of the grant date. Mr. Ratigan will receive a
one-time grant of 100,000 long-term performance shares, which shall
vest subject to achievement of certain price targets within three
years of the grant date. Mr. Ratigan shall be entitled to
participate in health, insurance, retirement, and other benefits
provided generally to similarly situated employees of the Company.
On termination of Mr. Ratigan's employment by the Company without
"cause" or by him for "good reason", Mr. Ratigan will be entitled
to termination benefits in the form of a one-time payment of 100%
of the amount of Mr. Ratigan's annual base salary and payment or
reimbursement of premiums for continued health plan coverage for 12
months. If the termination occurs within 90 days prior to or 12
months after a "change in control", Mr. Ratigan will be entitled to
1.5 times the sum of his annual base salary and target bonus and
payment or reimbursement of premiums for continued health plan
coverage for 24 months. If such termination occurs prior to such
Change of Control, Mr. Ratigan's performance-based vesting awards
will vest if the relevant performance conditions are met in
connection with the change of control.
About Kenneth Traub
Mr. Traub has over 30 years of experience as a CEO, chairman,
director, investor and consultant in public companies, with a
successful track record of driving strategic, financial,
operational and governance improvements to enhance shareholder
value. He has served as the Managing Partner of Delta Value
Advisors, a strategic consulting and investment advisory firm
specializing in corporate governance and turnarounds, since 2019.
He was previously Managing Partner of Raging Capital, a registered
investment firm, and served as President and CEO of Ethos
Management LLC, a private investment and consulting firm. Mr. Traub
served as President and Chief Executive Officer of American Bank
Note Holographics, Inc., a leading global supplier of optical
security devices for the protection of documents and products
against counterfeiting from 1999 through 2008. In 1994, he
co-founded Voxware, Inc., a pioneer in voice over Internet protocol
communication technologies, and served as its Executive Vice
President and Chief Financial Officer through 1998.
Mr. Traub currently serves as an independent director on the boards
of Tidewater, Inc., the leading global operator of offshore vessels
for the energy industry, and Edgio, Inc., a software company
providing digital content delivery networks and applications. Mr.
Traub previously served as an independent director on the boards of
numerous public companies, including DSP Group, Inc., a
manufacturer of multimedia chipsets for converged communications
(acquired by Synaptics Incorporated); MRV Communications, Inc., a
telecommunications company (acquired by ADVA Optical Networking
SE); Vitesse Semiconductor, Inc., a fabless semiconductor developer
(acquired by Microsemi Corporation); Xyratex Ltd, a data storage
company (acquired by Seagate Technology plc); MIPS Technologies,
Inc., a semiconductor technology company (acquired by Imagination
Technologies Group plc and Allied Security Trust); Intermolecular,
Inc., a semiconductor materials supplier (acquired by Merck KGaA);
and Phoenix Technologies, Inc., a leading supplier of firmware for
computers (acquired by Marlin Equity Partners), among others.
Mr. Traub received the NACD Directorship Certification, which is
awarded to directors who meet the highest standards of corporate
governance according to the National Association of Corporate
Directors. Mr. Traub received a Bachelor of Arts from Emory College
in 1983 and an MBA from Harvard Business School in 1988.
About Comtech Telecommunications Corp.
Headquartered in Chandler, Arizona, Comtech Telecommunications
Corp. -- www.comtech.com -- is a global provider of next-generation
911 emergency systems and secure wireless and satellite
communications technologies. This includes the critical
communications infrastructure that people, businesses, and
governments rely on when durable, trusted connectivity is required,
no matter where they are - on land, at sea, or in the air - and no
matter what the circumstances from armed conflict to a natural
disaster. The Company's solutions are designed to fulfill its
customers' needs for secure wireless communications in the most
demanding environments, including those where traditional
communications are unavailable or cost-prohibitive, and in
mission-critical and other scenarios where performance is crucial.
Jericho, New York-based Deloitte & Touche LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated Oct. 30, 2024, citing that the Company has suffered
recurring losses and negative cash outflows from operations, and
may be unable to maintain compliance with financial covenants
required by its credit agreement that raise substantial doubt about
its ability to continue as a going concern.
As of July 31, 2024, Comtech had $912.43 million in total assets,
$426.11 million in total liabilities, $180.08 million in
convertible preferred stock, and $306.25 million in total
stockholders' equity.
CONTAINER STORE: Moody's Cuts CFR to Caa3, Outlook Negative
-----------------------------------------------------------
Moody's Ratings downgraded The Container Store, Inc.'s corporate
family rating to Caa3 from Caa1, its probability of default rating
to Caa3-PD from Caa1-PD and its senior secured term loan (Term B-3)
rating to Caa3 from Caa1. Its speculative grade liquidity rating
(SGL) was downgraded to SGL-4 from SGL-3. The outlook remains
negative.
The downgrades reflects Container Store's continued weak operating
performance as demand for discretionary home related product
categories remains under pressure, particularly its storage and
organization general merchandise categories, with overall
comparable sales down 12.5% in Q2 2024 which followed a 20% decline
in Q2 2023. Credit metrics are extremely weak with EBIT/interest
at 0.3x and debt/EBITDA at 5.9x. Moody's expect the discretionary
consumer spending environment to remain challenging throughout 2024
with any meaningful recovery likely to be delayed until 2025.
The downgrade of its speculative grade liquidity rating to SGL-4
from SGL-3 reflects the short term expiration of Container Store's
asset based revolving credit facillity (ABL) which has a springing
maturity of October 31, 2025. There is currently $80 million
outstanding under the ABL. Moody's also project that the company
will be unable to meet its 4.0x secured leverage ratio covenant (as
defined in its term loan) for which a waiver was received for
fiscal Q2 2024. Nonetheless, Container Store's strategic review has
led to an agreement to collaborate and issue $40 million of
preferred equity to Beyond, Inc. (Beyond). The equity infusion is
subject to amending or refinancing both its ABL and term loan due
at the end of January 2026 on terms approved by Beyond.
RATINGS RATIONALE
The Container Store's Caa3 CFR reflects its small scale as well as
its narrow focus on the cyclical home storage and organization
space. Revenue has declined well below levels prior to 2020 despite
its addition of new stores. The company has faced intense
competition from larger and well capitalized peers as it increases
its custom spaces business mix and consumer demand for home goods
remains weak. Container Store's interest coverage
(EBITDA-CapEx/interest) is well below 1x as its profitability
remains pressured and liquidity weak given its short dated capital
structure and Moody's projection that the company will need future
covenant relief. Nonetheless, the company has reached an agreement
with Beyond, Inc. for a $40 million preferred stock investment as
well as a collaboration of its businesses. The equity infusion is
contingent upon the company addressing its capital structure on
terms which are approved by Beyond, Inc. before January 31, 2025.
Although demand for its products are likely to inflect as consumers
benefit from lower interest rates and housing activity increases,
Container Store remains vulnerable to further sales deleveraging in
until consumer demand for its products improves. Credit metrics in
2024 have continued to weaken as consumers continue to spend more
on essentials and home products spending remains depressed.
Container Store benefits from a recognized brand name and its value
proposition is supported by a highly trained sales force and a
sizable offering of exclusive and proprietary products, in
particular custom closets. Its strategic priority is to increase
its sales mix in customer spaces and offer general merchandise
products which complement this area.
The negative outlook reflects the risk its capital structure cannot
be refinanced and the transaction with Beyond, Inc. is not
consummated. The outlook also reflects the risk that estimated
recoveries could weaken further should Container Store be unable to
improve its operating performance.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if liquidity is adequate, including
solid free cash flow and significant improvement in sales growth
and profitability is realized. An upgrade would also require a
refinancing of it short duration capital structure at par.
Ratings could be downgraded if the likelihood of default increases
including through a potential distressed exchange or debt
restructuring or should estimated recoveries decline.
The Container Store, Inc., is a retailer of storage and
organization products in the US and Europe. The company operates in
the US through its 103 specialty retail stores and website, and in
Europe through its wholly owned Swedish subsidiary, Elfa
International AB (Elfa). Net revenue for the LTM period ended
September 28, 2024, was about $799 million. The company has been
publicly traded (stock symbol "TCS") since 2013. However, Leonard
Green and Partners continues to own approximately 30% of the common
equity.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
CORSAIR GAMING: Moody's Withdraws 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Ratings has withdrawn all credit ratings of Corsair Gaming,
Inc. including the B2 Corporate Family Rating, B2-PD Probability of
Default Rating and SGL-2 Speculative Grade Liquidity Rating.
Moody's have also withdrawn the B2 ratings on the senior secured
bank credit facility consisting of a senior secured first lien
revolver expiring September 2026 and senior secured first lien term
loan due in September 2026.
Prior to the withdrawal, the rating outlook was stable.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
COMPANY PROFILE
Corsair Gaming, Inc., headquartered in Milpitas, California, is a
global developer and designer of high-performance gear and
technology for gamers, content creators and PC gaming enthusiasts.
The company's product portfolio includes PC components, gaming
peripherals, premium streaming equipment and ambient lighting.
Products are sold under several brands including Elgato, SCUF, Drop
and Origin PC. Corsair is owned by EagleTree Capital, L.P. and
limited partner co-investors (approximately 55%) following a
September 2020 initial public offering, public shareholders, and
Corsair senior management. The company generated revenue of
approximately $1.4 billion in the LTM period ended June 30, 2024.
CRITICAL REHAB: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Critical Rehab Corporation asks the U.S. Bankruptcy Court for the
Northern District of Florida, Tallahassee Division, for authority
to use cash collateral and provide adequate protection.
The Debtor will require the use of approximately $51,475 of cash
collateral to continue to operate its business for the next four
weeks, and, depending on the circumstances, a greater or lesser
amount will be required for each comparable period thereafter.
The U.S. Small Business Administration may assert a first priority
security interest in the Debtor's cash and cash equivalents by
virtue of a recorded UCC lien. Additionally, JP Morgan Chase Bank,
N.A., may claim an inferior interest in the Debtor’s cash and
cash equivalents by virtue of a recorded UCC lien filed after the
SBA.
As adequate protection for the use of cash collateral, the Debtor
proposes to grant Secured Creditors replacement liens to the extent
of any diminution in value, with such liens to have the same
validity, extent, and priority as their respective pre-petition
liens. The Debtor will operate on a positive cash flow basis during
the interim four-week period and asserts all interests on cash
collateral are adequately protected by the replacement liens as
well as the Debtor maintaining proper liability and property
insurance.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=Ew1Noz from PacerMonitor.com.
The Debtor projects $51,475 in total expenses for November 2024.
About Critical Rehab Corporation
Critical Rehab Corporation sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-40444) on
November 4, 2024. In the petition signed by Meagan Peluso,
president, the Debtor disclosed up to $50,000 in assets and up to
$500,000 in liabilities.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine LLP,
represents the Debtor as legal counsel.
CUBITAC CORP: Kicks Off Bankruptcy Protection in New Jersey
-----------------------------------------------------------
Cubitac Corp. filed Chapter 11 protection in the District of New
Jersey. According to court documents, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will not be available to unsecured
creditors.
About Cubitac Corp.
Cubitac Corp. is the home to the makers of beautiful and strong
cabinets.
Cubitac Corp. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 24-20659) on October 28, 2024. In the
petition filed by Joel Weiss, as president, the Debtor reports
estimated assets up to $50,000 and estimated liabilities between $1
million and $10 million.
The Debtor is represented by:
Timothy P. Neumann, Esq.
BROEGE NEUMANN FISCHER & SHAVER, LLC
25 Abe Voorhees Drive
Manasquan NJ 08736
Tel: (732) 223-8484
Email: timothyneumann25@gmail.com
CYPRUS MINES: Fine-Tunes Plan Documents
---------------------------------------
Cyprus Mines Corporation submitted a Revised First Amended Plan and
Revised First Amended Disclosure Statement dated September 27,
2024.
The Debtor filed this Chapter 11 Case consistent with the terms of
the Pre-Petition Cyprus Settlement to provide the Protected Parties
maximum protection under sections 524(g), 105(a), and 1141(d)(1) of
the Bankruptcy Code.
The Debtor has sought and obtained eleven unopposed extensions of
the deadline by which it may file notices of removal under
Bankruptcy Rules 9006(b) and 9027(a), the latest of which extends
the removal deadline through and including December 13, 2024.
On September 20, 2024, Red River Talc LLC, a successor of LLT,
filed for chapter 11 protection in the Bankruptcy Court for the
Southern District of Texas. Red River claims that 83% of talc
creditors voted in favor of its plan. There is currently a dispute
as to whether the case should proceed in Texas or New Jersey and a
group of talc creditors that voted against the Red River plan has
filed a motion to dismiss the bankruptcy case.
On September 20, 2024, the Debtor and the Imerys Debtors filed the
Amended and Restated Settlement Agreement and Release (the "J&J
Settlement Agreement"). The J&J Settlement Agreement contemplates,
among other things, (i) a settlement payment from the J&J Settling
Parties in the aggregate amount of $225 million (the "J&J Initial
Payment"), (ii) a contribution from the J&J Corporate Parties of
the first $200 million and 50% of the next $160 million of
insurance proceeds recovered under the J&J Policies (subject to an
aggregate capped guarantee of $280 million and certain other
limitations) (the "J&J Insurance Payments"), and (iii) contribution
of the entirety of the Home Proceeds (collectively, (i), (ii), and
(iii), the "J&J Payment Obligations").
Under the Plan, Class 3 Unsecured Claims will recover 100% of their
claims. Each Allowed Unsecured Claim shall receive such treatment
as may be necessary to render such Claim Unimpaired.
Notwithstanding Section 3.2.3(b) of the Plan, effective on the
Effective Date, as part of the Cyprus Settlement and in
consideration for the Cyprus Protected Parties being Protected
Parties and receiving all of the protections inuring to the benefit
of the Protected Parties under the Plan, each holder of a CAMC
Intercompany Note Claim shall, by virtue of the entry of the
Confirmation Order, be deemed to have fully, finally, and forever
released, relinquished, and discharged the Debtor and the
Reorganized Debtor, from each and every CAMC Intercompany Note
Claim, whether known or unknown, now or in the future, in law,
equity, or otherwise, which has been, could have been, or may in
the future be brought by or on behalf of any holder of a CAMC
Intercompany Note Claim.
Cash consideration necessary for payments or Distributions on
account of the Allowed Administrative Claims shall be obtained from
the Cash on hand of the Debtor on the Effective Date, including
Cash available to be borrowed by the Debtor under the DIP Credit
Agreement. Cash consideration necessary for payments or
Distributions on account of Allowed Non-Talc Claims, including,
without limitation, Allowed Administrative Claims not paid in full
pursuant to the foregoing sentence, shall be obtained from the Cash
on hand of the Debtor or from post-Effective Date funding from CAMC
pursuant to (and subject to the terms of) the CAMC Funding
Agreement.
All Cash consideration necessary for payments or distributions on
account of Talc Personal Injury Claims shall be obtained from the
Talc Personal Injury Trust Assets and proceeds therefrom. The Talc
Personal Injury Trust shall have no obligation to fund costs and
expenses other than those set forth in the Plan, the Imerys Chapter
11 Plan and/or the Talc Personal Injury Trust Documents, as
applicable.
Provisions Related to the J&J Settlement
Nothing in the Plan or the Trust Distribution Procedures shall be
binding on or used to impact, prejudice, or affect the J&J
Corporate Parties (including, without limitation, LLT Management
LLC (f/k/a LTL Management LLC), Johnson & Johnson Red River Talc
LLC and Pecos River Talc LLC), in the tort system or in a
bankruptcy case.
Section 11.10.2 of the Plan incorporates an injunction issued as
part of the J&J Settlement Order. As more fully set forth in
Section 11.10.2 of the Plan, unless and until the J&J Settlement
Agreement is terminated, the injunction prohibits the Debtor, the
Imerys Debtors, the Reorganized Debtor, the Reorganized Imerys
Debtors, the Debtor Corporate Parties, the Talc Personal Injury
Trust, the Debtor Releasing Parties, the Non-Debtor Releasing
Parties and any other person that seeks to assert claims through
any of the foregoing, or to otherwise recover from any Cyprus Talc
Insurance Policies, from commencing, prosecuting, accepting payment
on account of (other than the J&J Payment Obligations), or
otherwise pursuing insurance coverage for, J&J Talc Claims,
including recovering any defense costs or for contribution.
A full-text copy of the Revised First Amended Disclosure Statement
dated August 2, 2024 is available at https://urlcurt.com/u?l=fZXDDl
from Prime Clerk LLC, claims agent.
Counsel for the Debtor:
Kurt F. Gwynne, Esq.
REED SMITH LLP
1201 Market Street - Suite 1500
Wilmington, DE 19801
Tel: (302) 778-7500
Fax: (302) 778-7575
E-mail: kgwynne@reedsmith.com
-and-
Paul M. Singer, Esq.
Luke A. Sizemore, Esq.
REED SMITH LLP
225 Fifth Avenue, Suite 1200
Pittsburgh, PA 15222
Tel: (412) 288-3131
Fax: (412) 288-3006
E-mail: psinger@reedsmith.com
lsizemore@reedsmith.com
About Cyprus Mines Corporation
Cyprus Mines Corporation is a Delaware corporation and a wholly
owned subsidiary of Cyprus Amax Minerals Co., which is an indirect
subsidiary of Freeport-McMoRan Inc. It currently has relatively
limited business operations, which include the ownership of various
parcels of real property, certain royalty interests that generate
de minimis revenue (e.g., less than $1,500 in each of the past two
calendar years), and the ownership of an operating subsidiary that
conducts marketing activities.
Cyprus Mines is a predecessor in the interest of Imerys Talc
America, Inc. In June 1992, Cyprus Mines sold its talc-related
assets to RTZ America Inc. (later known as Rio Tinto America, Inc.)
through a two-step process. First, Cyprus Mines transferred its
talc-related assets and liabilities (subject to minor exceptions)
to Cyprus Talc Corporation, a newly formed subsidiary of Cyprus
Mines, according to an Agreement of Transfer and Assumption, dated
June 5, 1992.
Second, Cyprus Mines sold the stock of Cyprus Talc Corporation to
RTZ according to a Stock Purchase Agreement, also dated June 5,
1992 (as amended, the "1992 SPA"). The purchase price was
approximately $79.5 million. Cyprus Talc Corporation was later
renamed Imerys Talc America, Inc. Under the 1992 ATA, the entity
now named Imerys expressly and broadly assumed the talc liabilities
of Cyprus Mines and its former subsidiaries that were in the talc
business.
Cyprus Mines filed for Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 21-10398) on Feb. 11, 2021, listing between $10
million and $50 million in assets, and between $1 million and $10
million in liabilities.
The Honorable Laurie Selber Silverstein is the case judge.
The Debtor tapped Reed Smith LLP as bankruptcy counsel, Kasowitz
Benson Torres LLP as special conflicts counsel, and Prime Clerk LLC
as claims agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of tort claimants on March 4, 2021. The tort committee is
represented by Caplin & Drysdale, Chartered, and Campbell & Levine,
LLC. Province, LLC, and Axlor Consulting, LLC serve as the tort
committee's financial advisor and consultant, respectively.
Roger Frankel serves as the legal representative for future
personal injury claimants. The FCR tapped Togut, Segal & Segal,
LLP, Burr & Forman, LLP and Frankel Wyron, LLP as bankruptcy
counsels; Anderson Kill, PC as special insurance counsel; Archer &
Greiner, P.C. as New Jersey counsel; and Province, LLC as financial
advisor. The FCR also tapped the services of economic expert,
Berkeley Research Group, LLC.
On May 11, 2021, the court appointed M. Jacob Renick as the fee
examiner in this Chapter 11 case. The examiner tapped Godfrey &
Kahn, SC as legal counsel.
DBMP LLC: Court Won't Lift Automatic Stay in Herlihy, et al. Suit
-----------------------------------------------------------------
In the case captioned as MICHAEL N. HERLIHY, ANN HERLIHY AND THE
ESTATE OF PETER L. BERGRUD, Appellants, v. DBMP LLC, Appellee,
CIVIL ACTION NO. 3:24-CV-00558-KDB (W.D.N.C.), Judge Kenneth D.
Bell of the United States District Court for the Western District
of North Carolina affirmed the rulings of the United States
Bankruptcy Court for the Western District of North Carolina that
denied the Appellants' motions for relief from the automatic stay
in the bankruptcy case of DBMP LLC.
Appellants are two of tens of thousands of plaintiffs who filed
asbestos-related tort claims against building products manufacturer
CertainTeed Corporation and/or its various subsidiaries,
predecessors, successors or related companies. In 2019, CTC
underwent a "divisional merger" under Texas law in which two new
companies, DBMP and CertainTeed LLC, were created with the intent
of segregating all of CTC's asbestos-related liabilities in DBMP,
where the claims could be collectively resolved in a bankruptcy.
All of CTC's employees and nearly all of CTC's other assets and
liabilities (i.e., its entire ongoing business) were retained in
CertainTeed LLC. DBMP and CertainTeed then executed a "Funding
Agreement," in which CertainTeed purportedly agreed to fund DBMP's
bankruptcy expenses and reorganization, including the cost of
resolving the asbestos-related claims.
In the ensuing DBMP Chapter 11 bankruptcy filed three months later,
Appellants and all the other asbestos-related claimants' state law
tort claims were automatically stayed under Section 362 of the
bankruptcy code. Over vigorous objection, the Bankruptcy Court
entered a preliminary injunction prohibiting the claimants from
bringing the same asbestos-related claims against CertainTeed and
its distributors.
Following the Bankruptcy Court's ruling on the initial "lift-stay"
motions and Preliminary Injunction, the legal representatives for
the current and future asbestos claimants filed additional
adversary proceedings in the bankruptcy case:
(a) a proceeding seeking substantive consolidation of DBMP with
CertainTeed or, in the alternative, reallocating the asbestos
liabilities of DBMP to CertainTeed;
(b) a proceeding asserting intentional and constructive
fraudulent conveyance claims related to the corporate
restructuring, which, among other things, alleged that the
restructuring had rendered DBMP insolvent; and
(c) a proceeding asserting breach of fiduciary duty, aiding and
abetting a breach of fiduciary duty, and civil conspiracy in
connection with the corporate restructuring.
Discovery in the first two proceedings is ongoing, while the third
is stayed pending resolution of the fraudulent transfer
allegations. Also, the Bankruptcy Court has approved a process for
estimating DBMP's aggregate liability for purposes of negotiating,
formulating, and confirming a Chapter 11 plan, and has ordered the
parties to mediation to negotiate the possible resolution of the
Chapter 11 case.
On April 18, 2024, the Estate of Peter Bergrud and Michael and Ann
Herlihy filed Motions for Relief from the Automatic Stay Pursuant
to 11 U.S.C. Sec. 362(d). The Bankruptcy Court denied the motions
on May 28, 2024. Appellants timely appealed and the motions have
been consolidated on appeal. Following full briefing, the District
Court held oral argument on October 24, 2024, and the appeal is now
ripe for decision.
The Bankruptcy Court denied the Appellants' motions based on its
weighing of the factors described in In re Robbins, 964 F.2d 342
(4th Cir. 1992), the governing authority in this Circuit on
bankruptcy "lift-stay" motions.
In deciding whether to lift the automatic stay as to any creditor
or claim, courts should consider:
(1) whether the issues in the pending litigation involve only
state law, so the expertise of the bankruptcy court is unnecessary;
(2) whether modifying the stay will promote judicial economy and
whether there would be greater interference with the bankruptcy
case if the stay were not lifted because matters would have to be
litigated in bankruptcy court; and
(3) whether the estate can be protected properly by a
requirement that creditors seek enforcement of any judgment through
the bankruptcy court.
Overall, the court must "balance potential prejudice to the
bankruptcy debtor's estate against the hardships that will be
incurred by the person seeking relief from the automatic stay if
relief is denied."
In the Bankruptcy Court's 2021 ruling on the asbestos claimants'
request to lift the automatic stay (which the court referenced and
incorporated into its ruling on Appellants' lift-stay motions), the
court weighed the Robbins factors.
More specifically, as to the prejudice to the Debtor's estate, the
Bankruptcy Court found that lifting the stay would deplete estate
resources through increased costs and irreparably harm the
prospects for reorganization. Indeed, the court found that
allowing the litigation (and ultimate liquidation) of thousands of
asbestos claims in the tort system "would amount to an effective
dismissal of the Chapter 11 Case without satisfying the Fourth
Circuit's stringent Carolin dismissal standard".
The District Court has carefully reviewed the Bankruptcy Court's
Robbins analysis and concludes that the Bankruptcy court did not
abuse its discretion in balancing the relevant factors. Judge Bell
explains that it is not unreasonable to conclude that DBMP's
bankruptcy estate would be harmed by allowing thousands of asbestos
claimants to proceed in state court while the bankruptcy
'continues' (to the extent that would even be possible). Nor is the
Bankruptcy Court's finding that claimants' delay in receiving
comparatively modest payments does not outweigh DBMP's likely harm
clearly incorrect.
Appellants' arguments in both the Bankruptcy Court and the District
Court do not focus on balancing the Robbins factors. Rather, they
contend that DBMP's lack of good faith in filing the bankruptcy is,
standing alone, sufficient "cause" to lift the stay and it was
plain legal error not to rule directly on the Debtor's bad faith.
In support of their position, they rely almost exclusively on
Carolin v. Miller, 886 F.2d 693 (4th Cir. 1989). Yet, Carolin does
not reach the holding Appellants suggest, much less require that
the Bankruptcy Court abandon the appropriate Robbins analysis, the
District Court finds.
Judge Bell says it is incorrect to read Carolin as holding that in
ruling on a motion to lift a stay, a bankruptcy court must decide
if a petition was filed in bad faith and if it so finds then it
must lift the stay. On the contrary, while 'bad faith in filing for
bankruptcy is sometimes grounds for lifting an automatic stay under
Section 362, a finding of bad faith alone does not constitute per
se cause for relief from a stay.' So, to be clear, the Bankruptcy
Court could have considered DBMP's alleged 'bad faith' among its
balancing of all the Robbins factors, but was not required to do so
under Carolin. However, if, granting the automatic stay would in
practical effect amount to a dismissal of the bankruptcy petition,
it was required under Carolin to find both objective futility and
subjective bad faith to grant relief from the stay related to 'bad
faith.' The Bankruptcy Court thus correctly applied Carolin."
In summary, the District Court concludes that the Bankruptcy Court
did not abuse its discretion under Robbins in its balancing of the
harm to the Debtor of granting relief from the automatic stay with
the harm to the Appellants in light of all the circumstances and
further committed no error of law in its alternate analysis under
Carolin. Therefore, the District Court will deny the Appellants'
appeal and affirm the ruling of the Bankruptcy Court.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=o8wh9M
About DBMP LLC
DBMP, LLC is a North Carolina limited liability company and the
direct parent company of Millwork & Panel LLC, which manufactures
vinyl siding and polyvinyl chloride (PVC) trim products for the
construction market at facilities it owns in Claremont, N.C. and
Social Circle, Ga. It is a defendant in tens of thousands of
asbestos-related lawsuits pending in courts throughout the United
States.
DBMP sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D.N.C. Case No. 20-30080) on Jan. 23, 2020. At the time
of the filing, the Debtor disclosed assets of between $500 million
and $1 billion and liabilities of the same range.
Judge J. Craig Whitley presides over the case.
The Debtor tapped Jones Day as bankruptcy counsel; Bates White LLC
as consultant; Robinson, Bradshaw & Hinson, P.A. and Schiff Hardin
LLP as special counsel; and Epiq Corporate Restructuring, LLC as
claims, noticing and balloting agent. The Debtor also tapped
Donlin, Recano and Company, Inc., to oversee the submission of
personal injury questionnaires by claimants.
The official committee of asbestos personal injury claimants
appointed in the Debtor's case tapped Robinson & Cole, LLP and
Caplin & Drysdale, Chartered as its bankruptcy counsel. Hamilton
Stephens Steele Martin, PLLC is the committee's local counsel.
The court approved the appointment of Sander L. Esserman as the
future claimants' representative in the Debtor's case. Mr. Esserman
tapped Young Conaway Stargatt & Taylor, LLP and Stutzman, Bromberg,
Esserman & Plifka, a Professional Corporation, as his bankruptcy
counsel. Alexander Ricks PLLC is the FCR's North Carolina counsel.
Forrest Bridges is appointed as the discovery referee in this
Chapter 11 case. Adam Steele, a lawyer practicing in North
Carolina, is tapped as his research assistant.
DEGNAN SCOTTSDALE: Seeks Cash Collateral Access
-----------------------------------------------
Degnan Scottsdale, LLC, asks the U.S. Bankruptcy Court for the
Northern District of California for authority to use cash
collateral and provide adequate protection.
The Debtor owns two undeveloped lots and a rental house in Oakland,
California. The rental house generates $5,500 in monthly rent. The
Debtor owes $995,000 to a group of lenders, secured by the
properties. The Debtor and the lenders have agreed on a plan to use
the rental income to cover property expenses while the bankruptcy
case is ongoing.
These lenders are Lester H. Strickler, Trustee, or his successor in
interest under the terms of the Lester H. Strickler and E. Grace
Strickler Trust dated November 30,1996; Janet L.Strickler, Trustee
of the Strickler Living Trust UTD dated 13, November 1998; Jerry A.
Stickler and Linda Strickler as Trustees of the Jerry Strickler and
Linda Strickler Trust dated June 9,1998; David R. Bishop and Laurie
H. Bishop, Trustees of the Bishop Trust dated May 19, 1999; and
Sonya L. Strickler, as Trustee of the Sonya L. Strickler Trust,
dated March 15, 2016.
The Debtor and the Lenders have negotiated the terms of a cash
collateral stipulation so that the Debtor can continue to pay the
costs of operating the Drake Drive house as well as real property
taxes, property management fees, and insurance.
The parties agreed that while the Property is property of the
bankruptcy estate, the rents so collected will be used as follows:
a. For the payment or reserve of current ordinary, necessary and
actual operating expenses and real estate taxes and insurance
premiums as they become due for the Property pursuant to the
budget. The operating expenses will include, but not be limited to,
the actual cost of utilities, licenses, janitorial services,
garbage, water, security, landscaping, telephone, tenant
advertising, on-site management, and those additional costs
necessary to maintain the Property in a good state of repair and to
comply with the requirements of the existing tenancy affecting the
Property.
b. For the payment of creditors holding liens against the Property
in the order of priority up to a maximum of the particular
creditor's regular payment, if the loan is not in default, or up to
a maximum of that creditor's regular payment and the amount
necessary to cure any default in such default.
While the Property is property of this bankruptcy estate, the
debtor will be authorized to rent the Property if it becomes vacant
and pay any reasonable leasing commissions from the rents collected
as an ordinary and necessary operating expense.
A copy of the motion is available at https://urlcurt.com/u?l=A5M55k
from PacerMonitor.com.
A copy of the stipulation is available at
https://urlcurt.com/u?l=LPQDfA from PacerMonitor.com.
About Degnan Scottsdale
Degnan Scottsdale, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-51361) on Sept. 5, 2024. In the petition signed by Steven M.
Davis, sole member-manager, the Debtor disclosed up to $10 million
in both assets and liabilities.
Judge Stephen L. Johnson oversees the case.
Joan Marie Chipser, Esq., represents the Debtor as legal counsel.
DELTA APPAREL: Dimensional Fund Ceases Ownership of Common Shares
-----------------------------------------------------------------
Dimensional Fund Advisors, LP disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it has ceased to be the beneficial owner of
more than five percent of Delta Apparel Inc.'s Common Stock.
A full-text copy of Dimensional Fund's SEC Report is available at:
https://tinyurl.com/werhha9r
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc. --
https://www.deltaapparelinc.com/ -- is a vertically integrated,
international apparel company with approximately 6,800 employees
worldwide. The Company designs, manufactures, sources, and markets
a diverse portfolio of core activewear and lifestyle apparel
products under its primary brands of Salt Life, Soffe, and Delta.
The Company specializes in selling casual and athletic products
through a variety of distribution channels and tiers, including
outdoor and sporting goods retailers, independent and specialty
stores, better department stores and mid-tier retailers, mass
merchants, eRetailers, the U.S. military, and through its
business-to-business digital platform.
Delta Apparel sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-11469) on June 30, 2024. In the
petition signed by J. Tim Pruban, as chief restructuring officer,
the Debtor estimated assets and liabilities between $100 million
and $500 million each.
Polsinelli PC, led by Christopher A. Ward, is the Debtor's counsel.
DENALI COMMUNITY SERVICES: Files for Chapter 11 Bankruptcy
----------------------------------------------------------
Denali Community Services LLC filed Chapter 11 protection in the
Northern District of Georgia. According to court filing, the Debtor
reports $1,219,500 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Denali Community Services LLC
Denali Community Services LLC has a warrant deed of a commercial
building located at 7466 Covington Hwy, Covington, Ga, valued at
$1.8 million.
Denali Community Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-61512) on October
30, 2024. In the petition filed by Pamela Alimanzi, as managing
member, the Debtor reports total assets of $1,850,600 and total
liabilities of $1,219,500.
Bankruptcy Judge Lisa Ritchey Craig oversees the case.
The Debtor is represented by:
DOMTAR CORP: Moody's Lowers CFR to B1 & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Ratings downgraded Domtar Corporation's corporate family
rating to B1 from Ba3 and the probability of default rating to
B1-PD from Ba3-PD. Moody's also downgraded the rating on the senior
secured bank credit facility to B1 from Ba3, the rating on the
senior secured notes to B1 from Ba3, and the rating on the senior
unsecured notes to B3 from B2. Outlook is changed from stable to
negative. Moody's assigned a B1 rating on the new $60 million
senior secured Exempt Facility Bonds ("industrial development
bonds") issued by The Industrial Development Board of the City of
Kingsport, Tennessee.
Proceeds from the issuance of the $60 million industrial
development bonds, which are secured on a first-lien pari passu
basis as the existing senior secured term loan and the 6.75% senior
secured notes, will be used to fund the construction of a
wastewater treatment facility at Domtar's newly converted
Kingsport, TN containerboard facility.
Governance considerations under the Moody's ESG framework were a
key driver of the rating action. As part of the rating action, the
Governance Issuer Profile Score ("IPS") was changed to 4 from 3,
reflecting the company's underperformance relative to original
expectations as well as continued aggressive financial policy
regarding acquisitions and capital structure management. Moody's
also changed the Financial Strategy and Risk Management as well as
Management Credibility and Track Record component scores to 4 from
3.
RATINGS RATIONALE
Domtar's credit profile (B1 Negative) reflects worse-than-expected
credit metrics and declining liquidity due to weak conditions
across multiple end markets. Moody's adjusted debt/EBITDA increased
to approximately 10.9x for the LTM period ending June 2024, but is
expected to improve to around 6.2x by the end of 2024 due to easier
year-over-year comparisons and stronger second half performance.
However, Moody's expect financial performance, credit metrics, and
liquidity to remain challenged in 2025, with leverage holding at
2024 levels, as Moody's do not expect the conditions for the
company's key end markets to materially improve until at least
2026. The credit profile also reflects an aggressive financial
policy with multiple acquisitions following the initial purchase of
Domtar by Paper Excellence and expectations of additional
acquisitions. This could result in higher debt and additional
integration risk. Secular decline for paper and newsprint will
continue to weigh on long term performance, while exposure to the
pulp and lumber markets will result in highly volatile segment
financial performance and cash flow generation. The rating also
reflects execution risks related to Domtar's ongoing efforts to
repurpose and optimize its asset portfolio, which may involve
converting, selling, and closing existing facilities.
The credit profile is supported by the company's scale ($7 billion
in LTM June 2024 revenue) and diverse product offering, including
graphic paper, pulp, wood products, containerboard, and tissues.
The operations benefit from good vertical integration and strong
market positions in its key paper and pulp segments. The company
has additional assets that could be closed (e.g., newsprint) or
converted to containerboard to offset secular decline in the paper
segment. The business also benefits from relatively high barriers
to entry given the stringent regulatory requirements and capital
intensity.
OUTLOOK
The negative outlook reflects uncertain conditions for the
company's key end markets as well as Moody's expectation that
financial performance, credit metrics, and liquidity profile could
remain challenged in 2025.
ESG CONSIDERATIONS
Environmental, social and governance ("ESG") factors are important
considerations in Domtar's credit quality and Governance is a
driver of the action. Domtar's credit impact score (CIS-4)
indicates that the rating is lower than it would have been if ESG
exposures did not exist, reflecting the long-term secular decline
in the company's primary commodity paper business, which continues
to be replaced by digital alternatives. The challenge of
repurposing assets as consumer preferences switch away from
commodity paper is a constraint to the credit rating. As a
manufacturing company, Domtar is exposed to moderate environmental
risks. Governance risks reflect an aggressive financial policy
regarding acquisitions and capital structure management.
LIQUIDITY
The company has adequate liquidity, consisting of $65 million of
cash on hand as of June 2024 and $409 million of availability under
its $1 billion ABL revolver due in March 2028. The revolver has a
springing fixed charge coverage ratio of 1.0x when excess
availability is less than the greater of $87.5 million and 10% of
the lesser of the borrowing base and maximum borrowing capacity.
The term loans have no financial maintenance covenants. The company
is not expected to generate free cash flow in 2024 due to depressed
earnings.
There are no near-term maturities, other than amortization
payments. A significant portion of Domtar's debt is due in 2028.
The majority of its US assets are encumbered under the secured
credit facilities and secured notes. Resolute has accumulated over
$500 million in duties related to the softwood lumber dispute
between Canadian and the US producers. If the agreement between the
two countries is reached and the duties are returned, Paper
Excellence has agreed to distribute all duties collected until June
2022 or up to $500 million to Resolute shareholders, but duties
paid after June 2022 will be kept by Domtar (currently estimated to
be at approximately $150 million) as an additional source of
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
Moody's could consider an upgrade if the company sustains Moody's
adjusted debt/EBITDA below 5.0x, RCF/Net Debt above 15%, and
EBITDA/interest expense above 4.0x, and consistently generates
positive free cash flow. An upgrade could also be considered if
Paper Excellence demonstrates commitment to deleveraging and
implements more conservative financial policies.
FACTORS THAT COULD LEAD TO A DOWNGRADE
Moody's could consider a downgrade if the company's earnings and
credit metrics deteriorate further, resulting in the Moody's
adjusted debt/EBITDA sustained above 6.0x, RCF/Net Debt below 10%,
and EBITDA/interest expense below 2.5x. A downgrade could also be
considered if liquidity deteriorates further as a result of
negative cash flow generation, large mill conversion projects, or
material add-on acquisitions.
PROFILE
Headquartered in Fort Mill, SC, Domtar is a producer of graphic
paper, pulp, wood products, container board and tissues. The
combined company generated pro forma sales of $7 billion for the
twelve months ended June 30, 2024.
The principal methodology used in these ratings was Paper and
Forest Products published in August 2024.
DORETHA WARD: Seeks Chapter 11 Bankruptcy in Illinois
-----------------------------------------------------
Doretha Ward Enterprises LLC filed Chapter 11 protection in the
Northern District of Illinois. According to court documents, the
Debtor reports $1,576,446 in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024 at 1:30 p.m. via Teams.
About Doretha Ward Enterprises LLC
Doretha Ward Enterprises LLC has equitable interests in eight
properties located in Illinois.
Doretha Ward Enterprises LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-16345) on
October 31, 2024. In the petition filed by Doretha Ward, as
president, the Debtor reports total assets of $1,878,390 and total
liabilities of $1,576,446.
The Debtor is represented by:
Timothy R Tyler, Esq.
TYLER LAW OFFICE, PC
120 W Madison Ste 204
Chicago, IL 60601
Tel: 312-920-1745
Fax: 312-920-1749
Email: ttyler@tylerlawchicago.com
DOVETAIL DEVELOPMENT: Unsecured Claims, If Any, to Get 100%
-----------------------------------------------------------
Dovetail Development Ltd. filed with the U.S. Bankruptcy Court for
the Northern District of Ohio a Chapter 11 under Subchapter V Plan
dated September 27, 2024.
The Debtor is a limited liability company formed in 1999. Alan
Griffiths is the sole member and managing member of the Debtor.
The Debtor was originally created as part of the estate plan for
Mr. Griffiths and his spouse and intended to hold solely
residential real properties that were to be rented to individuals.
An affiliate, Birdstone, Inc. was formed in 1994 to hold commercial
properties and businesses operated by Mr. Griffiths.
For the first four months of 2024, the Debtor's operations
reflected a net profit of $18,507 and included payments to all
lenders. For the months of May, June and July the Debtor
experienced a net profit of $69,573 without any payment to lenders.
Adding such payments, if having been made back into the profit and
loss statement would reflect a net profit of $6831 for those
months. The Debtor would to project a net profit of approximately
$43,433, an increase of 10% from the prior year.
In addition to the accounting change, the Debtor also anticipates
that has part of its ongoing plan in this case it will include if
necessary the consideration of liquidation of certain parcels to
reduce lender debt. Based on the foregoing, the Debtor believes
that during the course of the five-year term of this Plan it will
continue to experience increases in net profit in a similar fashion
as 2024 and 2023 and have projected disposable income to meet the
terms of the Plan without further reorganization.
Because the only unsecured creditor in this case is the sole member
of the Debtor for loans made to the Debtor, Debtor does not
contemplate that any of the disposable income will be used to pay
back such loans during the term of this Plan absent available
funds. However, to the extent there are available funds, such
creditor will receive a 100% distribution on the allowed unsecured
claim.
The final Plan payment is expected to be paid on the Fifth
Anniversary from the Effective Date of this Plan. Based on the
foregoing, the Debtor believes it has the means to carry out the
terms of this SubChapter V plan.
This Plan of Reorganization under chapter 11 of the Bankruptcy Code
proposes to pay creditors of the Debtors from their Disposable
Income and possible liquidation and or refinance of some claims of
creditors during the term of this Plan.
Non-priority unsecured creditors holding allowed claims will
receive a 100% distribution on the allowed amount of their claims.
Estimated allowed Claims in this case total $0.00.
Class 9 consists of General Unsecured Claims. Filed claims in this
Class at present total $0.00. Payments on the allowed claims in
this Class shall be made in 20 equal quarterly installments
sufficient to fully pay the allowed amount of claims in this Class.
Such payments shall commence on the 5th day of the month following
the Effective date of the Plan, and shall continue to be made every
three months thereafter. Allowed unsecured claims will be paid a
100% distribution on the allowed amount of their claim. Claims in
this Class are impaired.
The Plan will be implemented and funded through two sources:
* The Debtor's Disposable Income; and
* The liquidation of the Debtor's selected real property, or
* Refinancing.
A full-text copy of the Chapter 11 Plan dated September 27, 2024 is
available at https://urlcurt.com/u?l=zF7KUJ from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Steven L. Diller, Esq,
DILLER & RICE
124 E. Main Street
Van Wert, Ohio 45891
Phone: (419) 238-5025
Facsimile: (419) 238-4705
Email: steven@drlawllc.com
About Dovetail Development
Dovetail Development Ltd. is a limited liability company formed in
1999.
Dovetail Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-30828) on May 1,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge John P. Gustafson presides over the case.
Steven L. Diller, Esq., at Diller and Rice, LLC, is the Debtor's
legal counsel.
ECHOSTAR CORP: Dimensional Fund Reduces Stake, Owns 0.8% of Shares
------------------------------------------------------------------
Dimensional Fund Advisors LP disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that, as of
September 30, 2024, it has ceased to be the beneficial owner of
more than five percent of EchoStar Corporation's common stock.
Dimensional Fund reported owning 1,058,699 shares, representing
0.8% of the shares outstanding.
A full-text copy of Dimensional Fund's SEC Report is available at:
https://tinyurl.com/2mr324tm
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) -- www.echostar.com -- is a
provider of technology, networking services, television
entertainment, and connectivity, offering consumer, enterprise,
operator, and government solutions worldwide under its EchoStar,
Boost Mobile, Boost Infinite, Sling TV, DISH TV, Hughes, HughesNet,
HughesON, and JUPITER brands. In Europe, EchoStar operates under
its EchoStar Mobile Limited subsidiary, and in Australia, the
Company operates as EchoStar Global Australia.
EchoStar reported a net loss of $1.63 billion for the year ended
Dec. 31, 2023, compared to net income of $2.53 billion for the year
ended Dec. 31, 2022. As of March 31, 2024, the Company had $55.55
billion in total assets, $35.71 billion in total liabilities, and
$19.84 billion in total stockholders' equity.
Denver, Colorado-based KPMG LLP, the Company's auditor since 2002,
issued a "going concern" qualification in its report dated Feb. 29,
2024, citing that the Company has debt maturing in 2024 and expects
to use a substantial amount of cash in the next 12 months following
the filing of the report. This raises substantial doubt about the
Company's ability to continue as a going concern.
EDMOUNDSON STEEL: Seeks Cash Collateral Access
----------------------------------------------
Edmoundson Steel Erection, Inc., asks the U.S. Bankruptcy Court for
the Western District of Arkansas, Fort Smith Division, for
authority to use cash collateral and provide adequate protection.
The Debtor owns tangible personal property used in the operation of
its business with a lien in favor of the U.S. Small Business
Administration.
The Debtor proposes to pay Lender adequate protection for the use
of the cash collateral under the following formula:
a. The greater of $2,500 or 2% of gross receipts for the month
prior to the month of payment.
b. The adequate protection payment will commence on or before the
last day in the first full month after an order is entered granting
the Motion or as otherwise ordered by the court and will continue
monthly thereafter on or before the 21st day of each succeeding
calendar month until the confirmation of a subsequently proposed
Chapter 11 Plan, or until the case is converted to a case under
chapter 7 or is dismissed.
As additional adequate protection the Debtor will continue to
insure the tangible personal property Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=7W6MZK
from PacerMonitor.com.
About Edmoundson Steel Erection Inc.
Edmoundson Steel Erection Inc. is a construction company based out
of Fort Smith, AR.
Edmoundson Steel Erection Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No.
24-71778) on Oct. 25, 2024. In the petition filed by John
Balley, as owner, the Debtor reported assets between $100,000 and
$500,000 and liabilities between $1 million and $10 million.
Bankruptcy Judge Bianca M. Rucker handles the case.
The Debtor is represented by Stanley V. Bond, Esq. at Bond Law
Office.
EIG MANAGEMENT: Moody's Alters Outlook on 'Ba2' CFR to Stable
-------------------------------------------------------------
Moody's Ratings affirmed the Ba2 long term corporate family rating
and Ba2-PD probability of default rating of EIG Management Company
LLC, and the Ba2 ratings on the company's backed senior secured
revolving credit facility due May 2027 and backed senior secured
term loan B due May 2029. Concurrently, Moody's changed the outlook
on EIG to stable from negative.
RATINGS RATIONALE
The change in outlook to stable from negative reflects the recent
growth in the company's revenue and EBITDA, as well as the
improvement in margins and the decrease in leverage, over the last
twelve months. This comes after EIG had a few vintage funds wind
down over the last few years and consequently experienced declining
revenue, while expenses did not decrease commensurately. Low
commodity prices have also been a headwind, but investment in green
energy and carbon transition projects should pick up in coming
years as a result of legislation passed over the last few years in
the US. Additionally, EIG has some funds ramping up and
approximately $3.2 billion in dry powder for new investments, and
should see the benefits of these initiatives emerge next year.
The rating affirmation is supported by the long-term performance of
EIG's investment funds, the expected growth of assets under
management from its current fundraising activities, and the
increasing duration of the company's assets under management from
recent strategic initiatives.
The Ba2 rating reflects EIG's long experience investing in energy,
infrastructure, and power sectors; breadth and global diversity of
both its investment program and client base within its areas of
expertise. The company's rating is constrained by modest scale,
specialization in a single sector of investment expertise and
industries related to carbon extraction, leverage on a pro forma
basis of approximately 4.1x, as calculated by us, and past
difficulties in capital raising for new investment funds.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The following factors could lead to an upgrade of EIG's rating: 1)
increased scale (annual revenue growth in excess of 10%); 2)
further balance sheet deleveraging, sustaining debt/EBITDA (as
defined by us) below 3.0x, and; 3) greater diversification of its
sources of capital, including additional permanent capital
vehicles. The following factors could lead to a downgrade of EIG's
rating: 1) leverage elevated above 4.0x for a sustained period; 2)
challenges in raising new investment funds; 3) decline in scale due
to performance weakness or AUM instability, and; 4) weak response
to ESG challenges, particularly carbon transition opportunities.
EIG Management Company LLC, headquartered in Washington DC, is an
alternative asset manager with over $24 billion in AUM as of
September 30, 2024.
The principal methodology used in these ratings was Asset Managers
published in May 2024.
ELLUCIAN HOLDINGS: S&P Affirms 'B-' ICR on Recapitalization
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
Ellucian Holdings Inc. and its 'B-' issue-level rating on the
company's existing first-lien debt. At the same time, S&P assigned
its 'B-' issue-level rating with a '3' recovery rating' and 'CCC'
issue-level rating with a '6' recovery rating to the company's new
secured bonds and second-lien term loan, respectively.
The stable outlook reflects Ellucian's leading position in the
higher-education enterprise resource planning (ERP) software
market, its large contractually recurring revenue base, and S&P's
expectation of continued positive reported free cash flow.
S&P said, "Despite the step-up in interest expense and leverage, we
expect Ellucian to remain comfortably cash flow positive this year
and next. While cash flows were muted this year amid the
high-interest rate environment, we expect free operating cash flow
(FOCF) to grow next year as borrowing costs continue to come down.
For fiscal 2025, we expect interest payments to remain relatively
flat, with incremental interest expense from the new debt largely
offset by S&P Global Ratings' forecasted federal rate cuts
throughout the year. Further supporting this thesis are tailwinds
from the company's ongoing software as a service (SaaS) transition
and recent EBITDA margin gains from the full realization of
cost-savings actions taken following the CampusLogic acquisition.
We also continue to view Ellucian's sticky ERP solutions and stable
higher education end-customers as credit positives, which we
believe will support the company's new elevated debt burden.
Accordingly, for fiscal 2025 we expect the company will generate
about $100 million of FOCF, with additional inflows of $25 million
from the company's interest rate cap (expiring September 2025).
"The stable outlook reflects Ellucian's leading position in the
higher-education ERP software market, its large contractually
recurring revenue base, and our expectation of continued positive
reported free cash flow."
Although unlikely, S&P could lower the rating if:
-- The company cannot maintain operating profitability due to
changing benchmark rates or other business factors, resulting in
flat to negative free cash flow; or
-- EBITDA Interest coverage approaches 1x.
S&P could raise the rating if the company:
-- Generates revenue and EBITDA growth;
-- Maintains EBITDA margins in the low- to mid-30% range;
-- Sustains leverage below 8x;
-- Approaches 5% free cash flow to debt; and
-- S&P views a subsequent near-term leveraging action (either
through a dividend or an acquisition) to be unlikely.
ENTECCO FILTER: Committee Hires Fox Rothschild LLP as Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Entecco Filter
Technology, Inc. seeks approval from the U.S. Bankruptcy Court for
the Middle District of North Carolina to Fox Rothschild LLP as
counsel
The firm's services include:
a. advising the Committee with respect to its rights, duties,
and powers in this Chapter 11 Case;
b. assisting and advising the Committee in its consultations
with the Debtor relative to the administration of this Chapter 11
Case;
c. assisting the Committee in analyzing the claims of the
Debtor's creditors and the Debtor's capital structure and in
negotiating with holders of claims and equity interests;
d. assisting the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the Debtor
and of the operation of the Debtor's business;
e. assisting the Committee in analyzing (i) the Debtor's
pre-petition financing, and (ii) proposed use of cash collateral,
the terms and conditions of the proposed use of cash collateral and
the adequacy of the budget;
f. assisting the Committee in its investigation of the liens
and claims of the holders of the Debtor's pre-petition debt and the
prosecution of any claims or causes of action revealed by such
investigation;
g. assisting the Committee in its analysis of, and
negotiations with, the Debtor or any third party concerning matters
related to, among other things, the assumption or rejection of
certain leases of nonresidential real property and executory
contracts, asset dispositions, sale of assets, financing of other
transactions and the terms of one or more plans of reorganization
or liquidation for the Debtor and accompanying disclosure
statements and related plan documents;
h. assisting and advising the Committee as to its
communications to unsecured creditors regarding significant matters
this Chapter 11 Case;
i. representing the Committee at hearings and other
proceedings;
j. reviewing and analyzing applications, orders, statements of
operations, and schedules filed with the Court and advising the
Committee as to their propriety;
k. assisting the Committee in preparing pleadings and
applications as may be necessary in furtherance of the Committee's
interests and objectives in this Chapter 11 Case, including without
limitation, the preparation of retention
papers and fee applications for the Committee's professionals,
including Fox Rothschild;
l. preparing, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda, complaints,
adversary complaints, objections, or comments in connection with
any of the foregoing; and
m. performing such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
Fox Rothschild will be paid at these rates:
Fox Rothschild $385 to $1,160 per hour
Associates $385 to $620 per hour
Paraprofessionals $145 to $495 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brian R. Anderson, Esq., a partner at Fox Rothschild LLP, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Brian R. Anderson, Esq.
Fox Rothschild LLP
230 N. Elm Street, Suite 1200
Greensboro, NC 27401
Telephone: (336) 378-5205
Email: BRAnderson@FoxRothschild.com
About Entecco Filter Technology
Entecco Filter Technology, Inc., is a Delaware-based environmental
technology company, specializing in air purification systems and
filter products used in various industries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50707) with $1 million
to $10 million in both assets and liabilities. James David
Edgerton, president and chief executive officer, signed the
petition.
James C. Lanik, Esq., at Waldrep Wall Babcock & Bailey, PLLC
servesas the Debtor's legal counsel.
EQUIPSOURCE LLC: Hires Brister Law Firm PLLC as Attorney
--------------------------------------------------------
Equipsource, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Arkansas to employ Brister Law Firm PLLC as
counsel to handle its Chapter 11 case.
The firm will be paid at the rate of $350 per hour.
Brister Law Firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
M. Sean Brister, Esq., a partner at Brister Law Firm, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
M. Sean Brister, Esq.
Brister Law Firm, PLLC
P.O. Box 1451
Alma, AR 72921
Tel: (479) 632-2446
Fax: (479) 632-2447
Email: sean@bristerlawfirm.com
About EquipSource LLC
Equipsource, LLC, a company in Van Buren, Ark., manufactures
engines, inverters, generators, batteries, pressure washers, water
pumps, among other products.
Equipsource filed Chapter 11 petition (Bankr. W.D. Ark. Case No.
24-71543) with $1 million to $10 million in both assets and
liabilities. Larry cotton, member-manager, signed the petition.
Judge Bianca M. Rucker oversees the case.
The Debtor is represented by M. Sean Brister, Esq., at Brister Law
Firm PLLC.
EVOFEM BIOSCIENCES: Forbearance Deal With Future Pak Terminated
---------------------------------------------------------------
As previously reported on Form 8-K, on September 15, 2022, Evofem
Biosciences, Inc. entered into a forbearance agreement with Future
Pak, LLC, as agent for certain purchasers (the "Designated Agent"),
wherein the Designated Agent and the holders of certain secured
promissory notes agreed to forbear from exercising any of their
rights and remedies during the Forbearance Period, but solely with
respect to the specified events of default provided therein.
On September 27, 2024, Future Pak provided a Notice of Event of
Default and Reservation of Rights relating to the Securities
Purchase and Security Agreement dated April 23, 2020, as amended,
by and among the Company, Designated Agent, as certain guarantors
and the purchasers.
On October 27, 2024, the Designated Agent sent an amended and
supplemented notice to the Initial Notice of Default which adds new
claims of default based on the Company's current repayment
agreements of existing obligations, including obligations owed to
the U.S. Department of Health and Human Services, an Event of
Default has occurred under Section 9.1(e) of the Securities
Purchase and Security Agreement dated April 23, 2020, as amended.
Furthermore, the Amended Notice stated that, because the events of
default described in the Amended Notice of Default are not the
certain prior events of default listed in the Forbearance
Agreement, the Designated Agent and the holders of the senior
secured promissory notes described in the SPA thereby provided
notice to the Company that the Forbearance Agreement is terminated
as of October 27, 2024.
About Evofem
Evofem Biosciences, Inc., is a San Diego-based commercial-stage
biopharmaceutical company with a strong focus on innovation in
women's sexual and reproductive health. The Company's first
commercial product, Phexxi, was approved by the FDA on May 22,
2020. Phexxi is the first and only FDA-approved, hormone-free
prescription contraceptive vaginal gel.
Walnut Creek, Calif.-based BPM, LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
March 26, 2024, citing that the Company has suffered recurring
losses from operations; negative cash flows from operations since
inception; has received a notice of default for its convertible
notes, and does not have sufficient capital to repay such
obligations (which are now currently due); and has a net capital
deficiency that raises substantial doubt about its ability to
continue as a going concern.
As of June 30, 2024, Evofem Biosciences had $8.6 million in total
assets, $73.2 in total liabilities, and $69.3 million in total
stockholders' deficit.
EVOFEM BIOSCIENCES: Secures Investor Support for Merger With Aditxt
-------------------------------------------------------------------
As previously reported in that Current Report on Form 8-K dated
July 18, 2024, Evofem Biosciences, Inc., Aditxt, Inc., a Delaware
Corporation, and Adifem, Inc., f/k/a Adicure, Inc., a Delaware
corporation and wholly-owned subsidiary of Aditxt, entered into an
Amended and Restated Merger Agreement whereby Adifem will merge
with and into Evofem with Evofem being the surviving company and
wholly-owned subsidiary of Aditxt.
Between October 28 and 30, 2024, the Company entered into support
agreements with some of its institutional investors pursuant to
which the Investors agreed:
(i) to vote all Subject Shares that an Investor is entitled to
vote at the time any vote to approve and adopt the A&R Merger
Agreement and the Merger at any meeting of the stockholders of the
Company, and at any adjournment thereof, at which the A&R Merger
Agreement is submitted for consideration and vote of the
stockholders of the Company, and
(ii) that he or it will not vote any Subject Shares in favor of
and will vote such Subject Shares against the approval of, any
Company Acquisition Proposal.
Each Investor also revoked any and all previous proxies granted
with respect to the Subject Shares. The Investors agreed that all
shares of Company Capital Stock that each Investor purchases,
acquires the right to vote, or otherwise acquires beneficial
ownership of, after the execution of the Support Agreement and
prior to the Expiration Date shall be subject to the terms and
conditions of the Support Agreement.
Furthermore, the Investors agreed not to sell or transfer any of
such Subject Shares until:
(a) the A&R Merger Agreement shall have been terminated for
any reason;
(b) the Merger shall become effective in accordance with the
terms and provisions of the A&R Merger Agreement;
(c) the acquisition by Aditxt of all Subject Shares of the
Investors, whether pursuant to the Merger or otherwise;
(d) any amendment, change or waiver to the A&R Merger
Agreement as in effect on October 27, 2024, without each Investor's
consent, that (1) decreases the amount, or changes the form or
timing (except with respect to extensions of time of the offer in
accordance with the terms of the A&R Merger Agreement) of
consideration payable to the Investors pursuant to the terms of the
A&R Merger Agreement as in effect on the date hereof or (2)
materially and adversely affects such Investor; or € is agreed to
in writing by Aditxt and each Investor.
As of the date of the Support Agreement, the Investors own
collectively an aggregate of 1,468 shares of Company preferred
stock, 297,316,553 shares of common stock issuable upon the
conversion of convertible notes, 8,463,511 shares of common stock
issuable upon exercise of warrants, and 781,154,325 shares of
Company common stock issuable upon any other instrument convertible
into Company common stock.
About Evofem
Evofem Biosciences, Inc., is a San Diego-based commercial-stage
biopharmaceutical company with a strong focus on innovation in
women's sexual and reproductive health. The Company's first
commercial product, Phexxi, was approved by the FDA on May 22,
2020. Phexxi is the first and only FDA-approved, hormone-free
prescription contraceptive vaginal gel.
Walnut Creek, Calif.-based BPM, LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
March 26, 2024, citing that the Company has suffered recurring
losses from operations; negative cash flows from operations since
inception; has received a notice of default for its convertible
notes, and does not have sufficient capital to repay such
obligations (which are now currently due); and has a net capital
deficiency that raises substantial doubt about its ability to
continue as a going concern.
As of June 30, 2024, Evofem Biosciences had $8.6 million in total
assets, $73.2 in total liabilities, and $69.3 million in total
stockholders' deficit.
FILM FINANCES: Seeks Chapter 11 Bankruptcy w/ Sale Plans
--------------------------------------------------------
Rick Archer of Law360 reports that a film production services
company, Film Finances Inc., under the ownership of the struggling
private equity firm 777 Partners, has sought Chapter 11 bankruptcy
protection in Delaware, reporting liabilities of $88.9 million. The
company points to the COVID-19 pandemic, the Hollywood strikes, and
its owner's legal and financial challenges as the main causes of
its financial difficulties.
About Film Finances Inc.
Film Finances Inc. is a film production service company owned by
private equity firm 777 Partners.
Film Finances Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12566) on November 4,
2024. In its petition, the Debtor reports estimated assets and
liabilities between $50 million and $100 million each.
The Debtor is represented by Ericka Fredricks Johnson of
Bayard P.A.
FIRSTBASE.IO INC: Taps Quinn and Dilworth as Special Counsels
-------------------------------------------------------------
Firstbase.Io, Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Quinn Emanuel
Urquhart & Sullivan, LLP and Dilworth Paxson LLP as special
litigation counsel.
The Debtor needs the firms, legal assistance in connection with a
case (Case No. 5:23-cv-00802) pending in the United States District
Court for the Eastern District of Pennsylvania.
The firms will be paid at these rates:
Partners $1,645 to 2,410
Associates, Counsel, and other attorneys $940 to 2,410
Law clerks and legal assistants $595 to 645
The firms were paid a retainer in the amount of $200,000.
The firms will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Derek Shaffer, a partner at Quinn Emanuel Urquhart & Sullivan, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firms can be reached at:
Derek Shaffer, Esq.
Quinn Emanuel Urquhart & Sullivan, LLP
500 Delaware Avenue, Suite 220
Wilmington, DE 19801
Telephone: (302) 302 4000
Facsimile: (302) 302-4010
- and -
David Rodkey, Esq.
Dilworth Paxson LLP
1500 Market St., Suite 3500E
Philadelphia, PA 19102
Tel: (215) 575-7027
Email: drodkey@dilworthlaw.com
About Firstbase.io Inc.
Firstbase.io, Inc. is a technology company that provides business
formation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11647) with $1 million
to $10 million in assets and $10 million to $50 million in
liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor is represented by:
Dawn Kirby, Esq.
700 Post Road, Suite 237
Scarsdale, NY 10583
Telephone: (914) 401-9500
Email: dkirby@kacllp.com
FLORES PEDIATRICS: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------
Flores Pediatrics, LLC, asks the U.S. Bankruptcy Court for the
Western District of Oklahoma for authority to use cash collateral
and provide adequate protection.
The Debtor filed for bankruptcy to reorganize its finances due to a
decline in revenue and delays in payments from private companies
acting on behalf of Medicaid.
The U.S. Small Business Administration and Rapid Finance may hold
validly perfected and enforceable liens on the Debtor's accounts.
As adequate protection, the Secured Creditors will be granted
valid, perfected and superior liens in the collateral and a
super-priority claim that will have priority in the Debtor's
bankruptcy case.
A copy of the motion is available at https://urlcurt.com/u?l=6rvu91
from PacerMonitor.com.
About Flores Pediatrics, LLC
Flores Pediatrics, LLC is pediatric clinic in Yukon, Oklahoma. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Okla. Case No. 24-13144) on November 1, 2024. In
the petition signed by Catherine Flores, member/owner, the Debtor
disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents
the Debtor as legal counsel.
FRANCHISE GROUP: Closes American Freight Store as Part of Ch.11
---------------------------------------------------------------
Thomas Lester of Furniture Today reports that Franchise Group
(FRG), which owns American Freight and Buddy's Home Furnishings,
announced it will close American Freight, with store liquidation
sales starting November 5, 2024. According to FRG, sustained
inflation and economic pressures in the durable goods market
contributed to the brand's financial struggles.
Franchise Group filed for Chapter 11 bankruptcy in the U.S.
Bankruptcy Court for the District of Delaware on November 3, 2024.
The Chapter 11 filing was a voluntary step under a restructuring
support agreement with holders of about 80% of its first lien debt.
The first lien lenders have agreed to provide $250 million in
debtor-in-possession financing, pending court approval, to ensure
FRG has the necessary funds to continue operating and to meet
obligations to employees, customers, vendors, franchisees, and
other stakeholders of its remaining businesses, including Pet
Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings.
"This decision to reduce debt is an essential move toward helping
our flagship brands—Pet Supplies Plus, The Vitamin Shoppe, and
Buddy's Home Furnishings—achieve their full growth potential,"
said Andrew Laurence, FRG's president and CEO. "Each of these
brands has a clear value and will continue to serve customers
seamlessly through this transition, allowing us to better support
their expansion."
FRG's Chapter 11 filing lists assets and liabilities in the range
of $1 billion to $10 billion, with an estimated 50,001 to 100,000
creditors.
In August 2024, B. Riley Financial, which supported FRG's
management buyout last year, reported losses related to its
involvement with the company. B. Riley came under scrutiny earlier
this year over concerns regarding previous FRG CEO Brian Kahn's
past activities, which led to his resignation in January.
FRG acquired American Freight in 2019 and merged it with Sears
Outlet stores previously acquired and rebranded. In 2021, FRG
purchased Badcock Home Furniture &more, a Top 100 retailer, before
selling it to Conn's HomePlus in late 2023. Both American Freight
and Badcock Home Furniture sought Chapter 11 protection in July and
are now wrapping up their store liquidation processes.
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
FRANCHISE GROUP: Creditors Clash Over Bankruptcy Case
-----------------------------------------------------
Eliza Ronalds-Hannon, Jill R. Shah, Reshmi Basu, and Steven Church
of Bloomberg News report that the bankruptcy case of Franchise
Group sparks clash between Pimco, HPS and others.
According to Bloomberg News, senior creditors of Franchise Group
Inc. are in a dispute with junior creditors over the direction of
the brand owner's bankruptcy proceedings, which began Tuesday with
its initial federal court appearance.
The company filed for Chapter 11 with roughly $2 billion in debt.
Under the restructuring plan, senior lenders—including HPS
Investment Partners, Garnett Station Partners, HG Vora Capital
Management, and Arena Capital Advisors—who hold about half of
this debt, are expected to assume ownership of the B. Riley
Financial Inc.-supported business, according to sources familiar
with the discussions, the report cites.
About Franchise Group
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
As reported in the Troubled Company Reporter on Nov. 6, 2024,
Franchise Group, Inc. announced on Nov. 3, 2024, that it has
entered into a restructuring support agreement with holders of
approximately 80% of its first lien debt on a comprehensive
solution to strengthen FRG's capital structure and best position
its leading brands -- Pet Supplies Plus, The Vitamin Shoppe, and
Buddy's Home Furnishings -- for continued sustainable growth.
The RSA contemplates the proposed equitization of the first lien
debt into 100% of the equity in the reorganized enterprise, which
would substantially reduce the Company's debt, enhance liquidity,
and strengthen the enterprise for the benefit of Pet Supplies Plus,
The Vitamin Shoppe, and Buddy's Home Furnishings and their
stakeholders.
FRANCHISE GROUP: Gets Temporary Court Okay to Tap $250M Loan
------------------------------------------------------------
Steven Church of Bloomberg News reports that Franchise Group Inc.
has received temporary court approval to borrow up to $250 million
from its senior lenders to continue operations while it works to
reduce debt and pursue a sale.
Bankruptcy Judge John Dorsey dismissed objections from two junior
creditors, Pacific Investment Management Co. and Irradiant Partners
LP, who proposed an alternative loan with lower fees and interest
but offered less cash than Franchise Group needs to sustain its
Chapter 11 proceedings.
About Franchise Group
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
As reported in the Troubled Company Reporter on Nov. 6, 2024,
Franchise Group, Inc. announced on Nov. 3, 2024, that it has
entered into a restructuring support agreement with holders of
approximately 80% of its first lien debt on a comprehensive
solution to strengthen FRG's capital structure and best position
its leading brands -- Pet Supplies Plus, The Vitamin Shoppe, and
Buddy's Home Furnishings -- for continued sustainable growth.
The RSA contemplates the proposed equitization of the first lien
debt into 100% of the equity in the reorganized enterprise, which
would substantially reduce the Company's debt, enhance liquidity,
and strengthen the enterprise for the benefit of Pet Supplies Plus,
The Vitamin Shoppe, and Buddy's Home Furnishings and their
stakeholders.
FRANCHISE GROUP: Owes Top 50 Creditors Over $64.5 Million
---------------------------------------------------------
Thomas Russell of Home News Now reports that the top 50 largest
unsecured creditors in Franchise Group's Chapter 11 bankruptcy are
owed over $64.5 million, as per the initial filing on November 3,
2024 in the U.S. Bankruptcy Court for the District of Delaware.
According to Home News Now, the filing estimates a total of 50,000
to 100,000 creditors, with debts between $1 billion and $10 billion
owed by the company and its subsidiaries, including The Vitamin
Shoppe, American Freight, Pet Supplies Plus, and Buddy’s Home
Furnishings. The company reported a similar asset valuation.
Among the top creditors are various furniture and bedding companies
owed for products and services provided to Buddy’s Home
Furnishings and American Freight. The largest bedding creditor
listed, Solstice Bedding, operating as Jamison Bedding, is owed
$2,940,533, the report states.
Others on the list of top 50 unsecured creditors include:
* Living Style Singapore, owed $2,145,092.
* Standard Furniture Manufacturing Co., owed $1,804,776.
* Elements International Group, owed $1,737,805.
* Titanic Furniture, owed $1,192,831.
* Peak Living, owed $1,185,784.
* Albany Industries, owed $1,127,625.
* Muebles Briss, S.A. De C.V., owed $912,197.
* Kith Furniture, owed $468,348.
The list of creditors also includes nutritional supply companies,
logistics providers like UPS and Uber Freight, as well as appliance
and pet food companies, such as Nestle Purina Petcare Co., which is
owed $6,531,672.
The extent to which these creditors are paid will depend on the
restructuring process, including proceeds from various store
closing sales at American Freight.
About Franchise Group
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
As reported in the Troubled Company Reporter on Nov. 6, 2024,
Franchise Group, Inc. announced on Nov. 3, 2024, that it has
entered into a restructuring support agreement with holders of
approximately 80% of its first lien debt on a comprehensive
solution to strengthen FRG's capital structure and best position
its leading brands -- Pet Supplies Plus, The Vitamin Shoppe, and
Buddy's Home Furnishings -- for continued sustainable growth.
The RSA contemplates the proposed equitization of the first lien
debt into 100% of the equity in the reorganized enterprise, which
would substantially reduce the Company's debt, enhance liquidity,
and strengthen the enterprise for the benefit of Pet Supplies Plus,
The Vitamin Shoppe, and Buddy's Home Furnishings and their
stakeholders.
FRANCHISE GROUP: Seeks $750MM DIP Loan from Wilmington Trust
------------------------------------------------------------
Franchise Group, Inc., and affiliates ask the U.S. Bankruptcy Court
for the District of Delaware for authority to use cash collateral
and obtain senior secured priming superpriority postpetition
financing.
The Debtors seek to obtain DIP Facility, which consists of:
(i) an aggregate principal amount of up to $250 million of new
money first-out delayed-draw term loans, plus applicable fees and
premiums; and
(ii) a second-out roll-up of up to $500 million of the
Prepetition First Lien Secured Obligations held by the DIP
Lenders.
Wilmington Trust, National Association serve as administrative and
collateral agent under the agreement.
The DIP facility is due and payable on the earliest to occur of:
(i) 180 days after the Closing Date (as may be extended for up
to three consecutive 30-day periods with the consent of the
Required Supermajority Lenders);
(ii) 11:59 p.m. New York City Time on the date that is five
days after the Petition Date if the Interim DIP Order, in form and
substance reasonably acceptable in all respects to the required
DIP Lenders, has not been entered by the Bankruptcy Court prior to
such date and time;
(iii) 11:59 p.m. New York City Time on the date that is 45 days
after the Petition Date if the Final DIP Order, in form and
substance reasonably acceptable in all respects to the Required DIP
Lenders, has not been entered by the Bankruptcy Court prior to such
date and time;
(iv) the effective date of a chapter 11 plan of any Loan Party;
(v) dismissal of any of the Chapter 11 Cases or conversion of
any of the Chapter 11 Cases into a case under Chapter 7 of the
Bankruptcy Code;
(vi) consummation of a Sale Transaction (other than a Sale
Transaction pursuant to a Sufficient Bid or is otherwise consented
to by the Required Supermajority Lenders in their sole discretion),
(vii) termination of the Restructuring Support Agreement and
(viii) the acceleration of the DIP Loans and the termination of
the commitments under the DIP Facility in accordance with the terms
of the DIP Loan Documents.
The Debtors are required to comply with certain milestones
including:
a) no later than November 4, 2024, the Loan Parties must have
delivered substantially complete drafts of the First Day Pleadings,
the DIP Loan Documents, the Bidding Procedures Motion, the proposed
Bidding Procedures Order, the Plan, the Disclosure Statement, and
the Solicitation Materials to the Ad Hoc Lender Group Advisors;
b) no later than November 4, 2024, the Loan Parties must have
delivered a confidential information memorandum in connection with
the Sale Process to the Ad Hoc Lender Group Advisors; and
c) no later than November 4, 2024, the Loan Parties must have
engaged the Liquidator pursuant to that certain Letter Agreement
Governing Inventory Disposition.
As of the Petition Date, the Debtors have funded debt consisting of
the following:
a. Franchise Group, Inc
1. Prepetition ABL Facility: $248.7 million
2. First Lien Term Loan Facility: $1.097 billion
3. Second Lien Term Loan Facility: $125 million
4. Pari Passu Second Lien Sidecar Term Loan Facility: $0
b. Freedom VCM, Inc
1. Secured HoldCo Term Loan Facility: $514.7 million
As adequate protection, the Prepetition Secured Parties will be
granted replacement liens and superpriority claims, among other
things.
A copy of the motion is available at https://urlcurt.com/u?l=ZvkuFH
from PacerMonitor.com.
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Judge John T. Dorsey oversees the case.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
FTX TRADING: Aims to Recover $98.8M from Digital Market Ex-Head
---------------------------------------------------------------
James Nani of Bloomberg Law reports that FTX Trading Ltd. has filed
a lawsuit against Ryan Salame, a former key executive under Sam
Bankman-Fried, alleging he misappropriated up to $98.8 million in
fiat currency and cryptocurrency prior to FTX's collapse. According
to the lawsuit, Salame—formerly FTX's head of digital
markets—played a role in aiding and abetting breaches of
fiduciary duty alongside Bankman-Fried and other senior officers.
FTX claims Salame used the funds, which were mixed with customer
and corporate assets, to purchase luxury items, a private jet, real
estate, and to make political contributions.
FTX entered Chapter 11 bankruptcy in November 2022 after a sudden
implosion, which U.S. prosecutors have deemed one of the largest
financial fraud cases in American history. The lawsuit against
Salame, filed in the U.S. Bankruptcy Court for the District of
Delaware, is part of FTX's ongoing efforts to recover assets for
its creditors.
FTX alleges Salame received $52.9 million through wire transfers
and another $29.8 million in fiat and cryptocurrency withdrawals
during the "preference period"—a timeframe in which certain
transactions can be reclaimed before a bankruptcy filing. These
funds, obtained between November 2020 and November 2022, were
allegedly transferred to Salame's FTX accounts. Additionally, FTX
claims Salame's misappropriation totals $98.8 million after
factoring in other alleged fraudulent transfers meant to defraud
creditors or made without fair value.
In a separate legal matter, Salame was sentenced to seven and a
half years in prison in May 2023 for his involvement in a campaign
finance scheme and unlicensed money transmission business
conspiracy. He pleaded guilty to criminal charges in September
2023, making him the first of Bankman-Fried's close associates to
be sentenced following FTX's downfall.
FTX is also seeking to reclaim compensation Salame earned while
working at the company. This includes $7.7 million in salary and
bonuses, as well as approximately 9 million FTX tokens (FTT), which
FTX alleges were inflated as part of a broader customer fraud.
After selling FTT for $24 million, Salame reportedly purchased
multiple luxury assets, including businesses, real estate, and a
$2.3 million stake in RedBird Capital Partners Fund IV.
The court filing also requests the transfer of properties Salame
allegedly purchased with misappropriated funds, including real
estate in Connecticut, Miami, Portugal, Hong Kong, and Bali.
Criminal attorneys representing Salame have not yet responded to
requests for comment. FTX is represented in this case by Sullivan &
Cromwell LLP and Landis Rath & Cobb LLP.
The case is FTX Trad. Ltd., Bankr. D. Del., No. 22-11068, suit
11/4/24.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Co-Founder Gary Wang Asks Court for No Prison Time
---------------------------------------------------------------
Gary Wang, a computer programmer who was instrumental in building
the FTX crypto empire, has asked a federal judge to spare him from
prison due to his role as a key witness in the fraud trial of his
longtime friend, Sam Bankman-Fried.
In a sentencing memorandum filed in Manhattan federal court on
Wednesday, Wang's lawyer, Ilan Graff, argued that Wang's
cooperation with authorities and his relatively limited involvement
in the crimes should warrant a sentence without prison time.
Bankman-Fried was sentenced to 25 years in prison after being
convicted by a jury last 2023.
Wang is scheduled to be sentenced on November 20 by U.S. District
Judge Lewis Kaplan.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Court Narrows Claims in Alameda, et al. Lawsuits
-------------------------------------------------------------
Judge John T. Dorsey of the United States Bankruptcy Court for the
District of Delaware denied in part and granted in part the
defendant's motions to dismiss in the adversary proceedings:
-- ALAMEDA RESEARCH LTD., WEST REALM SHIRES, INC., and WEST
REALM SHIRES SERVICES, INC., Plaintiffs, v. ROCKET INTERNET CAPITAL
PARTNERS II SCS, et al., Defendants,
Adv. No. 23-50379 (JTD) (Bankr. D. Del.); and
-- ALAMEDA RESEARCH LTD., WEST REALM SHIRES, INC., and WEST
REALM SHIRES SERVICES, INC., Plaintiffs, v. MICHAEL GILES, et al.,
Defendants, Adv. No. 23-50380 (JTD) (Bankr. D. Del.)
Plaintiffs Alameda Research Ltd., West Realm Shires, Inc., and West
Realm Shires Services, Inc. commenced these actions seeking to
avoid and recover transfers made in connection with Plaintiffs'
acquisition of Embed Financial Technologies Inc. While two separate
adversary proceedings were commenced, the complaints in both are
substantially the same. Defendants in both actions have moved to
dismiss.
Plaintiffs are a part of the larger "FTX Group" of companies. Prior
to the filing of the Chapter 11 Cases, Alameda was a cryptocurrency
trading firm. WRS is a Delaware holding company with several
subsidiaries, including WRSS, which did business as FTX.US, the
cryptocurrency exchange founded to offer cryptocurrency trading
services to U.S. customers.
Plaintiff entities were run by a small group of individuals that
Plaintiffs refer to as the "FTX Insiders," comprised of WRS
co-founders Samuel Bankman-Fried, Zixiao "Gary" Wang, and Nishad
Singh, along with Alameda's CEO Caroline Ellison.
Defendant Embed is a stock clearing firm and FINRA licensed
broker-dealer founded by defendant Michael Giles. The remaining
Defendants are present and former Embed executives and former Embed
equity holders.
On September 30, 2022, the Embed acquisition closed and WRS paid
Defendants $236,764,105.34 and agreed to pay certain defendants
retention bonuses totaling $63.5 million (the "Transfers").
Defendants argue that the Complaints must be dismissed in their
entirety because the named plaintiffs have no enforceable interest
in the funds they seek to recover and therefore fail to meet the
threshold requirements of a claim for fraudulent transfer.
Specifically, Defendants argue that because the Plaintiffs allege
that the money used to fund the Embed acquisition was
misappropriated from debtor FTX.com -- which is not a party to
these suits -- Plaintiffs cannot establish that they had a
legitimate interest in the money they seek to have returned.
Plaintiffs respond that the issue Defendants raise is now moot in
light of the confirmation of the Debtors' plan of reorganization,
which provides for the substantive consolidation of the Debtors'
estates. Judge Dorsey agrees.
The Debtors' Plan of Reorganization, which was confirmed on October
7, 2024, provides for substantive consolidation of the Debtors'
estates. Defendants did not object to confirmation of the Plan, nor
have they argued in the context of prosecuting these Motions that
substantive consolidation is inappropriate in these cases. Their
only argument is that the "modified" consolidation contemplated in
the Plan is limited and would be insufficient to confer standing on
Plaintiffs.
Judge Dorsey says while Defendants have accurately quoted the
summary portion of the Plan, the section of the Plan devoted to the
issue makes clear that the substantive consolidation sought by
Debtors would have the effect of both cancelling intercompany
claims and merging the liabilities of separate debtors for the
purposes of implementation of the Plan. Defendants do not explain
why this is not sufficient to confer upon Plaintiffs the necessary
interest in the property at issue, and I do not see any reason why
it would not.
Defendants' second argument also stems from the Plaintiffs'
allegations regarding the misappropriation of money by the FTX
Insiders and Alameda from FTX.com. Specifically, Defendants argue
that because Plaintiffs have alleged that the funds used to
complete the Embed Acquisition originated with FTX.com, Defendants
must be considered "subsequent" transferees rather than "initial"
transferees. As subsequent transferees, Defendants contend, they
are protected from avoidance entirely because they took the
transfers in good faith.
Judge Dorsey concludes that the question of Defendants' status as a
subsequent transferee has been mooted by the proposed substantive
consolidation of the Debtors' estates.
Plaintiffs assert claims for actual fraudulent transfer in Count I
(pursuant to Section 548(a)(1)(A) of the Code) and Count III (under
the Delaware Uniform Fraudulent Transfer Act, 6 Del. C. Sec.
1304(a)(1) pursuant to Section 544(b) of the Code) of the
Complaints.
Defendants have moved to dismiss both claims on the grounds that
they are devoid of facts showing that the Embed acquisition was
undertaken with "actual intent to hinder, delay, or defraud" any of
Plaintiffs' creditors, as required by the relevant statutes.
Defendants argue that Plaintiffs have not alleged facts that would
support a finding of fraudulent intent either directly or
circumstantially. Specifically, they argue that none of the fraud
allegations in the Complaints relate to the Embed acquisition but
instead relate only to the FTX Insiders' fraudulent
misappropriation of FTX.com customer funds generally. Additionally,
Defendants allege that the Complaints do not include facts
sufficient to find the existence of badges of fraud.
Plaintiffs respond that they have alleged facts supportive of the
conclusion that the Debtors engaged in the Embed acquisition as
part of a larger fraudulent scheme designed to increase the FTX
Group's influence and finance acquisitions that would project an
image of growth. They argue that "it is well-established that
transfers 'driven by a desire to stay in business,' or made to
'create a façade that the Debtor was running a successful
business,' support an inference of actual fraud."
Defendants' Motions with respect to the actual fraudulent transfer
claims in the Complaints (Counts I and III) are granted.
Defendants next argue that Counts II, III, and IV of the
Complaints, asserting claims for constructive fraudulent transfer
and state law fraudulent transfer, are barred by Section 546(e) of
the Code. Section 546(e) provides a "safe harbor" against certain
fraudulent transfer claims arising out of securities transactions.
The parties in this case do not dispute that the Embed acquisition
constitutes a qualifying transaction. Rather, their dispute centers
on whether Defendants are qualifying participants.
Defendants argue plaintiff WRS and Defendants are both qualifying
participants because they constitute "financial institutions" under
Section 101(22)(A) of the Code, which "defines a 'financial
institution' to include a 'customer' of a bank or other such entity
'when' the bank or other such entity 'is acting as agent' for the
customer 'in connection with a securities contract.'" They contend,
because Western Alliance Bank was acting as agent for both WRS and
Defendants in connection with the Transfers, WRS and/or Defendants
must also be considered financial institutions.
The Court finds the elements of the Section 546(e) safe harbor
defense are not immediately apparent from the face of the
Complaints. The Motions to dismiss based on application of Section
546(e) are denied.
Counts II and IV of the Complaint plead claims for constructive
fraudulent transfers pursuant Sections 548 and 544 of the Code and
DUFTA. Defendants have moved to dismiss these claims for
insufficient pleading.
Defendants argue that Plaintiffs have not sufficiently alleged a
lack of reasonably equivalent value because they rely on facts that
occurred after the transfer. The allegations about which Defendants
complain are those that relate to what the Debtors were able to
obtain for Embed in a post-petition sale.
The Court finds Plaintiffs have sufficiently pled a lack of
reasonably equivalent value because the allegations regarding
information known at the time of the Transfers is sufficient.
The Motions are denied with respect to the constructive fraudulent
transfer claims.
Defendant Giles moves to dismiss Count V of the Complaint in the
case against him, which seeks to avoid as a preferential transfer
the $55 million retention payment he received in connection with
the Embed acquisition.
Defendants argue that Plaintiffs cannot state a claim for
preferential transfer as to the Retention Payment to Giles because
they cannot establish that it was made on account of an antecedent
debt.
Defendants argue that because any payment to Giles was contingent
upon the closing of the transaction, the obligation to pay Giles
did not arise until the Embed acquisition closed on September 30,
2022. Because the payment to Giles was made on the same day that it
became due, Defendants argue, it does not qualify as antecedent
debt.
The parties' contract provides that the Debtors did not become
obligated to pay Giles until the Embed acquisition closed.
Giles' motion with respect to Count V of the Complaint against him
is granted.
Defendants next argue that Plaintiffs' claims in Counts I-IV of the
Complaints to avoid post-closing retention payments to defendants
other than Giles should be dismissed for failure to plead.
Specifically, Defendants argue that the obligation to make any such
payment lies with Embed, a
non-debtor, and additionally, plaintiffs do not allege facts
showing that such obligations are fraudulent. The Court finds the
Complaints sufficiently allege the fraudulent nature of the
retention payments. Defendants Motions as to the remaining
retention payments are therefore denied.
Finally, Defendants move to dismiss the last two counts of each
complaint, which assert claims for property recovery pursuant to
Section 550(a)(1) of the Code and disallowance of claims pursuant
to Section 502(d) of the Code. Defendants argue that these claims
should be dismissed because they depend on a finding of primary
liability on Plaintiffs' other claims, which Defendants have moved
to dismiss. Because some of the fraudulent transfer claims have
survived Defendants' motions to dismiss, these counts are likewise
permitted to proceed. The Motions as to the final two counts of the
Complaints are denied.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=P8WfYx
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Sues Genesis Block to Recover $105 Million
-------------------------------------------------------
James Nani of Bloomberg Law reports that FTX Trading Ltd. has filed
lawsuits aiming to recover $105 million from the Hong Kong
cryptocurrency trading company Genesis Block, along with its
affiliates and the crypto exchange Gate.io.
According to Bloomberg Law, the lawsuits argue that $120 million in
claims filed against FTX by Genesis Block Ltd., its nominal owner
Bluebird Capital Ltd., Genesis Block co-founder Clement Ip, and
several related entities should be dismissed unless these parties
return approximately $65 million in FTX assets they control. The
suits were filed Monday, November 4, 2023, in the U.S. Bankruptcy
Court for the District of Delaware.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GAUCHO GROUP: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Gaucho Group Holdings, Inc.
112 NE 41st St., Ste. 106
Miami Beach, FL 33139
Business Description: Gaucho Group is a Delaware holding company
headquartered in Miami, Florida, which owns
certain subsidiaries including operating
companies that own a winery, boutique hotel
and real property in Argentina.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-21852
Debtor's Counsel: Nathan G. Mancuso, Esq.
MANCUSO LAW, P.A.
7777 Glades Rd., Suite 100
Boca Raton, FL 33434
Tel: 561-245-4705
Fax: 561-226-2575
Email: ngm@mancuso-law.com
Total Assets as of June 30, 2024: $15,778,138
Total Debts as of June 30, 2024: $13,566,766
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Scott Mathis as CEO/president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/L44Q4AY/Gaucho_Group_Holdings_Inc__flsbke-24-21852__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Abraham Katz Note $164,100
3175 Commercial Ave.
Northbrook, IL 60062
2. Allen Notowitz Note $203,785
2710 Victoria Manor
San Carlos, CA 94070
3. Burns, Figa & Will, P.C. Legal Services $162,779
Attn: Victoria Bantz, Esq.
6400 S. Fiddlers Green
Cir., Ste. 100
Greenwood Village, CO
4. Jack Laschever Note $236,365
181 Soundview Ave.
Rye, NY 10580
5. James Dixon Note $395,000
16232 Headlands Cir.
Anchorage, AK 99516
6. Jerre Hills Note $1,027,123
21005 Hwy. 30
Filer, ID 83328
7. JLAL Note $269,360
4221 Way Out West Dr.,
Ste. 100
Houston, TX 77092
8. John I. Griffin Note $2,067,265
4221 Way Out West Dr.,
Ste. 100
Houston, TX 77092
9. Kenneth Downing Note $204,692
216 Pico Blvd. #16
Santa Monica, CA 90405
10. Larry Schmalz Note $226,663
733 N. Carbon City Rd.
Paris, AR 72855
11. Marcum LLP Auditing $183,642
750 Third Ave., 11th Floor Services
New York, NY 10017
12. Mark Shatz Note $363,165
5453 Pond Bluff Ct.
West Bloomfield, MI 48323
13. Meline Doodnauth Note $107,837
17 Vallata Pl.
Edison, NJ 08820
14. Michael McCormack Note $100,476
3 Reading Ct.
Trophy Club, TX 76262
15. Niels-Ole Staehr Note $122,864
28633 Meadowmist Dr.
Rancho Palos Verdes, CA
90275
16. Stanley Goldstein Note $80,893
16 Rockledge Ave., Apt
7F2
Ossining, NY 10562
17. The Basile Law Firm P.C. Legal Services $115,000
Attn: Mark R. Basile, Esq.
390 N. Broadway, Ste. 140
Jericho, NY 11753
18. Theodoros Perides Note $263,979
388 Highland Ave.
Cliffside Park, NJ 07010
19. Timothy Treharne Note $100,000
1355 17th St. NW, Apt. 519
Washington, DC 20336
20. Watkins Johnston Note $200,232
1100 Chandler St.
Montgomery, AL 36104
GIRARDI & KEESE: Feds Say Tom's Conduct at Trial Shows Competence
-----------------------------------------------------------------
Craig Clough of Law360 reports that prosecutors informed a
California federal judge on Tuesday, November 5, 2024, that Tom
Girardi should not be granted a new trial following his conviction
for stealing $15 million in client settlement funds. They argued
that his claims of incompetence to stand trial are undermined by
his behavior during the trial.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GLORY PROJECT: Hires Lazerus Properties as Real Estate Broker
-------------------------------------------------------------
Glory Project LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ Lazerus Properties &
Capital as real estate broker.
The firm will market and sell the Debtor's real property located at
19525 Ventura Blvd., Tarzana, CA 91356.
Lazerus Properties & Capital will be paid a commission of 5 percent
of the sales price.
Steven Lazerus, Chief Executive Officer at Lazerus Properties &
Capital, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Steven Lazerus
Lazerus Properties & Capital
440 E. Huntington Dr.
3rd Floor Arcadia, CA 91006
Tel: (626) 737-8813
Fax: (888) 844-1736
About Glory Project
Glory Project, LLC is a Tarzana, Calif.-based company engaged in
renting and leasing real estate properties.
Glory Project filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 24-11563) on September 18, 2024, with $1 million to $10 million
in both assets and liabilities.
Judge Victoria S. Kaufman oversees the case.
Susan K. Seflin, Esq., at BG Law, LLP is the Debtor's legal
counsel.
GOGO INC: Moody's Affirms 'B1' CFR on Satcom Transaction
--------------------------------------------------------
Moody's Ratings affirmed Gogo Inc.'s B1 corporate family rating and
B1-PD probability of default rating. Moody's assigned a B1 rating
to Gogo Intermediate Holdings LLC's new $250 million senior secured
term loan due 2028 and new $122 million senior secured revolving
credit facility due 2028 (undrawn), which replaces an existing $100
million revolving credit facility due 2026. Five million Gogo
shares and approximately $147 million of balance sheet cash,
combined with net proceeds from the new term loan, will be used to
acquire Satcom Direct, Inc. (Satcom), a geostationary satellite
in-flight connectivity provider serving the business aviation and
military/government sectors. Subject to regulatory approvals, the
acquisition is expected to close around December 31, 2024. The new
term loan will only fund simultaneously with the close of the
acquisition. Moody's also affirmed the B1 rating on Gogo
Intermediate Holdings LLC's existing $601 million senior secured
term loan due 2028 and existing $100 million senior secured
revolving credit facility due 2026. Gogo's speculative grade
liquidity rating is SGL-1. The outlooks on both Gogo and Gogo
Intermediate Holdings LLC are stable.
Moody's view the planned transaction as credit accretive. If
completed, Gogo's acquisition of Satcom will enhance the combined
company's ability to market Gogo Galileo LEO-based in-flight
connectivity services outside North America. Satcom's existing
sales force and customer relations efforts outside of North America
will save Gogo significant time and effort replicating similar
infrastructure as a standalone company. Starlink, a subsidiary of
Space Exploration Technologies Corporation, looms as a potentially
formidable competitor to Gogo or the combined company of Gogo and
Satcom for LEO-based connectivity services to business and
government aviation end markets. However, the FAA approval
processes for antenna installations on the exterior fuselages of
various aircraft, as well as the cumbersome logistics surrounding
installation, will allow Gogo's existing service revenue to remain
relatively stable as it highlights its competitive differentiation
and seeks to win its fair share of going forward LEO-based
contracts. Gogo's onboard connectivity equipment and external
antennas have been designed for the specific needs of the business
aviation market. Moody's believe the smaller size of Gogo's
LEO-based, electronically steered antennas versus the larger size
of Starlink's single offering is currently a competitive advantage
for the company. As antennas and internal equipment generally can
only be installed during infrequent, multi-day maintenance overall
periods when aircraft are out of service, an abrupt competitive
disruption in the globally addressable market of 40,000-plus
business aircraft would be extremely difficult due to normal
logistical hurdles.
RATINGS RATIONALE
Gogo's B1 CFR reflects (1) strong in-air connectivity demand and
increased penetration of a stable and growing base of business,
military and government aircraft globally; (2) moderate pro forma
leverage post-acquisition with Moody's adjusted debt/EBITDA
expected to decline from around 4.3x at assumed transaction close
at year-end 2024 to around 4.2x in 2025 and 3.7x in 2026 (versus
around 5.0x at year-end 2024 for Gogo on a pre-acquisition
standalone basis); and (3) a very good liquidity profile with
positive free cash flow exceeding $100 million in both 2025 and
2026 on a post-acquisition basis despite increased capital
investing for Gogo 5G air-to-ground (ATG) connectivity (likely
launch in the second quarter of 2025), Gogo Galileo low earth orbit
(LEO) connectivity (late Q4 2024/early Q1 2025 launch) and other
broadband initiatives. Gogo Galileo connectivity will be provided
through the OneWeb LEO satellite constellation of Eutelsat
Communications SA (Ba3 negative).
The B1 CFR also reflects the (1) relatively small scale and niche
market focus of Gogo on a standalone or pro forma combined basis
with Satcom, with expected 2025 revenue of around $980 million; (2)
ongoing increases in operating expenses tied to the delivery of
Gogo 5G and Gogo Galileo to better address business and
military/government connectivity demand, partially offset by
targeted annual run-rate integration synergies of between $25
million to $30 million; and (3) potential risk to air travel demand
from volatile fuel prices or times of economic uncertainty.
Gogo's SGL-1 speculative grade liquidity rating reflects Gogo's
very good liquidity profile. Following the anticipated close of the
Satcom acquisition Moody's expect Gogo will have around $6 million
in balance sheet cash. In addition, the company will have access to
a new $122 million revolving credit facility that is expected to
remain undrawn through Moody's outlook period. Moody's expect the
combined company of Gogo and Satcom to generate positive free cash
flow of around $110-$115 million in 2025. The new revolver contains
a net leverage covenant set at 7.5x which is only tested when
utilization exceeds 35%.
The B1 rating on Gogo's senior secured facilities reflects the
probability of default of the company as reflected in the B1-PD
PDR, an average expected recovery rate of 50% at default and the
loss given default assessment of the debt instruments in the
capital structure based on a priority of claims.
The stable outlook reflects Moody's expectations that Gogo's
pre-acquisition standalone debt/EBITDA (Moody's adjusted) will
temporarily peak near 5x at year-end 2024 before declining to near
3x by year-end 2025 based on expected rapid growth from newly
accessible global markets via LEO satellite-based connectivity
solutions, as well as from a steady trend of new and existing
customers opting for or upgrading to Gogo 5G ATG connectivity
services. Moody's would expect a lower pro forma debt leverage
(Moody's adjusted) of 4.3x post a Satcom acquisition close, with
flat debt leverage in 2025 and steadily declining debt leverage
through year-end 2026. The outlook also expects the company to
continue to allocate most of its discretionary free cash flow to
debt paydowns until Gogo achieves its targeted net leverage ratio
of 2.5x to 3.5x, at which point Moody's would expect share
buybacks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure will remain constrained by the company's
small scale and still fairly limited total addressable market
despite expanding market reach into the global aviation inflight
connectivity market with the introduction of Gogo Galileo LEO
satellite connectivity services. However, Gogo's ratings could be
upgraded if the company were to significantly increase its scale
while also diversifying its end market revenue sources. An upgrade
would also require Gogo to demonstrate a consistent financial
policy translating into debt/EBITDA below 3x and free cash flow to
debt above 10%, both on a sustained and Moody's adjusted basis.
Downward rating pressure could develop should revenue and EBITDA
decline such that debt/EBITDA (Moody's adjusted) were to be
sustained above 4x. Additionally, a material increase in
competitive intensity, expectations of future competitive end
market disruption or a weakening in Gogo's margins or liquidity
would also pressure existing ratings.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
With headquarters in Broomfield, Colorado, Gogo is a global leader
in providing broadband connectivity solutions to the business
aviation industry. After divesting its commercial aviation inflight
connectivity business in 2020, the company operates solely in the
business aviation inflight connectivity segment. Gogo had 7,016
business aircraft online as of September 30, 2024 and generated
approximately $405 million of revenue for the last 12 months ended
September 30, 2024.
GOGO INC: S&P Affirms 'B+' ICR on Acquisition of Satcom Direct
--------------------------------------------------------------
S&P Global Ratings affirmed the 'B+' issuer credit rating on Gogo
Inc. and the 'B+' issue-level rating on the company's existing
secured debt. At the same time, S&P assigned a 'B+' issue-level
rating to Gogo's proposed term loan.
The stable outlook reflects S&P's expectation that Gogo will
maintain leverage of about 4x over the next 12 months while
continuing to generate free operating cash flow (FOCF) to debt in
excess of 10%.
Gogo Inc. announced its plans to acquire Satcom Direct Inc. for an
initial purchase price of $375 million of cash and 5 million shares
of Gogo stock. The transaction also includes up to $225 million of
contingent consideration based on performance through 2028.
S&P said, "We expect Gogo Inc. will maintain credit metrics in line
with the 'B+' rating. The acquisition will be funded by $250
million of incremental debt, $125 million of cash from Gogo's
balance sheet, and 5 million shares of Gogo stock. We forecast that
the pro forma S&P Global Ratings-adjusted leverage will be about
4.1x at the end of 2024, when the transaction is expected to close,
which is well below our downside leverage threshold of 5.0x.
"While we recognize the risks associated with integrating the two
companies as well as risks related to the rollout of Gogo's 5G and
Galileo products, we believe these risks are unlikely to result in
a negative rating action given the substantial leverage cushion
compared with our downside threshold. We forecast the company's 5G
and low-earth orbit (LEO) offerings will provide material growth in
revenue and earnings for the company and further delays could
negatively impact our current base-case forecast and the company's
ability to grow free cash flow and reduce leverage, limiting Gogo's
upside potential."
The acquisition will improve Gogo's scale, product, and geographic
diversity. The addition of Satcom will immediately result in Gogo
roughly doubling its revenue and adding more than $80 million of
EBITDA. The transaction will also increase Gogo's business
diversity through the addition of Satcom's government revenue,
which typically has longer-term contracts than business aviation.
Geographically, the legacy Gogo business has operated entirely in
North America, using air to ground technology. The company plans to
roll out a leased LEO satellite network that would allow for
connectivity over the ocean and outside of North America that would
supplement Satcom's leased GEO satellite connectivity service which
is already available across the world. The combined company's
GEO-LEO-ATG capabilities will be unique to the business aviation
space and allow the company to meet connectivity demands for a wide
variety of customers.
S&P said, "Gogo's competition will intensify, which poses risks to
our forecast. The global private business aviation industry
comprises about 40,000 aircraft, of which only about 21% have a
broadband solution. While the business aviation market is currently
underpenetrated, we expect increasing competition from newer
entrants, including Starlink. Starlink is currently more focused on
larger commercial aircraft, but we expect it could develop the
technology to take market share in the small, private jet space as
well. One of Gogo's largest competitors, Viasat, already provides
connectivity to more than 5,000 business jets around the world, and
the company recently announced material enhancements to its
satellite network that will significantly improve its ability to
serve business aviation customers. Though Gogo is likely to
maintain its dominant market share through 2025, we believe the
added competition could lead to some pricing pressure in the coming
years.
"The stable outlook reflects our expectation that Gogo will
maintain leverage of about 4x over the next 12 months while
continuing to generate FOCF to debt in excess of 10%. The outlook
also reflects execution risk associated with the business
combination and the rollout of Gogo's 5G and Galileo programs."
S&P could lower its rating on Gogo if S&P expected its leverage
would increase and remain above 5x or if FOCF to debt fell below
10% on a sustained basis. This could occur if:
-- The company undertook additional investment spending beyond
S&P's current expectations; or
-- Competition in the space intensified, pressuring its revenue
and earnings growth.
S&P could raise its rating on Gogo if:
-- Leverage declined to below 4x on a sustained basis;
-- The company maintained FOCF to debt in excess of 15%; and
-- Gogo successfully launched its 5G and Galileo programs, which
support a material improvement in its EBITDA and FOCF generation.
GOL LINHAS: Nears Bankruptcy Exit, Reaches Deal with Abra
---------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Gol Linhas Aereas
Inteligentes SA has reached a comprehensive restructuring agreement
in which its primary lender, Abra Group Ltd., will assume ownership
of the Brazilian low-cost airline and lead it out of Chapter 11
next year.
The deal, announced Wednesday, will eliminate approximately $2.5
billion in debt and other liabilities. Gol plans to secure up to
$1.85 billion in Chapter 11 exit financing, which will be used to
repay an existing facility and support the airline's emergence from
bankruptcy.
About Gol Linhas
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities LLC
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and Hughes Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring
Administration LLC is the claims agent.
GRAXCELL PHARMACEUTICAL: Unsecureds Will Get 48% of Claims
----------------------------------------------------------
Graxcell Pharmaceutical LLC filed with the U.S. Bankruptcy Court
for the District of New Jersey a Plan of Reorganization under
Subchapter V dated September 27, 2024.
The Debtor is a single member LLC in the business of manufacturing
and distribution of over the counter products including nutritional
supplements. The Debtor is owned and operated by its principal,
Satyanarayana Kalagotla.
The Debtor was formed in 2010 but did not commence operations until
May of 2017. The Debtor first operated in Long Island, New York. In
August of 2022, the Debtor relocated to New Jersey. In connection
with the relocation the Debtor was required to spend approximately
$1.2 million for improvements to its new premises so it could
operate its business.
The Debtor had anticipated that the fit-out would cost just
$500,000. The extra cost in fitting out the leased space caused the
Debtor to be unable to fully comply with its obligations to its
landlord. The landlord sued for eviction and obtained a writ of
possession in the Spring of 2024.
This Chapter 11 case was precipitated by the eviction action
commenced by the Debtor’s landlord. The Debtor filed for
bankruptcy protection seeking to gain time to move its valuable
equipment from the leased premises and to thereafter reorganize its
debts.
Class 3 consists of General Unsecured Claims. A total of $831,701
will be paid to general unsecured creditors, to be distributed
pro-rata. The Debtor estimates this will result in a distribution
of approximately 48%. This Class is impaired.
Equity Interest holders shall retain ownership of
Debtor/Reorganized Debtor.
Throughout the duration of the Plan, Chapter 11 Plan payments shall
be disbursed in a "waterfall" approach, with Administrative
Expenses and priority claims being paid second, and then general
unsecured creditors being paid second. Claims in the same category
shall be paid pro-rata.
The Debtor must submit all or such portion of the future earnings
or other future income of the Debtor to the supervision and control
of the Trustee as is necessary for the execution of the Plan.
A full-text copy of the Plan of Reorganization dated September 27,
2024 is available at https://urlcurt.com/u?l=q0YKVu from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Ellen M. McDowell, Esq.
McDowell Law, PC
46 W. Main Street
Maple Shade, NJ 08052
About Graxcell Pharmaceutical
Graxcell Pharmaceutical LLC is a single member LLC in the business
of manufacturing and distribution of over the counter products
including nutritional supplements.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 24-16498) on June 27, 2024,
listing up to $50,000 in assets and $500,001 to $1 million in
liabilities.
Judge Jerrold N Poslusny Jr. presides over the case.
Roger C. Mattson, Esq. at Law Offices Of Roger C. Mattson
represents the Debtor as counsel.
GREENBRIER COS: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings revised our outlook on The Greenbrier Cos. Inc.
to stable from negative and affirmed its 'BB-' issuer credit
rating.
The stable outlook reflects S&P's expectation for firm railcar
demand over the next year and that the company will maintain S&P
Global Ratings-adjusted debt to EBITDA below 4x, providing enough
cushion to avoid breaching 5x for more than a year if demand
cyclically deteriorates or the operating environment becomes more
challenging.
Greenbrier has ample cushion in its credit metrics to absorb
unanticipated challenges and execute its leasing strategy. The
company decreased S&P Global Ratings-adjusted debt one turn to 3.4x
in fiscal 2024 (ended Aug. 31) by improving manufacturing
profitability and expanding its leased fleet. S&P forecasts
adjusted debt to EBITDA of about 3.5x in fiscal 2025 as Greenbrier
focuses on manufacturing efficiency and increases its leased fleet
15%-20% annually. This should prevent leverage from rising above 5x
in the event that border or tax policies change.
S&P said, "We assume new railcar demand will be stable over the
next year or two. Greenbrier's orders trailed off to end 2024.
Fourth-quarter orders of 4,400 cars are lower than the quarterly
average of more than 6,000 over the past three years. In 2025, we
believe North America will remain a supply-driven replacement
market in which sales of new railcars are roughly in line with what
is needed to replace scrapped cars. Longer term, demand will vary
with the business cycle, as it has during previous recessions.
However, customers have been disciplined over the past five years,
and we see little evidence of large speculative orders more common
in the 2010s. We think economic growth and North American logistics
activity will keep the supply of and demand for railcars in
relative balance for now.
"Key trends support our forecast for modest increases in cars
delivered and pricing. We forecast U.S. GDP will grow 1.8% in 2025,
only slightly below the economy's long-term potential. Rail
transportation is often a cost-effective method of moving goods
between Mexico, the U.S., and Canada. We anticipate supply chains
will continue to expand within North America, bolstering rail
demand as more goods get shipped across the continent.
"We view leasing expansion as supportive of Greenbrier's credit
profile, even though it is largely debt-funded. The company funds
leased assets with a mix of 75% debt and 25% equity. The debt is
secured by the railcars and nonrecourse to Greenbrier. The company
plans to invest $300 million, net of asset sales, through 2027,
implying issuance of $225 million of nonrecourse debt. We include
nonrecourse debt in our credit metrics." That said, multiyear
leases (four years as of the fourth quarter) provide significant
demand and performance stability. When railcar demand cyclically
weakens, manufacturing will slow, but leases should provide a
steady stream of income.
A higher share of revenue from leasing will also increase
Greenbrier's profitability. Its leasing and management segment
operating margin was 59.8%, 9.3% for manufacturing, and 9.1% for
maintenance in 2024. S&P believes leasing generates most of the
leasing and management segment's revenue and profit. The segment
accounted for 31% of operating income (before corporate expenses),
so it contributes roughly 50 basis points (bps) annually in its
forecast at the current rate of expansion.
Greenbrier will maintain manufacturing profitability. During
calendar 2023, the company stopped producing railcars at the
high-cost Gunderson, Ore., facility and sold its marine barge
manufacturing business. It has also taken over production of some
key components that it used to outsource. This gives it more
control over when these components are available and how much they
cost. These and other initiatives increased manufacturing segment
gross margin 470 bps to 12.1% in 2024, even though it delivered
fewer railcars. Greenbrier will complete this round of insourcing
projects by the end of fiscal 2025. Footprint optimization and
insourcing projects have proven to be effective, and S&P believes
the company will continue to use these tools as the opportunity
arises.
Several operating risks could challenge Greenbrier over the next
year or two. The company has developed several strategies to
mitigate the impact of U.S.-Mexico border closures, including
bringing production of key components in house. However, any delays
in moving components or finished railcars across the border may
hurt manufacturing efficiency. Additionally, U.S. tax law changes,
particularly relating to depreciation, could lower the financial
return Greenbrier's customers anticipate on investment in railcars.
If customers cannot use deprecation to reduce the tax burden as
effectively, demand may fall. In this scenario, demand for leased
railcars may increase, reducing the impact on Greenbrier, but the
net effect is uncertain.
S&P said, "We forecast no material working capital improvement in
2025. The completion of the ongoing insourcing initiative should
speed up manufacturing and reduce the amount of time between
purchasing raw materials and finishing railcars. However, we
forecast inventory will remain about 27% of sales in 2025. The
likelihood and duration of any U.S.-Mexico border closures are
highly uncertain, but this would lengthen transportation times and
slow production. We therefore assume Greenbrier will proactively
maintain higher inventory than it would otherwise or that any
reductions will ultimately reverse later in the year.
"We expect Greenbrier will refinance its August 2026 maturities
during 2025. If the term debt is still outstanding in August 2025,
our view of liquidity will deteriorate significantly, likely
pressuring our ratings. We expect the company will proactively
address these in a timely manner.
"The stable outlook reflects our expectation for firm railcar
demand over the next year and that Greenbrier will maintain S&P
Global Ratings-adjusted debt to EBITDA below 4x, which provides a
cushion to keep it from breaching 5x for more than a year should
demand cyclically deteriorate or the operating environment become
more challenging.
"ESG factors are an overall neutral consideration in our credit
rating analysis of Greenbrier. We believe freight rail has a lower
emission profile than heavy-duty trucking, a competitive mode of
transport. At the same time, the company is one of the potentially
responsible parties in an environmental investigation and cleanup
near its Portland property, but we believe it will incur the
potential cost of remediation over time with no meaningful effect
on credit measures."
GRESHAM WORLDWIDE: Gets Final Approval to Use Cash Collateral
-------------------------------------------------------------
Gresham Worldwide, Inc. received final approval from the U.S.
Bankruptcy Court for the District of Arizona to use cash collateral
through Dec. 31.
The company was authorized to use cash collateral to pay its
expenses set forth in the budget, which include payroll expenses,
rent, utility costs, insurance, and professional fees. The budget
shows total projected expenses of $1,656,015.
The court's approval comes with conditions, which include providing
stakeholders with weekly financial updates. Furthermore,
replacement liens were granted to secure creditors in case of
diminution in the value of their collateral.
Gresham's motion was initially contested by Arena, a creditor,
which raised multiple objections. After reviewing the findings, the
court overruled Arena's objections and approved Gresham's motion to
use cash collateral.
About Gresham Worldwide
Gresham Worldwide, Inc. designs, manufactures, and distributes
purpose-built electronics equipment, automated test solutions,
power electronics, supply and distribution solutions, as well as
radio, microwave, and millimeter wave communication systems and
components for a variety of applications with a focus on the global
defense industry and the healthcare market.
Gresham Worldwide sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06732) on Aug. 14,
2024. In the petition filed by Lutz P. Henckels, chief financial
officer, the Debtor disclosed $32,859,000 in assets and $39,786,000
in liabilities as of June 30, 2024.
Judge Scott H. Gan oversees the case.
Patrick A. Clisham, Esq., at Engelman Berger, PC serves as the
Debtor's counsel.
The U.S. Trustee appointed an official committee of unsecured
creditors in this Chapter 11 case. The committee tapped Stinson LLP
as legal counsel.
GRITSTONE BIO: Taps Pachulski,Fenwick to Help Ch.11 Process
-----------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that
vaccine developer Gritstone bio Inc. has enlisted attorneys from
Pachulski Stang Ziehl & Jones LLP and Fenwick & West LLP to guide
it through the Chapter 11 process as it seeks to sell its business
to ensure the continuation of its research.
About Gritstone Bio Inc.
Gritstone bio is developing next-generation vaccines for cancer and
infectious disease. Gritstone's approach seeks to generate potent
and durable immune responses by leveraging insights into the immune
system's ability to recognize and destroy diseased ells by
targeting select antigens.
Gritstone Bio Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12305) on October 10,
2024. In the petition filed by Celia Economides, as chief financial
officer, the Debtor reports total assets as of August 31, 2024
amounting to $124,885,479 and total debts as of August 31, 2024
amounting to $40,000,000.
The Honorable Bankruptcy Judge Karen B. Owens handles the case.
The Debtor tapped PACHULSKI STANG ZIEHL & JONES LLP as bankruptcy
counsel; PRICEWATERHOUSECOOPERS LLP as financial advisor; and
RAYMOND JAMES & ASSOCIATES, INC., as investment banker. FENWICK &
WEST LLP is the corporate counsel.
GULF FINANCE: Moody's Withdraws 'B3' CFR on Debt Extinguishment
---------------------------------------------------------------
Moody's Ratings withdrew all of Gulf Finance, LLC's (Gulf) ratings,
including its B3 Corporate Family Rating, B3-PD Probability of
Default Rating, and Caa1 senior secured term loan rating. Prior to
the withdrawal the outlook was stable. The withdrawals follow the
extinguishment of its outstanding debt.
RATINGS RATIONALE
Gulf has fully repaid its senior secured term loan. All of Gulf's
ratings have been withdrawn because its rated debt is no longer
outstanding.
Gulf Finance, LLC (Gulf), headquartered in Wellesley,
Massachusetts, owns and operates terminals located in Pennsylvania,
and supplies refined products in ten states. The company is
privately owned by ArcLight Capital Partners.
HAGEN CONSTRUCTION: Gets Interim Use of Cash Collateral
-------------------------------------------------------
Hagen Construction, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Oregon to use cash
collateral.
The company was authorized to use cash collateral up to the
budgeted income. It must not exceed expenses by more than 10%
without obtaining the consent of Oregon Coast Bank.
Each creditor with a security interest in cash collateral will have
a perfected post-petition lien against cash collateral to the same
extent and with the same validity and priority as the
pre-bankruptcy lien.
The order does not determine the amount, validity, or priority of
any pre-bankruptcy obligation, lien, or security interest, and
preserves the rights of the company and other parties to argue that
any pre-bankruptcy lien or security interest is unperfected,
unenforceable, or voidable.
About Hagen Construction
Hagen Construction, LLC sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ore. Case No. 24-62115) on September 20,
2024, listing under $1 million in both assets and liabilities.
Judge Peter C. McKittrick oversees the case.
The Debtor tapped Holbrook Law LLC as counsel and Thomas M. Wilson
E.A., Accounting & Tax as accountant.
HALL OF FAME: HOF Waterpark Lease Terminated Over $2.6MM Default
----------------------------------------------------------------
Hall of Fame Resort & Entertainment Co. disclosed in a Form 8-K
Report filed with the U.S. Securities and Exchange Commission that
on October 26, 2024, its subsidiary, HOF Village Waterpark, LLC
("Tenant"), received from HFAKOH001 LLC ("Landlord") a notice of
termination due to event of default under the waterpark ground
lease agreement, dated as of November 7, 2022, between Tenant and
Landlord, as amended on February 23, 2024, February 29, 2024 and
May 10, 2024.
Under the Waterpark Ground Lease, the Landlord's termination
requires that Tenant immediately surrender the waterpark premises
under such lease to the Landlord and any improvements thereto
(including the construction of new buildings thereon) with all
fixtures appurtenant thereto.
The default identified in the Notice is a payment default under the
Waterpark Ground Lease. The Landlord had agreed to forbear
exercising remedies for the payment default until October 25, 2024.
As of October 31, 2024, Tenant had not remedied the payment
default. The outstanding principal balance of unpaid base rent
under the Waterpark Ground Lease (inclusive of default interest and
late fees accrued up to the date of termination) is approximately
$2,600,000.
In addition to unpaid rent, the Waterpark Ground Lease provides
that Landlord is entitled to recover the following as damages:
(i) the amount by which the unpaid rent for what would have
been the remaining term of the Waterpark Ground Lease exceeds the
then fair market rental value of the waterpark premises, both
discounted to present value, plus
(ii) any damages, including without limitation reasonable
attorneys' fees and court costs, which Landlord sustains as a
result of the breach of the covenants of the Waterpark Ground Lease
other than for the payment of rent, in each case plus interest.
The Notice states that Landlord retains the absolute and
unconditional right to pursue any and all remedies available under
the Waterpark Ground Lease and related security agreements and
applicable law, concurrently or consecutively, at Landlord's sole
discretion. The Company's subsidiary HOF Village Newco, LLC
guaranteed Tenant's obligations under the Waterpark Ground Lease
pursuant to a limited recourse guaranty dated as of November 7,
2022. The security agreements and collateral that support Tenant
and Guarantor's obligations under the Waterpark Ground Lease
consist of the following:
* Tom Benson Hall of Fame Stadium. Guarantor pledged and
granted in favor of Landlord 100% of its membership interests in
HOF Village Stadium, LLC and certain related security interests
under a Pledge and Security Agreement dated as of November 7, 2022.
HOFV Stadium granted Landlord a security interest in HOFV Stadium's
leasehold interest in the Tom Benson Hall of Fame Stadium and
certain related security interests, pursuant to an Open-End
Leasehold Mortgage, Assignment of Lease and Rents, Security
Agreement and Fixture Filing dated as of December 27, 2022.
* 20% Interest in ForeverLawn Sports Complex. Guarantor
pledged and granted in favor of landlord its 20% interest in the
ForeverLawn Sports complex that is held in a joint venture with
Sandlot Facilities, LLC, and certain related security interests,
pursuant to a Pledge and Security Agreement dated as of February
23, 2024.
* Real Estate Adjacent to Hall of Fame Village. Guarantor
granted Landlord a security interest in ten undeveloped residential
real estate parcels and four commercial real estate parcels owned
by Guarantor located adjacent to Hall of Fame Village and certain
related security interests, pursuant to an Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Fixture
Filing dated as of February 29, 2024.
The exercise of certain remedies by Landlord would be expected to
have a material adverse effect on the liquidity, financial
condition, and results of operations of the Company.
In the absence of additional sources of liquidity, the Company's
existing cash and cash equivalents and anticipated cash flows from
operations are not sufficient to meet the Company's current
operating and liquidity needs. The Company's special committee made
up of independent, disinterested directors is continuing
discussions with IRG Canton Village Member, LLC ("IRG"), an
affiliate of our director Stuart Lichter, regarding its previously
disclosed non-binding proposal to take the company private.
About Hall of Fame Resort
Hall of Fame Resort & Entertainment Co. is a resort and
entertainment company leveraging the power and popularity of
professional football and its legendary players in partnership with
the National Football Museum, Inc., doing business as the Pro
Football Hall of Fame. Headquartered in Canton, Ohio, the Company
owns the DoubleTree by Hilton located in downtown Canton and the
Hall of Fame Village, which is a multi-use sports, entertainment,
and media destination centered around the PFHOF's campus.
As of March 31, 2024, the Company had $439.6 million in total
assets and $326 million in total liabilities.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. According to the Company, it has
sustained recurring losses through March 31, 2024, and its
accumulated deficit was $231.5 million as of that date. For the
three months ended March 31, 2024, the Company reported a net loss
of $14.6 million, compared to a net loss of $19.4 million for the
same period in 2023.
Since inception, the Company's operations have been funded
principally through the issuance of debt and equity. As of March
31, the Company had approximately $2.7 million of unrestricted cash
and $4.2 million of restricted cash. During the three months ended
March 31, it used cash for operating activities of $2.5 million.
The Company has approximately $90.6 million of debt coming due
through May 14, 2025.
On April 7, 2024, the Company entered into a formal omnibus
extension of certain debt instruments, effective March 31, 2024,
with CH Capital Lending, LLC, a Delaware limited liability company;
IRG, LLC, a Nevada limited liability company; JKP Financial, LLC, a
Delaware limited liability company; and Midwest Lender Fund, LLC, a
Delaware limited liability company. IRG and its affiliated lenders
agreed to extend the maturity of $51.6 million of principal of its
debt until March 31, 2025. On May 10, 2024, the Company amended its
waterpark ground lease to provide for a cure period resulting from
the Company not making a payment due in May 2024.
The Company expects it will need to raise additional financing to
accomplish its development plan and fund its working capital. The
Company is seeking to obtain additional funding through debt,
construction lending, and equity financing. There are no assurances
the Company will be able to raise capital on terms acceptable to
the Company or at all, or that cash flows generated from its
operations will be sufficient to meet its current operating costs.
If the Company is unable to obtain sufficient amounts of additional
capital, it may be required to reduce the scope of its planned
development, which could harm its financial condition and operating
results, or it may not be able to continue to fund its ongoing
operations.
HAWTHORNE FOOD: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 1 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Hawthorne
Food Company.
The committee members are:
1. Sebastian Gooding
CEO Valora B2B
Ditsch USA LLC
311 Northland Blvd.
Cincinnati, OH 45246
Phone: +41 79 260 29 57
Email: sebastian.gooding@ditsch.de
2. Tricia M. Cerchi-Boesch, CFO
Xperience Marketing, Inc.
26070 Towne Center Street, Suite 100
Foothill Ranch, CA 92610
Phone: 714-505-3706
Email: tricia@xm-inc.com
3. Steve Caruso
Executive Vice President
Caruso, Inc.
3465 Hauck Rd.
Cincinnati, OH 45241
Phone: 513-543-6577
Email: Steve.Caruso@Carusologistics.com
4. William Coy, President
Network Partners, Inc. d/b/a Product Fulfillment Solutions
185 Progress Place
Springdale, OH 45246
Phone: 727-417-7447
813-951-3200
Email: bill@productfulfillmentsolutins.com;
jason@productfulfillmentsolutins.com
5. T.D. Thompson
Managing Partner
Schooley Mitchell-Boston
90 Canal Street, 4th Floor
Boston, MA 02114
Mailing address: Box 224, Wayland, MA 01778
Phone: 617-794-1803
Email: td.thompson@smboston.co
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Hawthorne Food Company
Hawthorne Food Company sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-12096) on October 18,
2024. In the petition filed by William Deacon, CEO, the Debtor
reports estimated assets between $1 million and $10 million and
estimated liabilities between $10 million and $50 million.
Judge Janet E. Bostwick oversees the case.
The Debtor tapped Ascendant Law Group, LLC, as counsel and Wyse
Advisors as financial advisors. Epiq Systems is the claims agent.
HEALTHCARE HOLDINGS OF FLORIDA: Hits Chapter 11 Bankruptcy
----------------------------------------------------------
Healthcare Holdings of Florida LLC filed Chapter 11 protection in
the Southern District of Florida. According to court documents,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Healthcare Holdings of Florida
Healthcare Holdings of Florida LLC provides full suite of home care
services, including custodial care, skilled care, and senior
placement services, particularly for senior patients in the State
of Florida.
Healthcare Holdings of Florida LLC and affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead
Case No. 24-21355) on Oct. 30, 2024. In the petition filed by Gary
R. Loffredo, as CEO and manager, the Debtor estimated assets and
liabilities between $1 million and $10 million each.
Bankruptcy Judge Scott M. Grossman handles the case.
PACK LAW, led by Joseph A. Pack, is the Debtors' counsel.
HEALTHCARE HOLDINGS: Hires Pack Law P.A. as Counsel
---------------------------------------------------
Healthcare Holdings of Florida LLC and its affiliate seek approval
from the U.S. Bankruptcy Court for the Southern District of Florida
to employ the Law firm of Pack Law, P.A. as counsel.
The firm's services include:
a. assisting the Debtor in carrying out its duties as debtor
in possession in the Chapter 11 Case and its special obligations as
a debtor under subchapter v of chapter 11 of the Bankruptcy Code;
b. representing the Debtor in respect of its negotiation,
prosecution, and confirmation of a plan of reorganization, and
consummation of the restructuring transaction contemplated
therein;
c. preparing and assisting the Debtor in filing and
prosecuting all applications, motions, answers, responses, reports,
memoranda of law, and other papers required in connection with the
Chapter 11 Case; and
d. performing any other service that may be required in
connection with the Chapter 11 Case or confirmation of the Debtor's
proposed plan of reorganization.
The firm will be paid at these rates:
Joseph Pack, Esq. $750 per hour
Kelsi Cronkhite, Esq. $520 per hour
Jessey Krehl, Esq. $490 per hour
Paralegal Support $250 per hour
The firm received the following retainers from the Debtors: (a)
August 21, 2024, $50,000; (b) August 28, 2024, $50,000; (c)
September 3, 2024, $50,000; (d) September 13, 2024, $33,000; (e)
October 9, 2024, $50,000; (f) October 11, 2024, $20,000; and (g)
October 15, 2024, $30,000.
The Law firm of Pack Law will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Joseph Pack, Esq., a partner at Pack Law, P.A., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joseph A. Pack, Esq.
Pack Law, P.A.
51 NE 24th St., Suite 108
Miami, FL 33137
Tel: (305) 916-4500
Email: joe@packlaw.com
About Healthcare Holdings of Florida LLC
Healthcare Holdings of Florida LLC and affiliates constitute a
business enterprise that collectively provide a full suite of home
care services, including custodial care, skilled care, and senior
placement services, particularly for senior patients in the State
of Florida.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21355-SMG) on October
30, 2024. In the petition signed by Gary R. Loffredo, chief
executive officer and manager, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Joseph A. Pack, Esq., at Pack Law, represents the Debtor as legal
counsel.
HERITAGE HOME: Seeks Cash Collateral Access
-------------------------------------------
Heritage Home Furnishings, LLC, asks the U.S. Bankruptcy Court for
the Eastern District of California, Modesto Division, for authority
to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral for critical
business expenses necessary to sustain operations, including
payment of rent to maintain the premises, payroll to retain
essential employees, inventory purchases to meet customer demand,
and adequate protection payments to secured creditor.
For several years, the Debtor has experienced declining sales
resulting in cash flow deficits. Poor corporate financial controls
and less-than-ideal communications between the sister-brother LLC
members also contributed to cash flow deficits. To meet monthly
operating expenses, the members contributed to their LLC capital
accounts and took on high-interest rate loans. Concurrently, the
Debtor's sales tax liabilities to the State of California began to
compound.
The US Small Business Administration, Web Bank/LoanBuilder/PayPal,
OnDeck Capital, LLC, and CDTFA assert an interest in the Debtor's
cash collateral.
As adequate protection, the Debtor offers a lien in the Replacement
Collateral. The Debtor will also pay the SBA $731 per month.
Moreover, the SBA will also be granted a super-priority claim over
the life of the Debtor's bankruptcy case, pursuant to 11 U.S.C.
section 503(b) and 507(b).
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=ZX9wiC from PacerMonitor.com.
About Heritage Home Furnishings, LLC
Heritage Home Furnishings LLC, doing business as Minerva's Home
Furnishings, is a furniture and mattress store located in Turlock,
CA that provides furniture for the living room, dining room, home
office, and bedroom. In addition to furniture, the Company carries
mattress sets, innerspring, hybrid, and gel memory foam mattresses,
box springs, and adjustable foundations. It also has mattress
accessories such as pillows, mattress covers, and mattress
protectors.
Heritage Home Furnishings LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No.
24-90528) on September 9, 2024. In the petition filed by Fabiola
Sanchez Sandoval, as managing member, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $1 million
and $10 million.
The Honorable Bankruptcy Judge Ronald H. Sargis handles the case.
The Debtor is represented by Brian S. Haddix, Esq., at HADDIX LAW
FIRM.
HIRSCH GLASS CORP: Hits Chapter 11 Bankruptcy Protection
--------------------------------------------------------
Hirsch Glass Corporation filed Chapter 11 protection in the
District of New Jersey. According to court filing, the Debtor
reports $2,554,600 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Hirsch Glass Corporation
Hirsch Glass Corporation is a stone supplier in New Jersey.
Hirsch Glass Corporation sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 24-20881) on November 1,
2024. In the petition filed by Helen Zhao, as partner/EVP, the
Debtor reports total assets of $6,562,458 and total liabilities of
$2,554,600.
The Debtor is represented by:
Marc C. Capone, Esq.
GILLMAN CAPONE LLC
60 Highway 71 Unit 2
Spring Lake, NJ 07762
Tel: (732) 528-1166
Email: mcapone@gillmancapone.com
HIRSCH GLASS: Has Deal on Cash Collateral Access
------------------------------------------------
Hirsch Glass Corporation asks the U.S. Bankruptcy Court for the
District of New Jersey for authority to use cash collateral and
provide adequate protection for 30 days, in accordance with its
agreement with the Bank of America.
The Debtor requires the use of cash collateral to pay its ordinary
operating expenses inclusive of salaries, wages, insurance,
utilities and other necessary operating expenses.
The Debtor has been facing financial strain due to numerous toxic
tort lawsuits. To address these legal challenges and restructure
its operations, the company filed for Chapter 11 bankruptcy. The
company aims to reorganize its business and continue operations,
leveraging its strong market position and negotiating a forbearance
agreement with Bank of America to extend its loan term.
The Debtor borrowed $2.7 million from Bank of America in April
2021. The loan was extended to October 2024, and the current
balance is approximately $1.9 million.
Additionally, the Debtor has a $100,000 credit card with Bank of
America, with a current balance of approximately $50,000. Bank of
America holds a security interest in the Debtor's assets.
The Debtor is proposing to make periodic payments pursuant to the
Forbearance Agreement, of interest at the rate of interest set
forth in the Note of 7.365%, to Bank of America, plus monthly
principal payments in the amount of $211,000, as well as to pay the
balance owed on the Bank of America credit card at the end of each
month. Additionally, the Debtor will provide Bank of America with a
replacement lien to the extent that such use of cash collateral
results in a decrease in the value of Bank of America's interest in
cash collateral.
A copy of the motion is available at https://urlcurt.com/u?l=5iLO3i
from PacerMonitor.com.
About Hirsch Glass Corporation
Hirsch Glass Corporation is a stone supplier in New Jersey.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-20881) on November 1,
2024. In the petition signed by Helen Zhao, partner/EVP, the Debtor
disclosed $6,562,458 in assets and $2,554,600 in liabilities.
Marc C. Capone, Esq., at GILLMAN CAPONE LLC, represents the Debtor
as legal counsel.
HYPERION EDUCATION TOWN: Commences Subchapter V Bankruptcy Process
------------------------------------------------------------------
Hyperion Education Town Center LLC filed Chapter 11 protection in
the Southern District of Florida. According to court documents, the
Debtor reports $2,160,241 in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 9, 2024 at 9:00 a.m. in Room Telephonically.
About Hyperion Education Town Center
Hyperion Education Town Center LLC, doing business as Childcare of
Brando, provides childcare and educational programs for children
ages 2 years to 12 years old. It offers a variety of programs
including early preschool, preschool, and Voluntary prekindergarten
(VPK). It also offers after school care and summer camps for
elementary age children at varying locations.
Hyperion Education Town Center sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-21550) on November 1, 2024. In the petition filed by Jeffrey J.
Renard, as manager, the Debtor reports total assets of $10,923 and
total liabilities of $2,160,241.
Bankruptcy Judge Erik P. Kimball handles the case.
The Debtor is represented by:
Robert C. Furr, Esq.
FURR & COHEN
2255 Glades Road, Suite 419A
Boca Raton, FL 33431
E-mail: rfurr@furrcohen.com
ICEY-TEK USA: Commences Subchapter V Bankruptcy Process
-------------------------------------------------------
Icey-Tek USA LLC filed Chapter 11 protection in the Western
District of Tennessee. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Icey-Tek USA LLC
Icey-Tek USA LLC is a limited liability company.
Icey-Tek USA LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-11470) on
November 2, 2024. In the petition filed by Patrick Mudge, as
president, the Debtor reports estimated assets between $500,000 and
$1 million and estimated liabilities between $1 million and $10
million.
Bankruptcy Judge Jimmy L. Croom handles the case.
The Debtor is represented by:
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
ICON AIRCRAFT: Receives New Proposal for Investor Claims
--------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge gave the green light to a settlement
between light-sport aircraft maker Icon and a group of shareholders
who had sued the company in derivative litigation, while delaying
the confirmation hearing as the debtors consider a competing
settlement offer.
About ICON Aircraft
ICON Aircraft, Inc., is an aircraft design and manufacturing
company focused on the creation of consumer-friendly, safe, and
technologically advanced aircrafts that make the adventure of
flying more accessible to mainstream consumers. The Company's
flagship production aircraft -- the ICON A5 -- is an
amphibioussport plane. ICON Aircraft was founded in 2006 in
response to the Federal Aviation Administration's ("FAA")
establishment of the light-sport aircraft ("LSA") category and the
sport pilot license ("SPL") class.
ICON Aircraft and three of its affiliates filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Lead Case No.
24-10703, Bank. D. Del.) on April 4, 2024. On the petitions signed
by Thomas M. McCabe as chief restructuring officer, the Debtors
reported $100 million to $500 million in estimated assets and $100
million to $500 million in estimated liabilities.
Hon. Craig T. Goldblatt presides over the cases.
The Debtors tapped Young Conaway Stargatt & Taylor LLP and Sidney
Austin LLP as bankruptcy counsel. Stretto, Inc., is the Debtors'
claims and noticing agent.
iHEARTMEDIA INC: Layoffs Cut $150 Million from 2024 Costs
---------------------------------------------------------
Ashley King of MSN reports that iHeartMedia has announced its Q3
financial results, highlighting a $150 million reduction in 2025
costs through layoffs designed to reduce debt. The company reported
$1.008 billion in revenue for the quarter, a 5.8% increase from the
same period in 2023.
The Digital Audio Group saw a 13% rise in revenue, reaching $301
million, with podcast revenue growing by 11% to $114 million.
Revenue from the Multiplatform Group saw a slight decline of 1%,
totaling $620 million. In contrast, the Audio & Media Services
Group experienced impressive growth, with a 45% increase, reaching
$90 million.
"We're pleased to report that our third-quarter results met our
previously provided Adjusted EBITDA and Revenue guidance," said Bob
Pittman, Chairman and CEO of iHeartMedia.
"We continue to see signs that advertising revenue is recovering,
and the strong performance in our podcast business, digital
non-podcast business, and the sequential improvement in our
Multiplatform Group's year-over-year revenue all highlight the
strength of our vast reach, consumer relationships, and diverse
assets."
"The exchange offers will extend maturities by three years,
maintain consolidated annual cash interest at roughly the same
level, and reduce debt—enhancing the company's financial
flexibility and providing the runway needed to accelerate our
strategic growth initiatives."
This positive financial news comes shortly after iHeartMedia's
announcement of significant layoffs, which began last week. The
company is reducing its workforce by approximately 5%, resulting in
around 500 employees losing their jobs.
About iHeart Media
iHeartmedia Inc. develops, owns, and operates the iHeart.com
Website, which includes a broad selection of video content posted
along with their stories.
IMERYS TALC, CYPRUS MINES: Get Clearance to Get Ch.11 Plan Votes
----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that Imerys Talc America Inc.
and Cyprus Mines Corp. have obtained bankruptcy court approval to
seek votes on a plan to resolve thousands of cancer claims linked
to allegedly contaminated talc products, with a settlement
exceeding $1 billion.
According to Bloomberg Law, the companies, which formerly supplied
talc for Johnson & Johnson baby powder and other products, provided
adequate disclosures for claimants to evaluate a complex Chapter 11
settlement that would create a personal injury trust, Judge Laurie
Selber Silverstein of the U.S. Bankruptcy Court for the District of
Delaware ruled on Monday, November 4,2024, at the conclusion of a
multi-day hearing.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont,
Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The
Debtors were estimated to have $100 million to $500 million in
assets and $50 million to $100 million in liabilities as of the
bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
IMERYS TALC: U.S. Court Approves Reorganization Plan for Talc Units
-------------------------------------------------------------------
Jenny Che of Bloomberg News reports that Imerys reports that a U.S.
court has approved the reorganization plan for its North American
talc units under Chapter 11, according to an emailed statement.
According to Bloomberg News, votes from creditors and plaintiffs on
the plan are anticipated in the coming months. Imerys has set
aside sufficient provisions to cover the financial implications of
the plan and settle past liabilities.
Imerys and Cyprus Mines are progressing with votes on the talc
bankruptcy plan, the report states.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont,
Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The
Debtors were estimated to have $100 million to $500 million in
assets and $50 million to $100 million in liabilities as of the
bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
INDOCHINE RESTAURANT: Restaurants Remain Open Despite Chapter 11
----------------------------------------------------------------
Allison Ballard of Wilmington StarNews reports that more than a
month after filing for bankruptcy, Wilmington's popular restaurant
group continues to welcome guests -- a point owner Solange "Niki"
Thompson is eager to clarify.
On October 4, 2024, Thompson, alongside her attorney, filed Chapter
11 bankruptcy petitions for six businesses in the North Carolina
Eastern Bankruptcy Court. The Chapter 11 designation enables
businesses to reorganize debt while remaining open, allowing them
to continue operations and gradually repay creditors, per U.S.
Courts guidelines. Thompson's goal is to keep the restaurants
running for her dedicated customers and her employees.
According to records, the restaurant group has up to 49 creditors
with liabilities totaling under $10 million, encompassing both
disputed and undisputed claims. Among the largest obligations is
$2.4 million owed to North State Bank. A Chapter 11 reorganization
plan is expected to be submitted in early 2025.
About Indochine Restaurant
Indochine Restaurant, LLC operates a restaurant in Wilmington,
N.C., serving Thai and Vietnamese Asian cuisine.
Indochine Restaurant sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03490) on October 4,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Solange Thompson, manager, signed the petition.
The Debtor is represented by George Mason Oliver, Esq., at The Law
Offices of Oliver & Cheek, PLLC.
J.A. WALL TRUCKING: Creditors to Get Proceeds From Liquidation
--------------------------------------------------------------
J.A. Wall Trucking, LLC filed with the U.S. Bankruptcy Court for
the Northern District of Indiana a Plan of Liquidation dated
September 27, 2024.
The Debtor is an Indiana limited liability company. It was
originally formed in 2021 by Jack A. Wall of Portland, Indiana. The
business was engaged in trucking and transport, especially of grown
hogs.
The primary assets of the business in its operation were semitrucks
and trailers used in its transport business. Debtor's financial
difficulties began primarily in 2023 when the Debtor experienced a
significant decrease in loads. Debtor's loads were reduced by
approximately fifty percent.
Thereafter, in early 2024, the number of loads reduced by another
approximately fifty percent such that Debtor had insufficient
income to maintain operations. Debtor had reduced the number of
drivers but was unable to maintain payment of ongoing operating
expenses. Ultimately, the Debtor ceased operations in or around
June 16, 2024.
The Debtor had operated from a leased facility located at 030 East
500 South, Portland, Indiana. This real estate is owned by the
parents of Jack Wall. Debtor rented the facility for $500.00 per
month.
The Debtor is pursuing an orderly liquidation of the assets of the
business for distribution to creditors according to the herein
proposed plan. As part of that process, Debtor has filed an
Application to Employ Krueckeberg Auctioneers, which application
was approved by court order dated August 5, 2024. In conjunction
therewith, Debtor has filed a motion to sell assets by auction,
which motion was approved by court order dated August 5, 2024.
The Debtor's plan is premised upon liquidation of assets for funds
to make distribution to creditors pursuant to Bankruptcy Code
priorities. As such, information concerning liquidation of these
assets is as follows:
* Cash, cash equivalents, and financial assets. At the
commencement of the case, Debtor had bank accounts with total
balance of $1,000.00. Presently, as of September 1, 2024, Debtor
has a debtor-in-possession bank account consisting of $1.42. As
Debtor sells assets and collects proceeds therefrom, such assets
are to be deposited into Debtor's debtor-in-possession account.
Ultimately the funds in this account will be utilized for
distribution to creditors.
* Titled trucks and trailers. Debtor scheduled titled trucks
and trailers with an estimated total value of $81,000.00. The
amounts were based upon Debtor's opinion of value and information
concerning the purchase and depreciation of these items of
property. Debtor is in the process of liquidating these assets and
seeks sale thereof by way of auction sale. Debtor anticipates the
sale of the items of personal property to be by an auction
conducted by Krueckeberg. Accordingly, proceeds from the sale of
these assets, by auction, will be utilized for distribution to
creditors according to Bankruptcy Code priorities pursuant to
Debtor's proposed plan.
Class 5 consists of Unsecured, Non-Priority Claims. The Allowed
Claims of this Class shall be paid on a pro rata basis from the
Liquidation Proceeds from the sale and collection of the Debtor's
assets after Classes 1 and 4 have been paid in full as soon as is
practicable after Confirmation of the Plan.
Class 6 consists of Interest Holders. This Class shall receive the
balance of the Liquidation Proceeds, if any, that remain after the
Allowed Claims of Classes 1 through 5 have been paid in full.
The Debtor, with the assistance of its counsel, shall proceed
immediately upon Confirmation of the Plan with the sale of all its
assets and the collection of net proceeds therefrom, the proceeds
of which (the Liquidation Proceeds) shall be remitted to the
Disbursing Agent for distribution pursuant to the Plan.
A full-text copy of the Liquidating Plan dated September 27, 2024
is available at https://urlcurt.com/u?l=YlsQe6 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Scot T. Skekloff, Esq.
HALLER & COLVIN, PC
444 E. Main Street
Fort Wayne, IN 46802
Tel: (260) 426-0444
Fax: (260) 422-0274
Email: DSkekloff@hallercolvin.com
About J.A. Wall Trucking
J.A. Wall Trucking, LLC is an Indiana limited liability company.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-10862) on July 2,
2024, with $50,001 to $100,000 in assets and liabilities. Douglas
Adelsperger, Esq., serves as Subchapter V trustee.
Judge Robert E. Grant oversees the case.
Scot T. Skekloff, Esq. at Haller & Colvin, PC, is the Debtor's
legal counsel.
JAZN PROPERTIES: Commences Subchapter V Bankruptcy Proceeding
-------------------------------------------------------------
JAZN Properties LLC filed Chapter 11 protection in the Southern
District of Ohio. According to court filing, the Debtor reports
$1,536,071 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024 at 10:00 a.m. in Room Telephonically.
About JAZN Properties LLC
JAZN Properties LLC is the fee simple owner of four buildings
located at 3200 Marshall Drive, Amelia, Ohio 45102 having an
appraised value of $800,000.
JAZN Properties LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-12575) on
November 1, 2024. In the petition filed by Mark Barngorver, as
managing member, the Debtor reports total assets of $800,600 and
total liabilities of $1,536,071.
Bankruptcy Judge Beth A. Buchanan handles the case.
The Debtor is represented by:
Eric W. Goering, Esq.
GOERING & GOERING
220 West Third Street
Cincinnati, OH 45202
Tel: (513) 621-0912
E-mail: eric@goering-law.com
JML ENGINEERING: Sec. 341(a) Meeting of Creditors on Nov. 25
------------------------------------------------------------
JML Engineering & Construction Inc. filed Chapter 11 protection in
the Northern District of California. According to court documents,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 25, 2024 at 11:30 a.m. in Room Telephonically on telephone
conference line: 1-877-991-8832. Participant access code: 4101242.
About JML Engineering & Construction Inc.
JML Engineering & Construction Inc. is a Specialty Contractor that
serves the San Ramon, CA area and specializes in paving and
surfacing, landscaping, concrete, and irrigation.
JML Engineering & Construction Inc. sought relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case
No. 24-41729) on October 30, 2024. In the petition filed by John
Michael Shearer, as CEO and CFO, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge William J. Lafferty handles the case.
The Debtor is represented by:
C. Alex Naegele, Esq.
C. ALEX NAEGLE, A PROFESSIONAL LAW CORPORATION
10080 North Wolfe Road, Suite SW32000
Cupertino, CA 95014
Tel: 408-883-8994
Email: alex@canlawcorp.com
JOHN H. HAJJAR: District Judge Wants Update on Bankruptcy Stay
--------------------------------------------------------------
Judge Jennifer L. Rochon of the United States District Court for
the Southern District of New York ordered the parties in the case
captioned as SHANGHAI FOSUN PHARMACEUTICAL (GROUP) CO., LTD.,
Petitioner, -against- DR. JOHN HAJJAR, Respondent, Case No.
1:22-cv-08269 (JLR) (S.D.N.Y.), to submit a joint letter no later
than November 15, 2024, stating whether the bankruptcy stay is
still in place.
A copy of the Court's decision dated October 31, 2024, is available
at https://urlcurt.com/u?l=4MPFkv
John H. Hajjar filed for Chapter 11 bankruptcy protection (Bankr.
D.N.J. Case No. 23-14988) on June 8, 2023, listing under $1 million
in both assets and liabilities. The Debtor is represented by
Anthony Sodono, Esq., at MCMANIMON, SCOTLAND & BUAMANN, LLP.
KANSAI INC: American Woodworking Seeks Bankruptcy Protection
------------------------------------------------------------
Kansai Inc. filed Chapter 11 protection in the Southern District of
Ohio. According to court filing, the Debtor reports $2,072,772 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Kansai Inc.
Kansai Inc., doing business as American Woodworking Company, is an
architectural millwork and metal fabrication company specializing
in custom manufacturing for the hospitality industry including
bars, restaurants, and retail.
Kansai Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-12574) on
November 1, 2024. In the petition filed by Mark Barngrover, as
president, the Debtor reports total assets of $167,577 and total
Liabilities of $2,072,772.
Honorable Bankruptcy Judge Beth A. Buchanan handles the case.
The Debtor is represented by:
Eric W. Goering, Esq.
GOERING & GOERING
220 West Third Street
Cincinnati, OH 45202
Tel: (513) 621-0912
Email: eric@goering-law.com
KARAS FOOD: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Karas Food, Inc.
DBA Popeyes Louisiana Kitchen
31680 Serrento Drive
Murrieta, CA 92563
Business Description: Karas Food is in the baked goods stores
industry.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-16750
Judge: Hon. Wayne E Johnson
Debtor's Counsel: Robert Rosenstein, Esq.
ROSENSTEIN & ASSOCIATES
28600 Mercedes St.
Suite 100
Temecula, CA 92590
Tel: 951-296-3888
Email: Robert@thetemeculalafirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wahid Karas 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/RNANUCA/Karas_Food_Inc__cacbke-24-16750__0001.0.pdf?mcid=tGE4TAMA
KB DEVELOPMENT: Lender Seeks to Prohibit Cash Collateral Access
---------------------------------------------------------------
DAS ETB, LLC, asks the U.S. Bankruptcy Court for the Southern
District of Illinois to prohibit KB Development Group, LLC, from
using cash collateral.
Lender, as assignee of Bank of Belleville, holds a mortgage on the
Debtor's real estate located at 821-823 East Market Street, Red
Bud, Illinois, dated April 18, 2023, and recorded April 18, 2023,
in the Randolph County Recorder of Deeds Office as Document Number
2023R01066.
The Mortgage secures a promissory note dated April 18,2023,
executed by the Debtor in favor of Bank of Belleville and assigned
to the Lender.
The Debtor is in default under the Note and Mortgage for failure to
make monthly payments for the months of July 2024 and thereafter,
and failure to pay the 2023 real estate taxes on the Property.
As of the Petition Date, the principal amount remaining due under
the Note and Mortgage was $171,903, plus interest, late charges,
attorneys' fees, and costs.
The Debtor is continuing to operate its business and is collecting
the rents from the Property. The rents from the Property are
Lender's cash collateral.
The Lender asserts that it has not consented to the Debtor's use of
cash collateral and its interest is not adequately protected.
A copy of the motion is available at https://urlcurt.com/u?l=9vAKK8
from PacerMonitor.com.
About KB Development Group, LLC
KB Development Group, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ill. Case No. 24-30769-lkg) on
October 23, 2024.
In the petition signed by Mike Thomas, manager, the Debtor
disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Steven M. Wallace, Esq., at Goldenberg Heller & Antognoli, P.C.,
represents the Debtor as legal counsel.
KIDDE-FENWAL: Sullivan & Cromwell Fees Under Scrutiny in Ch. 11
---------------------------------------------------------------
Emily Lever of Law360 reports that in Delaware bankruptcy court,
Sullivan & Cromwell LLP and the California attorney general
disputed the firm's interim fee requests for representing the
debtor, Kidde-Fenwal Inc. California alleged the firm was
overbilling, while Sullivan & Cromwell argued that the state's
objections were retaliatory after a recent mediation.
About Kidde-Fenwal Inc.
Kidde-Fenwal Inc. -- https://www.kidde-fenwal.com/ -- manufactures
fire protection systems. It offers products such as fire control
systems, explosion aircraft protection, laser-based smoke detection
devices, electronic gas ignitions, and fire suppressions.
Kidde-Fenwal markets its products to mining, manufacturing,
education, and commercial sectors.
Kidde-Fenwal sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 23-10638) on May 14, 2023. In the
petition filed by its chief transformation officer, James
Mesterharm, the Debtor reported assets between $100 million and
$500 million and estimated liabilities between$1 billion and $10
billion.
The Debtor tapped Sullivan & Cromwell, LLP and Morris Nichols Arsht
& Tunnell, LLP as legal counsels; and Guggenheim Securities, LLC as
investment banker. Stretto, Inc. is the claims and noticing agent
and administrative advisor.
KIPP CHARLOTTE: Moody's Affirms Ba1 Rating on 2020A/B Bonds
-----------------------------------------------------------
Moody's Ratings has revised KIPP Charlotte, Inc., NC's outlook to
negative from stable and has affirmed the Ba1 rating on its
Educational Facilities Revenue Bonds (KIPP Charlotte, Inc.) Series
2020A and Taxable Educational Facilities Revenue Bonds (KIPP
Charlotte, Inc.) Series 2020B (the bonds). KIPP Charlotte has $12
million in revenue bonds outstanding.
The revision of the outlook to negative incorporates the unexpected
and material decline in enrollment. Absent material enrollment
recovery or expenditure cuts, thinning of operating cash flow
margin and weaker debt service coverage is likely in fiscal 2026.
RATINGS RATIONALE
The Ba1 rating reflects KIPP Charlotte's sound operating
performance and modest financial leverage. Based on fiscal 2024
unaudited financial statements, operating performance will
strengthen liquidity to over 200 days cash on hand and annual debt
service coverage will be above 2x. Modest fixed costs with debt
service at 7% of operating revenue will continue to support the
school's operating flexibility. Balancing these strengths, however,
is the school's challenged competitive profile. While academic
performance improved in 2024, academic proficiency scores continue
to lag behind the local district. Further, the school lost
enrollment of roughly 100 students in fiscal 2025 due to facility
challenges that have since been remediated. While KIPP Charlotte
will be held harmless for enrollment losses in fiscal 2025, state
per pupil funding will be materially impacted in fiscal 2026 unless
enrollment gains are achieved.
RATING OUTLOOK
The negative outlook reflects uncertainly around the school's
enrollment trajectory following a significant decline in the
current school year. The school's financial position will be
pressured in fiscal 2026 if enrollment continues to decline, or if
KIPP Charlotte fails to incorporate material spending adjustments.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Strengthening of competitive profile as evidenced by improved
academic performance, enrollment and student demand trends
-- Stronger operating performance resulting in operating cash flow
margins in the mid to high teens
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Sustained decline in enrollment without corresponding expense
cuts, resulting in annual debt service coverage below 1.2x
-- Material decline in liquidity with days cash on hand below 125
days
-- Material increase in leverage without commensurate increase in
revenues or reserves
LEGAL SECURITY
The bonds are secured by a pledge of the Trust Estate under the
Indenture, which predominantly includes Loan Payments to be made by
the Borrower (KIPP Charlotte, Inc.) to the Public Finance Authority
under a Loan Agreement. The bond will be further secured by a
mortgage interest on all of the school's facilities and a pledge of
certain funds held under the indenture.
PROFILE
KIPP Charlotte was founded in 2007 and is a public charter school
located in the City of Charlotte, NC. The school operates two
campuses and serves students in grades K-8. In fiscal 2023, the
school reported $13 million in operating revenue and enrollment of
948 students. KIPP Charlotte remains in compliance with all terms
of its charter agreement, which expires on June 30, 2027.
METHODOLOGY
The principal methodology used in these ratings was US Charter
Schools published in April 2024.
KLX ENERGY: Reports $8.2 Million Net Loss in Fiscal Q3
------------------------------------------------------
KLX Energy Services Holdings, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $8.2 million on $188.9 million of total revenues for
the three months ended September 30, 2024, compared to a net income
of $7.6 million on $220.6 million of total revenues for the three
months ended September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $38.4 million on $543.8 million of total revenues,
compared to a net income of $28.4 million on $694.2 million of
total revenues for the same period in 2023.
As of September 30, 2024, the Company had $486.8 million in total
assets, $484.3 million in total liabilities, and $2.5 million in
total stockholders' equity.
Chris Baker, KLX President and Chief Executive Officer, said, "I am
very proud of our entire team for their outstanding performance
during the third quarter. Facing continued market volatility,
consolidation of our blue-chip customers and persistent rig count
declines over the past few years, we generated our third-highest
level of quarterly revenue per average US-operated land rig since
the KLX-QES merger in 2020.
"We are pleased to report that our third quarter revenue and
Adjusted EBITDA results were at the top-end of our guidance ranges.
Our geographic and product and service line diversification has
driven margin sustainability in the face of market volatility,
which we believe demonstrates the strength and resiliency of the
KLX platform. Additionally, our leading presence in extended reach
laterals, completion technologies, and production and intervention
services should continue to yield differentiated performance.
"Looking forward, based on seasonality, anticipated customer budget
exhaustion and the upcoming calendar that includes the Christmas
and New Year's holidays in the middle of the work week, we expect a
fourth quarter 2024 sequential revenue decline of 10% to 14%,
similar to 2023.
"More importantly, we are currently in discussions with many of our
customers on their 2025 drilling, completion and production
programs. These conversations have been very constructive and
indicate incremental positive momentum for 2025 with both new and
existing customers, giving us cautious optimism as we begin our
budgeting for next year," concluded Baker.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/4s3y89pv
About KLX Energy
KLX Energy Services Holdings, Inc. -- https://www.klxenergy.com/ --
is a provider of diversified oilfield services to leading onshore
oil and natural gas exploration and production companies operating
in both conventional and unconventional plays in all of the active
major basins throughout the United States. The Company delivers
mission-critical oilfield services focused on drilling, completion,
production, and intervention activities for technically demanding
wells from over 60 service and support facilities located
throughout the United States.
As reported by the TCR in November 2024, S&P Global Ratings lowered
its issuer credit rating on Houston-based oil and gas oilfield
services company KLX Energy Services Holdings Inc. to 'CCC' from
'CCC+'. S&P also lowered the issue-level rating on KLX's senior
secured notes due November 2025 to 'CCC' from 'CCC+'. The recovery
rating remains '4', reflecting its expectations of average
(30%-50%; rounded estimate: 40%) recovery of principal in the event
of a payment default.
Moreover, Moody's Ratings changed KLX Energy Services Holdings,
Inc.'s (KLXE) outlook to negative from positive. The Caa1 Corporate
Family Rating, Caa1-PD Probability of Default Rating and Caa1
senior secured notes ratings were affirmed. The SGL-2 Speculative
Grade Liquidity Rating (SGL) was changed to SGL-4.
L & F GULLO SERVICE: Seeks Bankruptcy Protection in New York
------------------------------------------------------------
L & F Gullo Service Corp. filed Chapter 11 protection in the
Eastern District of New York. According to court documents, the
Debtor reports $4,319,272 in debt owed to 50 and 99 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 5, 2024, at 10:00 AM at Telephonic Meeting: Phone 1 (877)
929-0538, Participant Code 4551117#.
About L & F Gullo Service Corp.
L & F Gullo Service Corp., doing business as Gullo Specialty Foods,
is a seafood wholesaler in Westbury, NY.
L & F Gullo Service Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-74215) on
November 4, 2024.
Bankruptcy Judge Louis A. Scarcella handles the case.
The Debtor is represented by:
Gary C. Fischoff, Esq.
BERGER, FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP
6901 Jericho Turnpike, Suite 230
Syosset, NY 11791
L AND L CARE: Updates Restructuring Plan Disclosures
----------------------------------------------------
L and L Care Home, LLC, submitted a Second Amended Combined Plan of
Reorganization and Disclosure Statement.
One of the pivotal steps in the bankruptcy process was addressing
the contentious "Receivables Sales Agreement" with the creditor,
which L & L Care Home LLC contended was, in reality, a secured loan
transaction.
This characterization was crucial because the agreement involved
significant financial obligations, including an APR interest rate
of 44.14% and weekly payments of $2,812.50. Despite the creditor's
stance that the agreement constituted a purchase and sale of
receivables, the court's intervention led to an interim order that
facilitated the use of cash collateral, allowing L & L Care Home to
make monthly payments to the creditor.
The company's commitment to reorganizing its debts and securing the
cooperation of the creditor signifies a dedicated effort to emerge
from bankruptcy stronger and better equipped to fulfill its mission
of compassionate care. The support from both the court and the
creditor in the reorganization efforts underscores a shared belief
in the company's potential to overcome its current challenges and
continue providing essential care to its residents.
L & L Care Home LLC's path to bankruptcy was marked by a series of
financial missteps and external pressures, but through strategic
management and legal recourse, the company is on a trajectory
towards recovery. The collaboration between the debtor and
creditors in structuring a Chapter 11 plan demonstrates a mutual
commitment to L & L Care Home's long-term sustainability and
success in delivering high-quality care to its residents.
Like in the prior iteration of the Plan, creditors in Class 2(b)
Other General Unsecured Claims will receive 100 percent of their
allowed claim in 55 equal monthly installments, due on the first
day of the month, starting September 2024. The allowed unsecured
claims total $24,368.82.
Creditors in this class may not take any collection action against
Debtor so long as Debtor is not in material default under the Plan.
This class is impaired and is entitled to vote on confirmation of
the Plan.
On the Effective Date, all property of the estate and interests of
the Debtor will vest in the reorganized Debtor pursuant to Section
1141(b) of the Bankruptcy Code free and clear of all claims and
interests except as provided in this Plan, subject to revesting
upon conversion to Chapter 7 as provided in Part 6(f).
Except as provided in Part 6(d) and (e), the obligations to
creditors that Debtor undertakes in the confirmed Plan replace
those obligations to creditors that existed prior to the Effective
Date of the Plan. Debtor's obligations under the confirmed Plan
constitute binding contractual promises that, if not satisfied
through performance of the Plan, create a basis for an action for
breach of contract under California law. To the extent a creditor
retains a lien under the Plan, that creditor retains all rights
provided by such lien under applicable non-Bankruptcy law.
A full-text copy of the Second Amended Combined Plan and Disclosure
Statement dated September 27, 2024 is available at
https://urlcurt.com/u?l=toqo4A from PacerMonitor.com at no charge.
Attorney for the Debtor:
Anthony O. Egbase, Esq.
Shana Y. Stark, Esq.
A.O.E. Law & Associates, APC
Bunker Hill Towers
800 W. 1st Street, Suite 400
Los Angeles, CA. 90012
Tel: (213) 620-7070
Email: info@aoelaw.com
About L and L Care Home
L and L Care Home, LLC, established on December 10, 2018, by
Melissa Lipardo, was founded with a mission to provide personalized
care to its residents.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-40340) on March 11,
2024. In the petition signed by Melissa Lipardo, chief executive
officer, the Debtor disclosed up to $100,000 in assets and up to
$500,000 in liabilities.
Judge Charles Novack oversees the case.
Anthony O. Egbase, Esq., at A.O.E. Law & Associates, APC, is the
Debtor's legal counsel.
LA LOBA DE WALL ST: Case Summary & Two Unsecured Creditors
----------------------------------------------------------
Debtor: La Loba De Wall St LLC
1147 S. Wall St.
Los Angeles, CA 90015
Business Description: The Debtor owns a commercial building
located at 1147 S. Wall St., Los Angeles, CA
90015 having an appraised value of $4.5
million.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-19243
Judge: Hon. Vincent P Zurzolo
Debtor's Counsel: Maureeen J. Shanahan, Esq.
P.O. Box 789
Pacific Palisades CA 90272
Tel: (310) 804-2157
Email: Mstotaro@aol.com
Total Assets: $6,270,900
Total Liabilities: $3,507,955
The petition was signed by Marisela Nuno as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/5KGTEAI/La_Loba_De_Wall_St_LLC__cacbke-24-19243__0001.0.pdf?mcid=tGE4TAMA
LAND AND LAWN: Case Summary & 14 Unsecured Creditors
----------------------------------------------------
Debtor: Land and Lawn, LLC
41330 and 41390 Cook Brown Rd
Punta Gorda FL 33982
Case No.: 24-01728
Business Description: The Debtor is a landscaping supply store in
Fort Myers, Florida, offering nursery and
landscape suppy, sod, dirt, and mulch.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Judge: Hon. Caryl E Delano
Debtor's Counsel: Joseph Trunkett, Esq.
TRUCKETT LAW FIRM, LLC D/B/A GULF COAST
BANKRUPTCY LAW FIRM
2271 McGregor Blvd. Suite 300
Fort Myers FL 33901
Tel: 239-790-4529
Email: jtrunkett@trunkettlaw.com
Total Assets: $2,938,950
Total Liabilities: $2,374,150
The petition was signed by Sarah Brooke Connolly as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XEPUT6Y/Land_and_Lawn_LLC__flmbke-24-01728__0001.0.pdf?mcid=tGE4TAMA
LEGACY ENTERPRISES: Seeks Approval to Hire David Faulk as President
-------------------------------------------------------------------
Legacy Enterprises of North America, Ltd. seeks approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina to
employ David Faulk as president of the Debtor.
Mr. Faulk, who served as the President of Debtor since May 2011,
will continue to manage the Debtor's business activities and
day-to-day operations.
Mr. Faulk will be paid a monthly salary of $4,000.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
About Legacy Enterprises of North America, Ltd
Legacy Enterprises of North America, Ltd. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-03477) on October 4, 2024, with $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. David Faulk,
president, signed the petition.
Judge Joseph N. Callaway presides over the case.
George Mason Oliver, Esq. at The Law Offices of Oliver & Cheek,
PLLC represents the Debtor as bankruptcy counsel.
LGI HOMES: S&P Rates New Senior Unsecured Notes Rated 'BB-'
-----------------------------------------------------------
S&P Global Ratings affirmed all the ratings on Woodlands, Tx.-based
homebuilder LGI Homes Inc. (LGIH), including the 'BB-' issuer
credit rating. However, S&P revised the outlook to negative from
stable.
S&P said, "At the same time, we assigned our 'BB-' issue-level
rating and '3' recovery rating to LGIH's proposed $400 million of
senior unsecured notes due 2032. The '3' recovery rating indicates
our expectation for meaningful recovery (50%-70%; rounded estimate:
65%) in the event of a payment default.
"The negative outlook reflects our expectation that leverage will
remain elevated over the next six months despite solid growth in
community count, stable margins, and reasonably stable cycle times
and demand. We project S&P Global Ratings-adjusted debt to EBITDA
will remain in the 4.0x-4.5x area at year-end 2024 before
potentially improving toward 3.0x-3.5x by year-end 2025.
"We expect LGI will use the net proceeds from the proposed notes to
partially repay outstanding borrowings under its unsecured
revolving credit facility. We expect about $450 million-$475
million will remain outstanding on the $1.205 billion unsecured
revolver with $120 million of commitments maturing on April 28,
2025; the remaining $1.085 billion matures April 28, 2028,
following the close of the transaction. We do note this is a
debt-for-debt transaction and we believe it enhances the financial
flexibility of the company. However, this transaction transfers
some of LGI's obligations from revolving debt to fixed debt,
increases the company's interest burden, and presents the
opportunity for LGI to increase leverage by providing it with the
flexibility to operate with higher for longer draws on its
revolver. The delay in deleveraging leaves little-to-no cushion at
the current rating for 2025, particularly given the company has
historically relied heavily on its revolving credit facility (RCF)
for land spending and investments in continuing operations.
"We expect leverage will remain elevated through 2024 and into
early 2025 due to fewer homes closed than previously forecast. We
forecast LGI's absorption rate will decrease to 4.0 sales per
community per month from our previous forecast of 5.2 in 2024. The
decreased sales pace is a result of overall affordability
challenges amid the higher interest rate environment, timing in
community count openings, and general competition in its key
markets. This contributes to net debt to EBITDA remaining elevated
at 4.0x-4.5x in 2024. However, we see a path toward deleveraging
because the company is experiencing community count growth, which
we expect will lead to an increase of 10%-15% in communities over
the next 12 months. Coupled with a stable demand environment, this
leads us to project homes closed in 2025 will grow 25%-35%. We
project the company will continue to focus on returns from
previously invested capital and continue its trend as a high-volume
speculative builder.
"We maintain our forecast of S&P Global Ratings-adjusted EBITDA
margins in the 13%-14% range in fiscal 2024 and 2025 due to
elevated incentives and selling, general, and administrative (SG&A)
spending. We believe elevated interest rates will continue to weigh
on the real estate sector, and affordability will remain a
challenge. To offset these trends, homebuilders will continue to
offer temporary and permanent rate buy-downs and closing cost
assistance, which will dampen margins. We anticipate this will keep
demand for new homes stable if paired with a sturdy job market.
Offsetting these earnings pressures is the company's ability to
increase average selling prices (ASPs), which are at historical
highs for LGIH. We believe the company will experience flat
year-over-year ASPs. Thus, we believe gross margins will stabilize
at approximate 25.5%-27.0% from direct cost reductions, steady
construction cycle supply chains, and increased ASPs.
"The negative outlook reflects our expectation that leverage will
remain elevated over the next six months despite solid community
count growth and near-term stable macroeconomic markets. We also
expect LGI's low average selling prices will withstand the ongoing
affordability headwinds, with modestly improving earnings growth
over the next two years. We project S&P Global Ratings-adjusted
debt to EBITDA will remain above 4x in 2024 before improving toward
3.5x area by year-end 2025."
S&P could lower its ratings by one notch if:
-- LGI's operating performance does not improve in line with our
current projections, with S&P Global Ratings-adjusted EBITDA above
$375 million; or
-- S&P Global Ratings-adjusted debt to EBITDA remains at or above
4x over the next 6 to 12 months.
S&P could revise the outlook to stable if:
-- LGI's operating performance improves modestly, with continued
earnings growth leading to EBITDA above $375 million; and
-- Credit protection measures improve modestly, with S&P Global
Ratings-adjusted debt to EBITDA comfortably below 4x with no sign
of degradation.
LI-CYCLE HOLDINGS: Signs Deal for MHP Production at Rochester Hub
-----------------------------------------------------------------
Li-Cycle Holdings Corp. has entered into an agreement with Glencore
Ltd. covering the off-take of 100% of mixed hydroxide precipitate
(MHP) to be produced at its Rochester Hub.
By amending and restating certain of its existing commercial
agreements with Glencore and Traxys North America LLC ("Traxys"),
the Company has established the commercial framework for the
proposed MHP scope for the Rochester Hub project. Glencore and
Traxys' existing off-take rights covering lithium carbonate
production from the Rochester Hub are not affected by these
amendments.
Under the amended and restated commercial agreements, Glencore has
agreed to purchase all of the Company's MHP production at the
Rochester Hub on agreed commercial terms based on market prices for
the nickel and cobalt contained within the MHP. The parties have
also agreed to extend the scope of the existing off-take agreements
to cover material produced for Li-Cycle under tolling agreements
with third parties. Traxys will also receive certain payments
related to the MHP production for the duration of their off-take
agreement, which has been adjusted to take into account the
proposed MHP scope for the Rochester Hub. The payment terms and
working capital facilities under both the Traxys and Glencore
commercial agreements have also been adjusted to align with the
requirements of the proposed loan to Li-Cycle under the DOE's
Advanced Technology Vehicles Manufacturing program.
The revised Glencore commercial agreements were completed in
parallel with the ongoing effort to finalize the DOE Loan.
Rochester Hub Technical Review
The Company has completed its technical review of the MHP scope for
the Rochester Hub. Earlier this year, Li-Cycle confirmed the
technical viability of the MHP scope through an internal study,
advanced the go-forward execution plan for the Rochester Hub, and
refined cost estimates with the local market to evaluate the
project's total cost estimate.
Li-Cycle expects to produce up to approximately 8,250 tonnes of
battery-grade lithium carbonate and up to approximately 72,000
tonnes of MHP annually at the Rochester Hub under the MHP scope.
The project's nameplate processing capacity remains at 35,000
tonnes of black mass annually.
The proposed MHP scope is part of the changes to the Rochester
Hub's development strategy to potentially reduce the construction
scope. The MHP process that is expected to be deployed at the
project was proven in Li-Cycle's large-scale pilot program, which
was completed in 2019-2020, and is included in Li-Cycle's patented
technology portfolio.
Ajay Kochhar, Li-Cycle's President and CEO, commented: "The
amendment to our commercial contracts with Glencore and Traxys and
completion of the Rochester Hub project's technical review are
positive steps that support our progress towards finalizing
definitive financing documentation for the proposed DOE Loan.
Establishing a commercial framework for MHP alongside our existing
lithium carbonate off-take agreements provides Li-Cycle with a
strong market foundation for the Rochester Hub project.
We are also pleased to see continued support from Glencore, a key
strategic partner and investor. We believe that Glencore's support
indicates its confidence in our technology and our overall Spoke &
Hub business model. We also believe our Spoke & Hub Technologies™
will continue to support a sustainable closed-loop battery supply
chain and provide value for our customers and stakeholders."
Kunal Sinha, Global Head of Recycling for Glencore and a member of
Li-Cycle's Board of Directors, commented: "We are pleased to
support Li-Cycle's Rochester Hub plan through an amended commercial
framework that will include both lithium carbonate and MHP.
Glencore is committed to creating a closed-loop battery materials
supply chain and our ongoing partnership with Li-Cycle is a key
part of this strategy."
Additional information regarding this announcement filed on Form
8-K with the U.S. Securities and Exchange Commission is available
at:
https://tinyurl.com/4kb6j5tt
About Li-Cycle Holdings Corp.
Li-Cycle Holdings Corp. is a Canada-based global lithium-ion
battery resource recovery company and pure-play lithium-ion battery
recycler.
Vaughan, Canada-based KPMG LLP, the Company's former auditor,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has suffered recurring losses
from operations since inception, continued cash outflows from
operating activities and paused its construction of the Rochester
Hub project, that raise substantial doubt about its ability to
continue as a going concern.
Li-Cycle reported a net loss of $138 million for the year ended
December 31, 2023, compared to net loss of $70.8 million for the
year ended December 31, 2022. As of June 30, 2024, Li-Cycle had
US$899.9 million in total assets, US$664.2 million in total
liabilities, and US$235.7 million in total equity.
LOUISIANA APPLE: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Louisiana Apple, LLC, according to court dockets.
About Louisiana Apple
Louisiana Apple, LLC filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 24-20336) on October 4, 2024, with as much as $50,000 in
both assets and liabilities.
Judge Robert A. Mark oversees the case.
Eyal Berger, Esq., at Akerman, LLP and Yip Associates serve as the
Debtor's legal counsel and accountant, respectively.
LOVING KINDNESS HEALTHCARE: Hits Chapter 11 Bankruptcy Protection
-----------------------------------------------------------------
Paul J. Gough of Pittsburgh Business Times reports that Loving
Kindness Healthcare Systems has filed for Chapter 11 bankruptcy.
The company, in business since 2009, provides home health and
skilled nursing services for several health plans as well as
private pay, according to its website.
Loving Kindness Healthcare Systems LLS, also known as LKLS, made
the voluntary filing on October 25, 2024 in U.S. Bankruptcy Court
for the Western District of Pennsylvania. It reported assets of
under $50,000 and estimated liabilities between $1 million and $10
million, according to the filing.
Loving Kindness is based at 155 North Craig St. and provides home
health and skilled nursing services for several health plans as
well as private pay, according to its website.
The top unsecured creditor is the Internal Revenue Service, which
has a $971,314.50 claim that the filing said is both disputed and
unliquidated. The next-biggest creditor is the Pennsylvania
Department of Labor & Industry, with a $485,000 disputed and
unliquidated claim. There is also a $150,000 claim from the City of
Pittsburgh Treasurer and a $100,000 claim — both disputed and
unliquidated — from the Pennsylvania Department of Revenue.
Loving Kindness also reported two other unsecured creditors,
including $38,451 from Schenley Properties in Pittsburgh and a
$12,400 claim from a service provider.
Loving Kindness didn't respond to a request for comment and its law
firm, Bernstein-Burkley PC, declined comment.
Loving Kindness listed on its website that it began as a nonprofit
faith-based organization that was founded in 2009. It is registered
as a home care agency and health facility in Pennsylvania as well
as a personal care provider in Georgia, according to its website.
Beyond the Pittsburgh operation, there is also a location in
Atlanta.
About Loving Kindness Healthcare
Loving Kindness Healthcare is a state licensed Home Health Care
Agency.
Loving Kindness Healthcare sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22610) on October
25, 2024. In the petition filed by Copa Davis, as member, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
Robert S. Bernstein, Esq.
BERNSTEIN-BURKLEY, P.C.
601 Grant Street 9th Floor
Pittsburgh, PA 15219
Tel: 412-456-8100
Email: rbernstein@bernsteinlaw.com
M.P.M. PROPERTY: Disposable Income to Fund Plan Payments
--------------------------------------------------------
M.P.M. Property Management, LLC, filed with the U.S. Bankruptcy
Court for the District of Maryland a Subchapter V Plan of
Reorganization dated September 27, 2024.
The Debtor is a Maryland limited liability company founded in 2007
with its headquarters located in Baltimore, Maryland. The Debtor
owns two parcels of real estate located at 6005 Harford Road,
Baltimore, MD and 6009 Harford Road, Baltimore, MD.
Michael P. Marzullo, the Debtor's managing member and sole owner,
with over seventeen years in the funeral services industry,
purchased the property in November 2007. The Debtor operates as a
real estate entity that leases commercial real estate to Mr.
Marzullo's funeral home in Baltimore, Maryland. The Debtor has no
employees.
Class 1 consists of the Allowed Secured Claim of Rosedale Federal
Savings and Loan Association: Rosedale Federal, and its successors
or assigns (herein the "Holder of the Class 1 Claim"), shall have
an Allowed Claim. After payment in full of any Allowed
Administrative Expense or Priority Wage or Priority Tax Claims set
forth in Sections 1.1, 1.2, 1.3 of this Plan, and in full and
complete satisfaction, discharge and release of the Class 1 Claim,
the Debtor shall pay the Holder of Allowed Class 1 Claim as
required by the respective loan documents.
The Holder of the Class 1 Claim shall retain its prepetition lien
on the property that secures the payments provided under the Plan.
Class 1 is Unimpaired and, therefore, the Holder of the Class 1
Claim is not entitled to vote to accept or reject the Plan.
This class consists of the secured pre-petition claim of Rosedale
Federal Savings & Loan, (Proof of Claim No. 1) in the amount of
$140,701.12 as of the petition date, secured by a deed of trust on
the debtor's property at 6005 – 6009 Harford Road, Baltimore, MD
(the "Property"). The holder of this class shall retain its lien.
Class 2 consists of Allowed Interests. On the Effective Date, the
legal, equitable and contractual rights of the Holders of the
Interests in the Debtor shall be retained unaltered. Class 2 is
Unimpaired. As a result, pursuant to Section 1126(f) of the
Bankruptcy Code, each Holder of an Interest is conclusively deemed
to have accepted the Plan and, therefore, is not entitled to vote
to accept or reject the Plan.
Except as provided in the Plan or the Confirmation Order, all the
property of the estate pursuant to Sections 1141(b) and 1141(c) of
the Bankruptcy Code, vests in the Debtor as of the Effective Date
free and clear of any Claim of any Creditor provided for by this
Plan.
During the term of this Plan the Debtor shall pay all available
Disposable Income necessary for the performance of the Plan, which
Disposable Income is projected as set forth in the Projections of
Net Disposable Income.
The term of the Plan begins on the Effective Date and ends on the
last day of the sixtieth full calendar month.
A full-text copy of the Plan of Reorganization dated September 27,
2024 is available at https://urlcurt.com/u?l=DgXbse from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Robert M. Stahl, Esq.
Law Offices of Robert M. Stahl, LLC
1142 York Road
Lutherville, MD 21093
Tel: (410) 825-4800
Fax: (410) 825-4880
Email: stahllaw@comcast.net
About M.P.M. Property Management
M.P.M. Property Management, LLC is a Maryland limited liability
company founded in 2007 with its headquarters located in Baltimore,
Maryland.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-15501) on June 29, 2024,
with $1 million to $10 million in assets and $100,000 to $500,000
in liabilities. Michael P. Marzullo, owner and managing member,
signed the petition.
Judge David E. Rice presides over the case.
Robert M. Stahl, Esq., at the Law Offices of Robert M. Stahl
represents the Debtor as bankruptcy counsel.
MAGNOLIA OIL: S&P Rates New $400MM Senior Unsecured Notes 'BB-'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to U.S.-based oil and gas exploration and
production company Magnolia Oil & Gas Corp.'s proposed $400 million
senior unsecured notes due 2032. The notes are being issued by
Magnolia Oil & Gas Operating LLC and Magnolia Oil & Gas Finance
Corp., which are wholly-owned subsidiaries of Magnolia Oil & Gas
Parent LLC, of which Magnolia Oil & Gas Corp. is the sole managing
member. S&P expects the company will use the net proceeds from this
offering to repurchase and redeem its existing $400 million senior
unsecured notes due 2026. The '2' recovery rating indicates S&P's
expectation for substantial (70%-90%; rounded estimate: 85%)
recovery to creditors in the event of a payment default. S&P's 'B+'
issuer credit rating and stable rating outlook on Magnolia Oil &
Gas Corp. (Magnolia) are unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default for Magnolia assumes a sustained period
of low commodity prices, consistent with the conditions of past
defaults in this sector.
-- S&P based its valuation of Magnolia reserves on a
company-provided PV-10 report using year-end 2023 proved reserves
evaluated on its recovery price deck of $50 per barrel for West
Texas Intermediate crude oil and $2.50 per million Btu for Henry
Hub natural gas.
-- S&P assumes the company's reserve-based lending facility due
2026, with elected commitments of $450 million, is fully drawn at
default.
-- S&P caps Magnolia's recovery rating for senior unsecured claims
at '2', in line with its recovery rating criteria for entities in
the 'B' rating category.
Simulated default assumptions:
-- Simulated year of default: 2028
-- Jurisdiction (Rank A): The company is headquartered in the U.S.
and has the majority of its revenue and assets located
domestically.
-- S&P adjusted its gross enterprise value to account for
restructuring administrative costs (estimated at about 5% of the
gross value).
Simplified waterfall:
-- Net enterprise value at default (after 5% administrative
costs): $1.53 billion
-- First-lien debt: $467 million
--Recovery expectations: Not applicable
-- Total value available to unsecured claims: $1.06 billion
-- Senior unsecured debt: $413 million
--Recovery expectations: 70%-90% (rounded estimate: 85%)
Note: All debt amounts include six months of prepetition interest.
MAGNOLIA ROSE: Amends Several Secured Claims Pay
------------------------------------------------
Magnolia Rose Veterinary Clinic, Inc., submitted an Amended Plan of
Liquidation dated September 27, 2024.
The Debtor formerly operated a veterinary clinic which is now
subject to a court ordered receivership. The remaining proceeds
from the sale of the Debtor's assets as well as certain refunds in
the amount of $34,563.68 (the "Proceeds") are being held in the
court appointed receiver (the "Receiver")'s escrow account.
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
Class 1 shall consist of the Claim of SLS. The Debtor scheduled
SLS's claim in Schedule D and disputed that debt. The deadline to
file proofs of claim in this case is August 13, 2024 (the "Bar
Date"). SLS failed to file a proof of claim before the Bar Date,
therefore its claim is barred against the Debtor and SLS is not
entitled to vote on the Plan. Upon confirmation of the Plan, SLS's
UCC shall be determined to be void and unenforceable.
Class 2 shall consist of the Claim of the SBA. The SBA has filed a
proof of claim for $540,443.00. Because SLS failed to file a proof
of claim before the Bar Date, the SBA asserts a first priority lien
in the Proceeds by virtue of UCC Financing Statement No. 38
2020-080876 filed on August 25, 2020. Debtor values the SBA's
secured claim at $34,563.68 (the "Secured Class 2 Claim") under
Section 506(a) of the Bankruptcy Code. Any remaining deficiency
claim shall be classified as a Class 6 General Unsecured Claim. The
SBA shall retain its lien on the Proceeds and the lien shall be
valid and fully enforceable to the same validity, extent and
priority as existed on the Filing Date ($34,563.68). Debtor shall
pay the Secured Class 2 Claim in full on the Effective Date.
Class 4 shall consist of the Claim of ASG. The Debtor scheduled a
secured claim to ASG in the amount of $9667.20 and disputed that
claim. ASG failed to file a proof of claim before the Bar Date,
therefore its claim is barred against the Debtor and ASG is not
entitled to vote on the Plan. Upon confirmation of the Plan, ASG's
UCC shall be determined to be void and unenforceable.
Class 5 shall consist of the Claim of CSC. The Debtor scheduled a
secured claim to CSC and disputed that claim. CSC failed to file a
proof of claim before the Bar Date, therefore its claim is barred
against the Debtor and CSC is not entitled to vote on the Plan.
Upon confirmation of the Plan, CSC's UCC shall be determined to be
void and unenforceable.
Like in the prior iteration of the Plan, no funds above the value
of the Proceeds are available for distribution for General
Unsecured Claims and General Unsecured Creditors will receive no
distributions under this Plan. The Debtor will seek to confirm this
plan under Section 1191(a) of the Bankruptcy Code, however, if the
Plan is confirmed under Section 1191(b) of the Bankruptcy Code,
Class 6 shall be treated the same as if the Plan was confirmed
under Section 1191(a) of the Bankruptcy Code.
The source of funds for the payments pursuant to the Plan are the
Proceeds being held in the Receiver's escrow account in the amount
of $34,563.68.
The Debtor has ceased operations and will cease to exist upon
confirmation of the Plan. There is no projected revenue to be
disclosed by the Debtor.
A full-text copy of the Amended Liquidating Plan dated September
27, 2024 is available at https://urlcurt.com/u?l=tSohbL from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
William A. Rountree, Esq.
Caitlyn Powers, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (404) 584-1238
Email: wrountree@rlkglaw.com
cpowers@rlkglaw.com
About Magnolia Rose Veterinary Clinic
Magnolia Rose Veterinary Clinic Inc. is a veterinary clinic in
Roswell, Georgia.
Magnolia Rose Veterinary Clinic Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-55900) on
June 4, 2024. In the petition signed by Justin O'Dell, as receiver,
the Debtor estimated assets up to $50,000 and estimated liabilities
between $1 million and $10 million.
The Honorable Bankruptcy Judge Jeffery W Cavender oversees the
case.
MALIA REALTY LLC: Ends in Filing Chapter 11 Bankruptcy Protection
-----------------------------------------------------------------
Malia Realty LLC filed Chapter 11 protection in the Northern
District of Georgia. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
About Malia Realty LLC
Malia Realty LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Malia Realty LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-61684) on November 1,
2024. In the petition filed by Chirhamolekwa Williams, as trustee
of the sole member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.com
MALIA REALTY: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
Malia Realty, LLC, asks the U.S. Bankruptcy Court for the Northern
District of Georgia, Atlanta Division, for authority to use cash
collateral and provide adequate protection.
On September 17, 2021, the Debtor executed a Commercial Promissory
Note with Lending One, LLC in the amount of $2.9 million in
connection with the purchase and renovation of the Property. Of the
total loan amount, $488,010 was designated as a reserve for
improving the plumbing and electrical infrastructure of its
apartment complex.
Lending One executed an assignment of the Security Instruments to
Toorak Capital Partners, LLC on October 18, 2021, however Lending
One maintains an interest in the Note and Security Instruments as
the "loan administrator." The Note is serviced by NewRez, LLC, dba
Shellpoint Mortgage Servicing.
The Debtor experienced significant delays in the infrastructure
project due to the underperformance of the contractor, MMG
Management, LLC. Despite replacing MMG and obtaining Lender
approval for a new contractor, funding for the project was halted.
Additionally, the Lender declared a default on the loan due to low
occupancy rates, even though the Debtor had made timely payments.
To address these issues and complete the project, the Debtor filed
for bankruptcy.
As of the Petition Date, the Debtor believes the amount owed to the
Lender is approximately $2.6 million, while the Lender maintains
that it is owed approximately $3.4 million.
To the extent that any interest that the Lender may have in the
cash collateral is diminished, the Debtor proposes to grant the
Lender a replacement lien in post-petition collateral of the same
kind, extent and priority as the liens existing pre-petition.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=SsLkvD from PacerMonitor.com.
The Debtor projects $8,831 in total expenses for one month.
About Malia Realty, LLC
Malia Realty, LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
In the petition signed by Chirhamolekwa Williams, trustee of the
sole member, the Debtor disclosed up to $10 million in both assets
and liabilities.
William Rountree, Esq., at ROUNTREE, LEITMAN, KLEIN & GEER, LLC,
represents the Debtor as legal counsel.
MARIN SOFTWARE: Reports Q3 2024 Revenue of $4.3MM, Reduces Losses
-----------------------------------------------------------------
Marin Software Incorporated announced financial results for the
third quarter ended September 30, 2024.
"Marin is excited to deliver the next generation of AI-powered
performance marketing tools with our latest enhancement, Advisor,"
said Chris Lien, Marin Software's CEO. "With this OpenAI-powered
virtual teammate, Marin users can interact with the platform in an
entirely new way – unlocking the collective knowledge of digital
marketing thought leaders and putting their best practices to work
with a simple prompt. This is another example of Marin delivering
innovations to help performance marketers save time and sell
more."
Third Quarter 2024
Financial Updates:
* Net revenue totaled $4.3 million, a year-over-year decrease
of 4% when compared to $4.4 million for the third quarter of 2023.
* GAAP loss from operations was ($2.1) million, resulting in a
GAAP operating margin of (50%), as compared to a GAAP loss from
operations of ($5.1) million and a GAAP operating margin of (115%)
for the third quarter of 2023.
* Non-GAAP loss from operations was ($1.8) million, resulting
in a non-GAAP operating margin of (43%), as compared to a non-GAAP
loss from operations of ($2.9) million and a non-GAAP operating
margin of (65%) for the third quarter of 2023.
* Cash and cash equivalents were $5.6 million as of September
30, 2024.
Third Quarter 2024 Product
and Business Highlights:
* Launched Advisor, An AI-Powered Virtual Assistant: Our new
AI-powered virtual assistant allows marketers to streamline their
workflow by automating tasks and receiving actionable insights.
Powered by OpenAI and integrated with Marin's entire Knowledge
Center, Advisor provides real-time performance analysis,
recommended actions, and step-by-step guidance, helping users
optimize their campaigns directly within Marin's platform.
* Upgraded Reddit Integration: Our enhanced Reddit integration
now supports full campaign management, including budgeting,
forecasting, and automation--on top of our existing omni-channel
reporting capabilities. Marketers can manage their Reddit campaigns
with the same precision and ease they apply across other platforms
in Marin.
* Launched the Completed Episode Report: The new Completed
Episode report offers greater transparency by showcasing results
from the latest completed episode. This feature gives brands deeper
insights into the performance of their campaigns and highlights the
value delivered by the Marin platform.
* Improved Budget Management Controls: We've introduced new
budget floor controls, ensuring campaigns maintain a minimum spend
to maximize impact and avoid underperformance due to budget
shortfalls. These enhancements provide users with automated budget
management that adheres to both maximum and minimum thresholds
across all campaigns and publishers.
* Enhanced Client Grid Reporting: Marin's in-app client grid
now offers expanded reporting options, including conversion types
and custom columns across publishers. This update gives marketers
more flexibility and deeper insights into their campaign
performance.
* Amazon S3 Integration: Users can now connect their Amazon S3
buckets as a data source, enabling near real-time access to
critical campaign data such as revenue and conversions. This
integration ensures seamless cross-channel insights, particularly
for those leveraging Amazon's data solutions.
* Launched Free Media Allocation Audit: For the first time,
we're offering a complimentary media allocation audit. With our
decades of expertise and industry-leading analytics, this audit
helps performance marketers assess if their digital marketing
budgets are being invested optimally, providing valuable
recommendations to deliver growth and efficiency improvements.
* Search Ads Innovation Agreement with Google: In July 2024,
we entered into a new three-year Search Ads Innovation Agreement
with Google that commenced on October 1, 2024, which is
substantially similar to the Revenue Share Agreement with Google
that expired on September 30, 2024, including the same minimum
quarterly payments.
Third Quarter 2024
Notable Client Achievements:
* Fusion 92: Fusion 92, one of the Midwest's largest
independent media agencies, utilized Marin's budgeting platform to
transform budget compliance for their client, a dental services
organization with over 1,500 offices nationwide. In just under two
months, they improved budget compliance from 9% to 96%, saving over
15 hours of manual work per week.
In October 2024, after the third quarter of September 30, 2024, the
Company commenced the implementation of an organizational
restructuring and reduction-in-force plan to reduce the Company's
operating costs, which is expected to result in the reduction of
its global employees by approximately 27 employees, representing
approximately 26% of its total headcount as of September 30, 2024.
Marin Software said, "We estimate that the 2024 Restructuring Plan
will result in estimated pre-tax annualized cost savings of
approximately $3.5 million to $3.7 million, all of which is related
to the reduction-in-force pursuant to the 2024 Restructuring Plan,
and we expect to begin realizing the cost savings from the 2024
Restructuring Plan during the three months ended December 31, 2024.
We estimate that we will incur between approximately $0.6 million
and $0.8 million of cash expenditures during the three months ended
December 31, 2024 in connection with the 2024 Restructuring Plan,
substantially all of which relates to severance costs, and we
expect to substantially complete the 2024 Restructuring Plan in the
same period."
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/7xh6ybtn
About Marin Software
Marin Software Incorporated is a provider of digital marketing
solutions for search, social, and eCommerce advertising channels,
offered as a unified SaaS, advertising management platform for
performance-driven advertisers and agencies. The Company's platform
is an analytics, workflow, and optimization solution for marketing
professionals, enabling them to maximize the performance of their
digital advertising spend. The Company markets and sells its
solutions to advertisers directly and through leading advertising
agencies, and its customers collectively manage billions of dollars
in advertising spend on its platform globally across a wide range
of industries.
San Jose, California-based Grant Thornton LLP, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Feb. 23, 2024, citing that the Company incurred a net
loss of $22 million during the year ended Dec. 31, 2023, and as of
that date, the Company had an accumulated deficit of approximately
$344 million and negative operating cash flows. These conditions,
along with other matters, raise substantial doubt about the
Company's ability to continue as a going concern.
Marin Software incurred a net loss of $22 million during the year
ended December 31, 2023. As of June 30, 2024, Marin Software had
$14.43 million in total assets, $4.57 million in total liabilities,
and $9.86 million in total stockholders' equity.
MARINUS PHARMACEUTICALS: Franklin Resources Holds 8.6% Stake
------------------------------------------------------------
Franklin Resources, Inc. disclosed in a Schedule 13G/A filed with
the U.S. Securities and Exchange Commission that, as of September
30, 2024, it and its affiliated entity, Franklin Advisers, Inc.,
beneficially owned 4,713,014 shares of Marinus Pharmaceuticals'
common stock, representing 8.6% of the shares outstanding.
A full-text copy of Franklin Resources' SEC Report is available
at:
https://tinyurl.com/yzj22but
About Marinus Pharmaceuticals
Marinus Pharmaceuticals -- www.marinuspharma.com -- is a
commercial-stage pharmaceutical company dedicated to the
development of innovative therapeutics for seizure disorders. The
Company first introduced FDA-approved prescription medication
ZTALMY (ganaxolone) oral suspension CV in the U.S. in 2022 and
continues to invest in the potential of ganaxolone in IV and oral
formulations to maximize therapeutic reach for adult and pediatric
patients in acute and chronic care settings.
Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 5, 2024, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
Marinus Pharmaceuticals incurred a net loss of $141.4 million for
the year ended December 31, 2023. As of June 30, 2024, Marinus
Pharmaceuticals had $87.1 million in total assets, $134.4 million
in total liabilities, and $47.3 million in total stockholders'
deficit.
MDM RESTORATION: Seeks to Hire Richard G. Hall as Attorney
----------------------------------------------------------
MDM Restoration, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to employ Richard G. Hall,
Esq., a professional practicing law in Virginia, as attorney.
Richard G. Hall, Esq. will provide these services:
a. advise and consult with the debtor concerning questions
arising in the conduct of the administration of the estate and
concerning the debtor's rights and remedies with regard to the
estate's assets and the claims of secured, preferred and unsecured
creditors and other parties in interest;
b. appear for, prosecute, defend and represent the debtor's
interest in suits arising in or related to this case;
c. investigate and prosecute preference and other actions
arising under the debtor's avoiding powers;
d. assist in the preparation of such pleadings, Motions,
Notices and Orders as are required for the orderly administration
of this estate; and to consult with and advise the debtor in
connection with the operation of the business of the Debtor; and
e. prepare and file a Plan and a Disclosure Statement, and to
obtain the confirmation and completion of a Plan of reorganization,
and to prepare a Final Report and a Final Accounting.
Mr. Hall will be paid at these rates:
Richard G. Hall $575 per hour
Para-Professionals $200 per hour
He will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Richard G. Hall, Esq., disclosed in a court filing that the firm is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Richard G. Hall, Esq.
RICHARD HALL
601 King Street
Suite 301
Alexandria, VA 22314
Tel: (703) 256-7159
E-mail: richard.hall33@verizon.net
About MDM Restoration, Inc.
MDM Restoration Inc. helps those who need disaster recovery and
building restoration services, whether with fire damage and smoke
removal or storm and wind damage.
MDM Restoration Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-11984) on
October 25, 2024. In the petition filed by Roberto Antonio Fuenttes
Ventura, as director/owner, the Debtor reports total assets of
$72,179 and total liabilities of $1,075,612.
The Debtor is represented by Richard G. Hall, Esq.
MEDTRULY INC: Claims to be Paid From Asset Sale Proceeds
--------------------------------------------------------
Medtruly, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of California a Small Business Plan of
Reorganization under Subchapter V dated September 27, 2024.
The Debtor was formed in May 2021 as a limited liability company
and later changed its status to a Delaware corporation in December
2021. The Debtor started with the goal to provide chronic care
management services to polychronic adults and seniors.
Prior to the Petition Date, the Debtor suffered under the
operational mismanagement and poor leadership of the then Co-CEO,
Eugene Gu, and Head of Operations, Park Neumann, which made it
difficult for the clinics to realize their potential. At the time,
the Debtor was incurring liabilities of upwards of $200,000 to
$300,000 per month. At the direction of counsel, the Debtor took
immediate action to terminate the two.
Unfortunately, Mr. Gu and Mr. Neumann commenced what the Debtor
contends is frivolous litigation against the Debtor. Despite
attempts to settle the suit, the litigation remains. Between the
litigation and the lack of cash flow, the Debtor was forced to file
this bankruptcy case. There are insufficient funds for the Debtor
to continue its operations on a going forward basis. The Debtor's
goal is to confirm this Plan that will allow creditors to receive
at least some return and to provide a way for contractors to
continue employment with BHG.
The Debtor has moved for a sale of substantially all of the
Debtor's assets to Beyond Health Group LLP which has agreed to make
such purchase for the total purchase price of $400,000 of which
amount will fund the Plan.
The Debtor's financial projections show that the Debtor will have
projected disposable income of $190,000.00. The final Plan payment
is expected to be paid on November 7, 2026, which is anticipated to
be 24 months after the Effective Date.
This Plan of Reorganization proposes to pay creditors of the Debtor
from payments from Beyond Health for purchase of Debtor's asset
with initial deposit and remainder paid in eight quarterly
payments.
Class 3 consists of Non-priority unsecured creditors. General
unsecured claims will be paid pro rata over the course of the Plan
which contemplates payments over 2 years. This Class is impaired.
Class 5 consists of Equity Interests. On the Effective Date, all
existing membership interests in the Debtor will be cancelled,
annulled, and extinguished.
The Plan contemplates a maximum of $175,000 to be paid to
Professional Fee Claims, and an additional $225,000 to be
distributed to creditors. The Debtor believes that without the sale
no money would be brought into the estate. BHG and the Debtor have
entered into an APA and Debtor has moved for approval of the sale
contemplated by the APA.
As outlined in the APA, the Buyer shall pay an initial deposit of
$200,000.00, payable on the later of (i) forty-two days after
execution of this Agreement or (i) fourteen days after the
Effective Date of this Agreement (as defined in the APA) ("Initial
Payment"). Beginning thirty days after the Effective Date [of the
APA], Buyer shall pay equal quarterly payments in the amount of
$25,000 over a period of 24 months. This will result in total plan
payments of $400,000.00 with all payments being completed
approximately 24 months (plus 30 days) after the Effective Date.
A full-text copy of the Plan of Reorganization dated September 27,
2024 is available at https://urlcurt.com/u?l=tBG0is from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Jeffrey I. Golden, Esq.
Beth E. Gaschen, Esq.
Ryan W. Beall, Esq.
GOLDEN GOODRICH, LLP
3070 Bristol Street, Suite 640
Costa Mesa, CA 92626
Tel: (714) 966-1000
Fax: (714) 966-1002
Email: jgolden@go2.law
About MedTruly Inc.
MedTruly, Inc. provides a blend of in-person and virtual care
aiming to reduce hospital and urgent care visits. It is based in
Sunnyvale, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 23-51507) on December
27, 2023, with $36,136 in assets and $6,823,740 in liabilities.
Russell Anas, chief executive officer and president, signed the
petition.
Jeffrey I. Golden, Esq., at Golden Goodrich, LLP represents the
Debtor as legal counsel.
MOMENTUM CONSULTING: Seeks Cash Collateral Access Thru Nov 30
-------------------------------------------------------------
Momentum Consulting LLC asks the U.S. Bankruptcy Court for the
Northern District of New York for authority to use cash collateral
and provide adequate protection, through November 30, 2024.
The Debtor requires the use of cash collateral to pay subcontractor
wages and other necessary ordinary course operating expenses as
well as administrative expenses incurred in the Chapter 11 Case.
Citizens Bank, N.A., Hebron Savings Bank, TD Bank, and Can Capital,
Inc. assert an interest in the Debtor's cash collateral.
As adequate protection, the Debtor proposes to pay Citizens
adequate protection payments in the amount of $1,877, monthly. Said
amount represents the combined principal/interest contractual
payment due by the Debtor to Citizens on a monthly basis.
Hebron, TD, and CC; as subordinate position lien holders, have no
equity in the Debtor's cash or cash-on-hand equivalents at the time
of filing and, as such, will not receive ongoing adequate
protection payments for use of the cash collateral.
A copy of the motion is available at https://urlcurt.com/u?l=Z6kXB2
from PacerMonitor.com.
About Momentum Consulting LLC
Momentum Consulting LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-11236-1) on
November 5, 2024. In the petition signed by Benjamin McLellan,
managing member, the Debtor disclosed up to $1 million in both
assets and liabilities.
Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as
legal counsel.
NEUROONE MEDICAL: Receives $3-Mil. Upfront Payment From Zimmer Deal
-------------------------------------------------------------------
NeuroOne Medical Technologies Corporation announced the execution
of an amendment to its existing distribution agreement with Zimmer
Biomet that will provide Zimmer Biomet with certain exclusive
rights to distribute NeuroOne's OneRF(TM) Ablation System for use
in the brain.
NeuroOne will receive an upfront payment of $3 million with the
potential to earn an additional milestone payment if certain
performance criteria is achieved. NeuroOne expects that the
agreement will generate meaningful revenue and drive improved
profitability for the Company.
The OneRF Ablation System is the only FDA cleared radiofrequency
ablation system in the United States for both diagnostic and
therapeutic use. It has been used in a number of ablation cases
since its limited launch in April. Cases were reported as being
successful using the same device to identify the brain tissue
triggering seizure activity and ablate the targeted tissue to
reduce or eliminate brain-related seizure activity. In addition,
the technology has the potential to reduce hospital stays, number
of surgeries and adverse events while offering temperature control
to enhance patient safety. The devices are initially placed in the
operating room. To date, all the ablations have been performed at
the patient's bedside saving additional operating costs while
allowing the patient to be diagnosed and treated in one
hospitalization instead of multiple visits.
"The expanded agreement with Zimmer Biomet to include distribution
of our OneRF Ablation System is a significant catalyst for the
Company," says Dave Rosa, president and CEO of NeuroOne. "We are
confident that the partnership will allow NeuroOne to leverage
Zimmer Biomet's leadership position in robotic technology and
extensive distribution channel both in the United States and
abroad. As the world's first FDA cleared system for both diagnostic
and therapeutic procedures, our ablation system provides clear
advantages over existing competitive electrode technologies. We
look forward to continuing to expand the indications for use in the
future."
Brian Hatcher, President, SET and CMFT at Zimmer Biomet said, "We
are excited to expand the relationship with NeuroOne to include the
OneRF Ablation System, which builds on our existing agreement to
distribute NeuroOne's Cortical and sEEG diagnostic electrode
technology, and we look forward to launching this product in the
near future."
About NeuroOne
Headquartered in Eden Prairie, Minnesota, NeuroOne Medical
Technologies Corporation is a medical technology company dedicated
to the development and commercialization of thin film electrode
technology. This technology is utilized for continuous
electroencephalogram (cEEG) and stereoelectroencephalography (sEEG)
recording, as well as spinal cord stimulation, brain stimulation,
and ablation solutions for patients with neurological disorders
such as epilepsy, Parkinson's disease, dystonia, essential tremors,
and chronic pain from failed back surgeries. The company is also
exploring potential applications of its technology in conjunction
with artificial intelligence.
Minneapolis, Minn.-based Baker Tilly US, LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated Dec. 15, 2023, citing that the Company had recurring losses
from operations and an accumulated deficit, expects to incur losses
for the foreseeable future, and requires additional working
capital. These raise substantial doubt about the Company's ability
to continue as a going concern.
As of June 30, 2024, NeuroOne had $4,912,597 in total assets,
$1,900,870 in total liabilities, and $3,011,727 in total
stockholders' equity.
NEXT LEVEL PIZZA: Oath Pizza Files for Chapter 7 Bankruptcy
-----------------------------------------------------------
Joanna Fantozzi of Nation's Restaurant News reports that
Boston-based fast-casual brand Oath Pizza filed for Chapter 7
bankruptcy on October 22, 2024 and will liquidate its assets, a
year after closing all corporate locations. The Next Level
Pizza-owned chain reported assets under $500,000 and debts up to
$50 million.
Founded in 2015 on Nantucket Island, Oath Pizza quickly emerged as
a promising chain. In 2016, the company secured $4.5 million in
funding and, in 2018, formed a strategic partnership with Aramark
to accelerate its growth across the Northeast, particularly on
college campuses, with a focus on franchising. Oath Pizza set
itself apart from other fast-casual pizza chains with its grilled
thin-crust pizza and commitment to sustainability as a certified
humane restaurant.
According to Technomic data, Oath Pizza reached its peak in 2022
with 17 locations across Massachusetts, New York, Pennsylvania,
California, and beyond. However, in November 2023, the company
began closing its stores, and by the end of the month, seven
locations had been shut down, as reported by Nantucket Current.
A May 2023 complaint filed by investor James Alpi alleges that Oath
Pizza's CEO, Andrew Kellogg, declared the company insolvent in
November 2022 and began misappropriating its assets, including
funds from investors, ultimately leaving the company "a shell" of
its former self.
The complaint claims that Kellogg was tasked with implementing a
recovery plan to sell the company's assets and liquidate Next Level
Pizza. However, instead of following through, he allegedly
"deterred potential bidders while secretly planning to sell the
company's assets to himself." Kellogg is said to have sold Next
Level Pizza's assets to Oath Pizza, essentially transferring
ownership of his own company. As a result, Next Level Pizza was
reportedly left with no assets to settle its debts.
By the time of the bankruptcy filing, the company had closed all of
its corporate locations, leaving only a few independent
franchisee-run restaurants, including several on university
campuses.
About Oath Pizza
Oath Pizza is a Boston-based fast-casual brand.
Oath Pizza sought relief under Chapter 7 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-12380) on October 21, 2024. It
reported assets valued between $100,000 and $500,000 and
liabilities ranging from $10 million to $50 million.
The Debtor is represented by Scott D. Cousins of Lewis Brisbois.
NITRO FLUIDS LLC: Gets Court Clearance for $3Million Equipment Sale
-------------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on
Friday, November 1, 2023, Nitro Fluids LLC, a provider of oil and
gas fracking services, received approval to sell specific assets
for $3.25 million to stalking-horse bidder KLX Energy Services
LLC.
About Nitro Fluids LLC
Nitro Fluids, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
24-60018) on May 15, 2024, listing $50 million to $100 million in
both assets and liabilities. The petition was signed by Brad Walker
as chief restructuring officer.
Judge Christopher M. Lopez presides over the case.
Eric Thomas Haitz, Esq., at Bonds Ellis Eppich Schafer Jones LLP,
is the Debtor's counsel.
NOLAN COUNTY HOSPITAL: Moody's Lowers Issuer & GOLT Ratings to Ba3
------------------------------------------------------------------
Moody's Ratings has downgraded Nolan County Hospital District, TX's
(d/b/a Rolling Plains Memorial Hospital) issuer and general
obligation limited tax (GOLT) ratings to Ba3 from Baa3. Moody's
have removed the negative outlook in conjunction with the rating
downgrade. As of fiscal 2023, the district had about $20 million in
total debt outstanding.
The downgrade is driven by the hospital's weak financial
performance in fiscal year 2023 and 2024, which decreased liquidity
to remarkably low levels, coupled with the expectation that
hospital operations will remain stressed.
RATINGS RATIONALE
The Ba3 issuer rating reflects the weak financial performance of
the district's wholly-owned and operated hospital enterprise, which
has seen reserves and liquidity diminish to an exceptionally low 11
days cash on hand in fiscal 2024 (September 30 year end). The
hospital's small scale of operations and limited population within
the service area expose the district to additional operating
challenges. Inflationary pressure on expenditures since the
pandemic coupled with a stark drop in patient volumes during fiscal
2023 resulted in an 18% operating loss in fiscal 2023. Unaudited
results for fiscal 2024 reflect a continuation of negative
financial performance with a roughly 8% operating loss. While
patient volumes have rebounded from the declines of fiscal 2023,
improved revenues have not been paired with expenditure cuts
necessary to recoup the losses experienced in recent years.
Governance is a key driver of this rating action, reflecting the
lack of clear, actionable plans to reduce expenditures to
right-size hospital operations.
Apart from the operating performance and weak financial condition,
the district benefits from the ability to levy property taxes to
support operations and to pay debt service on tax-backed
obligations. Property tax revenue makes up roughly 25% of the
district's operating revenues, which is a strength of the credit
profile. The district's tax base has been stable and has grown
steadily for more than a decade; however, the tax base is somewhat
concentrated with the top ten taxpayers accounting for about 37% of
total valuation. Leverage is modest with total debt of just under
$20 million (0.85% of assessed valuation and 50% of operating
revenues). The district participates in a defined contribution
retirement plan and therefore does not have a pension liability, a
credit positive.
The Ba3 rating on the GOLT debt is the same as the issuer rating
given the ample taxing headroom under the limited tax cap that
provides more than 800% (8 times) coverage of debt service,
offsetting the lack of a full faith and credit pledge.
RATING OUTLOOK
Moody's do not assign outlooks to local governments with this
amount of debt outstanding.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Trend of positive financial operations, improving liquidity to
over 80 days cash on hand
-- Significant economic expansion, evidenced by improved resident
income and wealth metrics
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Any further declines in reserves/liquidity
-- Significant and/or prolonged tax base contraction
-- Increase in debt to over 1.75% of assessed valuation or over
67% of revenues
LEGAL SECURITY
The district's general obligation bonds are direct obligations of
the district, payable from the levy and collection of a direct and
continuing ad valorem tax levied on all taxable property within the
district, within the limits prescribed by law. The maximum ad
valorem tax rate is limited to $7.50 per $1,000 of assessed value
for all purposes.
PROFILE
Nolan County Hospital District is a political subdivision of the
State of Texas (Aaa stable), the boundaries of which are
coterminous with Nolan County, TX. The district operates the
Rolling Plains Memorial Hospital, an 85 licensed bed hospital in
the City of Sweetwater, located roughly 40 miles west of Abilene
(Aa2 stable). In 2022, the population in Nolan County was estimated
at 14,657.
METHODOLOGY
The principal methodology used in these ratings was US Special
Purpose District General Obligation Debt Methodology published in
November 2022.
OCEANVIEW DEVELOPMENT: Unsecureds to be Paid in Full in Plan
------------------------------------------------------------
Oceanview Development, LLC, filed with the U.S. Bankruptcy Court
for the District of Hawaii a Second Modified Combined Plan of
Reorganization and Disclosure Statement.
The Debtor was formed in 2010 in the State of Hawaii. The Debtor is
a manager-managed limited liability company. Reuben Fung is its
manager and sole member.
In April, 2015, the Debtor acquired an approximately 58-acre lot
identified with Tax Map Key No. (1) 5-6006-057:0000 (the "Original
Lot") for $3.8 million from Kahuku Heights LLC. The transaction was
seller-financed, and Kahuku Heights LLC held a first mortgage
against the Original Lot as security for payment.
Class 3 consists of Allowed unsecured claims. The Debtor estimates
that it has approximately $116,500 (Bow Engineering and Heidler) in
General Unsecured Claims. Mr. Heidler filed a proof of claim
asserting a secured claim, but he will be treated as an unsecured
creditor. Class 3 is impaired, and the holders of Allowed Claims in
Class 3 are entitled to vote to accept or reject the Plan.
Except to the extent that the holder of an Allowed Claim in Class 3
agrees to a less favorable treatment of its Allowed Claim, the
holder shall receive, on the Effective Date or as soon thereafter
as reasonably practicable, and only to the extent of the Available
General Unsecured Proceeds, one hundred percent of the holder's
Allowed Claim in full satisfaction of such Claim, provided,
however, that if the Available General Unsecured Proceeds are not
sufficient to pay the holders of Allowed Claims in Class 3 in
accordance with the Plan, the holders of Allowed Claims in said
Class shall receive a Pro Rata Share of the Available General
Unsecured Proceeds.
Class 4 consists of the Allowed Equity Interests in the Debtor.
Reuben Fung, the holder of 100% of the Equity Interests in the
Debtor, shall retain his Allowed Equity Interests. Class 4 is
unimpaired, and is deemed to accept the Plan.
Under the Plan, holders of allowed claims in Class 3 will be paid
in full on their Allowed Claims. Based on the liquidation analysis,
the Debtor believes that holders of Claims and Equity Interests
will receive value as of the Effective Date equal to or greater
under the Plan such holders would receive in a chapter 7
liquidation.
The Debtor owns approximately 48-acres of land which are divided
into 6 separate "land condominium parcels" in Kahuku. These parcels
will be listed for sale separately in prices ranging from $879,000
to $2.9 million.
From and after the Effective Date, (1) Alexander (in consultation
with Paul Javier) shall set and adjust the list prices for Parcels
3, 4, 5, 6 and 7; and (2) the Debtor and Alexander shall (in
consultation with Paul Javier) shall set and adjust the list price
for Lot 8. Notwithstanding the foregoing, the Reorganized Debtor
currently has contracts for sale of Parcels 5 and 7 (both of which
are subject to Court approval).
Alexander shall have the option of requesting the entry of an order
transferring any unsold parcels to Alexander via quitclaim deed if
any of the following payments does not occur by the stated
deadline:
* $1,500,000.00 to Alexander by December 31, 2024.
* Additional $2,000,000.00 by April 30, 2025.
* Remaining balance necessary to pay off the Secured Claim in
full (with accrued interest and legal fees) by May 31, 2025.
A full-text copy of the Second Modified Combined Plan and
Disclosure Statement dated September 27, 2024 is available at
https://urlcurt.com/u?l=pNAeZD from PacerMonitor.com at no charge.
Counsel to the Debtor:
CHOI & ITO
Attorneys at Law
Allison A. Ito, Esq.
700 bishop street, Suite 1107
Honolulu, Hawaii 96813
Telephone: (808) 533-1877
Fax: (808) 566-6900
Email: aito@hibklaw.com
About Oceanview Development
Oceanview Development, LLC, is a manager-managed limited liability
company.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Hawaii Case No. 23-00842) on October 18,
2023, with $1,000,001 to $10 million in assets and liabilities.
Judge Robert J. Faris presides over the case.
Chuck C. Choi, Esq, at Choi & Ito represents the Debtor as legal
counsel.
OFFICE PROPERTIES: Reports $58.4 Million Net Loss in Fiscal Q3
--------------------------------------------------------------
Office Properties Income Trust filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $58.4 million for the three months ended September 30,
2024, compared to a net loss of $19.6 million for the three months
ended September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net income of $12.6 million, compared to a net loss of $32.3
million for the same period in 2023.
As of September 30, 2024, the Company had $3.7 billion in total
assets, $2.4 billion in total liabilities, and $1.3 billion in
total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2757crzd
About Office Properties
Office Properties Income Trust is a REIT organized under Maryland
law. As of Dec. 31, 2023, its wholly owned properties were
comprised of 152 properties, and it had noncontrolling ownership
interests of 51% and 50% in two unconsolidated joint ventures that
owned three properties containing approximately 468,000 rentable
square feet. As of Dec. 31, 2023, the Company's properties are
located in 30 states and the District of Columbia and contain
approximately 20,541,000 rentable square feet. As of Dec. 31, 2023,
its properties were leased to 258 different tenants, with a
weighted average remaining lease term (based on annualized rental
income) of approximately 6.4 years. The U.S. government is its
largest tenant, representing approximately 19.5% of its annualized
rental income as of Dec. 31, 2023.
* * *
In May 2024, OPI announced it was actively negotiating with its
existing debtholders to exchange four series of its currently
outstanding senior unsecured notes (worth $1.7 billion at face
value) for up to $610 million of new senior secured notes and
related guarantees, with priority given to the 2025 noteholders
($650 million outstanding). The exchange would result in
debtholders receiving below the par value of the existing notes.
In July 2024, S&P Global Ratings raised its issuer credit rating on
Office Properties Income Trust (OPI) to 'CCC-' from 'SD' (selective
default) and its issue-level ratings on the senior unsecured notes
that were part of the exchange to 'CCC-' from 'D'. S&P said, "We
lowered our issue-level rating on the company's March 2029 senior
secured notes to 'CCC+' from 'B-', with the recovery rating
remaining '1′. We also lowered the issue-level rating on the
company's 2050 senior unsecured notes, which were not part of the
debt exchange, to 'CCC-' from 'CCC'. The recovery rating on all the
unsecured notes is unchanged at '3′. We also assigned our 'CCC'
and '2′ recovery rating to the company's new September 2029
senior secured notes."
S&P Global Ratings lowered its issuer credit rating on OPI to 'CC'
from 'CCC' and its issue-level ratings on its senior unsecured
notes due 2025, 2026, 2027, and 2031, which are part of the
proposed exchange, to 'CC' from 'CCC'. At the same time, S&P
affirmed its 'CCC' issue-level rating on the company's senior
unsecured notes due 2050, which are not part of the proposed
exchange, and its 'B-' issue-level rating on its existing secured
notes due 2029. Its '3′ recovery rating on all the unsecured
notes and '1′ recovery rating on the secured notes are
unchanged.
In June 2024, S&P Global Ratings lowered its issuer credit rating
on Office Properties Income Trust (OPI) to 'SD' (selective default)
and its issue-level rating on the company's 2025, 2026, 2027, and
2031 senior unsecured notes to 'D'. S&P said, "We view the debt
exchange as distressed and tantamount to a default. The downgrade
follows OPI's completion of its private debt exchange. In
aggregate, the company exchanged $865.2 million of its 2025, 2026,
2027, and 2031 senior unsecured notes for $567.4 million of new
senior secured notes due 2029. The exchange consideration varied
depending on which notes were exchanged, with longer-dated notes
receiving less consideration. In addition, certain noteholders
received common equity to incentivize the exchange. In our view,
this transaction is a distressed exchange and tantamount to a
default because lenders received less than the original promise of
the securities, which is not offset by adequate compensation."
OLIVER POINT APARTMENTS: Hits Chapter 11 Bankruptcy in Georgia
--------------------------------------------------------------
Oliver Point Apartments LLC filed Chapter 11 protection in the
Northern District of Georgia. According to court filing, the Debtor
reports $6,933,359 in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About Oliver Point Apartments LLC
Oliver Point Apartments LLC owns and operates an apartment
complex.
Oliver Point Apartments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-61781) on
November 4, 2024. In the petition filed by Olivia Chevannes, as
managing member, the Debtor reports total assets of $7,000,000 and
total debts of $6,933,359.
The Debtor is represented by:
Milton Jones, Esq.
MILTON D JONES, ATTORNEY
12252 Styron Drive
Hampton GA 30228
Email: miltondjonesatty@gmail.com
PAC BUILD: Unsecureds to Get Share of Income for 3 Years
--------------------------------------------------------
Pac Build, LLC, filed with the U.S. Bankruptcy Court for the
District of Hawaii a Plan of Reorganization for Small Business
dated September 27, 2024.
The Debtor is a general contractor, which focuses on residential
new construction, high-end custom home construction and remodels,
on the island of Kaua'i, Hawai'i.
The Debtor was formed in 2012, initially doing home remodels on the
island of Kauai, Hawaii, and growing its business to include
high-end residential construction. The Debtor's main office is
located in Koloa, Island of Kaua'i, Hawaii, which is leased from
Pac Build Holdings, LLC. The monthly rent is $2,500.00.
Under the Plan, the Debtor will devote all of its projected
Disposable Income toward the payment of Creditors over a three-year
period. The Plan will be funded with the funds that are not for the
payment of expenditures necessary for the continuation,
preservation, or operation of the business of the Debtor.
The Plan provides for payment of Administrative Expense Claims,
Priority Tax Claims, and Allowed Secured Claims in accordance with
the Bankruptcy Code, and projects payment to Allowed General
Unsecured Claims. Finally, Holders of Equity Interests will retain
their Equity Interests as they existed on the Commencement Date.
Class 7 consists of General Unsecured Claims (Excluding Employee
Claims and Convenience Class Claims). The allowed unsecured claims
total $1,207,108.41. Except to the extent that a Holder of an
Allowed General Unsecured Claim agrees to a different treatment,
all Allowed General Unsecured Claims shall be paid pro rata in
monthly installments from Disposable Income commencing on the First
Distribution Date (i.e., Q1 2025) to the Last Distribution Date (3
years after). This Class is impaired.
Class 8 consists Convenience Claims (Claims under $20,000.00 or
holder agrees to reduce to $20,000 in order to be treated as a
Convenience Claim). The Debtor estimates that there approximately
$43,820.84 to $63,820.84 in Convenience Class Claims. This Class
shall be paid 50% of the Allowed amount within 120 days after the
Effective Date. This Class is impaired.
Class 9 consists of Equity Interests. Equity interest holders shall
maintain existing Equity Interest.
The Plan will be funded by the proceeds 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 except as provided in the Plan, to the Debtor.
A full-text copy of the Plan of Reorganization dated September 27,
2024 is available at https://urlcurt.com/u?l=GWS0NE from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Chuck C. Choi, Esq.
Allison A. Ito, Esq.
Choi & Ito
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Telephone: (808) 533-1877
Facsimile: (808) 566-6900
Email: cchoi@hibklaw.com
aito@hibklaw.com
About Pac Build
Pac Build, LLC is a construction company in Koloa, Hawaii,
specializing in high-end custom homes, commercial establishments,
and residential buildings.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Hawaii Case No. 24-00588) on July 1,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Tyler Rodighiero, manager, signed the
petition.
Judge Robert J. Faris presides over the case.
Chuck C. Choi, Esq. at Choi & Ito represents the Debtor as legal
counsel.
PACKABLE HOLDINGS: Nimble Loses Bid to Dismiss Adversary Case
-------------------------------------------------------------
Judge Craig T. Goldblatt of the United States Bankruptcy Court for
the District of Delaware denied Nimble Gravity, LLC's motion to
dismiss the adversary proceeding captioned as Official Committee of
Unsecured Creditors v. Nimble Gravity, LLC, Adv. Proc. No. 24-50048
(Bankr. D. Del.).
Packable Holdings, and its affiliates, operated an e-commerce
company. The debtors filed these chapter 11 bankruptcy cases in
August 2022. In May 2023, this Court entered a stipulated order
granting the Committee derivative standing to pursue chapter 5
causes of action on behalf of the bankruptcy estate.
On April 22, 2024, the Committee initiated this adversary
proceeding to avoid and recover certain payments made by one of the
debtors (Pharmapacks, LLC) to Nimble Gravity, LLC for certain goods
and services. The Committee seeks to avoid these payments on the
ground that they were either preferential transfers or, in the
alternative, constructively fraudulent conveyances. The Committee
also seeks to disallow Nimble's claims pending repayment of the
allegedly avoidable transfers.
In June 2024, Nimble moved to dismiss the complaint for failure to
state a claim pursuant to Federal Rules of Civil Procedure 12(b)(3)
and 12(b)(6).
Plausible Preference claim
To establish a plausible preference claim, the plaintiff must (i)
identify the "nature and amount" of "each antecedent debt;" (ii)
identify each alleged preference; and (iii) allege that it
conducted reasonable due diligence into the defendant's known or
reasonably knowable affirmative defenses.
In its motion to dismiss, Nimble states that it entered into three
agreements where it "agreed to provide data mining services" to the
debtors. Nimble argues that the nature and amount of the antecedent
debt was not adequately pled because the complaint does not specify
which of the three agreements gave rise to the allegedly
preferential payments.
The Court finds the Committee has sufficiently alleged the nature
and amount of each antecedent debt and has provided enough detail
to allow Nimble to identify the payments at issue. To the extent
Nimble seeks additional information, it will be entitled to
discovery in accordance with the rules.
The Court also finds that the complaint has sufficiently identified
the transfers at issue.
The last element at issue here is reasonable due diligence. The
Committee alleged that it conducted its "own due diligence" into
Nimble's reasonably knowable affirmative defenses by reviewing "the
books and records" in its possession. It further alleges that it
sent Nimble a demand letter seeking additional information about
any potential affirmative defenses related to this action. That is
sufficient to meet the applicable pleading standard, the Court
states.
Constructive Fraud
The Court notes the complaint adequately alleges the transfer date,
face amount, transferee, and transferor. The complaint also alleges
that if the payments were not made on account of an antecedent
debt, then they were for less than reasonably equivalent value.
Nimble argues only that the complaint fails because it does not
meet the "heightened pleading standard" that applies in cases of
fraud. Nimble then cites to several cases discussing the actual
fraud standard. According to the Court, those cases, and the
heightened standard on which Nimble relies, are inapplicable in
this case. The Court thus finds that the Committee has properly
pled its alternative theory of constructive fraud.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=MJY04O
About Packable Holdings
Packable Holdings, LLC, now known as Pack Liquidating, LLC, is a
multi-marketplace e-commerce enablement platform.
Packable Holdings and five affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
22-10797) on Aug. 29, 2022. In the petition filed by its chief
legal officer, Maria Harris, Packable Holdings reported between
$100 million and $500 million in both assets and liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Cooley LLP and Potter Anderson & Corroon, LLP as
legal counsels; Alvarez and Marsal North America, LLC as financial
advisor; and Hilco Merchant Resources, LLC as liquidation agent.
Epiq Corporate Restructuring, LLC is the claims agent.
On Sept. 13, 2022, the U.S. Trustee for Region 3 appointed the
official committee of unsecured creditors in the Debtors' cases.
The committee selected Kelley Drye & Warren, LLP and A.M. Saccullo
Legal, LLC as bankruptcy counsel; ASK, LLP as special litigation
counsel; and Dundon Advisers, LLC as financial advisor.
JPMorgan Chase Bank, N.A., as administrative agent, is represented
by Richards, Layton & Finger, P.A. and Morgan, Lewis & Bockius
LLP.
PALACE AT WASHINGTON: Hires Binder & Malter LLP as Counsel
----------------------------------------------------------
Palace at Washington Square LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Binder & Malter, LLP to handle its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm seeks approval of compensation for the work of the firm
performed from July 31, 2023, through November 17, 2023, plus time
recently spent preparing the Fee Application, in the total amount
of $40,711.50 and reimbursement of expenses of $1,008.05.
Reno Fernandez, a partner at Binder & Malter, LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Reno Fernandez, Esq.
BINDER MALTER HARRIS & ROME-BANKS LLP
2775 Park Avenue
Santa Clara, CA 95050
Telephone: (408) 295-1700
Facsimile: (408) 295-1531
Email: reno@bindermalter.com
About Palace at Washington Square LLC
The Palace at Washington Square, LLC is a San Francisco-based
company engaged in activities related to real estate.
The Debtor filed Chapter 11 petition (Bankr. N.D. Cal. Case No.
23-30519) on July 31, 2023, with $1,958,560 in assets and
$1,717,638 in liabilities. Edward Schmitt Jr., vice president,
signed the petition.
Reno Fernandez, Esq., at the Law Offices of Reno Fernandez, is the
Debtor's legal counsel.
PANZER BUILDING: Hires Northgate Real as Real Estate Broker
-----------------------------------------------------------
Panzer Building Corp. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Northgate Real
Estate Group as real estate broker.
The firm will market and auction the Debtor's mixed-use building
located at 651 West 169th Street, New York, NY.
The firm will be paid a commission of 3.25 percent of the gross
purchase price.
Greg Corbin, a President at Northgate Real Estate Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Greg Corbin
Northgate Real Estate Group
433 Fifth Avenue, 4th Floor
New York, NY 10016
Tel: (212) 419-8855
About Panzer Building Corp.
Panzer Building Corp. owns a mixed-used apartment building located
at 651 West 169th Street, New York, NY. The Property is located in
the immediate vicinity of Columbia Presbyterian Hospital and is
improved by a five-story elevator building with 20 residential
apartments and two commercial stores, including a Subway fast food
restaurant and Premier Deli.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-11924) on Dec. 4,
2023, with $8,064,000 in assets and $6,660,619 in liabilities.
Nancy J. Haber, authorized representative, signed the petition.
Judge John P. Mastando III presides over the case.
Kevin Nash, Esq., at GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP, is the
Debtor's legal counsel.
PARKERVISION INC: All Three Proposals Approved at Annual Meeting
----------------------------------------------------------------
ParkerVision, Inc. held its Annual Meeting of Shareholders on
October 28, 2024, during which the Company's shareholders approved
three proposals that were submitted to them:
Proposal 1. The Company's shareholders elected Lewis H. Titterton
as Class II Director to serve for a term expiring at the 2027
annual meeting.
Proposal 2. The Company's shareholders approved an amendment to the
amended and restated articles of incorporation of the Company to
increase the number of authorized shares of common stock from
175,000,000 to 225,000,000. Articles of amendment to the Company's
amended and restated articles of incorporation setting forth the
amendment were filed with the Department of State of the State of
Florida on October 28, 2024 (as corrected on October 30, 2024) and
became effective on October 30, 2024.
Proposal 3. The Company's shareholders ratified the selection of
MSL, P.A. as the Company's independent registered public accounting
firm for the year ending December 31, 2024.
About ParkerVision
Jacksonville, Fla.-based ParkerVision, Inc., and its wholly-owned
German subsidiary, ParkerVision GmbH is in the business of
innovating fundamental wireless hardware technologies and products.
The Company has designed and developed proprietary RF technologies
and integrated circuits based on those technologies, and the
Company licenses its technologies to others for use in wireless
communication products.
Fort Lauderdale, Fla.-based MSL, P.A., the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 21, 2024, citing that the Company's current resources are not
sufficient to meet their liquidity needs for the next 12 months,
the Company has historically suffered recurring losses from
operations, and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
As of March 31, 2024, the Company had $3.1 million in total assets,
$43.2 million in total liabilities, and total stockholders' deficit
of $40 million.
PJP ENTERPRISES: Seeks Cash Collateral Access
---------------------------------------------
PJP Enterprises, Inc., asks the U.S. Bankruptcy Court for the
District of Wyoming for authority to use cash collateral and
provide adequate protection.
The Debtor requires the use of cash collateral to continue the
operations of its hotel, SureStay Plus Hotel by Best Western in
Cheyenne, Wyoming. A complication is that the business is being
managed by the owners through a separate management corporation,
Aadii, LLC, which the Debtor is attempting to address.
The Debtor has two secured creditors: (1) Ameritek/OSK X, to which
is owed about $6 million, and Nesh, to which is owed about $7
million. The Laramie County Treasurer's Office is a priority
creditor which is owed about $45,000. The monies owed to unsecured
creditors total about $ 1.9 million. OSK holds a UCC cash
collateral security interest and, as indicated, is owed at least $6
million.
The hotel, purchased in 2002, was refinanced with FMS Bank in 2012,
and subsequently, the loan was sold to OSK at a discounted rate in
2022. PJP had plans to upgrade the hotel to qualify as a Best
Western Plus facility, which would increase its base room rate.
However, the renovation project was marred by contractor fraud,
resulting in the theft of necessary furniture, fixtures, and
equipment. Despite regaining them, the project was halted with 40%
of the hotel's rooms remaining out of service. OSK, aware of the
issues, unilaterally increased the monthly payments, exacerbating
the hotel's cash flow constraints. The accelerated loan payments
and foreclosure proceedings ultimately led to PJP's default and
subsequent bankruptcy filing.
The Debtor proposes to provide OSK with adequate protection for the
Debtor's use of cash collateral in the form of replacement liens on
the Debtor's accounts receivable, equipment, and inventory acquired
postpetition, and $4,000 in monthly interest only payments on the
OSK obligation, credited at the non-default rate provided for in
the OSK loan documents. In addition, to the extent the adequate
protection payments prove to be inadequate to protect against any
diminution in the value of OSK's interest in the Debtor's
prepetition property resulting from the Debtor's postpetition use
of cash collateral, OSK will be entitled to a replacement lien.
A copy of the motion is available at https://urlcurt.com/u?l=Phowag
from PacerMonitor.com.
About PJP
Enterprises
PJP Enterprises, Inc. is a Single Asset Real Estate debtor. It is
the owner of the real property located at 1781 Fleishli Parkway,
Cheyenne, Wyo., valued at $4.46 million.
PJP filed voluntary Chapter 11 petition (Bankr. D. Wyo. Case No.
24-20373) on September 22, 2024, listing $4,501,000 in assets and
$15,188,709 in liabilities. PJP President Parinda Patel signed the
petition.
Judge Cathleen D. Parker presides over the case.
Hampton M. Young, Jr., Esq., at Hampton Young Law represents the
Debtor as bankruptcy counsel.
POLARIS OPERATING: Court OKs Continued Use of Cash Collateral
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
approved a stipulation between Polaris Operating, LLC and
Vista Bank, allowing the company to use the pre-bankruptcy lender's
cash collateral.
The court order authorized the company to use cash collateral in
accordance with its projected budget, which outlines projected cash
inflows and necessary expenditures from Oct. 25 to Nov. 29.
Polaris Operating was ordered to make an adequate protection
payment of $2 million to the lender, which will be applied to the
amounts due under their loan agreement.
The order preserves the rights of royalty and working interest
owners and other creditors, including BRS Mesa Vista Partners, LLC
and Amarillo National Bank, and prohibits Polaris Operating from
selling, encumbering, or disposing of any assets without the
lender's consent.
About Polaris Operating
Polaris Operating, LLC and affiliates are privately held
independent oil and gas companies focused on acquiring, optimizing,
and developing conventional oil and gas properties with
redevelopment and new development opportunities. The Debtors' core
area of operations is in the Texas Panhandle, specifically in
Moore, Potter and Roberts counties, where they own and operate
hundreds of shallow oil and gas wells with a significant amount
infrastructure including gathering systems, power lines, disposal
wells, workover rigs and water trucks.
Polaris and affiliates filed Chapter 11 petitions (Bankr. S.D.
Texas Lead Case No. 23-32810) on July 28, 2023. In the petition
signed by its chief executive officer, Christopher Czuppon, Polaris
reported $10 million to $50 million in both assets and
liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Okin Adams Bartlett Curry, LLP as legal counsel;
SP Securities, LLC as investment banker; and Stout Risius Ross, LLC
as restructuring advisor. Douglas J. Brickley of Stout Risius Ross
serves as the Debtors' chief restructuring officer. Donlin, Recano
& Company, Inc. is the notice, claims and balloting agent.
POWER REIT: Narrows Net Loss to $325,015 in Fiscal Q3
-----------------------------------------------------
POWER REIT filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $325,015
on $1,426,112 of total revenues for the three months ended
September 30, 2024, compared to a net loss of $10,022,736 on
$488,531 of total revenues for the three months ended September 30,
2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $21,547,182 on $2,480,073 of total revenues, compared
to a net loss of $12,553,221 on $1,684,559 of total revenues for
the same period in 2023.
Going Concern
The Trust's objectives when managing its capital are to seek to
ensure that there are adequate capital resources to safeguard the
Trust's ability to continue operating and maintain adequate levels
of funding to support its ongoing operations and development such
that it can continue to provide returns to shareholders. The
Trust's management evaluates whether there are conditions or
events, considered in aggregate, that raise substantial doubt about
its ability to continue as a going concern within one year after
the date that the financial statements are issued.
The Trust's cash and cash equivalents and restricted cash totaled
$2,395,642 as of September 30, 2024, a decrease of $1,709,242 from
December 31, 2023. During the nine months ended September 30, 2024,
the decrease in cash was primarily due to the property carrying
costs for the properties that are security for the Greenhouse Loan
and paydown of the Greenhouse Loan.
The Trust's current loan liabilities totaled approximately $17.0
million as of September 30, 2024. The current loan liabilities
include approximately $16.3 million for the Greenhouse Loan which
is in default and is non-recourse to the Trust.
Of the total amount of cash, approximately $2.2 million is
non-restricted cash available for general corporate purposes and
approximately $163,000 is restricted cash related to the Greenhouse
Loan.
For the nine months ended September 30, 2024, the Trust determined
that there was substantial doubt as to its ability to continue as a
going concern as a result of current liabilities that far exceed
current assets, net losses incurred, reduced revenue and increased
property expenses related to the greenhouse portfolio.
In early 2024, the Trust sold three properties which is expected to
help with liquidity. The net proceeds from the sale of the
Salisbury, MA property was approximately $662,000 of unrestricted
cash and the approximately $456,000 loan was retired at closing and
is eliminated from current liabilities. The sale of two greenhouse
properties in Colorado produced approximately $53,000 of restricted
cash and should generate cash flow from the seller financing
provided that should provide cash to help service the Greenhouse
Loan.
The Greenhouse Loan is in default and the subject of litigation.
Power REIT continues to try to work with the lender to establish a
path forward. However, the Greenhouse Loan is non-recourse to Power
REIT which means that in the event it cannot resolve issues with
the lender and they foreclose on the properties, Power REIT should
be able to continue as a going concern albeit with a smaller
portfolio of assets given that non-restricted cash should provide
greater than twelve months of liquidity for capital needs unrelated
to the greenhouse properties which are security for the Greenhouse
Loan. In addition, it is possible that the Greenhouse Loan will
lead to distressed sales including possibly through foreclosures,
which would have a negative impact on the Trust's prospects. A
forbearance agreement with the lender for the Greenhouse Loan was
effective on May 10, 2024, which provides additional time to retire
the loan. The expiration date of the original forbearance agreement
was September 30, 2024. On September 30, 2024, PW CanRE Holdings
(defined below) entered into an amendment to the forbearance
agreement which moves the expiration of the forbearance agreement
to January 31, 2025. PW CanRE Holdings is in discussions with the
lender to continue a process of orderly sales of assets to try and
maximize value but there can be no assurance the bank will extend
the forbearance again if the loan is not retired in a timely
fashion. There can be no assurance that the efforts to sell,
re-lease or recapitalize the assets which are security for the
Greenhouse Loan will ultimately retire the loan per the
requirements of the forbearance agreement.
As of October 31, 2024, The Trust's current liabilities far exceed
current assets. If the Trust's plan to focus on selling properties,
entering into new leases, improving cash collections from existing
tenants and raising capital in the form of debt or equity is
effectively implemented, the Trust's plan could potentially provide
enough liquidity. However, the Trust cannot predict, with
certainty, the outcome of its actions to generate liquidity.
Power REIT's cash outlays at the parent company level consist
principally of professional fees, consultant fees, NYSE American
listing fees, legal, insurance, shareholder service company fees,
auditing costs, and general and administrative expenses. The
Trust's cash outlays related to its various property-owning
subsidiaries consist principally of principal and interest expense
on debts property maintenance, property taxes, insurance, legal as
well as other property related expenses that are not covered by
tenants. To the extent the Trust needs to raise additional capital
to meet its obligations, there can be no assurance that financing
on favorable terms will be available when needed. If Power REIT is
unable to sell certain assets when anticipated at prices
anticipated, we may not have sufficient cash to fund operations and
commitments.
As of September 30, 2024, the Trust had $48,438,349 million in
total assets, $38,665,124 in total liabilities, and $9,773,225 in
total equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/4hzv7xzp
About Power REIT
Old Bethpage, N.Y.-based Power REIT is a Maryland-domiciled,
internally-managed real estate investment trust that owns a
portfolio of real estate assets related to transportation, energy
infrastructure, and Controlled Environment Agriculture in the
United States.
PRAIRIE KNOLLS: Gets OK to Use Cash Collateral Thru Nov. 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina granted, on an interim basis, the motion by Prairie Knolls
MHP, LLC to use the cash collateral of its secured creditors until
Nov. 30.
The company can use the cash collateral to pay its ordinary
business expenses, including payroll, office supplies, utility
payments, maintenance, lawn care, rent, management fees, insurance,
and advertising costs.
Prairie Knolls is not authorized to exceed any line item on the
authorized expenditures unless approved by its Chapter 11 trustee,
and if the trustee approves, then the total of all amounts in
excess of all line items must not exceed 10% of the total
authorized expenditures.
As protection, secured creditors will receive replacement liens on
the company's assets, with the same priority as their
pre-bankruptcy liens.
The next hearing is scheduled for Dec. 3.
About Prairie Knolls MHP
Prairie Knolls MHP, LLC is a company that owns and operates a
mobile home park. It provides residential spaces for mobile homes,
offering community living environments for individuals and
families.
Prairie Knolls MHP sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03432) with $10
million to $50 million in both assets and liabilities. John C.
Bircher III, serves as interim Chapter 11
trustee.
Judge Pamela W. Mcafee oversees the case.
The Debtor is represented by Bradley S. Shraiberg, Esq., at
Shraiberg Page P.A.
PRECISION SWISS: Seeks to Use Cash Collateral Thru Nov 15
---------------------------------------------------------
Precision Swiss Products, Inc., asks the U.S. Bankruptcy Court for
the Northern District of California for authority to use cash
collateral and provide adequate protection, through November 15,
2024.
The Debtor needs to use $1.6 million of cash collateral during the
next 30 days of its Chapter 11 case.
The Debtors existing creditors with interest in the Debtor's cash
collateral are the following:
(1) Gateway Acceptance Company $3.8 million (senior lien secured by
certain factored receivables and a blanket lien on all the Debtor's
assets);
(2) U.S. Small Business Administration $2 million (junior lien
secured by all of the Debtor's assets;
(3) MCA lenders $178,000 (est) (junior liens secured by all the
Debtor's assets; and
(4) Santa Clara County Tax Collector $66,777
In addition, the Debtor is party to multiple capital leases which
are subject to security interests of the lessor and/or creditor.
The Debtor proposes in order to provide adequate protection to the
secured creditors, postpetition replacement liens in the same
amounts and priority as the secured parties existing rights in the
cash collateral.
A copy of the motion is available at https://urlcurt.com/u?l=OBq3yt
from PacerMonitor.com.
About Precision Swiss Products, Inc.
Precision Swiss Products, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-51678) on
November 4, 2024. In the petition signed by Norbert Kozar, chief
executive officer, the Debtor disclosed up to $50 million in both
assets and liabilities.
Chris Kuhner, Esq., at Kornfield, Nyberg, Bendes, Kuhner & Little
P.C., represents the Debtor as legal counsel.
PREPAID WIRELESS: Seeks to Use T-Mobile's Cash Collateral
---------------------------------------------------------
Prepaid Wireless Group, LLC, asks the U.S. Bankruptcy Court for the
District of Maryland, Greenbelt Division, for authority to use up
to $1.2 million of the cash collateral of T-Mobile USA, Inc., and
provide adequate protection.
The Debtor requires immediate authority to use the cash collateral
to permit, among other things,
(a) the orderly operation of the Debtor's businesses,
(b) the management and preservation of the Debtor's assets,
(c) the maintenance of the Debtor's business relationships with
customers, vendors, and contract parties, and
(d) the satisfaction of other working capital and operational needs
including the fees and expenses of the Chapter 11 Cases.
The Debtor operates a Mobile Virtual Network Aggregator (MVNA) in
the U.S. The company, through its subsidiaries, provides mobile
telephone services to over 4.5 million Americans, with a focus on
low-income individuals. Following unexpected demands from T-Mobile
for a large security deposit, the company was forced to file for
Chapter 11 bankruptcy protection to prevent disruptions to its
services and pursue successful reorganization.
As adequate protection, the Debtor proposes to grant T-Mobile a
superpriority claim against the Debtor as provided in 11 U.S.C.
section 507(b) and a valid, binding, enforceable, and perfected
replacement lien under 11 U.S.C. section 361(2) in all assets of
the Debtor.
A copy of the motion is available at https://urlcurt.com/u?l=7WOnpU
from PacerMonitor.com.
About Prepaid Wireless Group LLC
Prepaid Wireless Group LLC is a provider of wireless
telecommunications services.
Prepaid Wireless Group LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-18852) on October
21, 2024. In the petition filed by Paul Greene, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Debtor is represented by Irving Walker, Esq.at COLE SCHOTZ P.C.
PRIMELAND REAL: Agentis Updates List of Deposit Holders
-------------------------------------------------------
The law firm of Agentis, PLLC, filed a second amended verified
statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure to disclose that in the Chapter 11 case of Primeland Real
Estate Development, LLC, the firm represents the Ad Hoc Committee
of Deposit Holders.
The AHC was organized and formed by Brickell Realty Group, LLC
("BRG") when BRG was approached by a number of parties who had paid
deposits to the Debtor.
Thereafter Agentis assisted BRG in the drafting of bylaws governing
how the AHC would interact with its respective members, its
counsel, the Debtor and other interested parties. Each holder of a
disclosable economic interest in the Debtor (each, a "Claimant" and
each disclosable economic interest, a "Claim") reflected below has
consented to the representation of Agentis as counsel for the AHC.
The aggregate Claims represented by the AHC equal $8,587,520.79 as
of the date of this Disclosure.
1. Cristina Franceschi Carlsen
Luis Carrera 1177
Apartamento 205
Vitacura Santiago de Chile Chile
7650726
* Contract for Unit# B504; $76,240.50 Deposit
2. Claudia Medina
Pennsylvania 249 Dep 201 Col. Naples
03810 Benito Juarez, Ciudad Mexico
Mexico
And
Ricardo Valencia
Colina de Mocusari, 76 Fracc
Boulevares 53140
Naucalpan de Juarez Mexico
* Contract for Unit# F205; $220,990.00 Deposit
3. Alejandro Rojas Pinilla
And
Carlos Mauricio Castro Quintero
Calle 138 #54-60 casa 70 Bogota,
Colombia
* Contract for Unit# B205; $101,490.00 Deposit
4. Eduardo Rodriguez Ampudia
Lago Alberto 300, building 1, Apt 2301
Miguel Hidalgo Mexico City 11320
Mexico
* Contract for Unit# A604; $61,487.91 Deposit
5. Lyda Castillo
Carrera 71 #24-50
Apto 207 Bogota
Colombia
And
Cesar Arnulfo Pico
Carrera 71 #24-50
Apto 207 Bogota
Colombia
* Contract for Unit# B404; $69,354.00 Deposit
6. Eduardo Camacho
Cerrada Empresa #13
Cor Extremadura
Insurgentes
Avenida Benito Juarez
Mexico Ciudad Mexico
And
Olivia Estela Paz Murillo
Alicia Camacho
* Contract for Unit# F203 and F207; $96,351.00 Deposit
7. Adolfo Ramiro Carbajal Trujillo+
Carbajal Trujillo
CalleLosTiamos151
Lima, Peru
* $477,422.40 Deposit
8. Linda Nasser
And
Jose Alberto Sanchez de lla Loyala
* Contract for Unit# B305; $73,766.80 Deposit
9. Eduardo Gonzalo Damacen Angulo
Ac Canto Bello 187
Lima 36, Peru
* Contract for Unit# E702; $139,064.10 Deposit
10. Raed Karame and Elisa Bernal
115 Columbus Circle, Westmoorings
Carenage, Port-Of-Spain
Trinidad & Tobago 110611
* Contract for Unit# F703; $463,547.00 Deposit
11. Minerva Mendoza Carmona
Reforma norte 122 Colonia centro CP
75700 Tehuacan
Puebla, Mexico
And
Jose Miguel Barbosa Mendoza
And
Luis Gerado Barbosa Mendoza
* Contract for Unit# E501; $136,560.30 Deposit
12. Hector Enrique Monroy Valdez
Av De Los Poetas #100 Edf. Basalato
1B-1203 Cumbres De Santa Fe
Cuajimalpa, Ciudad De Mexico,
Mexico 05600
* Contract for Unit# D404; $78,470.48 Deposit
13. Diana Sainz Pepe
880 White Moonstone Loop
San Jose, CA 95123
* Contract for Unit# A605; $74,225.50 Deposit
14. Daniela Alejandra Herrera Zepeda
Peri Sur Manuel Gomez # 5879 Col.
Lopez Cotilla
San Pedro Tlaquepaque Jalisco Cp
45615 Mexico
* Contract for Units B703 and C409; $264,153.00 Deposit
15. Raul Alejandro Garcia Cantu
Tamesis 312 colonia Del Valle San
Pedro Garza Garcfa
Nuevo Leon Mexico CP 66220
* Contract for Unit# E707; $157,123.81 Deposit
16. Juan Carlos Espinoza Romero
10419 Winwick Ln
Orlando, Fl 32832
And
Yismik Alexander Daboin Godoy
* Contract for Unit# B505; $58,581.00 Deposit
17. Julio Cesar Yapur Kalis
Lago Zurich 272 depto 807, Cp. 11529
col. Ampliacion Granada
Alcaldia Miguel Hidalgo, Ciudad de Mexico
* Contract for Unit# B101; $125,940.00 Deposit
18. Angel Santana Ruiz
And
Angel Santana Torres
Campos Primaverales 303 Col Brisas
Del Campo Secc 1
Leon Guanajuato Mexico Cp 37297
* Contract for Unit# B603; $137,793.90 Deposit
19. Gonzalo Mata Camacho
Islas Marquesas 14 Col. Residencial
Chiloca 52930
Edo Mexico, Mexico
* Contract for Unit# F503; $108,475.20 Deposit
20. Luis Enrique Macias Sanchez
Blvd Bosque Real 2100, 401-C, Club
de Golf Bosque Real 52774,
Huixquilucan, Estado de Mexico,
Mexico City, Mexico
* Contract for Unit# A208; $71,815.20 Deposit
21. Daniel Gelemovich
Contabilidad 100, 6028. Lomas Anahuac,
Huixquiluca, Cp 52786 Mexico
* Contract for Unit F200; $118,530.00 Deposit
22. Oscar Arizpe Rodriguez
* Contract for Unit F509; $117,475.32 Deposit
23. Abad Avila Ochoa
Priv Jardin De Alcatraz 1620 Rdcial
Alcazar Del Country
Ahome, Sinaloa, Mexico 81271
* Contract for Unit B301; $134,106.00 Deposit
24. Jose Raul Carreto Diaz
Bosque De Alerces 286
Bosques De Las Lomas – Miguel
Hidalgo, CP 11700
Mexico City, Mexico
* Contract for Unit F-607; $115,560.00 Deposit
25. Rodrigo Arena Herrero
Mision De Sn Diego 4 Cp.00000 Via
Atlixcoyotil Concepcion La Cruz 07# C.P 72197
San Andres De Cholula, Puebla, Mexico
* Contract for Unit F-306; $195,564.00
26. Alicia Camcho
17732 Oak Bridge Street
Tampa, FL 33647
* Contract for Unit# F203; $96,351.00 Deposit
27. Ulises Rivas Gilio+
Lope De Vega #321
Colonia El Frenso
Torreon Mexico
* Contract for Units B-103 and E-405; $217,788.60 Deposit
28. Alvaro Mucino Garcia+
AV. 16 de Septiembre 190, Col. Contadero,
Alcaldia Cuajimalpa
Ciudad de Mexico, C.P. 05500
* Contract for Unit F-408; $121,629.30 Deposit
29. Daniel Manning Shelley Medina+
Vasco De Quiroga 1900 Int 201, Col Santa Fe
Alvaro Obregon Mexico City 01210 Mexico
* Contract for Unit F-501; $128,061.00 Deposit
30. Alvaro Rode Morales+
25 de abril 629 Nueva Helvecia URUGUAY
* Contract for Units A-708, F-708 and -F503; $336,960.00 Deposit
31. Jorge R. Mendez Rodriguez and Aurora Munoz+
Avenida del libertador 4626 piso 4 CABA ARGENTINA
* Contract for Unit E-503; $137,000.00 Deposit
32. Ana Monica Carranza Cortes+
Valle de Santo Domingo 638 , Club de Golf
tres Marias Morelia Michoacan Mexico
* Contract for Unit A-303; $133,524.88 Deposit
33. Fabian Parra+
5005 Collins Ave., Apt 709
Miami Beach, FL 33140
* Contract for Unit E-507; $166,518.20 Deposit
34. Maria Guadalupe Herrera Hernandez+
Dr. Carlos Aceves #23, Valle Rubí Animas, Xalapa
Veracruz, MEXICO 91193
* Contract for Unit F-606; $169,976.70 Deposit
35. Miguel Francisco Herrera Hernandez+
Retorno 4 del T epozteco 12, Colinas del Bosque
Tlalpan, CDMX MEXICO 14608
* Contract for Unit F-506; $163,095.40 Deposit
36. Hugo Javier Bilbao+
5005 Collins Avenue., Apt 709
Miami Beach, Florida 33140 USA
* Contract for Unit C-509; $149,360.00 Deposit
37. Mayvely Aracely Salguero Soliz and Mario Ernesto Martinez
Castillo+
Kilometro 14.5 al pacifico, Hacienda de las
Flores, Andana 1, casa 91, zona 2
Villa Nueva GUATEMALA 01064
* Contract for Units A-704 and D-501; $302,829.37 Deposit
38. Pistina, LLC +
Marisa Graciela Olivero
18305 Biscayne Blvd., Suite 216
Aventura, FL 33160
* Contract for Unit D-601; $150,734.00 Deposit
39. Rainer Strauss Escobedo+
Paseo de tamarindos #130 apt. 304
Col. Bosques de las Lomas Del. Cuajimalpa CP. 05120 Mexico
* Contract for Unit E603 $135,158.51 Deposit
40. Pedro Cerecer Molina and Blanca Lorena Boone Espana+
Calle Paseo de Tamarindos #130 depto 604
col.Busques de las lomas CP 05120
Del Cuajimalpa SDMX, Mexico
* Contract for Units D-504 and D-205; $172,973.10 Deposit
41. Pedro Juan Nacif Gonzalez and Marco
Antonio Pescador Aguilar+
1200 Brickell Avenue, Suite 800
Miami, Florida 33131
* Contract for Unit F-206; $118,530.00 Deposit
42. Victor Velazquez Patron+
Av. Arteaga y Salazar 187, Col. Contadero
05500, Cuajimalpa de Morelos, Mexico
Contract for Unit D-605; $139,274.00 Deposit
43. Joel Castiblanco Saenz and Bryan Estiwar
Florez Castañeda+
Carrera 24 #10-60
Bogota, Colombia
* Contract for Unit A-208; $202,076.50 Deposit
44. Imanol Reyes Guzman and Oscar Reyes Guzman+
Lope De Vega 132 P5 Int 0, Polanco, Miguel
Hidalgo, 11560
Mexico City, Mexico
* Contract for Unit A-707; $184,426.50 Deposit
45. Monica Angel Botero and Luis Fernando Ocampo Maya+
Km 3 Via El Camino Cristales Casa Los Tulipanes
Armenia Quindio 630008 Colombia
* Contract for Unit F-508; $129,707.70 Deposit
46. Ana Lily Cardona Maldonado and Ana Cristina Cardona Maldonado
de Salguero+
15av 1-72 sector B1 zona 8 Mixco, Ciudad San Cristóbal
Código de acceso 9998# Guatemala, Guatemala
* Contract for Unit A-404; $149,658.00 Deposit
47. Chegwinmar LLC+
Alberto Chegwin
3701 N COUNTRY CLUB DRAPT 607
Aventura, FL 33180
* Contract for Unit B-407; $181,212.30 Deposit
48. Martha Patricia Lobo Castro+
And
Gerardo Vallecillo Marquez
751 Heron Rd
Weston, FL 33326
* Contract for Unit A-404; $149,658.00 Deposit
49. 1010 Brickell 2608 LLC+
Anita Marie Espina
3029 NE 188 St Apt 709
Aventura, FL 33180
* Contract for Unit B-203; $132,897.00 Deposit
50. Virginia Mata and Juan Manuel Gonzalez Martinez
Lago Texaco 5812, Col Lagos Del Bosque
Ciudad Mexico
* Contract for Unit C-404; $79,563.30 Deposit
51. Ignacio Fiterre
* Broker for various Ad-Hoc Committee of Deposit Holders Member
52. George Psomas+
1517 16th Avenue NW
Rochester, MN 55901
* Contract for Unit A-508; $164,030.00 Deposit
53. Jorge Luis Maldonado Razuri+
Calle Barlovento 233 Sol de La Molina, La
Molina - Lima, Perú
* Contract for Unit A-401; $161,600.00 Deposit
54. Florida Capitals Palm, LLC+
782 NW 42nd Avenue #433
Miami, FL 33126
* Contract for Unit D-401; $147,999.60 Deposit
55. Cristian Marcelo Monsalve Salinas+
Avda Ricardo Lyon 2121. Dpto 1105
Providencia, Santiago, Chile
* Contract for Unit D-407; $147,999.60 Deposit
56. Angela Di Maggio+
7680 NW 103rd Place
Doral, FL 33178-4082
* Contract for Unit E-607; $129,751.50 Deposit
57. Gerardo Antonio Alcega Morales+
And
Greis Joanna Castillo Serrano
16979 SW 90 Terrace
Miami, FL 33196
* Contract for Unit D-405; $113,029.20 Deposit
Counsel for the Represented Parties:
AGENTIS PLLC
Robert P. Charbonneau, Esq.
45 Almeria Avenue
Coral Gables, Florida 33134
T. 305.722.2002
About Primeland Real Estate Development
Primeland Real Estate Development LLC is the fee simple owner of an
incomplete condominium project known as Sycamore Orlando Resort
located at 2691 Livingston Rd, Kissimmee, FL 34747 having an
appraised value of $40 million.
Primeland Real Estate Development LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04612)
on August 29, 2024. In the petition filed by Karen M. Costa, as
president, the Debtor reports total assets of $40,828,477 and total
liabilities of $41,815,331.
The Honorable Bankruptcy Judge Lori V. Vaughan oversees the case.
The Debtor is represented by:
Frank M. Wolff, Esq.
NARDELLA & NARDELLA, PLLC
135 W. Central Blvd
Suite 300
Orlando, FL 32801
Tel: 407-966-2680
Fax: 407-966-2681
E-mail: fwolff@nardellalaw.com
PROJECT ALPHA: S&P Affirms 'B' ICR on Recapitalization
------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on
business intelligence software provider Project Alpha Intermediate
Holding Inc. (d/b/a Qlik) and its 'B' issue-level rating on the
company's first-lien debt. At the same time, S&P assigned its 'B-'
issue-level rating and '5' recovery rating to Qlik's new
second-lien term loan.
The stable outlook reflects S&P's expectation that, despite its
elevated interest expense and leverage burden, Qlik will maintain
funds from operations (FFO) cash interest coverage in the mid-1x
area and generate more than $100 million of unadjusted free
operating cash flow (FOCF) in 2025.
Qlik has continued to deliver on its cross-selling and cost-savings
targets since its acquisition of Talend in May 2023. In the first
three quarters of the company's fiscal year 2024 (Dec. 31, 2024),
the company grew revenue by nearly 10% year-over-year on a
constant-currency basis. Qlik's sales activity accelerated
sequentially over the period, supported by cross-selling tailwinds,
an increase in its subscription revenue, and a broader improvement
in enterprise IT spending. The company's cross-selling activities
over the period contributed to an about 1% expansion in its annual
recurring revenue (ARR). Qlik also expanded its S&P Global
Ratings-adjusted EBITDA margins to about 37% for the 12-months
ended Sept. 30, 2024, on the realization of cost savings stemming
from the actions it implemented since the close of the Talend
acquisition. S&P said, "For fiscal year 2024, we expect Qlik will
maintain its current performance trajectory and deliver S&P Global
Ratings-adjusted EBITDA margins near 37%. We expect further
improvements in the company's scale and profitability will
strengthen its cash flow, enabling it to generate about $250
million of FOCF in fiscal year 2024."
S&P said, "The stable outlook reflects our expectation that,
despite its elevated interest expense and leverage burden, Qlik
will maintain FFO cash interest coverage in the mid-1x area and
generate more than $100 million of unadjusted FOCF in 2025.
"We could consider lowering our rating on Qlik if we believe it
will sustain FFO cash interest coverage below the mid-1x area and
generate less than $100 million of FOCF (inclusive of one-time
integration or acquisition costs, debt-funded acquisitions, or
shareholder returns). This could occur if the company faces
disruptions to its business operations from its large cost-savings
plan and weaker demand amid a tougher macroeconomic environment or
rising competitive pressures.
"We could raise our rating on Qlik if we believe it can sustain FFO
cash interest coverage exceeding the mid-1x area and generate more
than $200 million of FOCF. This could occur if the company achieves
a greater-than-expected level of synergies and continues to benefit
from stable demand for its data integration and analytics
solutions."
PURDUE PHARMA: Close to Reaching Broad Settlement w/ Sacklers
-------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Purdue Pharma LP,
the maker of OxyContin, has made considerable progress toward a
broad settlement with the Sackler family, its owners, though
additional time is needed to finalize the deal, a court-appointed
mediator reported on Thursday, October 31, 2024.
Shelley Chapman, a retired bankruptcy judge and one of two
mediators in the negotiations, stated in a New York court hearing
that while some issues remain unresolved, there has been
"substantial and meaningful movement" toward a settlement.
"The parties are getting closer and closer by the day, and the
remaining open issues, in our view, are resolvable," Chapman
noted.
Following this update, Judge Sean Lane agreed to extend an
injunction until December 2, 2024, temporarily protecting Sackler
family members from civil lawsuits accusing them of contributing to
the opioid crisis.
The injunction has been repeatedly extended since the U.S. Supreme
Court blocked an earlier $6 billion settlement this year, following
objections from the Justice Department's bankruptcy watchdog. In
court filings, Purdue warned that allowing lawsuits against the
Sacklers now could delay or even derail any potential resolution of
the litigation.
Mediators Shelley Chapman and Eric Green are working to achieve a
settlement supported by all Purdue stakeholders, including opioid
victims, hospitals, state attorneys general, and government
authorities nationwide.
In court filings, Sackler family members have denied any wrongdoing
and, as of June, expressed support for "a resolution that provides
substantial resources to help address a complex public health
crisis."
Judge Lane extended the injunction shortly after granting Purdue
creditors' committee the exclusive authority to pursue civil claims
against the Sacklers if settlement talks collapse. The committee
has backed both the settlement discussions and the injunction
extensions.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
QUEST IDENTITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
-----------------------------------------------------------------
Moody's Ratings downgraded Quest Identity Intermediate Limited's
corporate family rating to Caa2 from Caa1 and probability of
default rating to Caa2-PD from Caa1-PD. Concurrently, Moody's
downgraded Quest's subsidiary OID-OL Holdings, Inc.'s backed senior
secured first lien bank credit facilities to Caa1 from B3, and the
rating for its backed senior secured second lien term loan to Ca
from Caa3. The outlook was changed to negative from stable for both
issuers.
The downgrade reflects Quest's weaker than expected operating
performance and Moody's expectation of continued negative free cash
flow generation, which will further weaken its liquidity. Moody's
view Quest's capital structure as unsustainable with a debt/EBITDA
(inclusive of Moody's adjustments) in excess of 9.5x for the LTM
period ended July 31, 2024. Moody's believe that the company has
limited financial flexibility to execute a meaningful operational
turnaround driven by subpar operating performance, very high
interest costs, and weak liquidity.
Governance is a key driver of the rating action, including risks
from an aggressive financial policy with an unsustainable capital
structure
RATINGS RATIONALE
The Caa2 CFR reflects Quest's very high financial leverage and
eroding liquidity position, offset to some degree by the company's
diverse customer base, end markets, and well-regarded core product
offerings. Quest's high debt burden following the Clearlake buyout
in February 2022 has contributed to its very high debt/EBITDA
leverage of mid 9x and resulted in very high interest expense.
While Moody's project modest improvement in profitability driven by
cost saving measures, the company's leverage is expected to remain
flat with the likelihood of further borrowings on the revolving
credit facility to fund cash flow deficits. As of fiscal second
quarter ended July 2024, $315 million was outstanding under Quest's
$400 million revolving credit facility.
Quest's governance issuer profile score of G-5 and credit impact
score from ESG considerations of CIS-5 reflect the company's
historically elevated financial risk tolerance and
weaker-than-expected operating performance.
Quest's LTM Q2 2025 revenue has remained relatively flat as the
growth in the company's SaaS and Term License has largely been
offset by the declines in the perpetual license and maintenance
revenue. Moody's expect this trend to continue over the next 12
months, which will result in the company's revenue remaining
largely flat. Quest will need to demonstrate its ability to grow
revenue during the business model transition.
At the same time, the rating takes into consideration, the
company's good niche positions of its Quest Software and One
Identity product offerings which support strong EBITDA margins.
Operating performance will be supported by Quest's identity-centric
cybersecurity offering and cloud office migration tools as
organizations continue to invest in cybersecurity and digital
transformations. The company's diversified customer base across
different end markets will provide revenue stability over the next
12 months.
Quest's liquidity profile is weak reflecting negative free cash
flow and heavy usage of its revolver through 2025. As of July
2024, the company had cash balances in excess of $70 million and
roughly $85 million of availability under its $400 million
revolving credit facility. Moody's expect Quest to maintain ample
cushion under the springing financial covenant in its revolving
credit facility that requires Quest to maintain net first lien
leverage ratio of less than 9.63x if revolver utilization exceeds
35%.
The negative outlook reflects Quest's weak liquidity as free cash
flow is expected to remain negative over the next 12 months.
Moody's expect leverage to remain flat at around mid 9x (on a
Moody's adjusted basis) over the outlook period. The negative
outlook also reflects Moody's belief that the company's capital
structure is unsustainable and a debt restructuring is likely in
the near term, which could involve a debt exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Quest's ratings if the company improves its
liquidity profile and stabilizes its operating performance.
The ratings could be downgraded if Moody's assessment of recovery
in a default scenario deteriorates.
Quest Identity Intermediate Limited is a holding company of two
distinct operating companies: Quest Software and One Identity.
Quest Software is a provider of integrated infrastructure software
solutions for managing systems, data, and applications. One
Identity provides identity security solutions including identity
governance, privileged access management and access management
solutions.
The principal methodology used in these ratings was Software
published in June 2022.
R2 MARKETING: Gets Green Light to Use Cash Collateral
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California,
Santa Ana Division granted R2 Marketing and Consulting, LLC
permission to utilize cash collateral to pay its operating
expenses.
The court authorized the company to use cash collateral but with
certain conditions. Notably, no insider compensation can be paid
without a separate motion and court approval.
The U.S. Small Business Administration, a secured creditor, will
receive regular monthly payments of $2,515 as adequate protection.
Additionally, SBA will receive a replacement lien on all
post-petition revenues of the company, effective as of the petition
date, to the same extent, priority, and validity as its original
lien on SBA's personal property collateral.
About R2 Marketing and Consulting
R2 Marketing and Consulting, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12045)
on August 15, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Scott C. Clarkson presides over the case.
Anerio V. Altman, Esq., at Lake Forest Bankruptcy Ii, Apc
represents the Debtor as legal counsel.
RED RIVER: Insurers Want Chapter 11 Plan Revised
------------------------------------------------
Jennifer Mandato of Law360 reports that a group of insurers for
Johnson & Johnson has asked a Texas judge to deny approval of the
Chapter 11 plan disclosure statement for the company's Red River
Talc unit, asserting it is not confirmable. The insurers argue that
J&J intends to place the burden of bankruptcy-related claims on
them.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
RELIANT LIFE: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Reliant
Life Shares, LLC.
The committee members are:
1. Gwendalyn Douglas
Executor for estate of Raymond Douglas
225 Miramonte Road
Walnut Creek, CA 94597
dgwendalyn@aol.com
(925) 330-7852
2. Melissa H. Foland
11784 Bloomington Way
Dublin, CA 94568
folandm@yahoo.com
(925) 766-3181
3. Kailesh Karavadra
1653 Via Di Salerno
Pleasanton, CA 94566
Kailesh.karavadra@ey.com
(925) 998-2896
4. My Thi Nguyen
c/o John D. Nguyen
550 W. Orangethorpe Ave.
Placentia, CA 92870
john@thejnfgroup.com
(714) 231-5807
5. Craig Patrick Sherreitt
22 San Julian
Rancho Santa Margarita, CA 92688
sherreitt@gmail.com
(949) 292-2388
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Reliant Life Shares
Reliant Life Shares, LLC is an investment service in Los Angeles,
Calif.
Reliant Life Shares sought relief under Chapter 11 of the U.S.
Bankruptcy Code {Bankr. C.D. Calif. Case No. 24-11695) on Oct. 7,
2024, with $10 million to $50 million in both assets and
liabilities. Nicholas Rubin, chief restructuring officer, signed
the petition.
Judge Martin R. Barash oversees the case.
The Debtor tapped Raines Feldman Littrell, LLP as legal counsel and
Force Ten Partners, LLC as restructuring advisor. Stretto is the
claims agent.
REMARK HOLDINGS: Issues 150K Series A Preferred Shares to CEO
-------------------------------------------------------------
Remark Holdings, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a stock purchase agreement pursuant to which it issued 150,000
shares of its Series A Redeemable Voting Preferred Stock to its
Chief Executive Officer, Kai-Shing Tao.
On the same date, the Company entered into a voting agreement with
Mr. Tao pursuant to which Mr. Tao agreed to vote the shares of
Series A Preferred Stock only in accordance with the
recommendations of our Board of Directors with respect to the
Voting Proposals.
Additionally, the Company filed a Certificate of Designations (with
the Secretary of State of Delaware designating the rights,
preferences and limitations of a new series of preferred stock with
150,000 shares designated as Series A Preferred Stock.
The Series A Certificate of Designations contains the following
significant provisions:
* Dividends. The holder(s) of shares of the Series A Preferred
Stock are not entitled to dividends of any kind.
* Liquidation Preference. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the
Corporation, the holder(s) of shares of Series A Preferred Stock
will be entitled to be paid out of the assets the Corporation has
legally available for distribution to its stockholders, with
respect to the distribution of assets upon liquidation, dissolution
or winding up (collectively, a "Liquidation Event"), a liquidation
preference of $0.001 per share, before any distribution of assets
is made to holders of the Corporation's common stock or any other
class or series of the Corporation's capital stock that it may
issue that ranks junior to the Series A Preferred Stock as to
liquidation rights. The Corporation's Series B Preferred Stock has
priority over the Series A Preferred Stock with respect to
distributions upon a Liquidation Event.
* Redemption. The Company will automatically redeem Series A
Preferred Stock on the date that is 270 days after the day that the
Corporation issues such shares of Series A Preferred Stock. At any
time prior to the Mandatory Redemption Date, we may, at our option,
redeem the Series A Preferred Stock by providing written notice of
not fewer than two days prior to such redemption.
* No Conversion Rights. The Series A Preferred Stock is not
convertible into our common stock.
* Voting Rights. Holders of the Series A Preferred Stock shall
be entitled to vote at meetings of the Corporation's stockholders
only on the following matters:
(i) the election of directors to serve until the following
annual meeting,
(ii) the ratification of the Company's independent registered
public accounting firm,
(iii) a proposal to approve the redomestication of the
Corporation from the State of Delaware to the State of Nevada,
(iv) a proposal to approve an amendment to the Corporation's
2022 Incentive Plan to increase the number of shares reserved under
the 2022 Incentive Plan, and
(v) a proposal to increase the number of authorized shares
of the Corporation's common stock. Each share of Series A Preferred
Stock shall be entitled to 1,000 votes on each Voting Proposal.
Except as otherwise required by law, the holder(s) of Series A
Preferred Stock shall vote together as a single class with holders
of Common Stock.
* No Preemptive Rights. The holders of the Series A Preferred
Stock will not have any preemptive rights to purchase or subscribe
to our common stock or any other security.
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.
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.
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.
RHODIUM ENCORE: Debtor, Whinstone Want Early Wins in Dispute
------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that bankrupt
cryptocurrency mining company Rhodium Encore and its landlord,
Whinstone US Inc., both submitted bids for early victories in a
Texas court on Friday, ahead of an upcoming trial concerning a
dispute over contract assumptions.
About Global Wound Care Medical Group
Global Wound Care Medical Group sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-34908) on
Oct. 21, 2024. In the petition signed by Owen B. Ellington, M.D.,
president, the Debtor disclosed up to $500 million in both assets
and liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Casey W. Doherty, Jr., Esq., at Dentons US LLP serves as the
Debtor's counsel. Verita Global is the Debtor's notice, claims, and
balloting agent.
RIGHT SIZE: Case Summary & 13 Unsecured Creditors
-------------------------------------------------
Debtor: Right Size Plumbing & Drain Co Inc.
d/b/a Limegreen Water Damage & Restoration
d/b/a Tip-Top Drain Pro's
21720 Nordhoff Street
Chatsworth, CA 91311
Business Description: The Debtor provides plumbing, drain and
sewer services, as well as water damage
restoration services.
Chapter 11 Petition Date: November 11, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11886
Judge: Hon. Victoria S Kaufman
Debtor's Counsel: Michael Jay Berger, Esq.
Sofya Davtyan, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
Sofya.Davtyan@bankruptcypower.com
Total Assets: $470,876
Total Liabilities: $2,742,840
The petition was signed by David E. Jones as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/AMBBXUY/Right_Size_Plumbing__Drain_Co__cacbke-24-11886__0001.0.pdf?mcid=tGE4TAMA
RIVERSIDE FARMERS: Seeks Cash Collateral Access
-----------------------------------------------
Riverside Farmers, LLC, asks the U.S. Bankruptcy Court for the
District of Maryland, Greenbelt Division, for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to meet its ordinary
and necessary expenses.
The Debtor experienced significant challenges in 2022 due to
industry-wide changes in the midst of the COVID pandemic, including
increased rates and stricter underwriting standards. These changes
led to decreased revenue and increased costs. To address these
issues, the Debtor obtained a business loan from M&T Bank to invest
in growth and improve efficiency. Despite recent improvements,
including securing new contracts and reducing expenses, the Debtor
still faces financial difficulties due to its existing debt burden.
To ensure its long-term viability, the Debtor has filed for Chapter
11 bankruptcy to reorganize its finances and implement a
sustainable business plan.
In order to maintain its operations during the COVID-19 pandemic,
the Debtor sought and obtained a $50,000 loan from the Small
Business Administration. On the Petition Date, the Debtor was
indebted to Lender in the amount of approximately $45,600. The
Pre-Petition Indebtedness is evidenced by a Note dated June 1,
2020, in the original principal amount of $50,000 evidencing
Lender's Loan #6379107807. As part of the loan documents, on June
1, 2020, the Debtor executed a Security Agreement in favor of
Lender.
On July 21, 2020, the Lender filed a UCC-1 Financing Statement with
the Maryland State Department of Assessments and Taxation,
asserting and perfecting a first-priority lien on and against,
substantially all personal property of the Debtor.
As adequate protection, the Lender will be granted a replacement
lien on the same assets and in the same priority and extent of its
Pre-Petition Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=uu7Fro
from PacerMonitor.com.
About Riverside Farmers, LLC
Riverside Farmers, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-19406) on November
6, 2024. In the petition signed by Kevin Bobkoskie,
owner/principal, the Debtor disclosed up to $500,000 in assets and
up to $500,000 in liabilities.
Matthew Abbott, Esq., at Wolff & Orenstein LLC, represents the
Debtor as legal counsel.
ROCKY MOUNTAIN: Global Value, Affiliates Increases Stake to 24.84%
------------------------------------------------------------------
Global Value Investment Corp., GVP 2021-A, L.P., GVP 2021-A,
L.L.C., Jeffrey R. Geygan, James P. Geygan, Stacy A. Wilke,
Kathleen M. Geygan, and Shawn G. Rice disclosed in a Schedule 13G
filed with the U.S. Securities and Exchange Commission that as of
October 29, 2024, they beneficially owned a total of 1,886,950
shares of common stock of Rocky Mountain Chocolate Factory, Inc,
representing 24.84% of the 7,597,819 shares of common stock, par
value $0.001 per share outstanding as of October 10, 2024, as
reported in the Form 10-Q for the fiscal quarter ended August 31,
2024, of Rocky Mountain Chocolate Factory, Inc.
A full-text copy of Global Value's SEC Report is available at:
https://tinyurl.com/mrxjsrdh
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer, and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of August 31, 2024, Rocky Mountain Chocolate Factory had $21.1
million in total assets, $10.6 million in total liabilities, and
$10.5 million in total shareholders' equity.
Going Concern
During the six months ended August 31, 2024, Rocky Mountain
Chocolate Factory used cash in operating activities of $5.7
million. Additionally, the Company was not in compliance with the
requirement under a credit agreement, as amended, with Wells Fargo
Bank N.A. to maintain a ratio of total current assets to total
current liabilities of at
least 1.5 to 1. The Company's current ratio as of August 31, 2024
was 1.24 to 1. The Credit Agreement was set to expire on September
30, 2024, and was repaid on September 30, 2024 (see Note 8). These
factors raise substantial doubts about the Company's ability to
continue as a going concern within the next 12 months.
ROLLER BEARING: Moody's Alters Outlook on 'Ba2' CFR to Positive
---------------------------------------------------------------
Moody's Ratings affirmed Roller Bearing Company of America, Inc.'s
("RBC Bearings") Ba2 corporate family rating and Ba2-PD probability
of default rating. Moody's also upgraded the company's senior
unsecured notes rating to Ba3 from B1. The outlook was changed to
positive from stable.
The affirmation of the Ba2 CFR reflects RBC Bearings leading
position in the highly engineered precision bearings and components
market for aerospace & defense and industrial end markets. Both
markets have enabled RBC Bearings to strengthen its credit metrics
and achieve deleveraging since the DODGE acquisition in 2021
through earnings growth and debt reduction.
The change in outlook to positive reflects Moody's expectation that
RBC Bearings will generate strong free cash flow from continued
sales growth along with a strong operating margin. In addition,
Moody's expect that a significant portion of free cash flow will be
used to continue to pay down debt and lower the company's
debt/EBITDA towards 2.0x over the next 12-18 months.
The upgrade of the senior unsecured notes reflects the ongoing
repayment of the senior secured first lien term loan, which has
reduced the amount of debt senior to the notes in RBC Bearings'
capital structure. Since the closing of the DODGE acquisition,
more than $700 million of RBC Bearing's term loan has been repaid.
RATINGS RATIONALE
RBC Bearings' Ba2 CFR reflects its leading position in the highly
engineered precision bearings and components market, serving both
the aerospace & defense and industrial end markets. RBC Bearings'
solid EBITDA margin and strong cash generation reflect the
company's brand strength along with the highly engineered nature of
its products. The DODGE acquisition in 2021 resulted in high
financial leverage at the time, with pro forma adjusted debt/EBITDA
of 5.1x including synergies. Since that time, leverage has steadily
declined to approximately 2.5x through earnings growth and debt
repayment. Moody's expect that debt/EBITDA will continue to decline
towards 2.0x over the next 12-18 months as cashflow is used to
repay debt. Moody's have not assumed any material acquisitions in
Moody's projections. Boeing and related suppliers are significant
customers of RBC Bearings. The strike of Boeing workers which began
on September 13th has the potential to create some disruptions for
RBC Bearings. Given that the Boeing workers voted to return to work
on November 6th, Moody's expect any potential impact to RBC
Bearings to be short-term in nature.
The company's SGL-1 speculative grade liquidity rating reflects
Moody's expectation that the company will maintain very good
liquidity over the next 12-18 months. The company's liquidity is
supported by Moody's expectation that the company will generate
healthy free cash flow over the next 12-18 months. The company has
near full availability under its $500 million revolving credit
facility with good covenant headroom.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's would consider a ratings upgrade if the company is able to
demonstrate resilient operating performance through different
economic cycles while further growing and diversifying its business
in relatively stable end markets. Adjusted debt/EBITDA sustained
below 3.0x and good liquidity with strong free cash generation will
also be considerations for an upgrade.
Conversely, ratings could be downgraded if operating performance
weakens such that adjusted debt/EBITDA is sustained above 4.0x.
Weaker liquidity, including meaningfully lower free cash
generation, and a more aggressive financial policy could also
result in a downgrade.
Headquartered in Oxford, Connecticut, RBC Bearings Incorporated,
the parent company of Roller Bearing Company of America, Inc., is a
publicly traded (NYSE: RBC) global manufacturer of highly
engineered precision bearings and component products serving the
industrial, defense and aerospace industries. Revenue for the
twelve months ended September 28, 2024 was $1.59 billion.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
ROSE ANIMAL: Amends Unsecured Claims Pay Details
------------------------------------------------
Rose Animal Hospital, LLC, submitted an Amended Plan of Liquidation
dated September 27, 2024.
The Debtor formerly owned real property from which operated a
veterinary clinic with Magnolia Rose Veterinary Clinic, Inc. The
remaining proceeds from the sale of the Debtor's real property in
the amount of $82,382.97 (the "Proceeds") are being held in the
court appointed receiver (the "Receiver")'s escrow account.
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
Class 2 shall consist of General Unsecured Claims. The allowed
unsecured claims total $450,731.89. If the Plan is confirmed under
Section 1191(a) of the Bankruptcy Code, the Debtor shall pay the
General Unsecured Creditors their pro rata share of the Proceeds in
excess of any allowed administrative or priority claimants. The
Debtor is in the process of engaging Moore, Colson, & Company, P.C.
to investigate any outstanding tax liabilities of the Debtor. If it
is determined that the Debtor owes any outstanding tax liabilities
that are not entitled to a priority status, that general unsecured
tax claim shall receive their pro rata share of the Proceeds, after
the payment of any allowed administrative or priority claimants.
If the Plan is confirmed under Section 1191(b) of the Bankruptcy
Code, Class 2 shall be treated the same as if the Plan was
confirmed under Section 1191(a) of the Bankruptcy Code. The Claims
of the Class 2 Creditors are Impaired by the Plan, and the holders
of Class 2 Claims are entitled to vote to accept or reject the
Plan.
Upon confirmation, Debtor will be charged with administration of
the Plan. Debtor will be authorized and empowered to take such
actions as are required to effectuate the Plan. Debtor will file
all post-confirmation reports required by the United States
Trustee's office or by the Subchapter V Trustee.
The source of funds for the payments pursuant to the Plan are the
Proceeds being held in the Receiver's escrow account in the amount
of $82,382.97.
The Debtor has ceased operations and will cease to exist upon
confirmation of the Plan. There is no projected revenue to be
disclosed by the Debtor.
A full-text copy of the Amended Liquidating Plan dated September
27, 2024 is available at https://urlcurt.com/u?l=RxIZlC from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
William A. Rountree, Esq.
Caitlyn Powers, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (404) 584-1238
Email: wrountree@rlkglaw.com
cpowers@rlkglaw.com
About Rose Animal Hospital
Rose Animal Hospital, LLC formerly owned real property from which
operated a veterinary clinic with Magnolia Rose Veterinary Clinic,
Inc.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-55937) on June 4,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
William A. Rountree, Esq., at Rountree Leitman Klein & Geer, LLC
represents the Debtor as legal counsel.
RUDOLPH W. GIULIANI: Judgment Enforcement Motion Granted in Part
----------------------------------------------------------------
Judge Lewis J. Liman of the United States District Court for the
Southern District of New York granted in part and denied in part
plaintiffs' judgment enforcement motion in the case captioned as
RUBY FREEMAN and WANDREA' MOSS, Plaintiffs, -v- RUDOLPH W.
GIULIANI, Defendant, -and- ANDREW H. GIULIANI, Intervenor-Defendant
Applicant, Case No. 24-mc-00353 (LJL) (S.D.N.Y.).
Plaintiffs Ruby Freeman and Wandrea' Moss move, pursuant to Federal
Rule of Civil Procedure 69 and New York Civil Practice Law and
Rules 5225 and 5228, for an order requiring Defendant Rudolph W.
Giuliani to deliver to Plaintiffs the specific personal and real
property in his possession listed in the proposed order and
memorandum and appointing Plaintiffs as receivers thereof.
Defendant is ordered under C.P.L.R. 5225 to transfer certain
personal property, including cash accounts, jewelry and valuables,
a legal claim for unpaid attorneys' fees, and his interest in his
Madison Avenue co-op apartment to a receivership established
pursuant to C.P.L.R. 5228.
With Plaintiffs' consent, their claim to Defendant's World Series
rings is deferred pending resolution of the separate claim by
Intervenor Andrew H. Giuliani as to the rings' ownership.
The Defendant's Palm Beach condominium is the subject of a separate
declaratory judgment action commenced by Plaintiffs. The Court
defers a final decision on Plaintiffs' request that such property
be placed into receivership pending the hearing scheduled for
October 28, 2024.
Plaintiffs are judgment creditors. They are the beneficiaries of a
judgment in the amount of $145,969,000.00 plus post-judgment
interest at the rate of 5.01% per annum, along with costs, plus
attorney's fees, entered in the United States District Court for
the District of Columbia against Defendant on December 18, 2023.
To date, Defendant has neither paid any portion of the Judgment nor
obtained a stay by posting a supersedeas bond under Federal Rule of
Civil Procedure 62(b).
The Court finds that all of the items and interests listed in pp.
16-18 of the proposed order and memorandum should be subject to
turnover and receivership, in order to ensure that the liquidation
of the transferred assets is accomplished quickly and consistently
by the Plaintiffs' chosen counsel, maximizing the sale value of the
unique and intangible items and therefore increasing the likelihood
of satisfaction of the Plaintiffs' judgment. In the absence of a
turnover order to a receiver, Plaintiffs would bear the
unacceptable risk of delay and Defendant's insolvency.
The Court finds no good cause to impose additional limits on the
time or manner of the liquidation or prosecution of any other item
or interest on the list.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=HrwtQr
About Rudy Giuliani
Former New York City mayor and Donald Trump attorney Rudolph "Rudy"
Giuliani filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No.
23-12055) in New York on Dec. 31, 2023.
Mr. Giuliani filed for Chapter 11 bankruptcy less than a week after
a jury ordered him to pay $146 million in damages to Fulton County
election workers Ruby Freeman and Shaye Moss, who sued him for
defamation. Willkie Farr & Gallagher LLP represented the election
workers.
In the Chapter 11 petition, Giuliani estimated less than $10
million in assets against liabilities in excess of $100 million as
of the bankruptcy filing.
Berger, Fischoff, Shumer, Wexler & Goodman, LLP, led by Heath S.
Berger and Gary C. Fischoff, is representing Giuliani in the
Chapter 11 case.
The bankruptcy petition was dismissed on August 2, 2024.
SC SJ HOLDINGS: Hotel Operator Files Bankruptcy for 2nd Time
------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that the operator of a luxury
California hotel has filed for bankruptcy a second time after a
failed attempt to sue its lawyers for their involvement in its
initial bankruptcy three years ago.
SC SJ Holdings LLC, which manages the Fairmont San Jose hotel,
filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for
the Northern District of California on Tuesday, November 5, 2024,
reporting assets and liabilities between $100 million and $500
million.
The company had previously emerged from bankruptcy in late 2021,
securing $15 million from Hilton to rebrand the hotel, along with
additional financing.
About SC SJ Holdings and FMT SJ
San Ramon, California-based Eagle Canyon Management's SC SJ
Holdings LLC owns The Fairmont San Jose, an 805-room luxury hotel
located at 170 South Market St., San Jose, Calif. The hotel is
near many of the largest Fortune 1000 corporations and is a popular
location for conferences and conventions, particularly in the
technology industry.
On March 5, 2021, SC SJ Holdings' affiliate, FMT SJ LLC, filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 21-10521). On March 10, 2021, SC SJ
Holdings sought Chapter 11 protection (Bankr. D. Del. Case No.
21-10549). The cases are jointly administered under Case No.
21-10549.
At the time of the filing, SC SJ Holdings disclosed assets of
between $100 million and $500 million and liabilities of the same
range. FMT SJ estimated assets of between $500,000 and $1 million
and liabilities of between $100 million and $500 million.
Judge John T. Dorsey is assigned to the case.
The Debtors tapped Pillsbury Winthrop Shaw Pittman, LLP, as their
bankruptcy counsel, Cole Schotz P.C. as local counsel, and Verity
LLC as financial advisor. Stretto is the claims agent and
administrative advisor.
2nd Attempt
SC SJ Holdings LLC sought protection for the second time under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-51685) on November 5, 2024. In its petition, the Debtor reports
assets and liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Stephen L. Johnson handles the case.
The Debtor is represented by James Edward Till of Till Law Group.
SEDALIA AESTHETICS: Hires Krigel Nugent + Moore P.C as Counsel
--------------------------------------------------------------
Sedalia Aesthetics, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Missouri to employ Krigel Nugent
+ Moore, P.C as counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties as
Debtor and Debtor-in-Possession in the continued management and
operation of its business;
(b) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(c) take all necessary action to protect and preserve the
estate;
(d) prepare on behalf of Debtor all motions, applications,
answers, orders, reports and papers necessary to the administration
of the estate;
(e) negotiate and prosecute on the Debtor's behalf all contracts
for the sale of assets, plan of reorganization, disclosure
statement, and all related agreements and documents, and take any
action that is necessary for the Debtor to obtain confirmation of
its Plan of Reorganization;
(f) appear before this Court and the United States Trustee; and
protect the interests of the Debtor's estate before the Court and
the U.S. Trustee; and
(g) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with this
Chapter 11 proceeding.
The firm will be paid at these rates:
Sanford P. Krigel $400 per hour
Ivan L. Nugent $300 per hour
SJ Moore $300 per hour
Erlene W. Krigel $300 per hour
Karen Rosenberg $300 per hour
Dana Wilders $300 per hour
Lara Pabst $300 per hour
Sean Cooper $300 per hour
Jared Marsh $300 per hour
Legal Assistants $100 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Erlene Krigel, Esq., an attorney at Krigel Nugent + Moore,
disclosed in a court filing that the firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Erlene W. Krigel, Esq.
Krigel Nugent + Moore, PC
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: (816) 756-5800
Fax: (816) 756-1999
About Sedalia Aesthetics, LLC
Sedalia Aesthetics LLC, doing business as The Beauty Bar, The
Beauty Bar of Jefferson City, and The Beauty Bar of Marshall, is
the owner of a building located at 9 North Lafayette, Marshall MO
valued at $110,000.
Sedalia Aesthetics LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 24-20453)
on October 21, 2024. In the petition filed by Michelle Bassett, as
managing member, the Debtor reports total assets of $311,684 and
total liabilities of $3,017,192.
Bankruptcy Judge Cynthia A. Norton oversees the case.
The Debtor is represented by Erlene W. Krigel, Esq., at KRIGEL,
NUGENT + MOORE, P.C..
SELECT MEDICAL: S&P Rates Amended $750MM 1st-Lien Term Loan 'BB+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '1'
recovery rating to Select Medical Corp.'s amended $750 million
first-lien term loan maturing 2031 and upsized $600 million
revolving credit facility maturing 2029. The senior secured debt is
being issued as part of a leverage-neutral refinancing. The '1'
recovery rating indicates S&P's expectation for very high
(90%-100%; rounded estimate: 95%) recovery in the event of a
payment default. S&P expects the company to refinance the remainder
of its outstanding debt in the coming weeks.
S&P said, "Our 'BB-' issuer credit rating and stable rating outlook
on Select Medical are unchanged. They reflect our expectation that
the company will grow about 3% annually; maintain about 15% EBITDA
margins; and sustain leverage below 4x, following its recent
substantial debt reduction with proceeds from the spin-off of its
Concentra business. Pro forma for the full separation of Concentra,
which is scheduled to occur on Nov. 25, 2024, we expect the
company's S&P Global Ratings-adjusted leverage (on a gross basis)
will be about 3.5x in 2024 and 2025." Inclusive of Concentra's
consolidated earnings and debt, Select Medical's trailing 12-month
leverage was 3.9x as of Sept. 30, 2024.
ISSUE RATINGS - RECOVERY ANALYSIS
Key analytical factors
-- Select Medical Corp.'s proposed capital structure consists of a
$600 million revolving credit facility due 2029 (assumed 85% drawn
in our simulated default scenario), a $750 million senior secured
term loan due in 2031, and about $850 million of other debt that we
expect the company to refinance in the coming weeks.
-- S&P's simulated default scenario contemplates a default in
2028, stemming from a significant decline in reimbursement rates
and a reduction in allowed visits due to economic deterioration.
-- Given the company's market-leading position in many of its
services and in the geographic regions in which it operates, as
well as the continued demand for its services, S&P believes Select
would remain a viable business and would reorganize rather than
liquidate in case of payment default.
-- Consequently, S&P has used an enterprise value methodology to
gauge recovery prospects. S&P valued the company as a going
concern, using a 5.5x multiple off its projected EBITDA at default,
which is consistent with the multiple used for similar companies.
Simulated default assumptions
-- Simulated year of default: 2028
-- EBITDA at emergence: $239 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $1.25
billion
-- Valuation split in % (obligors/nonobligors): 100/0
-- Collateral value available to secured creditors: $1.25 billion
-- Secured first-lien debt: $1.27 billion
--Recovery expectations: 90%-100% (rounded estimate: 95%)
All debt amounts include six months' prepetition interest.
SENSIENCE INC: S&P Lowers ICR to 'SD' on Amended Credit Agreement
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Sensience
Inc. (formerly Token Buyer Inc.) to 'SD' (selective default) from
'CCC-' and its issue-level rating on its second-lien debt to 'D'
from 'CC'.
Sensience amended its second-lien credit agreement to allow, at the
company's option, for interest to be paid in kind (PIK) in lieu of
cash payment, for its Oct. 31, 2024, interest payment and the next
three quarterly interest payments. The amount of second-lien term
loan interest that can be PIK increases the loan balance under
Sensience's pari passu first-lien term loan, which is now held by
the same lender as the second-lien term loan. The pari passu
first-lien term loan was also amended to pay cash interest, as it
was previously held by Sensience's financial sponsor, One Rock
Capital Partners, and being paid-in-kind. The Oct. 31 second-lien
interest payment was PIK. There was no change to interest rates and
no other compensation provided to lenders as part of this
amendment.
S&P plan to raise its issuer credit rating on Sensience as soon as
practical, likely in the coming days, to a level that reflects our
view of the ongoing risk of a selective or conventional default.
The amendment to the second-lien term loan facility is tantamount
to a default under our criteria.
S&P said, "Sensience elected to pay interest in kind on its
second-lien term loan for its Oct. 31, interest payment. Given that
second-lien lenders did not receive cash interest in the amount of,
or at the time as designated under the terms of the original credit
agreement, and because we view the company as otherwise distressed
given its constrained liquidity position and ongoing cash flow
deficits, we view the transaction as tantamount to a default under
our criteria. Furthermore, although second-lien interest that is
PIK will increase term loan balances under the pari passu
first-lien loan, which was also amended to now pay cash interest
and is held by the same lender as the second-lien loan, we do not
believe adequate offsetting compensation was provided." Sensience
will have the option to pay interest in kind on the second-lien
term loan over each of the next three quarterly interest payment
dates (the next is Jan. 31, 2025). If the company exercises its
option to PIK in the future, the second-lien term loan can pay
interest in kind as incremental first-lien debt until the maximum
allowable incremental amount is reached under the first-lien credit
agreement, at which point the second-lien term loan would toggle to
pay interest in kind as incremental second-lien debt. In addition,
for each interest payment the company elects to PIK, Sensience's
financial sponsor One Rock Capital Partners is required to make
additional equity injections. Concurrent with the amendment, One
Rock also contributed about $16 million of common equity into the
business.
S&P expects to review Sensience's issuer credit rating in the
coming days. Its review will focus on the forward-looking view of
its creditworthiness, which includes the company's capital
structure, liquidity, and its cash flow generating ability.
SIX RIVERS: Gets Interim OK to Use Cash Collateral Thru Dec. 13
---------------------------------------------------------------
Six Rivers Construction, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of California to
use cash collateral until Dec. 13 to pay its business expenses.
Six Rivers was ordered to make monthly payments totaling $11,800 to
BayFirst National Bank, the company's primary secured creditor.
This amount covers two separate loans that Six Rivers took out with
BayFirst prior to its bankruptcy filing.
The interim court order required Six Rivers to submit a revised
budget by Dec. 16, if it needs further access to cash collateral.
About Six Rivers Construction
Six Rivers Construction offers construction services for
residential and commercial projects.
Six Rivers Construction filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Maine Case No.
24-20164) on August 6, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Byron
Bouchard as managing member.
Judge Peter G. Cary presides over the case.
Tanya Sambatakos, Esq., at Molleur Law Firm represents the Debtor
as bankruptcy counsel.
SKID ROW HOUSING TRUST: Files Bare Bones Bankruptcy Protection
--------------------------------------------------------------
The Skid Row Housing Trust filed Chapter 11 protection in the
Central District of California. According to court documents, the
Debtor reports between $100 million and $500 million in debt owed
to 200 and 999 creditors. The petition states funds will not be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 3, 2024 at 11:00 a.m. at UST-LA2, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
About The Skid Row Housing Trust
The Skid Row Housing Trust owns an interest in certain real
properties. The business and mission of the Corporation is to
provide management, support, administration and rental services
related to the provision of permanent supportive housing at the
Trust Properties and to perform certain other property management
services for the Trust.
The Skid Row Housing Trust sought Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-18882) on October 29, 2024. In
the petition filed by Joanne Cordero, as interim CEO, the Debtor
reports total assets of $161,592
and total liabilities of $122,547,696.
The Debtor is represented by:
Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067
Tel: 310-440-4100
Email: hrafatjoo@raineslaw.com
SLEEPOX LLC: Hires Weinstein & St. Germain LLC as Counsel
---------------------------------------------------------
Sleepox, LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Louisiana to employ Weinstein & St. Germain,
LLC as counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and management of its
property; and
(b) perform all legal services for the Debtor which may be
necessary herein.
The firm will be paid at these rates:
Attorneys $400 per hour
Paralegals $140 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Tom St. Germain, Esq., an attorney at Weinstein & St. Germain,
disclosed in a court filing that his firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Tom St. Germain, Esq.
Weinstein & St. Germain, LLC
1103 W. University Ave
Lafayette, LA 70506
Tel: (337) 235-4001
About Sleepox, LLC
Sleepox, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D.
La. Case No. 24-50958) on October 31, 2024. The Debtor hires
Weinstein & St. Germain, LLC as counsel.
SOBR SAFE: Regains Compliance With Nasdaq Listing Requirements
--------------------------------------------------------------
SOBR Safe, Inc. announced it has regained compliance with the
minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2),
the public float requirement under Nasdaq Listing Rule 5550(a)(4)
and the stockholders' equity requirement under Nasdaq Listing Rule
5550(b)(1), as required by the Nasdaq Hearings Panel decision dated
August 2024. Accordingly, the Company's common stock will continue
to be listed and trade on The Nasdaq Capital Market under the
symbol "SOBR".
The Company will be subject to a mandatory monitoring period of one
year from the letter of compliance dated October 30, 2024 from the
Nasdaq Listing Qualifications staff. If within that one-year
monitoring period, the Staff finds the Company again out of
compliance with the Equity Rule, the Company will not be permitted
to provide the Staff with a plan of compliance with respect to that
deficiency and Staff will not be permitted to grant additional time
for the Company to regain compliance with respect to that
deficiency, nor will the company be afforded a cure or compliance
period. Instead, the Staff will issue a Delist Determination Letter
and the Company will have an opportunity to request a new hearing.
About SOBR Safe, Inc.
SOBR Safe, Inc. provides non-invasive technology to quickly and
humanely identify the presence of alcohol in individuals. These
technologies are integrated within the Company's robust and
scalable data platform, which produces statistical and measurable
user and business data. The Company's mission is to save lives,
increase productivity, create significant economic benefits, and
positively impact behavior. To this end, SOBR Safe has developed
the scalable, patent-pending SOBRsafe software platform for
non-invasive alcohol detection and identity verification.
As of June 30, 2024, SOBR Safe had $5,122,244 in total assets,
$1,431,746 in total liabilities, and $3,690,498 in total
stockholders' equity.
Littleton, Colorado-based Haynie and Company, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring losses from operations and has limited cash liquidity and
capital resources to meet future capital requirements.
Management believes that cash balances of approximately $2,800,000
and positive working capital of approximately $1,900,000 as of
December 31, 2023, do not provide adequate capital for operating
activities for the next twelve months after the issuance of these
financial statements. However, management believes that actions
currently being taken to generate product and service revenues,
along with plans to access capital sources and implement expense
reduction tactics, provide the opportunity for the Company to
continue as a going concern. These plans are contingent upon the
successful execution of these actions. As such, substantial doubt
about the entity's ability to continue as a going concern has not
been alleviated as of December 31, 2023, according to the Company's
Annual Report for the year ended December 31, 2023.
SPIRIT AEROSYSTEMS: Raises 'Going Concern' Warning
--------------------------------------------------
Ryan Beene of Bloomberg News reports that Spirit AeroSystems
Holdings Inc. warned of "substantial doubt" about its ability to
remain financially viable as it continues to burn cash ahead of its
expected acquisition by Boeing Co.
In a securities filing on Tuesday, November 5, 2024, Spirit
highlighted that reduced deliveries to Boeing have impacted its
liquidity and cash flow. Key reasons include Boeing’s decision
not to accept certain 737 Max fuselage sections needing additional
work at its own facilities and a strike by 33,000 Boeing workers,
the report relays.
About Spirit AeroSystems Holdings
Spirit AeroSystems Holdings provides manufacturing and design
expertise in a wide range of fuselage, propulsion, and wing
products and services for aircraft original equipment manufacturers
and operators through its subsidiaries including Spirit.
SRHT PROPERTY: Files for Chapter 11 Bankruptcy
----------------------------------------------
SRHT Property Management Company filed Chapter 11 protection in the
Central District of California. According to court filing, the
Debtor reports $7,423,977 in debt owed to 200 and 999 creditors.
The petition states funds will not be available to unsecured
creditors.
Meeting of Creditors 341(a) meeting to be held on 12/3/2024 at
10:00 AM at UST-LA2, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
About SRHT Property Management Company
SRHT Property Management Company is a California nonprofit public
benefit corporation.
SRHT Property Management Company sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-18883) on
October 29, 2024. In the petition filed by Joanne Cordero, as
interim CEO, the Debtor reports total assets of $33,540 and total
liabilities of $7,423,977.
The Debtor is represented by:
Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067
Tel: 310-440-4100
Email: hrafatjoo@raineslaw.com
STAR TRANSPORTATION: Seeks Bankruptcy Protection in Fla.
--------------------------------------------------------
Star Transportation PA Inc. filed Chapter 11 protection in the
Southern District of Florida. According to court documents, the
Debtor reports between $10 million and $50 million in debt owed to
50 and 99 creditors. The petition states that funds will be
available to unsecured creditors.
About Star Transportation PA Inc.
Star Transportation PA Inc. offers specialized freight trucking
services.
Star Transportation PA Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21557) on
November 1, 2024. In the petition filed by Victor Khramov, as
president, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
Bankruptcy Judge Corali Lopez-Castro oversees the case.
The Debtor is represented by:
Joseph A. Pack, Esq.
PACK LAW
51 NE 24th St., #108
Miami, FL 33137
Tel: (305) 916-4500
Email: joe@packlaw.com
STEWARD HEALTH: Court Okays Contract Transition Agreement in Ch. 11
-------------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that on Tuesday,
November 5, 2024, a Texas bankruptcy judge approved a transition
agreement between Steward Health Care System and a government
health service contractor that had terminated its contract with the
struggling hospital chain just before it filed for Chapter 11.
About Steward Health Care
Steward Health Care System, LLC, owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the proceeding.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman has been appointed as patient care ombudsman in
the Debtors' Chapter 11 cases.
STEWARD HEALTH: More Claimants Support Appointment of Tort Panel
----------------------------------------------------------------
A group of personal injury claimants asked the U.S. Bankruptcy
Court for the Southern District of Texas to authorize the
appointment of an official committee that will represent tort
claimants in the Chapter 11 case of Steward Health Care System,
LLC.
In a joinder filed with the court, the personal injury claimants,
through their legal counsel Byman & Associates, PLLC, expressed
their support for the appointment of a tort committee as proposed
by the ad hoc committee of personal injury claimants to address the
lack of representation of tort claimants in Steward's bankruptcy
case.
The personal injury claimants are Frank Triggiani, Sr., Judy
Balluch, the administrator of the Estate of George Balluch, III,
and Juanita Boyer, administrator of the estate of William S. Boyer.
They are represented by Allison Byman, Esq., an attorney at Byman &
Associates.
Ms. Byman can be reached at:
Allison D. Byman, Esq.
Byman & Associates PLLC
7924 Broadway, Suite 104
Pearland, TX 77581
281.884.9269 Phone
adb@bymanlaw.com
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed a Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Akin Gump Strauss Hauer & Feld, LLP
STRUCTURE ONE: Commences Subchapter V Bankruptcy Process
--------------------------------------------------------
Structure One Inc. filed Chapter 11 protection in Western District
of Texas. According to court documents, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 26, 2024 at 9:00 a.m. in Room Telephonically on telephone
conference line: (866)711-2282. participant access code: 3544189#.
About Structure One Inc.
Structure One Inc. -- https://structureoneinc.com/ -- is a
construction company that offers a wide range of services, from
finished build-out projects and mechanical to plumbing and
electrical needs.
Structure One Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11342) on
October 29, 2024. In the petition filed by Jeffrey Brown, as
president, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Shad Robinson handles the case.
The Debtor is represented by:
Stephen W. Sather, Esq.
BARRON & NEWBURGER, P.C.
7320 N. MoPac Expressway 400
Austin TX 78731
Tel: (512) 649-3243
Email: ssather@bn-lawyers.com
STRUCTURE ONE: Seeks Cash Collateral Access, DIP Loan
-----------------------------------------------------
Structure One, Inc., asks the U.S. Bankruptcy Court for the Western
District of Texas for entry of an order authorizing the use of cash
collateral and postpetition financing.
The company took out merchant cash advance loans and became behind
on paying its vendors. The bankruptcy was precipitated by a writ of
execution from a creditor with a relatively small judgment.
After the petition was filed, the Debtor's principals, Jeffrey and
Christine Brown, personally advanced $6,972 to Above the Cut
Drywall, a subcontractor, and $745 to Zach Alexander, an employee.
The Debtor's principals had to advance monies totaling $7,720 to
creditors to keep the business operating. It would be a hardship to
the Browns if they were not able to receive reimbursement for these
advances.
The U.S. Internal Revenue Service, Fundbox, and the U.S. Small
Business Administration assert an interest in the Debtor's cash
collateral.
The Debtor proposes to provide adequate protection to the parties
with an interest in cash collateral in the following manner:
a. The Debtor will provide all creditors with an interest in cash
collateral with a replacement lien upon assets obtained
post-petition to the same extent, priority and validity as their
pre-petition liens.
b. The Debtor will maintain insurance upon its assets.
The funds advanced by the Browns would have qualified as
post-petition financing if prior approval had been obtained. The
Debtor requests that these advances be approved as post-petition
financing so that the Browns may receive reimbursement in the
ordinary course of business.
A copy of the motion is available at https://urlcurt.com/u?l=K41rSh
from PacerMonitor.com.
About Structure One, Inc.
Structure One, Inc. is a construction contractor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11342-smr) on October
29, 2024. In the petition signed by Jeffrey Brown, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Stephen W Sather, Esq., at Barron & Newburger, P.C., represents the
Debtor as legal counsel.
SURVWEST LLC: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
SurvWest, LLC received interim approval from the U.S. Bankruptcy
Court for the District of Colorado to continue using its lenders'
cash collateral.
The interim order penned by Judge Thomas McNamara authorized the
use of cash collateral of Key Bank, N.A., the U.S. Small Business
Administration and TBK Bank, SSB while providing protection to
these lenders through replacement liens on the company's
post-petition assets.
TBK Bank's replacement lien extends to SurvWest's
debtor-in-possession deposit accounts and such lien is
automatically perfected without any further action by the bank or
the company.
SurvWest is required to make scheduled monthly payments, maintain
insurance with TBK Bank listed as a loss payee, submit periodic
financial reports, and limit expenditures to budgeted amounts with
a 10% fluctuation allowance.
The final hearing is scheduled for Dec. 3.
About SurvWest LLC
SurvWest LLC, formerly known as SurvTech Solutions LLC, is a
diversified engineering firm specializing in surveying and mapping;
subsurface utility engineering (SUE); and utility coordination for
clients across the United States.
SurvWest filed Chapter 11 petition (Bankr. D. Colo. Case No.
24-15214) on September 6, 2024, with total assets of $7,301,456 and
total liabilities of $9,447,402. Mathew Barr, president, signed
the
petition.
Judge Thomas B. Mcnamara handles the case.
The Debtor is represented by David V. Wadsworth, Esq., at Wadsworth
Garber Warner Conrardy, P.C.
TA 4 REALTY: Case Summary & 10 Unsecured Creditors
--------------------------------------------------
Debtor: TA 4 Realty LLC
84 Mission Street
Montclair, NJ 07042
Business Description: TA 4 Realty LLC is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-21243
Judge: Hon. Vincent F Papalia
Debtor's Counsel: Douglas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue
Suite 401
Cedar Knolls, NJ 07927
Tel: (973) 739-9559
Fax: (973) 739-9575
Email: dmcgill@webbergmcgill.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas J. Caleca as sole
member/manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/JEFRLZY/TA_4_Realty_LLC__njbke-24-21243__0001.0.pdf?mcid=tGE4TAMA
TAKEOFF TECHNOLOGIES: Reaches Deal to Deter Chapter 7 Conversion
----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that Takeoff
Technologies, a grocery automation company, has secured a new
settlement with its creditors and debtor-in-possession lenders,
which the company claims will allow it to proceed with a Chapter 11
liquidation of its remaining assets instead of shifting to a
Chapter 7 process.
About Takeoff Technologies
Founded in 2016 by a group of former grocery executives, Takeoff
Technologies, Inc., and its affiliates operate one of the leading
eGrocery, micro-fulfillment solution companies in the world. The
Debtors' business model centers around the sale, subsequent
maintenance, and support of the equipment and software needed to
operate micro-fulfillment centers -- i.e. small, automated, robotic
warehouses called micro-fulfillment centers, either placed in
grocery stores or near the end-shoppers.
Takeoff Technologies, Inc. and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 24-11106) on May 30, 2024.
At the time of the filing, Takeoff Technologies reported $50
million to $100 million in assets and $10 million to $50 million in
liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Sheppard, Mullin, Richter & Hampton, LLP as lead
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as local
bankruptcy counsel; Huron Transaction Advisory, LLC as investment
banker; and Huron Consulting Services, LLC as financial and
restructuring advisor. John C. Didonato and Brett M. Anderson of
Huron Consulting Services serve as the Debtors' chief restructuring
officer and deputy chief restructuring officer, respectively. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Kilpatrick Townsend & Stockton, LLP and Ashby
& Geddes, P.A., as legal counsels; and Dundon Advisers, LLC as
financial advisor.
TECHGROUPONE INC: Files Emergency Bid to Use Cash Collateral
------------------------------------------------------------
TechGroupOne Inc. asks the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Dade County Division, for authority to
use the cash collateral of the U.S. Small Business Administration
and provide adequate protection.
The Debtor requires the use of cash collateral to continue its
business operations and to pay its regular daily expenses, pursuant
to the Interim Budget, with a 10% variance.
Prior to the Petition Date, the Debtor became indebted to several
business lines of credit, the SBA and other parties. The Debtor
believes that the aggregate value of its assets is less than
$900,000.
On April 4, 2014, the Debtor obtained a loan from the U.S. Small
Business Administration. In connection with the SBA Loan, the SBA
filed form UCC-1 Financing Statement with the Florida Secured
Transaction Registry under File No. 202001519018, which indicates
that the SBA has a perfected interest on all of the Debtor's
assets. The Debtor is not aware of the exact current balance on the
SBA Loan as of the Petition Date but believes it to be
approximately $86,000, with only a portion being secured by the
UCC-1. Pursuant to claim 6-1 filed by the SBA, the secured portion
of the debt that is covered by the UCC-1 is $34,739, with balance
of $51,861 being unsecured.
The Debtor proposes to provide Secured Creditors a post-petition
replacement lien pursuant to 11 U.S.C. Section 361(2) on and in all
property of the Debtor acquired or generated after the Petition
Date, but solely to the same validity, extent and priority, and of
the same kind and nature, as the lien(s) Secured Creditors had on
the Debtor's assets as of the Petition Date.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=iiKE9a from PacerMonitor.com.
The Debtor projects $38,487 in total indirect cost for one month.
About TechGroupOne Inc.
TechGroupOne Inc. is a general contractor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20339) on October 4,
2024. In the petition signed by Juan C. Maggi, president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Corali Lopez-Castro oversees the case.
Diego G. Mendez, Esq., at MENDEZ LAW OFFICES, represents the Debtor
as legal counsel.
TEGNA INC: Dimensional Fund Holds 6.2% Equity Stake as of Sept. 30
------------------------------------------------------------------
Dimensional Fund Advisors LP disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 10,310,763 shares of
TEGNA Inc.'s common stock, representing 6.2% of the shares
outstanding.
A full-text copy of Dimensional Fund's SEC Report is available at:
https://tinyurl.com/bdzhnx49
About TEGNA
Headquartered in Tysons Corner, Virginia, TEGNA Inc. (NYSE: TGNA)
is an American publicly traded broadcast, digital media and
marketing services company. It was created on June 29, 2015, when
the Gannett Company split into two publicly traded companies.
TEGNA reported a net income of $476.7 million attributable to the
Company for the year ended December 31, 2023, compared to a net
income of $630.5 million attributable to the Company for the year
ended December 31, 2022. As of June 30, 2024, TEGNA had $7.1
billion in total assets, $4.3 billion in total liabilities, and
$2.8 billion in total equity.
Egan-Jones Ratings Company, on January 16, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc.
TLC MEDICAL: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------
TLC Medical Group Inc. asks the U.S. Bankruptcy Court for the
Southern District of Florida, West Palm Beach Division, for
authority to use cash collateral in accordance with the budget.
The Debtor has several secured creditors with blanket liens on its
assets:
1. Small Business Administration (SBA): $366,752
2. SouthState Bank: $49,733.73
3. Kapitus LLC: $139,500
4. Banker's Health Care Group Association: $326,668
5. LG Funding LLC: $48,950
6. QFS Capital LLC: $183,239
The Debtor believes that the automatic stay imposed by the
bankruptcy filing will protect the interests of secured creditors
by preventing the withdrawal of funds by other creditors with lower
priority claims to the Debtor's accounts receivable. As the Debtor
continues its operations, new accounts receivable will be generated
daily, and patient loyalty remains unaffected by the current
financial challenges.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=hlvMlK from PacerMonitor.com.
The Debtor projects $64,228 in total expenses for November 2024.
A copy of the motion is available at https://urlcurt.com/u?l=dz4r0S
from PacerMonitor.com.
About TLC Medical Group, Inc.
TLC Medical Group, Inc. sought protection under Chapter 11 of the
U.S. Bankrupty Code (Bankr. S.D. Fla. Case No. 24-21588-MAM) on
November 4, 2024. In the petition signed by Anthony Lewis,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Mindy A. Mora oversees the case.
Susan D. Lasky, Esq., at Susan D. Lasky, PA, represents the Debtor
as legal counsel.
TOLL ROAD II: Fitch Lowers Rating on $1.1BB 1999/2005 Bonds to 'B+'
-------------------------------------------------------------------
Fitch Ratings has downgraded the rating for Toll Road Investors
Partnership II (TRIP II) Dulles Greenway project's approximately
$1.1 billion in outstanding revenue bonds (series 1999 and 2005) to
'B+' from 'BB-'. The Rating Outlook remains Negative.
RATING RATIONALE
The downgrade to 'B+' from 'BB-' reflects TRIP II's inability to
implement adequate rate increases to accommodate the ascending debt
service obligations coupled with the weaker than expected traffic
recovery. The Virginia State Corporation Commission (SCC) denied
the partnership's rate case in September 2024, reflecting the risk
related to TRIP II's short-term, rate-making predictability
following the more extensive rate framework. In addition, TRIP II's
post-pandemic recovery continues to lag significantly behind many
peer facilities in Fitch's portfolio.
The Negative Outlook reflects the continued drawdown of trapped
cash required to meet debt service payments in the wake of slower
traffic recovery and limited visibility of future toll rate
increases. Resolution of the Negative Outlook will depend on the
traffic recovery in conjunction with demonstrated ability under the
SCC rate framework in securing toll increases necessary to maintain
adequate coverage levels and financial flexibility.
The rating reflects Dulles Greenway's commuter traffic base in the
metropolitan Washington DC area, which has experienced volatility
from economic downturns, toll-free alternate routes and the impact
of the pandemic. Debt structural features are protective, with a
cash-funded debt service reserve and stringent lock-ups when
covenant thresholds are not met, and a somewhat flexible repayment
profile.
Financial metrics under Fitch's rating case remain pressured with
high leverage and narrow debt service coverage ratios (DSCRs) below
1.0x range, driven by debt service escalation through maturity.
While financial metrics are consistent with a lower rating level,
TRIP II is supported by the significant restricted cash of
approximately $202 million at fiscal 2023. Fitch will continue to
monitor depletion of liquidity position.
KEY RATING DRIVERS
Revenue Risk - Volume - Midrange
Strong Service Area, Some Competition: Dulles Greenway benefits
from a primarily commuter base with minimal exposure to commercial
traffic within the economically strong metro Washington DC service
area. Historical traffic volatility is elevated, with a
peak-to-trough decline of -32% as a result of the Great Recession,
and a degree of elasticity to toll increases.
Recent improvements to toll-free alternative routes and higher,
persistent levels of telecommuting in the service area have led to
softer traffic performance and a slower post-pandemic recovery
relative to other facilities rated by Fitch. The Greenway's toll
rates are slightly higher than local peers, at around $0.41 peak
per mile, though comparable to privately-owned toll roads within
similar healthy service areas.
Revenue Risk - Price - Weaker
Limited Visibility into Rate-Setting: Following expiration of the
legislative toll rate schedule in fiscal 2019, TRIP II has to
undergo rate case applications to the SCC for future toll rate
increases. Any rate case submission only covers one year of toll
rate increases at a time and is required to be set at a reasonable
level which would not materially discourage use as defined by a 3%
fall in traffic, adjusted for population growth and provide TRIP II
with no more than a reasonable rate of return as determined by the
SCC.
Fitch views the new framework as less predictable than prior
solutions (formulaic approach resulting in annual toll increases of
approximately 3.0% per year) and TRIP II has not yet demonstrated
its ability to procure a rate case under this new framework. TRIP
II's rate-making has historically increased at above inflationary
levels, but could be subject to political interference moving
forward, with increasing importance of timely rate increases in
light of its escalating debt service profile.
Infrastructure Dev. & Renewal - Midrange
Manageable Near-Term Capital Works: Dulles Greenway's capital plan
is adequate to meet the needs of the road, mainly focusing on
roadway maintenance and congestion relief projects. TRIP II's
10-year plan is funded with annual deposits from cash flow; over
the longer-term, as the asset ages and capital needs increase, the
ability to recover capital expenses may be constrained by the
current rate-setting framework.
Debt Structure - 1 - Midrange
Back-loaded Debt, Sound Covenants: TRIP II's debt structure
features fixed-rate, senior debt with several bullet maturities
which have been smoothed into an amortizing structure with
mandatory early redemption features, escalating at a CAGR of 0.6%
from fiscal years 2023-2056. The legal final maturity date on the
2005B bonds provides a significant tail relative to the early
redemption schedule, though encompasses only a modest portion of
the overall capital structure.
Missing an early redemption payment is not an event of default,
though deferral of planned early redemptions could cause debt
obligations to balloon. Cash reserves of nearly 1x maximum annual
debt service (on a scheduled basis), a $45 million surety bond, and
a dual-pronged distribution lock-up test of 1.25x DSCR and 1.15x
(net of deposits for capex) with lock-up periods of one and three
years, respectively, are additional enhancements against the
back-loaded and long-dated structure.
Financial Profile
Due to lagging traffic performance, TRIP II's coverages did not
meet covenant thresholds in fiscal 2023 and are also not expected
to meet thresholds for fiscal 2024, leading to continued trapping
of cash held in its early redemption reserve fund (ERRF). Fiscal
2023 cash flow available for debt service was approximately 10%
below the previous Fitch base case, reflecting lower than expected
recovery. Cash balances were at $202 million as of fiscal 2023 YE,
including $98 million held in the ERRF and $40 million in the debt
service reserve fund. TRIP II's financial profile under Fitch's
rating case is narrow, with a 10-year average DSCR of 0.9x.
PEER GROUP
Dulles Greenway's peers from a volume perspective include U.S.
commuter-based facilities with strong and growing service areas,
however these U.S. facilities tend to exhibit investment-grade DSCR
levels under Fitch's rating case of 1.4x or better. Fitch has also
compared TRIP II to other toll roads globally in the 'B' category,
which exhibit a similar combination of factors, including narrower
rating case DSCR below 1.0x over the next 10 years, and additional
volatility in traffic along with uncertainty around future toll
rates.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to implement adequate rate increases to accommodate
escalating debt service obligations;
- Weaker than expected traffic recovery leading to further pressure
on DSCR metrics;
- Material depletion of liquidity position without further
preventative actions taken by management.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated track record of adequate rate increases under the
SCC approval framework to accommodate the ascending debt service
obligations;
- Recovery of traffic and revenues and/or any positive legislative
improvements in the toll rate framework which would support cash
flow generation and DSCR metrics (calculated net of capex) above
1.3x on a sustained basis.
SECURITY
The senior bondholders have a first priority lien on the security
interest within the trust estate which includes all of the rights
to net revenue, real estate interest, rights under the easements
and rights, title and interest in the equipment.
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 Prior
----------- ------ -----
Toll Road Investors
Partnership II,
L.P. (VA)
Toll Road Investors
Partnership II, L.P.
(VA) /Toll Revenues –
First Lien/1 LT LT B+ Downgrade BB-
TRANSOCEAN LTD: Reports Fiscal Q3 Net Loss of $494 Million
----------------------------------------------------------
Transocean Ltd. reported a net loss attributable to controlling
interest of $494 million, $0.58 per diluted share, for the three
months ended September 30, 2024.
Third quarter results included net unfavorable items of $558
million or $0.58 per diluted share as follows:
* $617 million, $0.64 per diluted share, loss on impairment of
assets, net of tax.
Partially offset by:
* $21 million , $0.02 per diluted share, gain on retirement of
debt; and
* $38 million, $0.04 per diluted share, discrete tax items,
net.
After consideration of these net unfavorable items, third quarter
2024 adjusted net income was $64 million.
Contract drilling revenues for the three months ended September 30,
2024, increased sequentially by $87 million to $948 million,
primarily due to increased rig utilization, increased dayrates for
two rigs, higher reimbursement revenues and a full quarter of
revenues from the newbuild ultra-deepwater drillship Deepwater
Aquila, partially offset by lower revenue efficiency across the
fleet.
Operating and maintenance expense was $563 million, compared with
$534 million in the prior quarter. The sequential increase was the
result of increased fleet activity, including a full quarter of
operations from Deepwater Aquila, partially offset by reduced
operating costs related to Transocean Norge following the
acquisition of Orion Holdings (Cayman) Limited in June 2024.
General and administrative expense was $47 million, down from $59
million in the second quarter. The decrease was primarily due to
reduced costs associated with the early retirement of certain
personnel and lower professional fees.
Interest expense net of capitalized amounts was $154 million,
compared to $143 million in the prior quarter, excluding the
favorable adjustment of $74 million and $69 million in the third
and second quarter, respectively, for the fair value of the
bifurcated exchange feature related to the 4.625% exchangeable
bonds. Interest income was $11 million, compared to $14 million in
the prior quarter.
The Effective Tax Rate(2) was 6.0%, down from 474.5% in the prior
quarter. The decrease was primarily due to rig impairments, rig
sales and other ordinary movement in income before tax. The
Effective Tax Rate excluding discrete items was 22.5% compared to
416.3% in the previous quarter.
Cash provided by operating activities was $194 million during the
third quarter of 2024, representing an increase of $61 million
compared to the prior quarter. The sequential increase was
primarily due to increased operating activities, improved cash
collected from customers and timing of payments to suppliers,
partially offset by higher interest payments.
Third quarter 2024 capital expenditures of $58 million were
primarily associated with Deepwater Aquila. This compares with $84
million in the prior quarter.
"As illustrated by the nearly $1.3 billion in backlog booked in the
third quarter, including the recent award for Deepwater Conqueror,
the demand for our fleet of high specification ultra-deepwater and
harsh environment rigs remains strong," said Chief Executive
Officer, Jeremy Thigpen. "With these most recent awards, more than
97% of Transocean's active fleet is contracted in 2025, once again
demonstrating that our customers clearly recognize Transocean's
unique capabilities – our rigs, crews and superior operational
performance – add value to their programs."
Thigpen concluded, "With approximately $9.3 billion in backlog, and
clear visibility to future demand, we will remain focused on
delivering safe, reliable and efficient operations for our
customers and continue to maximize cash generation to improve our
balance sheet, as we did in the third quarter with $136 million of
free cash flow."
About Transocean
Transocean Ltd. is an international provider of offshore contract
drilling services for oil and gas wells. The Company specializes in
technically demanding sectors of the offshore drilling business
with a particular focus on ultra-deepwater and harsh environment
drilling services. As of Feb. 14, 2024, the Company owned or had
partial ownership interests in and operated 37 mobile offshore
drilling units, consisting of 28 ultra-deepwater floaters and nine
harsh environment floaters. Additionally, as of Feb. 14, 2024, the
Company was constructing one ultra-deepwater drillship.
Transocean reported a net loss of $954 million in 2023, a net loss
of $621 million in 2022, and a net loss of $591 million in 2021. As
of June 30, 2024, Transocean Ltd. had $20.33 billion in total
assets, $1.57 billion in total current liabilities, $8.04 billion
in total long-term liabilities, and $10.71 billion in total
equity.
* * *
As reported by the TCR on Sept. 28, 2023, S&P Global Ratings raised
its issuer credit rating on offshore drilling contractor Transocean
Ltd. to 'CCC+' from 'CCC'. S&P said, "The upgrade reflects improved
rig demand, higher day rates, and our view that there is reduced
near-term risk of a distressed debt exchange or balance sheet
restructuring."
TRUE VALUE: Prepares Closure of Oregon Warehouse Amid Chapter 11
----------------------------------------------------------------
Philip Neuffer of SupplyChainDive reports that True Value is set to
close its regional distribution center in Springfield, Oregon,
following its Chapter 11 bankruptcy filing last month, according to
an October 15, 2024 Worker Adjustment and Retraining Notification
(WARN) notice.
As part of the filing, the hardware retailer plans to sell its
operations to competitor Do it Best Corp. However, if the sale does
not proceed, the company will begin closing the Springfield
facility on December 7, 2024. The closure will affect 98 employees,
including 61 merchandise handlers, with layoffs scheduled for
December 14, 2024. Employees have already been notified of the
anticipated layoff date, according to the notice.
According to SupplyChainDive, it is not yet clear whether the
bankruptcy will affect any of True Value's 12 other regional
distribution centers or if the closure can be prevented if the sale
is finalized by December 7, 2024. True Value did not provide a
comment before publication.
The company serves roughly 4,500 independently owned and operated
stores, which are excluded from the bankruptcy filing, the report
states.
About True Value Company
True Value Company, LLC and its affiliates are hardlines
wholesalers, serving approximately 4,500 stores worldwide. A
globally recognized retail brand, the Debtors provide customers in
over 55 countries an expansive product set across key categories
such as Hardware Lumber and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on October 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
UFC HOLDINGS: Moody's Affirms ‘Ba3’ CFR, Outlook Stable
-----------------------------------------------------------
Moody's Ratings affirmed UFC Holdings, LLC's Ba3 Corporate Family
Rating, Ba3-PD Probability of Default Rating, and Ba3 rating on the
existing senior secured bank credit facilities. Moody's also
assigned a Ba3 rating to the proposed senior secured first lien
term loan B and Ba3 rating to the senior secured first lien
revolving credit facility. The company's speculative grade
liquidity rating (SGL) remains SGL-1 reflecting very good
liquidity. The outlook is stable.
The affirmation reflects Moody's expectation that UFC will (i)
successfully complete the proposed refinancing, (ii) maintain
moderate leverage and (iii) continue to deliver strong operating
results, generate meaningful free cash flow, and maintain very good
liquidity.
Proceeds from the proposed $2,750 million senior secured first lien
term loan B will be used to repay the existing term loan. The
proposed term loan matures in November 2031 and the proposed
revolving credit facility expires in 2029. Moody's expect the terms
and conditions of the proposed credit facilities to be similar to
the existing credit facilities with minor changes to the financial
/ negative covenants. Pro forma for this capital raise, Moody's
project UFC's total debt-to-EBITDA (inclusive of Moody's
adjustments) will be around 3.0x at year-end 2024. The ratings on
the existing senior secured bank credit facilities will be
withdrawn at the close of the transaction.
The Ba3 ratings assigned to the proposed credit facilities are at
the same level as the CFR as it represents the preponderance of
debt in UFC's capital structure. The proposed facilities will be
secured by most of the assets of UFC and WWE, similar to the
existing credit facility.
RATINGS RATIONALE
UFC's Ba3 CFR reflects the company's scale, solid profitability,
moderate leverage, and attractive assets. The business combination
with WWE on September 12, 2003 that led to the formation of TKO
Group Holdings, Inc. (TKO) provides operating leverage, creates
greater revenue diversification, and better positions the company
to monetize its content across multiple platforms as Moody's have
seen with recently signed contracts with Netflix, Inc. and
NBCUniversal. Live sports and entertainment continue to draw
significant interest from streaming platforms, cable networks, and
traditional broadcasters as they deliver steady and predictable
ratings and attract large live audiences.
At the same time, Moody's ratings take into consideration the
competitive nature of the industry UFC operates in, uncertainty
surrounding upcoming contracts set to expire in 2026, with The Walt
Disney Company, and a short track record as a combined company.
Though the company has articulated a moderate leverage policy, the
company has been acquisitive and will have a controlling
shareholder that is undergoing a going private transaction and will
likely have a substantial debt load. On April 2, 2024, Endeavor
Group Holdings, Inc. (EDR), 53.6% owner of TKO (the parent of UFC)
entered into a definitive agreement to be acquired by Silver Lake,
a private equity firm based in California. While the consummation
of the transaction is not subject to any financing conditions, it
is uncertain whether the transaction could pressure UFC's credit
profile. In a separate transaction, on October 24, 2024, TKO
announced the acquisition of sports assets from EDR in an
all-equity transaction valued at $3.25 billion, and concurrently
announced the approval of a capital return program which consists
of $2 billion in share repurchases and $75 million in quarterly
dividend distributions. Although the ratings reflect the potential
for increasing cash dividends, Moody's expect the company to
operate within its stated net leverage tolerance of 3.0x and below
(excluding Moody's adjustments).
Moody's expect UFC to maintain very good liquidity over the next
12-18 months. This is supported by around (i) $457 million in cash
(as of September 30, 2024), (ii) Moody's expectation for
significant free cash flow of more than $520 million in 2024, and
(iii) a $205 million fully undrawn revolving credit facility that
expires in 2029.
The proposed term loan is covenant lite and the revolving credit
facility has a springing maximum leverage covenant of first lien
debt-to EBITDA of 7.75x, if borrowing under the revolver exceeds
40%. Moody's do not expect the revolver will be drawn over the next
year, and if drawn, the cushion of covenant compliance should be
ample.
The stable outlook reflects Moody's expectations that UFC will grow
revenue and EBITDA organically, generate significant free cash
flow, and maintain moderate leverage over the next 12 to 18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company achieves continued
strong revenue growth and increasing free cash flow and
demonstrates an extended track record and commitment to a
conservative balance sheet management and liquidity such that UFC
will sustain total debt to EBITDA (Moody's adjusted) near 3.00x.
The rating could be downgraded if the company's liquidity and
operating performance deteriorates, debt-to-EBITDA (inclusive of
Moody's adjustments) is sustained above 4.00x, or free cash flow
materially weakens.
TKO Group Holdings, Inc. is a leading premium sports and
entertainment company comprising of UFC and WWE. Together, the
company reaches more than one billion household in approximately
210 countries and territories, and produces more than 300 live
events year-round.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
UNITED AIRLINES: Fitch Rates New Special Facility Bonds 'BB-'
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating with a Recovery Rating of
'RR4' to proposed special facility revenue bonds to be issued by
the city of Houston and guaranteed by United Airlines Holdings,
Inc. (BB-).
The city intends to issue the bonds to finance design and
construction of certain facilities in Terminal B at George Bush
Intercontinental Airport. The bonds do not constitute indebtedness
to the city of Houston or the airport and neither are liable for
any payments. The bonds are secured by a pledge of certain
revenues, consisting primarily of net rentals to be paid by United
pursuant to a lease between Houston and United.
Fitch rates United Airlines, Inc. 'BB-' with a Positive Rating
Outlook. This reflects expected credit metric improvements, solid
financial performance, debt reduction, substantial liquidity and
financial flexibility. Fitch also anticipates benefits from
capacity constraints at struggling low-cost competitors.
Key Rating Drivers
Ratings Aligned With Unsecured Debt: Fitch rates United's Houston
revenue bond in line with its unsecured issuances. United lacks a
master lease at Houston International Airport, instead having
multiple leases tied to various terminals and facilities. In
bankruptcy, some leases may take priority, leaving others to be
rejected or consolidated.
The city of Houston must make commercially reasonable efforts to
re-let the facilities if United defaults, but re-leasing risks are
likely higher compared to capacity-constrained airports. These
risks are mitigated by the strategic importance of United's Houston
hub, its fourth-largest domestic hub, accounting for 20% of
United's system-wide passenger enplanements.
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, as 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. In addition, there is potential upside to
Fitch's forecast. Recent industry capacity restraint and benefits
from the company'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 Group
Inc. (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 toward 3.5x;
- Neutral to positive sustained FCF;
- EBITDAR margins maintained in the mid-teens or better;
- Progress toward 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 to $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 toward 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 sizable but
manageable. Principal repayments will 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 Bush Intercontinental
Airport.
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 George Bush Intercontinental
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.
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.
Date of Relevant Committee
01 November 2024
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.
Entity/Debt Rating Recovery
----------- ------ --------
United Airlines, Inc.
senior unsecured LT BB- New Rating RR4
UNITED FIBER: Hires Goe Forsythe & Hodges LLP as Counsel
--------------------------------------------------------
United Fiber Comm. Inc., d/b/a United Fiber, seeks approval from
the U.S. Bankruptcy Court for the Central District of California to
employ Goe Forsythe & Hodges LLP as general bankruptcy counsel.
The firm will render these services:
(a) advise and assist the Debtor with respect to compliance
with the requirements of the United States Trustee;
(b) advise the Debtor regarding matters of bankruptcy law;
(c) advise the Debtor regarding assumption and rejection of
executory contracts and leases;
(d) represent the Debtor in any proceedings or hearings in the
Bankruptcy Court where its rights under the Bankruptcy Code may be
litigated or affected;
(e) conduct examinations of witnesses, claimants, or adverse
parties and to prepare and assist in the preparation of reports,
accounts, and pleadings related to this Chapter 11 case;
(f) advise the Debtor concerning the requirements of the
Bankruptcy Court and applicable rules as the same affect it in this
proceeding;
(g) assist the Debtor in negotiation, formulation,
confirmation, and implementation of a Chapter 11 plan of
reorganization;
(h) make any bankruptcy court appearances on behalf of the
Debtor; and
(i) take such other action and perform such other services as
the Debtor may require of the firm in connection with this Chapter
11 case.
The firm's counsel and staff will be paid at these hourly rates:
Robert Goe, Attorney $695
Marc Forsythe, Attorney $650
Ronald Hodges, Attorney $650
Jeffrey Broker, Of Counsel $750
Brian Van Marter, Of Counsel $625
Greg Preston, Of Counsel $625
Dixon Gardner, Attorney $575
Reem Bello, Attorney $565
Mike Neue, Attorney $550
Charity Manee, Attorney $535
Ryan Riddles, Attorney $4765
Taylor DeRosa, Of Counsel $475
Arthur Johnston, Paralegal $210
Britney Bailey, Paralegal $210
Kerry Murphy, Paralegal $225
Lauren Gillen, Paralegal $195
Evan Siegel $175
The firm received a pre-petition retainer of $50,000 from the
Debtor.
Mr. Goe disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert P. Goe, Esq.
Goe Forsythe & Hodges LLP
17701 Cowen, Lobby D, Suite 210
Irvine, CA 92614
Telephone: (949) 796-2460
Facsimile: (949) 955-9437
Email: rgoe@goeforlaw.com
About United Fiber Comm. Inc. d/b/a United Fiber
Established in 2013, United Fiber is a telecommunications
contractor in California, with offices in Goleta, Corona, and
Vista. The Company provides clients with a wide range of services:
Construction, both aerial and underground, Fiber Optics and Coaxial
splicing, troubleshooting, and 24/7 Emergency repairs. It also
provides turn key Engineering services. It specializes in
excavation and TCP both typical and custom, as well as Make Ready
engineering.
United Fiber Comm., Inc. in Corona, CA, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. C.D. Cal. Case No. 24-16470) on Oct. 29,
2024, listing $1,663,379 in assets and $8,172,909 in liabilities.
Raymond Martinez as chief executive officer, signed the petition.
Judge Scott H Yun oversees the case.
GOE FORSYTHE & HODGES LLP serve as the Debtor's legal counsel.
UNITED FIBER: Seeks Cash Collateral Access
------------------------------------------
United Fiber Comm., Inc., asks the U.S. Bankruptcy Court for the
Central District of California, Riverside Division, for authority
to use cash collateral and provide adequate protection.
The Debtor, faced financial difficulties after taking on an
underbid contract with Frontier Communications in 2022. This led to
significant losses and forced the company to take out high-interest
loans to stay afloat. To address these challenges, the Debtor filed
for Chapter 11 bankruptcy.
The Debtor's secured creditors with an alleged interest in cash
collateral may include U.S. Bank Equipment Finance, A Division Of
U.S. Bank National Association, Citibank, N.A., CT Corporation As
Representative, CT Corporation on behalf of Vox Funding, Altec
Capital Services, LLC, Unicarriers Capital A Program Of De Lage
Landen Financial Services, Gulf Coast Bank and Trust Company, Gulf
Coast Bank and Trust Company, Funding Club, LLC, KYF Global
Partners LLC, Citibank, N.A., and its Branches, CT Corporation (as
representative of Revenued LLC).
The Debtor's seniormost lienholder alleging an interest in cash
collateral is Citibank N.A., which is owed approximately $2.6
million.
As adequate protection, the Debtor will grant any alleged holder of
a lien on cash collateral, a replacement lien on its collateral to
the same extent it had any lien against such types of assets
pre-petition, and such lien will have the same priority and
validity that such lien had on the Petition Date.
A copy of the motion is available at https://urlcurt.com/u?l=QvRTRm
from PacerMonitor.com.
About United Fiber Comm., Inc.
United Fiber Comm., Inc. is a telecommunications contractor in
California, with offices in Goleta, Corona, and Vista.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-16470) on October 29,
2024. In the petition signed by Raymond Martinez, chief executive
officer, the Debtor disclosed $1,663,379 in assets and $8,172,909
in liabilities.
Judge Scott H. Yun oversees the case.
Robert P. Goe, Esq., at GOE FORSYTHE & HODGES LLP, represents the
Debtor as legal counsel.
UNIVERSITY OF THE ARTS: Buildings Up for Sale After Ch. 11 Filing
-----------------------------------------------------------------
Eva Andersen of CBS News reports that The University of the Arts'
760,000-square-foot, nine-building campus in Center City
Philadelphia is now for sale after filing for Chapter 7 bankruptcy
in September. Real estate firm JLL announced Monday that it will
manage the sale of these properties, five of which hold historic
designations.
JLL indicated the buildings can be bought individually or as a full
portfolio.
"Nearly all of these properties have mixed-use zoning, allowing for
a variety of future uses. While many may become apartments, the
campus provides numerous development opportunities," said Fran
Coyne, senior managing director at JLL.
Spanning South Broad Street between City Hall and South Street, the
campus includes Arts Bank, Anderson Hall, Hamilton Hall, Furness
Hall, Juniper Hall, Gershman Hall, Terra Hall, Arts Alliance, and
Spruce Hall. The current buildings house office spaces, theaters,
libraries, galleries, residence halls, apartments, cafés, and
classrooms.
A senior director at JLL called this sale a "once-in-a-generation
chance to redefine the heart of Philadelphia’s central business
district." The university’s abrupt closure in June left students
needing new academic paths; some transferred to Temple University,
while others were unexpectedly awarded their diplomas by mail.
About The University of the Arts
Philadelphia's The University of the Arts is a not-for-profit
corporation. UArts was an institution accredited by the Middle
States Commission on Higher Education and offered degrees in visual
arts and performing arts fields.
U of Arts Finance, LLC, and The University of the Arts sought
Chapter 7 bankruptcy protection (Bankr. D. Del. Case Nos. 24-12139
and 24-12140) on Sept. 13, 2024.
The school listed $93.32 million in assets against $74.18 million
in liabilities in schedules attached to the petition. The school
said its properties in Philadelphia, which includes several
performing arts venues and residence halls, are worth $87.07
million. Secured debt totals $68.96 million, with UMB Bank N.A. (on
behalf of noteholders) and TD Bank listed as secured creditors.
Montgomery, McCracken, Walker & Rhoads LLP is serving as the
Debtors' counsel.
VECTOR GROUP: S&P Withdraws 'B+' ICR on Acquisition by JT Group
---------------------------------------------------------------
S&P Global Ratings withdrew all its ratings on Vector Group Ltd.,
including its 'B+' issuer credit rating on the company, as well as
its 'BB' and 'B-' issue-level ratings on the company's senior
secured notes and senior unsecured notes, respectively. At the time
of the withdrawal, S&P's outlook on Vector was stable.
The company requested the withdrawal following the close of the
acquisition by JT Group and retirement of its rated debt.
VIERA CHARTER: Moody's Affirms 'Ba1' Rating on Revenue Bonds
------------------------------------------------------------
Moody's Ratings has affirmed the Ba1 rating on Viera Charter
Schools, Inc., FL's revenue bonds. The school has approximately $32
million in outstanding debt as of fiscal 2024. The outlook is
stable.
The rating reflects the increased scale of operations and solid
coverage and growing liquidity levels.
RATINGS RATIONALE
The Ba1 rating reflects Viera Charter Schools, Inc., FL's steady
enrollment and revenue growth, supported by healthy demand and
strong academics, in a service area with population growth and a
strong economic profile. The school has maintained its enrollment
after a recent expansion. Financial metrics are solid, having
improved since the school initiated its expansion, including
strengthening margins, liquidity, and debt service coverage. The
school's leverage continues to show modest improvement.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that the school
will maintain full enrollment over the next year. This is expected
to continue to improve liquidity, and further strengthen debt
service coverage, and reduce leverage. Statewide per pupil aid is
expected to meet or exceed budget as the state continues to benefit
from a strong economy.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Cash more than 30% of debt
-- Sustained full enrollment and improved demand
-- Sustained liquidity at over 150 days cash on hand
-- Sustained debt service coverage levels over 2x
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Weakening of liquidity or coverage below 110 days cash on hand
or coverage below 1.5x
-- Material weakening of enrollment, state funding or school
district support
LEGAL SECURITY
Debt service payments on the bonds are secured by loan payments
from Viera Charter Schools, Inc., which operates Viera Charter
School as the Borrower, to Capital Trust Agency, as Issuer.
Pursuant to the Trust Indenture, Capital Trust Agency then assigns
to the Trustee, for the benefit of bond holders, all its rights
under the Loan Agreement and Mortgage.
PROFILE
Viera Charter Schools, Inc. is a K-8 school located in a master
planned community in unincorporated Brevard County (Aa2), Viera,
Florida, adjacent to Melbourne. It operates pursuant to a charter
school contract with the School Board of Brevard County expiring
June 30, 2032. Fiscal 2025 enrollment is 1,528.
METHODOLOGY
The principal methodology used in these ratings was US Charter
Schools published in April 2024.
VINE BEVERAGE: Files Bare Bones Bankruptcy in Ohio
--------------------------------------------------
Vine Beverage and Catering Inc. filed Chapter 11 protection in the
Northern District of Ohio. According to court filing, the Debtor
reports $15,522,233 in debt owed to 50 and 99 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 2, 2024 at 1:00 p.m. via remotely.
About Vine Beverage and Catering Inc.
Vine Beverage and Catering Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-14383) on
October 30, 2024. In the petition filed by Martin Lamalfa, as
president, the Debtor reports total assets of $15,748 and total
liabilities of $15,522,233.
Bankruptcy Judge Suzana Krstevski Koch oversees the case.
The Debtor is represented by:
Glenn E. Forbes, Esq.
FORBES LAW LLC
166 Main Street
Painesville, OH 44077
Tel: 440-739-6211
E-mail: bankruptcy@geflaw.net
VROOM INC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Vroom, Inc.
3600 West Sam Houston Pkwy S., Floor 4
Houston TX 77042
Business Description: Vroom, Inc. is the publicly-traded parent of
United Auto Credit Corporation, an
automotive finance company, and CarStory, an
artificial intelligence-powered analytics
and digital services platform for automotive
retailers.
Chapter 11 Petition Date: November 13, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-90571
Judge: Hon. Christopher M Lopez
Debtor's
Bankruptcy
Counsel: John F. Higgins, Esq.
PORTER HEDGES LLP
1000 Main St., 36th Floor
Houston TX 77002
Tel: (713) 226-6000
Email: jhiggins@porterhedges.com
Debtor's
Corporate,
Finance,
Tax, and
Securities
Counsel: LATHAM WATKINS LLP
Debtor's
Financial
Advisor: STOUT RISIUS ROSS, LLC
Debtor's
Tax Consultant: DELOITTE TOUCHE TOHMATSU LIMITED
Debtor's
Compensation
Consultant: THE OVERTURE GROUP, LLC
Debtor's
Noticing &
Solicitation
Agent: VERITA GLOBAL
(previously KURTZMAN CARSON CONSULTANTS, LLC)
Total Assets as of September 30, 2024: $43,807,067
Total Debts as of September 30, 2024: $304,615,138
The petition was signed by Thomas Shortt as chief executive
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/DC474UI/Vroom_Inc__txsbke-24-90571__0001.0.pdf?mcid=tGE4TAMA
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:
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. US Bank National Association Unsecured $290,488,001
Corporate Trust Notes
Att: Administrator - Vroom, Inc.
100 Wall Street, Suite 600
New York, NY 10005
PHONE: 412-297-0317
EMAIL: BARBARA.NASTRO@USBANK.COM;
HAZRAT.HANIFF@USBANK.COM;
SHANNON.MATTHEWS@USBANK.COM
2. Anthem Insurance $2,000,000
Attn: Brian Croce Premiums &
Anthem Blue Cross Life and Health Fees
Insurance Company
220 Virginia Ave.
Indianapolis, IN 46204
PHONE: 619-314-0195
EMAIL: BRIAN.CROCE@ANTHEM.COM;
ALIN.AVANESSIAN@ANTHEM.COM;
MARIA.DOVALE@ANTHEM.COM
3. Texas Office of the Attorney Court-Order- $1,500,000
General Consumer Protection Division Settlement
P.O. Box 12548 Payment
Austin, TX 78711
TEL: 512-463-2100
FAX: 512-475-2994
EMAIL: JAMES.HOLIAN@OAG.TEXAS.GOV,
ROBERT.ROBINSON@OAG.TEXAS.GOV
4. Mace Macro Sales and Use $292,351
Attn: David Craig Taxes
1350 Broadway, Suite 408
New York, NY 10018
PHONE: 470-240-7320
EMAIL: DAVID.CRAIG@MACEGROUP.COM
5. Thompson Reuters Subscription $14,000
Attn: Sohil Sheth Fees
West Publishing Corporation
610 Opperman Drive
Eagan, MN 55123
EMAIL: SOHIL.SHETH@THOMSONREUTERS.COM
6. Health Advocate Solutions Fees for $10,000
Attn: John Wolfrum, Executive Vice Professional
President, Sales Services
3043 Walton Road
Plymouth Meeting, PA 19462
PHONE: 610-397-7398
EMAIL: JWOLFRUM@HEALTHADVOCATE.COM
7. Workday, Inc. Subscription $10,000
Attn: Laura Boyett Fees
6110 Stonebridge Mall Road
Pleasanton, CA 94588
PHONE: 512-970-5132
EMAIL: LAURA.BOYETT@WORKDAY.COM
8. Solium/Shareworks Subscription $8,000
Attn: Wes Miller Fees
Solium Capital LLC
58 S. River Drive, Suite 401
Tempe, AZ 85281
PHONE: 610-397-7398
EMAIL: ATWORKRM@MORGANSTANLEY.COM
9. Unum Insurance $5,000
Attn: Megan Mangerino Premiums
Unum Life Insurance Company & Fees
of America
PO Box 406946
Atlanta, GA 30384
PHONE: 858-935-5730
EMAIL: MMANGERINO@UNUM.COM
10. Arif Hudda Litigation Claim Unliquidated
c/o Brian E. Fernan
Farnan LLP
919 North Market Street
12th FLoor
Wilmington, DE 19801
TEL: 302-777-0300
FAX: 302-777-0301
EMAIL: BFARNAN@FARNANLAW.COM
11. Atobrhan Godlu Litigation Claim Unliquidated
c/o Thomas McKenna
Gainey McKenna & Eagleston
501 5th Avenue
19th Floor
New York, NY 10017
TEL: 212-983-1300
FAX: 212-983-0383
EMAIL: TJMCKENNA@GME-LAW.COM
12. Christopher-Taylor Litigation Claim Unliquidated
Kubrick-Sotelo
c/o Jarrett Faber
Kneupper & Covey
11720 Amber Park Drive
Suite 160, PMG 1271
Alpharetta, GA 30009
PHONE: 657-845-3100
EMAIL: JARETT@KNEUPPERCOVEY.COM
13. Julie Rainey, Brady McDonough Litigation Claim Unliquidated
and Vladimir Yunayev
c/o Gregory M. Nespole
Levi & Korsinsky, LLP
55 Broadway
10th Floor
New York, NY 10006
PHONE: 212-363-7500
EMAIL: GNESPOLE@ZLK.COM
14. Kaelin Daye Litigation Claim Unliquidated
c/o Chris McDaniel
Hortman, Harlow, Bassi,
Robinson & McDaniel PLLC
P.O. Box 1409
Laurel, MS 39441
TEL: 601-649-8611
FAX: 601-649-6062
EMAIL: CMCDANIEL@HORTMANHARLOW.COM
15. Lizbeth & Toshi Cole Litigation Claim Unliquidated
c/o Jason Scott Feltoon
Feltoon Law, PLLC
2520 S IH-35, Suite 200
Austin, TX 78704
PHONE: 737-281-9100
EMAIL: LIZ@FELTOON.LAW
16. Rhondda Cynon TAF Litigation Claim Unliquidated
Pension Fund
c/o Michael Toomey
Barrack Rodos & Bacine
640 8th Avenue
10th Floor
New York, NY 10036
PHONE: 212-688-0782
EMAIL: MTOOMEY@BARRACK.COM
17. Rick & Carmen Dangerfield Litigation Claim Unliquidated
c/o Shawn Wilson
Shawn Wilson, Esq.
101 S. Jefferson Avenue
Cookesville, TN 38501
PHONE: 931-545-4021
EMAIL: SHAWN@SHAWNWILSONLAW.COM
18. Sean & Erica Haygood Litigation Claim Unliquidated
Address on File
19. Sean Mallet Litigation Claim Unliquidated
c/o Adam J. Rosenfeld
Schecter, Shaffer & Harris, LLP
3200 Travis, 3rd Floor
Houston, TX 77006
PHONE: 713-893-0971
EMAIL: AJROSENFELD@SMSLEGAL.COM
20. Sidekick Technology, LLC Litigation Claim Unliquidated
c/o Benjamin Weed, Loly Tor
K&L Gates
70 W. Madison Street
Suite 3100
Chicago, IL 60602
PHONE: 312-372-1121
EMAIL: BENJAMIN.WEED@KLGATES.COM;
LOLY.TOR@KLGATES.COM
WELCOME GROUP: Seeks Cash Collateral Access Thru March 2025
-----------------------------------------------------------
Welcome Group 2, LLC, and its affiliates ask the U.S. Bankruptcy
Court for the Southern District of Ohio, Eastern Division at
Columbus, for authority to use cash collateral and provide adequate
protection to, RSS WFCM2019-C50-OH WG2, LLC, c/o Rialto Capital
Advisors, LLC, through March 16, 2025.
The Debtor requires continued cash collateral access to continue
funding necessary business expenses and to fund the costs
associated with the administration of the Chapter 11 case.
Adequate protection is provided to the Secured Lender by the
Debtors by using cash collateral only in accordance with the
Revised Budget (except as otherwise authorized by the Court) and by
making the payments to Secured Lender as stated therein. Adequate
protection is also provided by the re-granting of the pre-petition
security interests to Secured Lender.
A copy of the motion is available at https://urlcurt.com/u?l=obD6Fi
from PacerMonitor.com.
About Welcome Group 2,
LLC
Welcome Group 2, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S. D. Ohio Case No. 23-53044) on September
1, 2023. In the petition signed by Abhijit Vasani, as president,
InnVite Opco, Inc., sole member, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge C. Kathryn Preston oversees the case.
Denis E. Blasius, Esq., at Thomsen Law Group, LLC, represents the
Debtor as legal counsel.
Creditor RSS WFCM2019-C50 - OH WG2, LLC, is represented by Porter
Wright Morris & Arthur LLP.
WIDEOPENWEST FINANCE: Moody's Lowers CFR to B3, Outlook Stable
--------------------------------------------------------------
Moody's Ratings downgraded WideOpenWest Finance, LLC's (WOW or the
Company) Corporate Family Rating to B3 from B2, its Probability of
Default Rating to B3-PD from B2-PD. Moody's also assigned a Ba3
rating to the super priority first out senior secured Term Loan,
and a Caa1 rating to both the super senior second out senior
secured term loan and super senior second out senior secured
revolving credit facility. The Speculative Grade Liquidity Rating
(SGL) remains unchanged at SGL-3. The B2 ratings on the existing
senior secured revolving credit facility and senior secured term
loan B have been reviewed in the rating committee and remain
unchanged. No action was taken since the ratings on the senior
secured term loan B and revolver are expected to be withdrawn after
the exchange and repayment. WOW's outlook is stable.
The downgrade of the CFR is due to the expectation of increasing
debt leverage (including Moody's adjustments) as a result of the
new super-priority first out term loan ($200 million in new money).
The proceeds of the term loan will be used to pay down the revolver
but Moody's expect that revolver borrowings will be drawn again
through 2026. Credit metrics are also expected to weaken due to
competitive headwinds for the Company's most important product,
high speed data (HSD). The existing term loan B investors are
funding the new super-priority first out term loan. In addition,
they exchanged up to 15% of their term loan exposure for an add on
to the super priority first out new term loan and the remaining 85%
was exchanged into a new second out term loan. In addition, the
existing revolver commitments exchanged into a new second out
revolver.
While the exchange offer is expected to be initially leverage
neutral as a result of paydown on the revolver, Moody's expect the
Company to draw significantly on the revolver over the next 12-18
months in order to fund its expansion efforts raising financial
leverage. More aggressive competitive pressures in the lower-price
sensitive tier of subscribers, the Company's sweet spot,
particularly from fixed wireless inroads in legacy markets coupled
with macroeconomic environmental issues are also a concern for
sustained near term churn. The ratings reflect the risk that
continuing competitive pressure will: 1) impact the Company's
ability to grow and generate free cash flows if the build out
growth doesn't at least fully mitigate competitive subscriber
losses; 2) increase leverage and cause other credit metrics to
deteriorate; and 3) cause greater pressure on the company to
continue expansion efforts using more debt capital and increasing
leverage and diminishing revolver capacity. Refinancing and
expanding the revolver will likely result in higher interest costs
as well. Governance factors, such as management's risk strategies
regarding leveraged buildouts of the company's network are key
considerations for the rating action.
RATINGS RATIONALE
WOW's B3 CFR is constrained by its small scale with annual revenue
of $647 million as of LTM September 30, 2024, low penetration rate,
and exposure to unfavorable secular trends in voice and video. The
Company operates in 15 markets across 6 states with a high degree
of regional concentration in just one state. In nearly all of its
markets, it is an overbuilder of the two largest US cable companies
Comcast Corporation (A3, stable) and Charter Communications, Inc.
(Ba2, negative) with a challenger brand evidenced by low
penetration rates which are one of the lowest among rated issuers,
and above average capital intensity (currently in the range of 40%
of revenue) which absorbs a high percentage of operating cash flow.
The Company also faces strong competition, with the lower price
point fixed wireless HSD product particularly competitive for WOW
and secular challenges in voice and video with customers turning to
cheaper streaming video options and using their wireless services
in place of wireline voice. As a result, the Company is
experiencing a high loss of voice and video subscribers in Q3 YoY
of about 11% and 34%, respectively, and more recently, losses in
the high margin HSD segment. Certain measures of profitability are
also relatively weak, including revenue and EBITDA to homes
passed.
The stable outlook reflects Moody's expectation that WOW will
continue to face heightened competition and the Company's debt
leverage will increase to around 5x (including Moody's adjustments)
by FYE 2026 after the revolver is redrawn down. It also reflects
the positive impact of the new capital which will improve the
Company's liquidity profile but will raise the company's interest
expense in the near term.
The SGL-3 Speculative Grade Liquidity Rating reflects adequate
liquidity through 2025 with negative free cash flow driven in part
by greenfield capex, a $250 million revolving credit facility which
Moody's expect to be largely re-drawn on by FYE 2025, and a
springing maximum net leverage covenant of 4.6x beginning December
31, 2024 (with a forecasted ratio of 3.5x pro forma for the
transaction) with step ups quarterly through September 2026.
Alternate liquidity is limited due to the fully secured capital
structure.
The super priority first out term loan is rated Ba3, three notches
above the CFR reflecting its payment priority at default to all
other debt. The super senior second out term loan and revolver are
rated a Caa1, one notch below the CFR, reflecting the payment
subordination to the first out credit facility. The instrument
ratings reflect the B3-PD Probability of Default Rating of the
Company and an average expected family recovery rate of 50% at
default given the lack of maintenance covenants in the term loan
facility and a complex capital structure with debt of different
priority rankings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could consider an upgrade if the Company demonstrates a
sustained track record of conservative financial policies and
returns to sustainable revenue growth, increases diversification,
with debt/EBITDA (Moody's adjusted) sustained around 4.5x or less,
and free cash flow to debt (Moody's adjusted) is sustained in the
mid to low single digit range.
Moody's could consider a downgrade if debt/EBITDA (Moody's
adjusted) is sustained above 5.5x or free cash flow to debt
(Moody's adjusted) is sustained in the negative double digit range.
Moody's could also consider a negative rating action if the
liquidity deteriorated, scale or diversity decreased, financial
policy turned more aggressive, or operating trends declined
materially and on a sustained basis.
The principal methodology used in these ratings was
Telecommunications Service Providers published in November 2023.
WIN-SC LLC: Hires Lee Augustine CPA as Accountant
-------------------------------------------------
Win-SC, LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Pennsylvania to employ Lee Augustine, CPA of
Amundsen Davis as accountant.
The professional will provide accounting services to the Debtor in
the Chapter 11 case.
The accountant will be paid at these rates:
Lee Augustine $285 per hour
Staff $225 and $600 per hour
Lee Augustine, CPA will also be reimbursed for reasonable
out-of-pocket expenses incurred.
As disclosed in a court filing that the accountant is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Lee Augustine
Amundsen Davis
111 East Kilbourn Avenue, Suite 1400
Milwaukee, WI 53202
Tel: (414) 276-0200
About Win-SC LLC
Win-SC LLC owns real property located at 1890-1900 North Atherton
Street, State College, Centre County, Pennsylvania comprised of two
parcels having a current value of $5.27 million.
Win-SC LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Pa. Case No. 24-02012) on April 15, 2024. In the
petition filed by Robert E. Schmidt, Jr., managing member of
Schmidt Investments of South Florida, LLC, the Debtor reports total
assets of $5,286,776 and total liabilities of $8,222,411.
The Honorable Bankruptcy Judge Henry W. Van Eck handles the case.
The Debtor is represented by Lawrence V. Young, Esq., at CGA Law
Firm.
WNK LV INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: WNK LV Inc.
DBA Rally's
31680 Serrento Drive
Murrieta, CA 92563
Case No.: 24-16751
Business Description: WNK LV Inc. owns and operates the Rally's
Restaurant featuring a limited menu of
hamburgers and cheeseburgers.
Chapter 11 Petition Date: November 12, 2024
Court: United States Bankruptcy Court
Central District of California
Judge: Hon. Mark D Houle
Debtor's Counsel: Robert Rosenstein, Esq.
ROSENSTEIN & ASSOCIATES
2860 Mercedes St.
Suite 100
Temecula, CA 92590
Tel: 951-296-3888
Email: Robert@thetemeculalawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wahid Karas 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/RTOAU7Q/WNK_LV_Inc__cacbke-24-16751__0001.0.pdf?mcid=tGE4TAMA
WRENA LLC: Announces Sale Process Under Chapter 11
--------------------------------------------------
Accesswire reports that Wrena, LLC, a provider of stamped metal
products to the automotive industry, has launched a sale process
under Chapter 11, Section 363 of the U.S. Bankruptcy Code. While
the Ohio-based Company is profitable, it is seeking this approach
to address litigation-related liabilities and optimize the value of
its assets through an organized sale. Wrena, LLC anticipates $18.6
million in revenue for the fiscal year ending December 31, 2024,
and employs approximately 50 people.
Sale Process and Timeline
On October 28, 2024, the Bankruptcy Court approved a structured
sale process for Wrena, LLC, outlining key dates and bidder
requirements. Cascade Partners, LLC is overseeing the process:
Qualified Bidder Requirements:
Interested bidders must submit the following by December 6, 2024:
* A signed asset purchase agreement (APA) similar to the
Company's, with bids limited to cash or liability
assumption, and no financing conditions.
* A good faith deposit of at least 5% of the cash purchase
price.
* Proof of financial ability to complete the transaction,
to the Company's satisfaction.
* A written statement confirming that the bid does not
require additional due diligence, board approval, or
non-governmental consents.
Initial Bid:
Wrena, LLC has received a bid of $5.65 million in cash, plus
employee-related liability assumption, from a related entity.
Auction and Sale Hearing: If multiple Qualified Bids are received,
an auction will be held on December 10, 2024, starting with the
highest bid. The final bid will be reviewed at a Sale Hearing on
December 16, 2024, with the sale expected to close shortly after.
Interested parties can contact Shareef Simaika or Matthew Miller at
wrangler@cascade-partners.com for more details.
About Wrena LLC
Wrena, LLC is a Tier 1 and Tier 2 automotive supplier in Tipp City,
Ohio.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-49047) on September
23, 2024, with $1 million to $10 million in both assets and
liabilities. Scott Eisenberg, chief restructuring officer, signed
the petition.
Judge Maria L. Oxholm oversees the case.
Wolfson Bolton Kochis PLL, Cascade Partners LLC and DWH Corp. serve
as the Debtor's legal counsel, investment banker and financial
advisor, respectively. Scott Eisenberg of DWH is the chief
restructuring officer.
XENIA HOTELS: S&P Rates $365MM Senior Unsecured Notes 'BB-'
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to Xenia Hotels & Resorts Inc.'s subsidiary, XHR
L.P.'s, proposed $365 million senior unsecured notes due 2030.
(This is one notch above S&P's long-term issuer credit rating on
Xenia.) The '2' recovery rating indicates its expectation of
substantial (70%- 90%; capped at 85%) recovery in the event of a
payment default. Xenia intends to use the proceeds from the
issuance, in combination with $100 million of delayed draw term
loan proceeds, to refinance its $465 million outstanding senior
unsecured notes due August 2025. The transaction is debt for debt,
is largely credit neutral, and will have no impact on S&P Global
Ratings-adjusted leverage; however, the refinancing will push out
near term maturities.
After the close of the transaction, the company will face modest
mortgage debt maturities, including the $54 million mortgage on its
Grand Bohemian Hotel Orlando, $107 million mortgage on its Marriott
San Francisco Waterfront property, and its $55 million mortgage on
its Andaz Napa property. S&P expects the company will address these
maturities with a combination of cash on hand, new unsecured debt,
or new mortgage debt. The company's nearest significant maturity
will be its $325 million term loan maturity in the second half of
2028.
S&P continues to assume Xenia's S&P Global Ratings-adjusted net
debt to EBITDA will be in the 5.0x-5.5x range through 2025,
reflecting a moderation in leisure demand that is offset by good
group demand and still recovering business transient travel.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors:
-- The issue-level rating on the senior unsecured debt is 'BB-'
with a '2' recovery rating, which indicates its expectation of
substantial (70%-90%; rounded estimate: 85%) recovery for lenders
in the event of a default.
-- S&P's waterfall also incorporates the $450 million revolver due
2028 (not rated), $225 million in term loans due in 2028 (not
rated), $100 million of delayed draw term loans due in 2028 (not
rated), and $365 million senior unsecured notes due in 2030, as
well as the company's outstanding $500 million senior unsecured
notes due in 2029.
Simulated default assumptions:
-- S&P's simulated default scenario contemplates a payment default
in 2028 and assumes a severe economic downturn that reduces hotel
demand, increased competition, external shocks that discourage
travel, cyclical overbuilding in the hotel industry, and an 85%
drawn revolving credit facility at default.
-- S&P assumes Xenia would reorganize as a stand-alone going
concern, or its assets could be sold separately or in whole. S&P
uses an income capitalization valuation approach to estimate the
recovery value of the company's assets.
-- S&P applies a 35% stress on net operating income (NOI) and use
a 9.63% capitalization rate to arrive at the gross recovery value.
-- S&P believes there would be substantial (70%-90%; rounded
estimate: 85%) recovery prospects for the credit facilities, and
notes, all of which we understand to be unsecured and pari passu.
The '2' recovery rating reflects that even with 35% stress on net
operating income (NOI), there would be substantial recovery value
for lenders. Most of the value comes from the unencumbered pool of
assets and some residual value from three encumbered properties
after their respective nonrecourse mortgage debt obligations are
satisfied.
Simplified waterfall:
-- Net enterprise value available to lenders after 5% bankruptcy
administrative costs and 5% property-level sales and marketing
expenses: $1.46 billion
-- Total unsecured debt (senior unsecured notes, credit
facilities, and term loan): $1.61 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
All debt amounts include six months of prepetition interest.
XRC LLC: Seeks Bankruptcy Protection in Florida
-----------------------------------------------
XRC LLC filed Chapter 11 protection in the Middle District of
Florida. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 100 and 199 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
December 2, 2024 at 2:00 p.m. in Room Telephonically via US Trustee
- Orlando.
About XRC LLC
XRC LLC, doing business as Xtreme Roofing & Construction, offers
residential and commercial roofing services.
XRC LLC sought relief under Subchapter V of Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05911) on October 30,
2024. In the petition filed by Matthew P. Appell, as managing
member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
Bankruptcy Judge Grace E. Robson oversees the case.
The Debtor is represented by:
Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: jluna@lathamluna.com
XTI AEROSPACE: Streeterville Capital Holds 7.70% Equity Stake
-------------------------------------------------------------
Streeterville Capital, LLC disclosed in Schedule 13G filed with the
U.S. Securities and Exchange Commission that as of October 31,
2024, it beneficially owned 5,267,558 shares of XTI Aerospace,
Inc.'s common stock, representing 7.70% of the 68,380,698 shares
outstanding on October 29, 2024.
A full-text copy of Streeterville Capital's SEC Report is available
at:
https://tinyurl.com/24u9evk5
About XTI Aerospace
XTI Aerospace, Inc. -- https://xtiaerospace.com/ -- is the parent
company of XTI Aircraft Company headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is designed
to reach speeds of 345 mph and a range of 700 miles.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
XTI Aerospace reported a net loss of $47.10 million for the year
ended Dec. 31, 2023, compared to a net loss of $66.30 million for
the year ended Dec. 31, 2022. As of June 30, 2024, the Company had
$34.04 million in total assets, $23.47 million in total
liabilities, and $10.57 million in total stockholders' equity.
YELLOW CORP: Bankruptcy Judge to Reevaluate Pension Debt Decision
-----------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that Yellow Corp. has
successfully persuaded a judge to reconsider parts of a ruling in
its ongoing dispute over pension-related liabilities following its
bankruptcy.
In September, Judge Craig T. Goldblatt of the U.S. Bankruptcy Court
for the District of Delaware ruled that Yellow owed an accelerated
payment for its withdrawal from multi-employer pension plans.
However, on Tuesday, November 5, 2024, the judge acknowledged that
he had made an error in determining that the company had defaulted,
the report states.
"The Court is persuaded that it should not have resolved that issue
on the incomplete record before it," Goldblatt stated. His revised
decision leaves room for a recalculation, which could reduce
Yellow's pension debt.
Last month, the judge informed Yellow and its main shareholder, MFN
Partners LP, that he had made a mistake in his earlier ruling. The
pension plans claim Yellow owes $6.5 billion in obligations,
reports Bloomberg Law.
Goldblatt added that he would not fault the company for not
addressing the default issue sooner. "The Court is inclined to
prioritize its obligation to reach the right answer over the strict
enforcement of the discretionary rules of waiver," he wrote. "These
issues raise high-stakes questions."
Several unresolved issues remain, including how the pension debt
should be calculated and whether it should be discounted, according
to the judge.
Lawyers for the pension funds have not yet commented.
Yellow is represented by Kirkland & Ellis LLP and Pachulski Stang
Ziehl & Jones LLP, while MFN is represented by Potter Anderson &
Corroon LLP and Quinn Emanuel Urquhart & Sullivan LLP. The pension
funds are represented by Sullivan Hazeltine Allinson LLC and Groom
Law Group.
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
YIELD10 BIOSCIENCE: Kristi Snell Resigns as CSO, VP for Research
----------------------------------------------------------------
Yield10 Bioscience, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on October 29,
2024, Dr. Kristi D. Snell, Ph.D., resigned from her position as
Vice President Research and Chief Science Officer of the Company.
The Company thanks Dr. Snell for her 27 years of service and for
her many contributions to the Company.
About Yield10
Yield10 Bioscience, Inc. -- http://www.yield10bio.com/-- is an
agricultural bioscience company focused on the large-scale
production of low carbon sustainable products from processing
Camelina seed using the oilseed Camelina sativa as a platform crop.
The Company is pursuing Camelina seed oil products for two market
opportunities and value chains. Each product has its own set of
scale requirements, value proposition, and challenges. The first
product is seed oil produced by Camelina, which has been
genetically engineered to enable production of high levels of the
omega-3 fatty acids eicosapentanoic acid (EPA) and docosahexanoic
acid (DHA). The second product is Camelina seed oil for use as a
low-carbon intensity feedstock oil for biofuels, including
biodiesel, renewable diesel, and sustainable aviation fuel.
West Palm Beach, Florida-based Berkowitz Pollack Brant
Advisors+CPAs, the Company's auditor since 2024, issued a "going
concern" qualification in its report dated April 1, 2024, citing
that the Company has suffered recurring losses from operations and
has a net capital deficiency that raise substantial doubt about its
ability to continue as a going concern.
Yield10 Bioscience reported a net loss of $14.5 million for the
year ended December 31, 2023, compared to a net loss of $13.6
million for the year ended December 31, 2022. As of June 30, 2024,
Yield10 Bioscience had $2.97 million in total assets, $9.21 million
in total liabilities, and $6.24 million in total shareholders'
deficit.
[*] Davis Polk Adds Restructuring Leaders Cader & Knight in London
------------------------------------------------------------------
Davis Polk announced that prominent restructuring lawyers Jifree
Cader and Mark Knight will join the firm as partners in the
Restructuring practice in London.
"I am pleased to welcome Jifree and Mark to Davis Polk to launch
our European restructuring practice. They have an impressive track
record of successfully leading complex restructurings, and their
practice complements the market-leading work of our distinguished
restructuring team in the U.S.," said Neil Barr, Davis Polk's
Managing Partner. "Europe is an increasingly important area of
focus for our restructuring clients. As we continue to build out
our corporate practice in London, including through the exciting
growth we have seen in leveraged finance and private equity already
this year, adding top-tier restructuring capabilities is a natural
next step."
Mr. Cader advises clients on all facets of European insolvencies
and restructurings. He works with private equity firms, hedge
funds, investment banks and other distressed debt and par
investors, providing advice on their investment portfolios. He also
has advised insolvency practitioners. He is widely recognized as a
leading restructuring practitioner, including in the Legal 500 UK
and Chambers UK, where a client notes that he is "a superstar" who
"has been highly impactful on very complex transactions."
Mr. Knight has deep experience in complex, multi-jurisdictional
workouts and restructurings, acting for both creditors and debtors.
He works with private equity houses, hedge funds and other
investors with respect to the acquisition and reorganization of
stressed and distressed businesses. His practice includes all
stages of the restructuring life cycle, including investment
structuring, contingency planning and strategy, negotiations,
implementation, post-restructuring, optimization of existing
investments and exit. Mr. Knight is ranked by multiple industry
publications, including the Chambers UK, which notes that clients
have called him "outstanding" and "a highly commercial-and
client-focused lawyer."
The duo joins Davis Polk from Sidley Austin LLP, where they served
as co-heads of the Restructuring group in London.
"Jifree and Mark are very well known and well respected in the
market," said Damian Schaible, co-head of Davis Polk's
Restructuring practice. "They have deep relationships with and are
trusted by a wide range of sophisticated investors in Europe, many
of whom are already clients of our firm, from their excellent work
advising both companies and creditors in restructurings across the
globe."
"Jifree and Mark are a fantastic team," said Marshall Huebner,
co-head of Davis Polk's Restructuring practice. "They will be a
huge asset to our existing clients and will help expand our client
portfolio in Europe and beyond. We are thrilled they are joining
our team."
Mr. Cader received his LL.B. from the University of Westminster.
Mr. Knight received a B.A. from the University of Birmingham and a
Graduate Diploma in Law from The College of Law at Guildford.
About Davis Polk's Restructuring practice
"We are market leaders in the largest and most complex
restructurings and insolvencies, with extensive experience
representing a wide range of parties. Companies, directors,
financial institutions, institutional investors, hedge funds,
acquirers, trustees and administrators call upon Davis Polk to
design and execute value-maximizing strategies. We are critical
advisers in restructurings in and out of court, liability
management transactions, recapitalizations, exchange offers,
debt/equity conversions, distressed M&A and bankruptcy litigation.
Clients look to us as leaders in liability management transactions
and distressed and special situations financings, where we work as
a single team with our Finance and Capital Markets lawyers. We also
collaborate seamlessly with colleagues in areas including Mergers &
Acquisitions, IP & Commercial Transactions, Real Estate and Tax. We
have advised on high-profile restructurings across industries, and
we are a firm of choice for cross-border restructurings."
About Davis Polk
Davis Polk & Wardwell LLP (including its associated entities) is an
elite global law firm with world-class practices across the board.
Clients know they can rely on us for their most challenging legal
and business matters. From offices in the world's key financial
centers and political capitals, our more than 1,000 lawyers
collaborate seamlessly to deliver exceptional service,
sophisticated advice and creative, practical solutions. Visit
davispolk.com.
[*] Dilworth Paxson Named in Best Law Firms 2025 for Multiple Tiers
-------------------------------------------------------------------
Dilworth Paxson announces its inclusion in the Best Law Firms(R)
2025 edition by Best Lawyers(R). The firm earned recognition for
its excellence across multiple practice areas both nationally and
within the metropolitan regions of Philadelphia, New Jersey and New
York City.
"Dilworth is honored to be included in the 2025 edition of Best Law
Firms," said Co-Managing Partner, Kristen Behrens. "This
recognition underscores our commitment to providing exceptional
service and innovative legal solutions for our clients. We are
dedicated to maintaining these high standards and achieving
outstanding results across all practice areas, and we are grateful
for the acknowledgment of our efforts."
Best Lawyers recognizes leading legal talent worldwide, gathering
perspectives from top attorneys within specific regions and
practice areas. Eligibility for a Best Law Firms ranking requires
that a firm includes at least one lawyer listed in the current
edition of Best Lawyers in a Best Law Firms practice area and
geographic jurisdiction to become eligible for a Best Law Firms
award. Dilworth Paxson was honored to have 39 of its attorneys
recognized in the 2025 edition of The Best Lawyers in America(R)
and Best Lawyers: Ones to Watch. Since 1983, Best Lawyers has
published ranking for practice areas nationally and across 188 U.S.
metropolitan areas, utilizing a thorough review of client and
attorney feedback, peer assessments and recent firm-submitted
matters.
"It is a true honor to be recognized as a Best Law Firm, especially
when this acknowledgment is in part from industry peers," said
Dilworth's New Jersey Managing Partner, Mark Schiavo. "This
recognition reflects the dedication and impact of the work we do
for our clients, both regionally and nationally. We are grateful
for the trust placed in us and remain committed to delivering the
highest level of service and results for our clients."
Best Lawyers has ranked Dilworth as a Best Law Firm nationally in
seven practice areas and 30 metro rankings. The practices named in
the 2025 list include:
National Tier 2
-- Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law
-- Land Use and Zoning Law
-- Trusts and Estates
National Tier 3
-- Litigation
-- Bankruptcy
-- Litigation
-- Construction
-- Railroad Law
-- Tax Law
Metropolitan Tier 1
New Jersey
-- Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law
-- Insurance Law
Philadelphia
-- Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law
-- Commercial Litigation
-- Litigation
-- Bankruptcy
-- Litigation - Land Use and Zoning
-- Litigation - Trusts and Estates
-- Railroad Law
-- Real Estate Law
-- Tax Law
-- Trusts and Estates
Metropolitan Tier 2
New Jersey
-- Litigation - Construction
Philadelphia
-- Land Use and Zoning Law
-- Litigation - Real Estate
Metropolitan Tier 3
New Jersey
-- Construction Law
-- Litigation
-- Insurance
-- Public Finance Law
New York City
-- Litigation - Patent
Philadelphia
-- Appellate Practice
-- Bet-the-Company Litigation
-- Corporate Law
-- Criminal Defense: White-Collar
-- Employment Law
-- Management
-- Litigation
-- Antitrust
-- Litigation - Banking and Finance
-- Litigation - Intellectual Property
-- Litigation - Labor and Employment
-- Mass Tort Litigation / Class Actions
-- Plaintiffs -- Nonprofit / Charities Law
-- Public Finance Law
About Dilworth Paxson LLP
Founded in 1933, Dilworth Paxson LLP has offices in Pennsylvania,
New Jersey, New York and Delaware. Dilworth has a rich and
impressive history filled with landmark work that reflects a
tradition of legal excellence and a deep concern for its clients
and the communities it serves. Dilworth represents a broad spectrum
of clients, including the world's leading companies, regional
businesses, governmental and civic entities, and individuals.
[*] October 2024 Commercial Chapter 11 Filings Decline 13% Y/Y
--------------------------------------------------------------
ABL Advisor reports that Commercial Chapter 11 bankruptcy filings
dropped 13% in October 2024 compared to 2023, as reported by Epiq
AACER and the American Bankruptcy Institute (ABI). October 2024 saw
563 commercial Chapter 11 filings, down from 647 in October 2023.
Total bankruptcy filings reached 47,104 in October 2024, marking a
16% increase over October 2023's 40,674 filings.
Individual bankruptcy filings rose to 44,522 in October 2024, up
16% from 38,278 in October 2023. Individual Chapter 7 filings
reached 27,358, a 22% increase from 22,351 in the prior year, while
Chapter 13 filings totaled 17,091, showing an 8% increase from
15,874 in October 2023.
"We are seeing a steady rise in total filings, especially among
individuals, which underscores the financial strain on households,"
said Michael Hunter, Epiq AACER's vice president. "Rising consumer
loan delinquencies, higher interest rates, record mortgage
payments, escalating insurance premiums, and increased living costs
are all putting pressure on household budgets, leading to this
increase in filings."
ABI Executive Director Amy Quackenboss added, "With elevated prices
and higher borrowing costs, families and businesses face growing
financial challenges. Bankruptcy offers critical relief, allowing
consumers and companies to manage escalating debt and seek a fresh
start."
[*] Restaurant Chains That Filed for Bankruptcy in 2024
-------------------------------------------------------
Zoe Strozewski and Brianna Ruback of Eat This, Not That report that
the restaurant industry continues to be highly unpredictable. Some
chains are struggling to keep pace with competitors, while others
are still dealing with the lingering effects of the pandemic. For
many, financial troubles have been escalating for years, leaving
bankruptcy as the only option.
The year 2024 began with a Popeyes franchisee filing for Chapter
11, and soon after, several other chains followed suit. Most of
these were smaller brands like Sticky's Finger Joint from New York,
though a notable bankruptcy came from the well-known seafood chain
Red Lobster.
As a result of these filings, several restaurant chains have been
forced to reduce their operations by closing some locations. Read
on to see which restaurant chains have filed for bankruptcy
protection in 2024.
* TGI Fridays
* Oath Pizza
* BurgerFi
* Roti
* World of Beer
* Buca di Beppo
* Gotham Restaurant
* Tender Greens & Tocaya
* Melt Bar & Grilled
* Rubio's Coastal Grill
* Red Lobster
* Tijuana Flats
* Boxer
* Sticky's Finger Joint
* Popeyes
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re L.C.S. Unlimited, LLC
Bankr. M.D. Ala. Case No. 24-32330
Chapter 11 Petition filed October 15, 2024
See
https://www.pacermonitor.com/view/RJMK4EA/LCS_Unlimited_LLC__almbke-24-32330__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Hugo Flipping LLC
Bankr. E.D.N.Y. Case No. 24-74011
Chapter 11 Petition filed October 19, 2024
represented by: Anthony Matthew Vassallo, Esq.
LAW OFFICE OF ANTHONY M. VASSALLO
Email: amvassallo@gmail.com
In re ReThink Human Capital Management, Inc
Bankr. S.D. Fla. Case No. 24-21214
Chapter 11 Petition filed October 28, 2024
See
https://www.pacermonitor.com/view/5IXQYGQ/ReThink_Human_Capital_Management__flsbke-24-21214__0001.0.pdf?mcid=tGE4TAMA
represented by: Isaac Marcushamer, Esq.
DGIM LAW PLLC
Email: isaac@dgimlaw.com
In re Families Uplifting Families Inc.
Bankr. N.D. Ga. Case No. 24-61674
Chapter 11 Petition filed November 1, 2024
Filed Pro Se
In re Garden Property Restoration LLC
Bankr. N.D. Ga. Case No. 24-61764
Chapter 11 Petition filed November 4, 2024
Filed Pro Se
In re Grosvenor Energy Resources Inc
Bankr. S.D. Tex. Case No. 24-35172
Chapter 11 Petition filed November 4, 2024
Filed Pro Se
In re Houze America Management LLC
Bankr. N.D. Ga. Case No. 24-61760
Chapter 11 Petition filed November 4, 2024
Filed Pro Se
In re Shekinah Resource Foundation Inc
Bankr. N.D. Ga. Case No. 24-61766
Chapter 11 Petition filed November 4, 2024
See
https://www.pacermonitor.com/view/XSCZ4QQ/Shekinah_Resource_Funding_Inc__ganbke-24-61766__0006.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re ID Electric, LLC
Bankr. D. Ariz. Case No. 24-09494
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/AUNZJSA/ID_ELECTRIC_LLC__azbke-24-09494__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas H. Allen, Esq.
ALLEN, JONES & GILES, PLC
E-mail: tallen@bkfirmaz.com
In re Kenreg, LLC
Bankr. N.D. Cal. Case No. 24-30827
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/OX76LVA/Kenreg_LLC_a_California_Limited__canbke-24-30827__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Eris Harmonia, LLC
Bankr. M.D. Fla. Case No. 24-06544
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/WSHOYYY/Eris_Harmonia_LLC__flmbke-24-06544__0001.0.pdf?mcid=tGE4TAMA
represented by: David W. Steen, Esq.
DAVID W. STEEN, P.A.
E-mail: dwsteen@dsteenpa.com
In re HKG Management LLC
Bankr. N.D. Ga. Case No. 24-61807
Chapter 11 Petition filed November 5, 2024
Filed Pro Se
In re Willennium LLC
Bankr. N.D. Ga. Case No. 24-61799
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/BHL5JMY/Willennium_LLC__ganbke-24-61799__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Brown Family Network, LLC
Bankr. N.D. Ga. Case No. 24-61826
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/MHMFKYQ/Brown_Family_Network_LLC__ganbke-24-61826__0001.0.pdf?mcid=tGE4TAMA
represented by: Kenneth Mithell, Esq.
Giddens Mitchell & Associates P.C.
E-mail: gmapclaw@gmail.com
In re Bennett Electrical, Inc.
Bankr. D. Mass. Case No. 24-12230
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/7T5ALRA/Bennett_Electrical_Inc__mabke-24-12230__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph Butler, Esq.
JOSEPH BUTLER
E-mail: jgb@jgbutlerlaw.com
In re The Bright Angle, LLC
Bankr. E.D.N.C. Case No. 24-03864
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/SJA4QEY/The_Bright_Angle_LLC__ncebke-24-03864__0001.0.pdf?mcid=tGE4TAMA
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re DNR Real Estate, LLC
Bankr. E.D. Va. Case No. 24-12070
Chapter 11 Petition filed November 5, 2024
See
https://www.pacermonitor.com/view/M5MNK4Q/DNR_Real_Estate_LLC__vaebke-24-12070__0001.0.pdf?mcid=tGE4TAMA
represented by: Ashvin Pandurangi, Esq.
VIVONA PANDURANGI, PLC
E-mail: ashvinp@vpbklaw.com
In re Body Oasis, LLC
Bankr. N.D. Ala. Case No. 24-71556
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/QZHGFPA/Body_Oasis_LLC__alnbke-24-71556__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Keller, Esq.
RUSSO, WHITE & KELLER, P.C.
E-mail: rjlawoff@bellsouth.net
In re Sassy C'S, LLC
Bankr. D. Ariz. Case No. 24-09501
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/IPSCSMA/SASSY_CS_LLC__azbke-24-09501__0001.0.pdf?mcid=tGE4TAMA
represented by: D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
E-mail: lamar@guidant.law
In re Casablanca The Restaurant Corp.
Bankr. C.D. Cal. Case No. 24-12853
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/XX7FLAQ/Casablanca_The_Restaurant_Corp__cacbke-24-12853__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew Bisom, Esq.
LAW OFFICE OF ANDREW S. BISOM
E-mail: abisom@bisomlaw.com
In re Alarbesh/Fernandez LLC
Bankr. N.D. Cal. Case No. 24-41768
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/RYDY4CY/AlarbeshFernandez_LLC__canbke-24-41768__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Sena & Sena, L.L.C
Bankr. N.D. Fla. Case No. 24-30936
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/TH4ODIA/Sena__Sena_LLC__flnbke-24-30936__0001.0.pdf?mcid=tGE4TAMA
represented by: Byron W. Wright, III, Esq.
BRUNER WRIGHT, P.A.
E-mail: twright@brunerwright.com
In re Riverside Farmers, LLC
Bankr. D. Md. Case No. 24-19406
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/NEPQ5AY/Riverside_Farmers_LLC__mdbke-24-19406__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew Abbott, Esq.
WOLFF & ORENSTEIN LLC
E-mail: mabbott@wolawgroup.com
In re 120CambridgeAve LLC
Bankr. E.D.N.Y. Case No. 24-44605
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/VULNGFQ/120CambridgeAve_LLC__nyebke-24-44605__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Alexfilimgt Inc.
Bankr. E.D.N.Y. Case No. 24-44602
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/MOEYLPA/Alexfilimgt_Inc__nyebke-24-44602__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Quality Services, Inc.
Bankr. D. Nev. Case No. 24-51118
Chapter 11 Petition filed November 6, 2024
See
https://www.pacermonitor.com/view/D3WSWKI/QUALITY_SERVICES_INC__nvbke-24-51118__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
E-mail: steve@harrislawreno.com
In re Geoffrey S. Larsen and Melody A. Larsen
Bankr. D. Ariz. Case No. 24-09548
Chapter 11 Petition filed November 7, 2024
represented by: D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
In re Parkinson Land LLC
Bankr. D. Ariz. Case No. 24-09552
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/RQTEGZA/PARKINSON_LAND_LLC__azbke-24-09552__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph G. Urtuzuastegui III, Esq.
REI LAW FIRM
Email: joe@winsorlaw.com
In re Kevin Woodley and Shawnique Hill Woodley
Bankr. M.D. Fla. Case No. 24-06594
Chapter 11 Petition filed November 7, 2024
represented by: Ellen M., Esq.
In re Jorge Gamba 3467th Ave LLC
Bankr. E.D.N.Y. Case No. 24-44635
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/AC6PECA/Jorge_Gamba_3467th_Ave_LLC__nyebke-24-44635__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Yosi Shemtov
Bankr. E.D.N.Y. Case No. 24-44633
Chapter 11 Petition filed November 7, 2024
represented by: Heath Berger, Esq.
In re Momentum Consulting LLC
Bankr. N.D.N.Y. Case No. 24-11236
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/47WDTFY/Momentum_Consulting_LLC__nynbke-24-11236__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael Boyle, Esq.
BOYLE LEGAL LLC
E-mail: mike@boylebankruptcy.com
In re Malv No 2 Inc.
Bankr. S.D.N.Y. Case No. 24-11928
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/S6PQRXI/Malv_No_2_Inc__nysbke-24-11928__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 840 Clay Ave LLC
Bankr. M.D. Pa. Case No. 24-02897
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/FKD2YLI/840_CLAY_AVE_LLC__pambke-24-02897__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey A. Rockman, Esq.
LAW OFFICE OF JEFFREY A. ROCKMAN
E-mail: jeffrocklaw@aol.com
In re The MLJ Companies LLC
Bankr. W.D. Va. Case No. 24-61250
Chapter 11 Petition filed November 7, 2024
See
https://www.pacermonitor.com/view/DHDSHTQ/The_MLJ_Companies_LLC__vawbke-24-61250__0001.0.pdf?mcid=tGE4TAMA
represented by: Kimberly A. Kalisz, Esq.
CONWAY LAW GROUP, PC
E-mail: kimberly@conwaylegal.com
In re Joseph A. Morris
Bankr. M.D. Ala. Case No. 24-32535
Chapter 11 Petition filed November 8, 2024
In re Destinations to Recovery, LLC
Bankr. C.D. Cal. Case No. 24-11877
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/A5RQ3JQ/Destinations_to_Recovery_LLC__cacbke-24-11877__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric Bensamochan, Esq.
THE BENSAMOCHAN LAW FIRM, INC.
E-mail: eric@eblawfirm.us
In re Karim Lakhdar
Bankr. S.D. Fla. Case No. 24-21758
Chapter 11 Petition filed November 8, 2024
represented by: Chad Van Horn, Esq.
In re Garcia Property Group II, Inc.
Bankr. S.D. Fla. Case No. 24-21766
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/H5INITQ/Garcia_Property_Group_II_Inc__flsbke-24-21766__0001.0.pdf?mcid=tGE4TAMA
represented by: Christina Vilaboa-Abel, Esq.
CAVA LAW, LLC
E-mail: eservice@cavalegal.com
In re Midcentral Construction
Bankr. N.D. Ill. Case No. 24-16814
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/QYF623Y/Midcentral_Construction__ilnbke-24-16814__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re The Soul of Memphis Corporation
Bankr. D. Md. Case No. 24-19492
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/3DRE4YA/The_Soul_of_Memphis_Corporation__mdbke-24-19492__0001.0.pdf?mcid=tGE4TAMA
represented by: Harry Rifkin, Esq.
LAW OFFICES OF HARRY M. RIFKIN
E-mail: hrifkin@rifkinlaw.net
In re Prestige Property Group Inc.
Bankr. D.P.R. Case No. 24-04852
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/OYBUG6Y/PRESTIGE_PROPERTY_GROUP_INC__prbke-24-04852__0001.0.pdf?mcid=tGE4TAMA
represented by: Jose M Prieto Carballo, Esq.
JPC LAW OFFICE
E-mail: jpc@jpclawpr.com
In re Baty Land and Forestry Management, LLC
Bankr. E.D. Tenn. Case No. 24-12825
Chapter 11 Petition filed November 8, 2024
See
https://www.pacermonitor.com/view/VF6RC7I/Baty_Land_and_Forestry_Management__tnebke-24-12825__0001.0.pdf?mcid=tGE4TAMA
represented by: Amanda M Stofan, Esq.
FARINASH AND STOFAN
E-mail: amanda@8053100.com
In re Robert Louis Baty
Bankr. E.D. Tenn. Case No. 24-12823
Chapter 11 Petition filed November 8, 2024
represented by: Amanda Stofan, Esq.
In re American Medical Programs, Inc.
Bankr. S.D. Tex. Case No. 24-10192
Chapter 11 Petition filed November 9, 2024
See
https://www.pacermonitor.com/view/W4JT4GY/American_Medical_Programs_Inc__txsbke-24-10192__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelby A Jordan, Esq.
JORDAN & ORTIZ, P.C.
E-mail: sjordan@jhwclaw.com
In re American Medical Home Health Services-San Antonio, LLC
Bankr. S.D. Tex. Case No. 24-10193
Chapter 11 Petition filed November 9, 2024
See
https://www.pacermonitor.com/view/XG4AG2Q/American_Medical_Home_Health_Services-San__txsbke-24-10193__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelby A. Jordan, Esq.
JORDAN & ORTIZ, P.C.
E-mail: sjordan@jhwclaw.com
In re American Medical Home Health Services, LLC
Bankr. S.D. Tex. Case No. 24-10194
Chapter 11 Petition filed November 9, 2024
See
https://www.pacermonitor.com/view/XNWU3UI/American_Medical_Home_Health_Services__txsbke-24-10194__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelby A Jordan, Esq.
JORDAN & ORTIZ, P.C.
E-mail: sjordan@jhwclaw.com
In re American Medical Hospice Care, LLC
Bankr. S.D. Tex. Case No. 24-10195
Chapter 11 Petition filed November 9, 2024
See
https://www.pacermonitor.com/view/XWIFDII/American_Medical_Hospice_Care__txsbke-24-10195__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelby A Jordan, Esq.
JORDAN & ORTIZ, P.C.
E-mail: sjordan@jhwclaw.com
In re Hub City Home Health, Inc.
Bankr. S.D. Tex. Case No. 24-10191
Chapter 11 Petition filed November 9, 2024
See
https://www.pacermonitor.com/view/WXDUHDY/Hub_City_Home_Health_Inc__txsbke-24-10191__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelby Jordan, Esq.
JORDAN & ORTIZ, P.C.
E-mail: sjordan@jhwclaw.com
In re Jo on the Go, LLC
Bankr. W.D. La. Case No. 24-80696
Chapter 11 Petition filed November 11, 2024
See
https://www.pacermonitor.com/view/SEX2JBY/Jo_on_the_Go_LLC__lawbke-24-80696__0001.0.pdf?mcid=tGE4TAMA
represented by: L. Laramie Henry, Esq.
L. LARAMIE HENRY
Email: laramie@henry-law.com
In re James N Poulimenos and James N Poulimenos
Bankr. S.D. Ohio Case No. 24-32192
Chapter 11 Petition filed November 11, 2024
represented by: Darlene Fierle, Esq.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***