/raid1/www/Hosts/bankrupt/TCR_Public/241119.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, November 19, 2024, Vol. 28, No. 323
Headlines
1847 HOLDINGS: L1 Capital Holds 9.99% Equity Stake
1847 HOLDINGS: S.H.N. Financial Holds 9.99% Equity Stake
1859 OPERATING: Starts Subchapter V Bankruptcy Proceeding
2015 PARK: Plan Exclusivity Period Extended to November 29
6769 UNDERHILL: Hires Law Office of Narissa A. Joseph as Counsel
729-731 MEEKER: Property Sale Proceeds to Fund Plan
99 BOTTLES: Court OKs Cash Collateral Access Thru Dec. 11
ABSOLUTE DIMENSIONS: Unsecureds to Split $62K over 60 Months
ACCURIDE CORP: S&P Withdraws 'D' Issuer Credit Rating
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 26% Discount
AIMBRIDGE ACQUISITION: $795MM Bank Debt Trades at 32% Discount
ALBAUGH LLC: S&P Affirms 'BB-' ICR, Outlook Negative
ALK ASPHALT: Seeks Bankruptcy Protection in Arizona
AMCI NCR HOLDINGS: Voluntary Chapter 11 Case Summary
AMCI NCR: Voluntary Chapter 11 Case Summary
AMERICAN ACRYLICS: Court OKs Cash Collateral Access Thru Jan. 9
AMERICAN NUTS: CSWC Marks $12.1MM Loan at 43% Off
AMERICAN NUTS: CSWC Marks $12.9MM Loan at 17% Off
AMERICAN TIRE: King & Young Conaway Advise Excluded Term Lenders
AMERICAN TIRE: Seeks to Hire Ordinary Course Professionals
AMERINVEST LLC: Hires David C. Jones as Bankruptcy Counsel
ART LUXURY: Lisa Holder Named Subchapter V Trustee
ARTIFICIAL INTELLIGENCE: Readies for Surge in Public Safety Demand
ASTRA ACQUISITION: $500MM Bank Debt Trades at 94% Discount
ATLANTIC NEUROSURGICAL: Unsecureds Will Get 10% of Claims in Plan
ATLAS PURCHASER: $423.7MM Bank Debt Trades at 57% Discount
ATOMIC TATTOOS: Gets Interim OK to Use Cash Collateral
B.A.S.S. & M.: Seeks to Hire Husch Blackwell as Bankruptcy Counsel
BAKER EQUITY: Seeks to Hire Havkin & Shrago as Legal Counsel
BBG SOUZA: Hires Nickless Phillips and O'Connor as Counsel
BFDICU 8090: Case Summary & 14 Unsecured Creditors
BLUESUMMIT MEDICAL: Court Stays Caudill Suit Due to Bankruptcy
BLUEWORKS CORP: Continued Operations to Fund Plan Payments
BRIGHT ANGLE: Hires Bradford Law Offices as Bankruptcy Counsel
BROKEN ARROW: Unsecureds Owed $91K to Get 100% over 5 Years
BRUIN XPRESS: Seeks to Hire Much Shelist P.C. as Legal Counsel
BUCKEYE PIZZA: Case Summary & 11 Unsecured Creditors
CAREMAX INC: Medical Center for Elderly Seeks Chapter 11
CASH CLOUD: Discovery Deadline Stipulation in McAlary Suit OK'd
CASTLE US: EUR500MM Bank Debt Trades at 36% Discount
CHICAGO WHIRLY: Unsecureds Will Get 100% of Claims in Plan
CHRIS PETTIT: Unsecureds' Recovery "Unknown" in Trustee's Plan
CINEWORLD GROUP: Serramonte Lease Assumed Under Plan, Court Says
CLAIRE'S STORES: $502.4MM Bank Debt Trades at 16% Discount
CLICKED AI: Creditors to Get Paid from Income over 4 Years
COHERENT CORP: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
DAAS GROUP: Files Chapter 11 Bankruptcy in California
DIOCESE OF BURLINGTON: Hires Stretto as Claims and Noticing Agent
DIXON FLEET: U.S. Trustee Unable to Appoint Committee
DOC VENTURES: Seeks to Hire Ritter Spencer Cheng as Counsel
DOTDASH MEREDITH: S&P Places 'B+' ICR on CreditWatch Positive
DOW CORNING: Korean Claimants Can't Seek Replacement Checks
EDGEWOOD FOOD: Court to Confirm Chapter 11 Subchapter V Plan
EMERALD TECH: CSWC Marks $3.4MM Loan at 18% Off
ENDRA LIFE: Effects 1-for-35 Reverse Stock Split
ENVIVA INC: Davis Polk & McGuireWoods Update List of Creditors
EPIC COMPANIES: Seeks to Extend Plan Exclusivity to May 5, 2025
EVEREST TRANSPORTATION: CSWC Marks $6.2MM Loan at 15% Off
EXACTECH INC: Has Restructuring Deal, Sale to Investor Group
FARGO BREWING: Court OKs Use of Cash Collateral
FARRAND STREET: Unsecureds Will Get 20% of Claims in Plan
FOUR SEAS: Wins Interim Access to Cash Collateral
FRANCISCAN FRIARS: Exclusivity Period Extended to April 24, 2025
FRIARS CLUB: Nov. 26, 2024 Foreclosure Sale Set
GLOBAL WOUND: Seeks to Hire Ankura Consulting as Financial Advisor
GMB TRANSPORT: Mark Schlant Named Subchapter V Trustee
GOL LINHAS: Seeks to Extend Plan Exclusivity to March 20, 2025
GP INC: Seeks to Hire Sanborn and Company as Business Broker
H-FOOD HOLDINGS: $1.15BB Bank Debt Trades at 34% Discount
H-FOOD HOLDINGS: $515MM Bank Debt Trades at 34% Discount
HIGHLANDS GROUP: Seeks to Extend Plan Exclusivity to Jan. 20, 2025
HYPERION UTS: Court OKs Use of Cash Collateral
IAC INC: S&P Places 'BB-' ICR on Watch Pos. on Angi Inc Spin-Off
ID ELECTRIC: Hires Allen Jones & Giles as Bankruptcy Counsel
IHEARTMEDIA INC: Launches Debt Exchange Ahead of Creditor Fight
INDOCHINE RESTAURANT: Bankr. Administrator Unable to Appoint Panel
INDRA HOLDINGS: $50MM Bank Debt Trades at 44% Discount
INDUSTRIAL RESOURCE: Jill Durkin Named Subchapter V Trustee
INGENOVIS HEALTH: $675MM Bank Debt Trades at 30% Discount
INTRUM AB: Bondholders Want Chapter 11 Filing Dismissed
INTRUM AB: Case Summary & 30 Largest Unsecured Creditors
INTRUM AB: Seeks Confirmation of Prepackaged Restructuring Plan
INW MANUFACTURING: CSWC Marks $2MM Loan at 16% Off
ISAGENIX INTERNATIONAL: CSWC Marks $757,000 Loan at 73% Off
ISUN INC: Updates Prepetition Loan Claims Details
JOE'S AUTO: Seeks to Hire Prism LLC as Accountant
JONES COMMODITIES: Asset Sale Proceeds to Fund Plan
JULIO & SONS: Secured Party Sets Nov. 20 Foreclosure Sale
KING ESTATES: Holly Miller Named Subchapter V Trustee
KMS INC: CSWC Marks $17.7MM Loan at 27% Off
LASERSHIP INC: $455MM Bank Debt Trades at 83% Discount
LAVIE CARE: Plan Exclusivity Period Extended to December 30
LEITMOTIF SERVICES: Carol Fox Named Subchapter V Trustee
LLFLEX LLC: CSWC Marks $9.9MM Loan at 21% Off
LODGING ENTERPRISES: Exclusivity Period Extended to Jan. 22, 2025
LOGIX HOLDING: $250MM Bank Debt Trades at 24% Discount
LOGIX HOLDINGS: CSWC Marks $3.5MM Loan at 26% Off
LOOK CINEMAS II: Case Summary & 20 Largest Unsecured Creditors
LUMEN TECHNOLOGIES: S&P Places 'CCC+' ICR on CreditWatch Positive
LV OPPORTUNITY 6: Unsecureds Will Get 4.9% over 36 Months
MARRIOTT INTL: Announces Lay Offs in Maryland Amid Restructuring
MAVENIR SYSTEMS: $145MM Bank Debt Trades at 26% Discount
MDM RESTORATION: Marc Albert Named Subchapter V Trustee
MEDICAL SOLUTIONS: $1.05BB Bank Debt Trades at 29% Discount
MEDICAL SOLUTIONS: $270MM Bank Debt Trades at 38% Discount
MICHAELS COS: $1.95BB Bank Debt Trades at 27% Discount
MOFONGO & STEAKHOUSE: Angela Shortall Named Subchapter V Trustee
NAJAR TRUCKING: Unsecureds Will Get 1.5% of Claims in Plan
NAKED JUICE: $1.82BB Bank Debt Trades at 30% Discount
NAKED JUICE: $450MM Bank Debt Trades at 46% Discount
NATIONAL CREDIT: CSWC Marks $11.8MM Loan at 25% Off
NATIONWIDE MEDICAL: Gets Final OK to Use Cash Collateral
NCL CORP: EUR338MM Bank Debt Trades at 21% Discount
NCL CORP: EUR450MM Bank Debt Trades at 21% Discount
NO2SAC TRANSPORTATION: Taps Derbes Law Firm as Bankruptcy Counsel
OREGON TOOL: $850MM Bank Debt Trades at 27% Discount
ORIGINAL MOWBRAY'S: Hires Brian Weiss of Force Ten Partners as CRO
ORIGINAL MOWBRAY'S: Taps Raines Feldman Littrell as Counsel
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 52% Discount
PAR THREE PROPERTIES: Sec. 341(a) Meeting of Creditors on Dec. 11
PARADOX ENTERPRISES: Unsecureds to Split $50K over 5 Years
PHYSICIAN PARTNERS: $600MM Bank Debt Trades at 49% Discount
PHYSMODO INC: Case Summary & 20 Largest Unsecured Creditors
PREMIER GLASS: Court Denies Confirmation of Subchapter V Plan
PROJECT EVEREST: S&P Upgrades ICR to 'B', Outlook Stable
Q'BOLE INC: Lisa Holder Named Subchapter V Trustee
R. GREGORY INVESTMENTS: Seeks to Hire Camelot Realty as Broker
RACKSPACE TECHNOLOGY: $2.30BB Bank Debt Trades at 64% Discount
RANGER BEARINGS: Voluntary Chapter 11 Case Summary
RAZEL & RUZTIN: Unsecured Creditors to Split $150K over 5 Years
REALD INC: $60MM Bank Debt Trades at 13% Discount
RED BAY COFFEE: Gets Final OK to Use Cash Collateral
REFRESHING USA: U.S. Trustee Appoints Creditors' Committee
RESIDENT RESEARCH: Gets Court Nod to Use Cash Collateral
RITE AID: Real Property Lease Not Deemed Rejected, Court Rules
ROBERTSHAW PARENT: S&P Assigns 'CCC+' ICR, Outlook Positive
ROYSTONE ON QUEEN: Updates 5 Roy Claim Details; Files Amended Plan
S & O INVESTMENTS: Case Summary & 10 Unsecured Creditors
S&B RESTAURANTS: Amends Plan to Include Merchant Cash Advance Claim
S&G HOSPITALITY: Plan Exclusivity Period Extended to December 2
SIGNIA AEROSPACE: S&P Assigns 'B' ICR, Outlook Stable
SOVIRISH CORPORATION: Taps Law Offices of Ryan C. Wood as Counsel
SPECTRUM GROUP: $507MM Bank Debt Trades at 14% Discount
SPECTRUM OF HOPE: CSWC Marks $22.2MM Loan at 20% Off
SPIRIT AIRLINES: Files Chapter 11 Bankruptcy Protection
SPIRIT AIRLINES: Files for Chapter 11 With Debt-for-Equity Plan
SRP CAPITAL: Hires Robert C. Nisenson as Attorney
SSM INDUSTRIES: Gets OK to Use Cash Collateral for Utility Deposit
STATINMED LLC: CSWC Marks $7.5MM Loan at 85% Off
STERLING CREDIT: Plan Exclusivity Period Extended to December 2
STEWARD HEALTH: Ad Hoc Committee Defends Bid to Appoint Tort Panel
STUDENT RESOURCE: CSWC Marks $9.6MM Loan at 61% Off
SYNAPTICS INC: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
TARRANT COUNTY SENIOR: Court Confirms Prepack Chapter 11 Plan
TASTE OF TRELAWNY: Hires Vivona Pandurangi as Bankruptcy Counsel
TELESAT LLC: $1.91BB Bank Debt Trades at 53% Discount
TELESCOPE PROPERTIES: Taps Paramount One Realty as Broker
THREE SEAS: Gets Interim Approval to Use Cash Collateral
TIDAL REAL: Holiday Inn May Not be Demolished in Receivership
TRANS-LUX CORP: Naibin Tang Replaces Nicholas Fazio as New CEO
TROY 3440 LLC: Voluntary Chapter 11 Case Summary
TRUCK & TRAILER: Unsecureds Will Get 10% of Claims over 5 Years
TYRON PROPERTY: Enters Receivership After Loan Default
UPTOWN DENTAL: Areya Holder Aurzada Named Subchapter V Trustee
US TELEPACIFIC: CSWC Marks $2.4MM Loan at 60% Off
US TELEPACIFIC: CSWC Marks $230,000 Loan at 75% Off
VG IMPERIAL: Files Amendment to Disclosure Statement
VORTEX OPCO: $1.60BB Bank Debt Trades at 34% Discount
WATER GREMLIN: Plan Exclusivity Period Extended to Jan. 17, 2025
WELLPATH HOLDINGS: $110MM Bank Debt Trades at 99% Discount
WESTCLIFF INVESTORS: Gets OK to Use Cash Collateral Until Dec. 6
WESTERN RISE: Gets Final OK to Use Cash Collateral
WESTERN URANIUM: MMCAP International Holds 9.99% Equity Stake
WINESTEAD LLC: Seeks to Hire J. Luke Hendrix as Bankruptcy Counsel
WINTER GARDEN: Court Denies Bid to Use Cash Collateral
WOOF HOLDINGS: $138.5MM Bank Debt Trades at 29% Discount
YS GARMENTS: CSWC Marks $2.7MM Loan at 22% Off
*********
1847 HOLDINGS: L1 Capital Holds 9.99% Equity Stake
--------------------------------------------------
L1 Capital Global Opportunities Master Fund, Ltd. disclosed in a
Schedule 13 filed with the U.S. Securities and Exchange Commission
that as of October 29, 2024, it beneficially owned 882,048 shares
of 1847 Holdings LLC's common shares.
On October 29, 2024, the L1 Capital purchased 800,000 shares of the
Company's Common Shares, 192,063 Pre-Funded Warrants, 992,063
Series A Warrants, and 992,063 Series B Warrants. The aggregate
amount represents 800,000 shares of the Company's Common Shares and
82,048 shares of the Company's Common Shares underlying the
exercise of Pre-Funded Warrants, which are subject to a 9.99%
beneficial ownership limitation. Does not include Common Shares
underlying 992,063 Series A Warrants and 992,063 Series B Warrants,
both of which are subject to a 9.99% beneficial ownership
limitation, based on 8,747,262 shares of Common Shares outstanding
upon the closing of an offering based upon the Company's Prospectus
on Form 424(b)(4) filed with the Securities and Exchange Commission
on October 30, 2024.
A full-text copy of L1 Capital Global's SEC Report is available
at:
https://tinyurl.com/mvdmas4m
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.
1847 HOLDINGS: S.H.N. Financial Holds 9.99% Equity Stake
--------------------------------------------------------
S.H.N. Financial Investments Ltd. disclosed in a Schedule 13 filed
with the U.S. Securities and Exchange Commission that as of October
29, 2024, it beneficially owned 909,178 shares of 1847 Holdings
LLC's common shares, which represent 555,555 of the Company's
Common Shares purchased by S.H.N. Financial and 353,623 shares of
the Company's Common Shares issuable upon the exercise of Series A
Warrants, which are subject to a 9.99% beneficial ownership
limitation, based on 8,747,262 Common Shares outstanding upon the
closing of an offering based on the Company's Prospectus on Form
424(b)(4) filed with the Securities and Exchange Commission on
October 30, 2024.
A full-text copy of S.H.N. Financial's SEC Report is available at:
https://tinyurl.com/4vnjapxx
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.
1859 OPERATING: Starts Subchapter V Bankruptcy Proceeding
---------------------------------------------------------
1859 Operating LLC filed Chapter 11 protection in the Western
District of Texas on November 4, 2024. According to filings in
court, the Debtor reports $21,984,246 in debt owed to one and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under Sec. 341(a) is to be held on December
3, 2024 at 11:00 AM.
About 1859 Operating LLC
1859 Operating LLC is an independent oil company. Its focus is to
drill and produce over 100 shallow & deep conventional wells from
different production zones in the Chicon lake reservoir.
1859 Operating LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11393) on
November 4, 2024. In the petition filed Mason Slade, as manager,
the Debtor reports total assets amounting to $9,127,484 and total
liabilities of $21,984,246.
Honorable Bankruptcy Judge Shad Robinson oversees the case.
The Debtor is represented by:
Kell C. Mercer, Esq.
KELL C. MERCER PC
901 S Mopac Expy Bldg 1 Ste 300
Austin TX 78746
Tel: (512) 767-3214
Email: kell.mercer@mercer-law-pc.com
2015 PARK: Plan Exclusivity Period Extended to November 29
----------------------------------------------------------
2015 Park Street, LP, asked the U.S. Bankruptcy Court for the
Southern District of Texas to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
November 29, 2024 and January 31, 2025, respectively.
The Debtor explains that its exclusive right to file a plan is
scheduled to expire on October 29, 2024. An extension of one month,
until November 29, 2024, will provide the Debtor with additional
time to attempt to negotiate with Fannie Mae towards an agreed plan
or other consensual resolution.
The Debtor claims that Fannie Mae and the company have scheduled a
formal property inspection by Fannie Mae's agent to occur on
November 7. Additionally, Debtor has recently engaged an accountant
to provide Fannie Mae with certain reporting and documentation
about Debtor's operations and repair program that Fannie Mae's
counsel has requested.
The Debtor believes the results of the inspection and the
accountant's work will assist the Debtor in its ongoing
negotiations with Fannie Mae towards a hoped-for consensual
resolution of this case, either under a plan, or, potentially, a
structured dismissal.
The Debtor asserts that it is working diligently to reach a
consensual outcome in this case. The extra time will save the
Debtor and parties-in-interest time and money. Debtor does not seek
an extension to pressure creditors. The requested extension is
appropriate and in the best interests of the Debtor, its estate and
parties-in-interest.
2015 Park Street LP is represented by:
Nathaniel Peter Holzer, Esq.
1734 Santa Fe
Corpus Christi, TX 78404
Telephone: (361) 563-6175
Email: pete@npholzerlaw.com
About 2015 Park Street LP
2015 Park Street LP owns and operates a park in Corpus Christi,
Texas offering a picturesque setting close to Corpus Christi Bay
and the scenic Oso Beach Municipal Golf Course. The Park also
offers a range of rental options to suit diverse lifestyles.
2015 Park Street LP sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-20183) on July 1,
2024. In the petition filed by Clyde Nazareth, as president of
General Partner, the Debtor reports estimated assets between $10
million and $50 million and estimated liabilities between $1
million and $10 million.
The Debtor is represented by Nathaniel Peter Holzer, Esq.
6769 UNDERHILL: Hires Law Office of Narissa A. Joseph as Counsel
----------------------------------------------------------------
6769 Underhill Corp seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire Law Office of Narissa
A. Joseph as counsel.
The firm's services include:
a. consulting with the Debtor concerning the administration of
its Chapter 11 case;
b. investigating the Debtor's past transactions, commencing
actions with respect to its avoiding powers under the Bankruptcy
Code, and advising the Debtor with respect to transactions entered
into during the pendency of the case;
c. assisting the Debtor in the formulation of a Chapter 11
plan; and
d. providing other legal services as may be required by the
Debtor in the interest of the estate.
The firm will be paid at these rates:
Partner $350 to 400 per hour
Associate $275 to $300 per hour
Paralegal $75 to 100 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Narissa A. Joseph, a partner at Law Office of Narissa A. Joseph,
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:
Narissa A. Joseph, Esq.
Law Office of Narissa A. Joseph
305 Broadway Street Suite 1001
New York, NY 10007
Tel: (212) 233-3060
Email: njosephlaw@aol.com
About 6769 Underhill Corp
6769 Underhill Corp is an apartment building operator.
6769 Underhill Corp filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-43804) on Sep. 12, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Hubert Drew
as president.
Judge Nancy Hershey Lord presides over the case.
Narissa A. Joseph, Esq. at the Law Office of Narissa A. Joseph
represents the Debtor as counsel.
729-731 MEEKER: Property Sale Proceeds to Fund Plan
---------------------------------------------------
729-731 Meeker Group LLC filed with the U.S. Bankruptcy Court for
the Eastern District of New York a Disclosure Statement for Plan of
Liquidation dated October 2, 2024.
On or about November 8, 2019, Cantor Commercial Real Estate
Lending, L.P. ("Original Lender") agreed to make a loan or loans
(the "Loan") to 729-731 Meeker Group LLC, 80 NY Ave LLC, 81
Stockholm Group LLC, Gold Management Realty LLC, 346 Grand LLC and
467 Central Avenue LLC (collectively, "Borrower"), in accordance
with the terms and conditions of that certain loan agreement (the
"Loan Agreement") dated November 8, 2019.
The Loan is in part evidenced by that certain Amended, Restated and
Consolidated Promissory Note dated November 8, 2019 (the "Note") in
the original principal amount of 24,800,000.00. As security for the
payment of the Loan, on or about November 8, 2019, Borrower
executed and delivered to Original Lender that certain Amended,
Restated, and Consolidated Mortgage, and Security Agreement dated
November 8, 2019 (the "Mortgage") securing the obligations under
the Note.
The Mortgage encumbers the following real properties located in the
County of Kings (Brooklyn), State of New York: 467 Central Avenue,
Block 3383, Lot 8; 346 Grand Street, Block 2396, Lot 14; 80 New
York Avenue, Block 1207, Lot 34; 731 Meeker Avenue, Block 2691, Lot
49; 169 Troutman Street, Block 3173, Lot 52; and 81-83 Stockholm
Street, Block 3243, Lots 54 & 55, (collectively, the "Mortgaged
Properties") with a first priority lien, together with a security
interest in substantially all of Borrower's personal property,
including without limitation the Mortgaged Property.
The Debtor commencement of its Chapter 11 case stayed the
Foreclosure Action as to the Debtor's real property known as and
located at 729-731 Meeker Avenue, Brooklyn, New York 10022 (the
"Property").
The intends, forthwith to file a motion with this Court seeking
entry of an order authorizing and approving an auction sale of the
Property, free and clear of all monetary liens, claims and
Encumbrances, with such monetary liens, claims and encumbrances to
attach to the proceeds of sale; and approving the bidding
procedures for the Property. The proposed auction sale will be
subject to extensive marketing and subject to higher and better
bids. The Debtor intends to receive the highest and best price for
its sole asset, so that it may maximize return to creditors of its
estate.
At the conclusion of the auction sale, the Debtor will declare the
highest and best bidder (the "Purchaser") and seek order of the
Court authorized the conveyance of the Property, the closing of
which shall occur within 30 days after the auction sale (the "Sale
Transaction"). The proceeds of the Sale Transaction (the "Sales
Proceeds") will be available to the Debtor's Estate.
Class 6 consists of General Unsecured Claims. The allowed unsecured
claims total $37,968,415.70. Subject to the provisions of Article 7
of the Plan with respect to Disputed Claims, to the extent that any
funds are available from the Sale Proceeds after full payment of
all Statutory Fees, Allowed Administrative Claims, and the Allowed
Claims in Classes 1 through Class 5, each holder of an Allowed
Class 6 General Unsecured Claim shall be paid a Pro Rata Cash
distribution out of any of the remaining Sale Proceeds on the later
of: (i) thirty days after the Effective Date or (ii) three business
days after such Claim becomes an Allowed Claim. Class 6 Claims are
Impaired.
Class 8 consists of Equity Interests. On the Effective Date, all
Equity Interest Holders shall retain the value of their Interests
that may exist as to any remaining balance of Cash, if any, after
payment in full of all Allowed Claims and Classes of Claims against
the Debtor. Interests of Equity shall be extinguished, and the
Debtor shall remain responsible for either managing or winding down
its own affairs without interfering with the Disbursing Agent's
performance under the Plan. Class 8 Equity Interests are not
receiving any distribution under the Plan, and Interest Holders are
deemed to reject the Plan.
Payments under the Plan will be paid from the Sale Proceeds and any
Cash of the Debtor. The Sale Transaction will be implemented
pursuant to the Bid Procedures. Prior to or on or about the
Effective Date, the Property shall be sold to the Purchaser, free
and clear of all Liens, Claims and encumbrances (except permitted
encumbrances as determined by the Purchaser), with any such Liens,
Claims and encumbrances to attach to the Sale Proceeds and
disbursed in accordance with the provisions of the Plan. Except as
set forth elsewhere in the Plan, all distributions to be made on
the Effective Date shall be transferred to the escrow account of
the Disbursing Agent at the closing of the Sale Transaction.
A full-text copy of the Disclosure Statement dated October 2, 2024
is available at https://urlcurt.com/u?l=X4IWrH from
PacerMonitor.com at no charge.
About 729-731 Meeker Group LLC
729-731 Meeker Group LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
729-731 Meeker Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42846) on July 9,
2024. In the petition filed by Mitchell Steiman, as vice president
of restructuring, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Joel M. Shafferman, Esq.
SHAFFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
Email: shaffermanjoel@gmail.com
99 BOTTLES: Court OKs Cash Collateral Access Thru Dec. 11
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division granted 99 Bottles Hospitality, LLC interim
authority to use cash collateral through Dec. 11.
The court authorized the company to use cash collateral to pay
expenses, including payments to the Subchapter V trustee; current
and necessary expenses as outlined in its projected budget, with a
10% allowed variance; and additional amounts approved by the U.S.
Small Business Administration.
The order also required the company to timely perform all
obligations as a debtor-in-possession, maintain insurance coverage
for its property, and provide adequate protection to secured
creditors.
The next hearing is set for Dec. 11.
About 99 Bottles Hospitality
99 Bottles Hospitality, LLC owns and operates a full-service
restaurant business in Melbourne, Fla.
99 Bottles Hospitality sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03666)
on July 17, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Kevin O. Andersen, manager, signed the
petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Michael Faro, Esq., at Faro & Crowder.
ABSOLUTE DIMENSIONS: Unsecureds to Split $62K over 60 Months
------------------------------------------------------------
Absolute Dimensions, LLC, submitted a First Amended Small Business
Plan of Reorganization under Subchapter V dated October 2, 2024.
Absolute proposes to pay to its creditors such portion of its
earnings and other future income as is necessary for the execution
of this Amended Plan for a 60-month period of time ending on
December 31, 2029.
In no event, however, shall the portion of Absolute's earnings and
other future income paid pursuant to this Amended Plan be less than
the projected disposable income of Absolute paid to Allowed
Unsecured Claims for the period of time contemplated by this
Article.
The value of property to be distributed over the 60-month period
under this Amended Plan beginning on the date in which the first
distribution is due under the Amended Plan is not less than the
projected disposable income of Absolute pursuant to Section
1191(c)(2)(B) of the Bankruptcy Code, less than the value of the
unencumbered assets free of liens.
Class 9 consists of Allowed Unsecured Claims. This Class is
Impaired and is entitled to vote on the Plan. Absolute's disposable
income to distribute to Allowed Unsecured Creditors under Section
1191(c)(2)(A) of the Bankruptcy Code is $62,515.36. Alternatively,
as set forth in Exhibit 5 referenced below, Absolute does maintain
some equity in its personal property assets in the amount of
$775,927.94. Despite that, Absolute has no liquidation value
because the administrative expenses exceed the equity and the value
of that preference claim.
However, in an effort to obtain a consensual plan, to comply
Section 1191 of the Bankruptcy Code, and to ensure it retains its
personal property assets, Absolute proposes to distribute the
higher amount between its disposable income and liquidation value.
Therefore, Absolute will distribute to Allowed Unsecured Claims
their pro rata share of the total of $62,515.36 over 60 months at
7.44% interest through monthly payments of $1,250.90. The monthly
payments shall commence on the day that is 30 days after the
Effective Date and on the same day of each month thereafter until
the total of $1,250.90 is paid with interest as provided herein.
Absolute asserts that paying the $62,515.36 complies with Section
1192(c) of the Bankruptcy Code because that amount is either equal
to or exceeds Absolute 's disposable income over 60-month period
postconfirmation and that Absolute would not otherwise be required
to distribute any liquidation value to unsecured creditors as the
administrative costs of liquidating Absolute exceeds the value of
any potential recovery for Allowed Unsecured Claims in a Chapter 7
liquidation.
To the extent any distribution to Allowed Unsecured Claim provided
for in this Amended Plan is less than $10.00 a month, such payment
will be considered de minimis and Absolute will delay any
distribution until the total of the monthly payments combined
exceeds $10.00. For example, AMI is set to receive a monthly
payment of $3.94 as calculated in Exhibit 3. Therefore, AMI would
receive $11.82 every third month under the 60-month period
contemplated by this Plan. If the accumulation of the monthly
payment never exceeds $10.00 during the entire 60-month period,
Absolute will distribute the 60-month total on any such claim on or
before December 31, 2029.
In addition to the treatment of the claims, Absolute will seek to
sell certain equipment in connection with the Plan, both of which
are subject to Emprise Secured Claim and SBA Secured Claim based on
the following terms:
* Absolute will sell the equipment identified in the list
attached as Exhibit 4 (collectively the "Collateral").
* Absolute will sell the equipment identified in Exhibit 4
either by auction to be conducted by an auction company Absolute
will retain pursuant to Section 327 of the Bankruptcy Code or by
private sale should Absolute receive an offer from a private party
within a reasonable time before the auction process has commenced.
* Absolute will seek court approval of the auctioneer to be
used to sell the Collateral and agrees to use its best efforts to
obtain Emprise's consent to the professionals Absolute will use to
conduct the sales contemplated by this Article; however, Absolute
retains final discretion to select the professionals it seeks to
have the Court approve to sell the Collateral.
A full-text copy of the First Amended Subchapter V Plan dated
October 2, 2024 is available at https://urlcurt.com/u?l=blZumd from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Nicholas R. Grillot, Esq.
Lora J. Smith, Esq.
Hinkle Law Firm LLC
1617 N. Waterfront Parkway, Ste. 400
Wichita, KS 67206
Telephone: (316) 660-6211
Facsimile: (316) 660-6523
Email: ngrillot@hinklaw.com
lsmith@hinklaw.com
About Absolute Dimensions
Absolute Dimensions, LLC specializes in 3, 4, and 5 axis and CNC
machining as well as Water Jet cutting.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 24-10392) on 24-10392. In
the petition signed by Stephen Brittain, managing member, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Mitchell L. Herren oversees the case.
Nicholas R. Grillot, Esq., at Hinkle Law Firm, LLC, represents the
Debtor as bankruptcy counsel.
ACCURIDE CORP: S&P Withdraws 'D' Issuer Credit Rating
-----------------------------------------------------
S&P Global Ratings withdrew all of its ratings on the commercial
vehicle wheel and wheel end manufacturer Accuride Corp. at the
issuer's request.
At the time of the withdrawal, S&P rated the company 'D' following
its Chapter 11 bankruptcy filing on Oct. 9, 2024, which was ongoing
as of Nov. 15, 2024.
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 26% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ACProducts Holdings
Inc is a borrower were trading in the secondary market around 73.8
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.40 billion Term loan facility is scheduled to mature on May
17, 2028. The amount is fully drawn and outstanding.
ACProducts, Inc., headquartered in The Colony, Texas, is a national
manufacturer and distributor of kitchen and bathroom cabinetry.
American Industrial Partners, through its affiliates, is the
primary owner of ACProducts, having acquired it in 2012.
AIMBRIDGE ACQUISITION: $795MM Bank Debt Trades at 32% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aimbridge
Acquisition Co Inc is a borrower were trading in the secondary
market around 68.2 cents-on-the-dollar during the week ended
Friday, November 15, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $795 million Term loan facility is scheduled to mature on
February 2, 2026. The amount is fully drawn and outstanding.
The Company's country of domicile is the United States.
ALBAUGH LLC: S&P Affirms 'BB-' ICR, Outlook Negative
----------------------------------------------------
S&P Global Ratings affirmed all ratings, including the 'BB-' issuer
credit rating, on agrochemicals producer Albaugh LLC.
The negative outlook reflects risks that unexpected setbacks in
what is a somewhat unpredictable operating environment could slow
down, or reverse, the earnings improvement relative to S&P's
expectations.
The company's improving, but still-weak EBITDA, continues to
reflect recent unpredictability in markets and operating
conditions.
Albaugh's EBITDA has improved from 2023 trough levels. S&P said,
"We anticipate that 2024 EBITDA will strengthen over 2023 levels.
Temporary operating setbacks in South American markets have slowed
the rate of improvement. We expect this improvement to pick up pace
in 2025 benefitting from the resolution of these setbacks, and also
better market conditions. In our base case, EBITDA is higher in
each successive future year."
Current credit metrics remain weak for the ratings, although they
are strengthening and are appropriate for the ratings on a weighted
average basis considering future metrics.
S&P said, "The company's funds from operations (FFO) to total debt
ratio and total debt to EBITDA ratio for 2024 will be well weaker
than the 20%, and 4x, respectively, thresholds that we consider
appropriate at the ratings. However, we expect an ongoing
strengthening trajectory of earnings in the next several quarters
and well into 2026. This results in credit metrics that are
appropriate at the ratings when we consider our expectations for
these ratios at year-end 2025 and 2026."
Liquidity remains adequate, with positive free cash flow generation
and large cash balances relative to key obligations like interest
costs.
S&P said, "Despite challenges in working capital and operating
conditions, discretionary free cash flow (after dividends) was
positive in 2023, and we expect this will strengthen in 2024 and
beyond. Cash balances are relatively high and we believe adequate
liquidity, including availability under credit facilities, is
sufficient to meet working capital and other requirements. The
earliest meaningful debt maturity is in 2027."
Financial policy remains important.
S&P said, "We assume financial policy will support credit quality.
We base this view on several factors including the company's
reduction of dividend payouts during recent periods of earnings
weakness. Debt levels have risen at the company in recent quarters
as funding for increasing operating funding requirements. We do not
view the higher debt as a reflection of a more aggressive financial
policy and expect debt levels will decline with a decline in these
temporary incremental funding requirements."
There is some regulatory risk for glyphosate-based products.
A significant portion of the company's revenues are from
glyphosate-based products. Glyphosate is a much-scrutinized product
by regulatory and consumer bodies. The attention to this product
creates the potential for event risk involving regulatory or other
actions.
S&P said, "The negative outlook reflects our expectation for
improved earnings in 2024 relative to 2023, but also the fact that
earnings will remain weak and unable to support 2024 credit metrics
appropriate for the ratings. We think second-half 2024 earnings
will strengthen relative to the first half, but meaningful
improvement will only occur in 2025. Consequently, we anticipate
that the ratio of FFO to total debt will be at 20% or stronger on a
weighted average basis in 2025 and 2026.
"We assume temporary challenges in some Latin American markets that
have curtailed production and increased working capital
requirements will ease in the next few quarters allowing the
company to benefit from increased demand for its products. We
expect dividend payouts will be minimal until earnings have
improved from 2024 levels. We believe the company is positioned to
pursue its growth strategy while maintaining adequate liquidity and
maintaining FFO to total debt of between 20%-30% on a weighted
sustainable basis over the next two years, although this metric
will be below that range for a limited period of time in 2024 and
early 2025. Our base-case scenario assumes that management will not
pursue large debt-funded acquisitions, will maintain adequate
liquidity at all times, and will continue to adhere to financial
policies that are consistent with how it has operated the company
historically.
"We could lower the rating within the next few quarters if the
company is unable to build on its recent track record of improving
credit metrics, and gradually strengthen credit metrics to levels
appropriate for the ratings, in 2025. There is no cushion under
credit metrics for any setback to earnings, including in our
anticipated improvement in EBITDA. We could downgrade the company
if we believe second-half EBITDA in 2024 will not improve
meaningfully over first-half 2024 levels.
"In addition to these short-term factors we could lower ratings if
profitability is harmed by factors such as competitive pressures,
unfavorable weather patterns affecting volumes, negative currency
impacts, or increased environmental scrutiny on products such as
glyphosate and dicamba. We could also lower the ratings if, against
our expectations, the company began to demonstrate more aggressive
financial policies through large debt-funded acquisitions or
distributions to owners.
"We could revise the outlook to stable within the next 12 months if
the company improves its level of earnings, such that FFO to debt
equals or exceeds 20% on a weighted-average sustainable basis. We
would need to gain more clarity regarding the company's growth
initiatives and future financial policies, before considering a
higher rating."
ALK ASPHALT: Seeks Bankruptcy Protection in Arizona
---------------------------------------------------
On November 8, 2024, ALK Asphalt LLC filed Chapter 11 protection in
the District of Arizona.
According to court documents, the Debtor reports between $1 million
and $10 million in debt owed to 100 to 199 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 10,
2024 at 12:45 PM.
About ALK Asphalt LLC
ALK Asphalt LLC is engaged in highway, street, and bridge
construction.
ALK Asphalt LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09608) on November 8,
2024. In the petition filed by Adam Kautman, as member, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
Honorable Bankruptcy Judge Daniel P. Collins handles the case.
The Debtor is represented by:
Thomas H. Allen, Esq.
ALLEN, JONES & GILES, PLC
1850 N. Central Avenue, Suite 1025
Phoenix, AZ 85004
Tel: 602-256-6000
E-mail: tallen@bkfirmaz.com
AMCI NCR HOLDINGS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: AMCI NCR Holdings, LLC
600 Steamboat Road, 3rd Floor
Greenwich CT 06830
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-12616
Judge: Hon. Karen B. Owens
Debtor's Counsel: Derek C. Abbott, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 North Market Street
Wilmington, DE 19801
Tel: (302) 658-9200
E-mail: DAbbott@morrisnichols.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $0 to $50,000
The petition was signed by Nimesh Patel as manager.
The Debtor indicated in the petition it has no unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/WQW2E7Q/AMCI_NCR_Holdings_LLC__debke-24-12616__0001.0.pdf?mcid=tGE4TAMA
AMCI NCR: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: AMCI NCR LLC
600 Steamboat Road, 3rd Floor
Greenwich, CT 06830
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-12616
Judge: Hon. Karen B. Owens
Debtor's Counsel: Derek C. Abbott, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 North Market Street
Wilmington DE 19801
Tel: (302) 658-9200
E-mail: DAbbott@morrisnichols.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by Nimesh Patel as manager.
The Debtor indicated it has no unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/O7WMIQI/AMCI_NCR_LLC__debke-24-12615__0001.0.pdf?mcid=tGE4TAMA
AMERICAN ACRYLICS: Court OKs Cash Collateral Access Thru Jan. 9
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
granted American Acrylics, LLC authorization to use cash collateral
on an interim basis, in accordance with its projected budget, with
a 10% variance.
The budget shows total monthly operating expenses of $11,058 for
November and $10,058 for December.
The interim order allows the company to use cash collateral up to
Jan. 9 next year, subject to certain conditions, including making
an adequate protection payment of $2,500 to The Huntington National
Bank and granting the bank replacement liens on post-petition
property of American Acrylics to the extent and with the same
priority as its pre-petition lien.
The next hearing is set for Jan. 8.
About American Acrylics
American Acrylics, LLC is a manufacturer and fabricator providing
custom acrylic laser cutting and engraving services for high
quality CNC routing service.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08049) on May 31,
2024. In the petition signed by Gregory DeGreef, manager, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Deborah L. Thorne oversees the case.
Gregory K. Stern, Esq., at Gregory K. Stern, P.C, represents the
Debtor as legal counsel.
AMERICAN NUTS: CSWC Marks $12.1MM Loan at 43% Off
-------------------------------------------------
Capital Southwest Corporation has marked its $12,106,000 loan
extended to American Nuts Operations, LLC to market at $6,937,000
or 57% of the outstanding amount, according to a disclosure
contained in CSWC's Form 10-Q for the quarterly period ended
September 30, 2024, filed with the Securities and Exchange
Commission.
CSWC is a participant in a First Lien Term Loan B to American Nuts
Operations, LLC. The Loan accrues interest at a rate of 17.23%
(SOFR+11.75%, Payment in Kind (Floor 1.00%)/Q) per annum. The loan
matures on April 10, 2026.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
American Nuts, LLC wholesales and distributes food products. The
Company imports nuts, seeds, dried fruit, and organic ingredients.
AMERICAN NUTS: CSWC Marks $12.9MM Loan at 17% Off
-------------------------------------------------
Capital Southwest Corporation has marked its $12,944,000 loan
extended to American Nuts Operations, LLC to market at $10,106,000
or 83% of the outstanding amount, according to a disclosure
contained in CSWC's Form 10-Q for the quarterly period ended
September 30, 2024, filed with the Securities and Exchange
Commission.
CSWC is a participant in a First Lien Term Loan A to American Nuts
Operations, LLC. The Loan accrues interest at a rate of 15.23%
(SOFR+9.75%, Payment in Kind (Floor 1.00%)/Q) per annum. The loan
matures on April 10, 2026.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
American Nuts, LLC wholesales and distributes food products. The
Company imports nuts, seeds, dried fruit, and organic ingredients.
AMERICAN TIRE: King & Young Conaway Advise Excluded Term Lenders
----------------------------------------------------------------
In the Chapter 11 cases of American Tire Distributors, Inc. and its
affiliates, the Ad Hoc Group of Excluded Term Lenders filed a
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure.
On October 30, 2024, certain beneficial holders, or investment
advisors, subadvisers or managers of the account of beneficial
holders (collectively, the "Ad Hoc Group of Excluded Term Lenders")
to that certain term loan credit agreement, dated as of October 22,
2021 (as amended, restated, supplemented or otherwise modified from
time to time, the "Prepetition Term Loan Credit Agreement"), by and
among American Tire Distributors, Inc., as borrower ("ATD Inc."),
the other loan parties thereto, the lenders from time to time party
thereto (the "Prepetition Term Lenders"), and Wilmington Savings
Fund Society, FSB, as successor administrative agent and collateral
agent to Bank of America, N.A. (in such capacity, the "Prepetition
Term Loan Agent"), engaged King & Spalding LLP ("K&S") and Young
Conaway Stargatt & Taylor LLP ("YCST") to represent them in respect
of their holdings of Prepetition Term Loans.
K&S and YCST represent only the Ad Hoc Group of Excluded Term
Lenders and do not represent or purport to represent any entities
other than the Ad Hoc Group of Excluded Term Lenders in connection
with the Debtors' chapter 11 cases. In addition, the Ad Hoc Group
of Excluded Term Lenders, both collectively and through its
individual members, does not represent or purport to represent any
other entities in connection with the Debtors' chapter 11 cases.
Each individual member of the Ad Hoc Group of Excluded Term Lenders
holds claims, or such member or one or more of its affiliates
advise, sub-advise or manage accounts that hold claims against the
Debtors arising from the Prepetition Term Loan Credit Agreement.
The Ad Hoc Group of Excluded Term Lenders' address and the nature
and amount of disclosable economic interests held in relation to
the Debtors are:
1. Intermarket Corporation
888 Seventh Avenue,
New York, NY 10106
Attn: Joseph von Meister
* Aggregate Principal Amount of Term Loans: $7,825,125.96
2. Oaktree Capital Management, L.P.
333 South Grand Avenue,
Los Angeles, CA 90071
Attn: Alison Friedman Mermey
* Aggregate Principal Amount of Term Loans: $6,687,053.89
3. Liberty Mutual Insurance Company
157 Berkley Street,
Boston MA 02116
Attn: Samuel Osete
* Aggregate Principal Amount of Term Loans: $13,731,013.35
4. DoubleLine Capital LP
2002 N. Tampa Street, Suite
200, Tampa, FL 33602
Attn: Philip Kenny, Sanjay Jagtiani, and Adam Malatesta
* Aggregate Principal Amount of Term Loans: $5,739,434.00
5. AllianceBernstein Holding L.P.
501 Commerce Street
Nashville, TN 37203
Attn: William Jackson
* Aggregate Principal Amount of Term Loans: $8,243,040.00
6. PenderFund Capital Management Ltd.
333 Bay Street
Toronto, ON M5H 2R2
Attn: Geoff Castle
* Aggregate Principal Amount of Term Loans: $28,000,000.00
* Equity Interests: 749,570
Counsel to the Ad Hoc Group of Excluded Term Lenders:
Kevin A. Guerke, Esq.
Ashley E. Jacobs, Esq.
Rebecca L. Lamb, Esq.
Young Conaway Stargatt & Taylor, LLP
1000 N King St,
Wilmington, DE 19801
Telephone: (302) 571-6600
Email: kguerke@ycst.com
ajacobs@ycst.com
rlamb@ycst.com
-and-
Michael R. Handler (pro hac vice pending)
Nancy M. Bello (pro hac vice pending)
King & Spalding LLP
1185 Avenue of the Americas
34th Floor
New York, NY 10036
Telephone: (212) 556-2100
Email: mhandler@kslaw.com
nbello@kslaw.com
Thaddeus D. Wilson
King & Spalding LLP
1180 Peachtree Street, NE
Atlanta, GA 30309
Telephone: (404) 572-4600
Email: thadwilson@kslaw.com
About American Tire Distributors
Headquartered in Huntersville, N.C., American Tire Distributors
Inc. and its affiliates are the largest distributor of replacement
tires in North America based on dollar amount of wholesale sales.
With their network of over 115 distribution centers and 1,500
delivery vehicles, the Debtors service a geographic region covering
more than 90 percent of the replacement tire market for passenger
vehicles and light trucks in the United States. The Debtors carry
many of the nation's leading tire brands including Michelin,
Pirelli, and Continental. In addition, the Debtors' proprietary
Hercules brand is a leading private tire brand in North America.
American Tire Distributors and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12391) on October 22, 2024. In its petition, American Tire
Distributors reported $1 billion to $10 billion in both assets and
liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP
Services, LLC as restructuring advisor; and Moelis & Company, LLC
as financial advisor. Donlin, Recano & Company, Inc. is the notice
and claims agent and administrative advisor.
AMERICAN TIRE: Seeks to Hire Ordinary Course Professionals
----------------------------------------------------------
American Tire Distributors Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
retain professionals utilized in the ordinary course of business.
These OCPs have provided legal, technical, accounting, consulting,
and/or other related services to the Debtors, upon which they rely
on to manage their day-to-day operations.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
About American Tire Distributors
Headquartered in Huntersville, N.C., American Tire Distributors
Inc. and its affiliates are the largest distributor of replacement
tires in North America based on dollar amount of wholesale sales.
With their network of over 115 distribution centers and 1,500
delivery vehicles, the Debtors service a geographic region covering
more than 90 percent of the replacement tire market for passenger
vehicles and light trucks in the United States. The Debtors carry
many of the nation's leading tire brands including Michelin,
Pirelli, and Continental. In addition, the Debtors' proprietary
Hercules brand is a leading private tire brand in North America.
American Tire Distributors and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12391) on October 22, 2024. In its petition, American Tire
Distributors reported $1 billion to $10 billion in both assets and
liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP
Services, LLC as restructuring advisor; and Moelis & Company, LLC
as financial advisor. Donlin, Recano & Company, Inc. is the notice
and claims agent and administrative advisor.
AMERINVEST LLC: Hires David C. Jones as Bankruptcy Counsel
----------------------------------------------------------
Amerinvest, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Virginia to hire David C. Jones, Jr., P.C.,
as counsel.
The firm will render these services:
a. advise and consult 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. assist in the preparation of such pleadings, Motions,
Notices, and Orders as are required for the orderly administration
of the estate; and to consult with and advise the Debtor in
connection with the operation of the business of the Debtor;
c. prepare and file a Plan and to obtain the confirmation and
completion of a Plan of reorganization, and to prepare a Final
Report and a Final Accounting;
d. appear for, prosecute, defend, and represent Debtor's
interests in suits arising in or related to this case; and
e. investigate and prosecute preference and other actions
arising under the Debtor's avoiding powers.
The firms will be paid at the hourly rate of $375.
They will also be reimbursed for reasonable out-of-pocket expenses
incurred.
David C. Jones, Jr., a partner at David C. Jones, Jr., P.C.,
assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtors and their estates.
The firms can be reached at:
David C. Jones, Jr., Esq.
David C. Jones, Jr., P.C.
10617 Jones Street, Suite 301-A
Fairfax, VA 22030
Tel: (703) 273-7350
Fax: (703) 385-3731
Email: davidcjonesjr@gmail.com
About Amerinvest, LLC
Amerinvest is primarily engaged in renting and leasing real estate
properties.
Amerinvest, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
24-12069) on Nov. 5, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Daria
Karimian as managing member.
David C. Jones, Jr., Esq. at LAW OFFICE OF DAVID C. JONES, JR.
represents the Debtor as counsel.
ART LUXURY: Lisa Holder Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Art Luxury Home Builder, Inc.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Art Luxury Home Builder
Art Home Builder, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-24792) on
October 24, 2024, with $100,001 to $500,000 in assets and
liabilities.
Judge Christopher D. Jaime presides over the case.
Peter G. Macaluso, Esq. represents the Debtor as legal counsel.
ARTIFICIAL INTELLIGENCE: Readies for Surge in Public Safety Demand
------------------------------------------------------------------
Artificial Intelligence Technology Solutions, Inc., anticipates a
renewed commitment to public safety and security from federal,
state, and local governments in the coming months, regardless of
election results. With an increasing demand for safer communities
and responsive public spaces, AITX and its subsidiary, Robotic
Assistance Devices, Inc., are prepared to support evolving
government initiatives with advanced security solutions that
enhance protection while offering significant cost savings across
sectors.
In recent years, the Biden-Harris administration has significantly
increased funding to support state and local crime prevention
efforts. The Department of Justice's Office of Justice Programs has
invested unprecedented resources in programs designed to reduce gun
crime and community violence, including awarding $100 million under
the Community Violence Intervention and Prevention Initiative to
support site-based programs, training, technical assistance, and
research across the country.1 Additionally, the administration has
emphasized the importance of utilizing funds from the American
Rescue Plan to enhance public safety. President Biden has called on
state and local leaders to dedicate more American Rescue Plan
funding to make communities safer, highlighting that $10 billion in
American Rescue Plan funds have been committed to public safety,
including at least $6.5 billion in State and Local funds committed
by more than half of states and more than 300 communities across
the country.
"We've seen a significant increase in interest and opportunity from
municipalities and regional jurisdictions looking for advanced
security solutions that can meet their communities' needs," said
Steve Reinharz, CEO/CTO of AITX and RAD. "Our autonomous
intelligent response technologies align with the growing focus on
public safety across federal, state, and local levels. Our
solutions provide an efficient approach that enhances security
without the high costs traditionally associated with physical
security measures. We're committed to supporting these evolving
public safety initiatives with technology that's accessible,
non-biased and impactful."
Across the U.S., cities and counties are prioritizing public
safety, with increased expenditures aimed at bolstering community
security. According to the National League of Cities, nearly half
of surveyed municipalities identified public safety as a key factor
driving budget growth3. This trend underscores a nationwide
commitment to enhanced security measures, highlighting the need for
advanced and cost-effective solutions like those offered by RAD.
"Our sales funnel is more robust than ever with opportunities from
municipalities and regional agencies that are actively seeking
advanced security solutions," said Troy McCanna, Chief Security
Officer & Senior Vice President of Revenue Operations at RAD. "The
recent successful deployments of our RIO units in Downtown
Cleveland showcase the strong demand for cost-effective, autonomous
security that can seamlessly integrate into public spaces. These
deployments are a testament to how RAD's solutions are meeting the
real-world needs of communities, and we expect to see this momentum
continue as more jurisdictions prioritize safety and efficiency."
About Artificial Intelligence Technology
Headquartered in Ferndale, Mich., Artificial Intelligence
Technology Solutions Inc. is an innovator in the delivery of
artificial intelligence-based solutions that empower organizations
to gain new insight, solve complex challenges, and fuel new
business ideas. Through its next-generation robotic product
offerings, AITX's RAD, RAD-R, RAD-M, and RAD-G companies help
organizations streamline operations, increase ROI, and strengthen
business. AITX technology improves the simplicity and economics of
patrolling and guard services, allowing experienced personnel to
focus on more strategic tasks. Customers augment the capabilities
of existing staff and gain higher levels of situational awareness,
all at drastically reduced costs. AITX solutions are well-suited
for use in multiple industries such as enterprises, government,
transportation, critical infrastructure, education, and
healthcare.
Deer Park, Illinois-based L J Soldinger Associates, LLC, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated May 9, 2024, citing that the
Company had a net loss of approximately $20.7 million, an
accumulated deficit of approximately $133.0 million, and
stockholders' deficit of approximately $40.2 million as of and for
the year ended Feb. 29, 2024, which raise substantial doubt about
its ability to continue as a going concern.
As of Aug. 31, 2024, Artificial Intelligence Technology Solutions
had $9.22 million in total assets, $54.68 million in total
liabilities, and a total stockholders' deficit of $45.47 million.
ASTRA ACQUISITION: $500MM Bank Debt Trades at 94% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Astra Acquisition
Corp is a borrower were trading in the secondary market around 6.5
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $500 million Term loan facility is scheduled to mature on
October 25, 2029. The amount is fully drawn and outstanding.
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ATLANTIC NEUROSURGICAL: Unsecureds Will Get 10% of Claims in Plan
-----------------------------------------------------------------
Atlantic Neurosurgical Specialists, P.A., and affiliates filed with
the U.S. Bankruptcy Court for the District of New Jersey a Combined
Joint Disclosure Statement and Joint Chapter 11 Plan of Liquidation
dated October 2, 2024.
Debtor ANS was a medical practice serving patients in the Northern
and Central New Jersey area for many years. Debtor ANS is a
professional association formed pursuant to the laws of the State
of New Jersey.
Debtor Newco is an entity originally formed to assume by assignment
the assets and obligations of Debtor ANS in 2021, but the
transition from Debtor ANS to Debtor Newco was not completed.
Debtor Newco employed certain of the clinical employees at the
practice. Debtor Newco is a limited liability company organized
pursuant to the laws of the State of New Jersey.
In an effort to avoid the expenditure of substantial time and
assets of the Estates pursuing the claims against the Shareholders
and defending claims brought by them the Debtors, KeyBank, the
Lorient Parties and the Continuum Entities negotiated a non binding
settlement term sheet dated June 28, 2024 with certain
Shareholders. In summary, this non-binding term sheet provided the
following material terms:
* The six Settling Shareholders would contribute $2,800,000 in
settlement proceeds to be allocated 50-50 between the Estates and
KeyBank. Drs. Ron Benitez, Kyle Chapple, Jonathan Baskin and Yaron
Moshel were to contribute $500,000 each, Jay Chun and John Knightly
were to contribute $400,000 each.
* The ANS Debtors shall cooperate with KeyBank to bring about
the chapter 11 filing of Hanover Hills and the marketing and sale
of the assets of Hanover Hills. The gross proceeds of the sale of
the Hanover Hills assets shall be allocated as follows: (i) to the
costs of sale including payment to the Bloom Organization in
accordance with its court approved retention, (ii) to the repayment
to the ANS Debtors of Bankruptcy Court approved loans by the ANS
Debtors to Debtor Hanover Hills by way of post-petition financing
as approved by the Bankruptcy Court, (iii) to pay the allowed
administrative expenses of Hanover Hills, (iv) to KeyBank on
account of its allowed secured claim against the assets of Debtor
Hanover Hills, and (v) to the allowed claims of the general
unsecured creditors of Debtor Hanover Hills.
* The Lorient Parties and the Continuum Entities shall confirm
that they have transferred and assigned all of their claims against
the Debtors, ANS Founders and the Shareholders to KeyBank, and
neither the Lorient Parties nor the Continuum Entities shall file
any claims against any of the Debtors in any of the Chapter 11
Cases or otherwise against ANS Founders and the Shareholders.
* The two remaining non-Settling Shareholders could join the
settlement by contributing $625,000 each to KeyBank.
* The Settling Shareholders shall receive, provided that they
each fulfill their respective commitments to fund their share of
the $2,800,000, full and absolute releases from KeyBank, the
Estates, the Lorient Parties and the Continuum Entities as part of
an order confirming the Debtors' plan of liquidation.
* The Plan of liquidation would provide for distribution to
KeyBank on the effective date in the amount of $1,400,000.
* Provided that KeyBank receives its allowed claim against the
proceeds of the sale of the assets of Hanover Hills, KeyBank will
release the Lorient Parties and the Continuum Entities from any
liability pertaining to the KeyBank loans.
* Provided that the Debtors' plan complies with the terms of
the settlement, KeyBank, the Lorient Parties and the Continuum
Entities in each case if entitled to vote will vote in favor of the
plan.
Class 2 consists of General Unsecured Claims Excluding the General
Unsecured Claims Held by KeyBank (and KeyBank Predecessor(s) in
Interest) against the ANS Debtors. Each Holder of an Allowed
General Unsecured Claim in the Chapter 11 Cases of the ANS Debtors
exclusive of KeyBank and the KeyBank Predecessor(s) in Interest
shall receive a distribution of 10% of their Allowed General
Unsecured Claims capped at an aggregate distribution in the amount
of $200,000 plus a distribution limited only to a Pro Rata share of
10% of any [Net Recovery related to and funded solely by the D&O
Liability Insurance Policy] (shared with Class 5 Claims). The ANS
Debtor shall make one or more Distributions on account of such
Allowed General Unsecured Claims to each Holder of such Allowed
General Unsecured Claims on each Distribution Date (or the date on
which such Claim becomes an Allowed General Unsecured Claim) on a
Pro Rata basis. The Class 2 Claims are impaired.
Class 3 consists of General Unsecured Claims Held by KeyBank (and
KeyBank Predecessor(s) in Interest) against the ANS Debtors. After
satisfaction in full of all Administrative Expense Claims, Allowed
Professional Fee Claims, Allowed Priority Tax Claims, and Allowed
Priority Non-Tax Claims, and payment of up to $200,000 and 10% Net
Recovery related to and funded solely by the D&O Liability
Insurance Policy to Holders of Class 2 Allowed General Unsecured
Claims, KeyBank (as the KeyBank Predecessor(s) in Interest), shall
receive remaining Assets of the ANS Debtors; provided, however, any
such Distributions shall account for any reserves required by the
Liquidation Trustee for the Liquidation Trust. The Class 3 Claim is
impaired and entitled to vote on the Plan.
Class 5 consists of General Unsecured Claims Against Debtor Hanover
Hills. Each Holder of an Allowed General Unsecured Claim in the
Chapter 11 Case of the Debtor Hanover Hills shall receive a
distribution of 10% of their Allowed General Unsecured Claims
capped at an aggregate distribution in the amount of $15,000 plus a
distribution of a Pro Rata share of 10% of any net recovery related
to the D&O Liability Insurance Policy (shared with Class 2 Claims).
Debtor Hannover Hills shall make one or more Distributions on
account of such Allowed General Unsecured Claims to each Holder of
such Allowed General Unsecured Claims on each Distribution Date (or
the date on which such Claim becomes an Allowed General Unsecured
Claim) on a Pro Rata basis. The Class 5 Claims are impaired.
Class 7 consists of Interests. On the Effective Date, all Interests
shall be deemed canceled, extinguished, and of no further force or
effect. Holders of Interests shall not be entitled to receive or
retain any property on account of such Class 4 Interests.
Accordingly, Class 7 Interests are impaired.
On or before the Effective Date, the Debtors and the Liquidation
Trustee shall execute the Liquidation Trust Agreement and shall
have established the Liquidation Trust pursuant to the Plan. The
Liquidation Trust shall be established for the primary purpose of
liquidation and distributing the assets transferred to it, in
accordance with Treas. Reg. Section 301.7701-4(d), with no
objective to continue or engage in the conduct of a trade or
business, except to the extent reasonably necessary to, and
consistent with, the liquidation purpose of the Liquidation Trust.
A full-text copy of the Combined Joint Disclosure Statement and
Joint Liquidating Plan dated October 2, 2024 is available at
https://urlcurt.com/u?l=ggx4S5 from PacerMonitor.com at no charge.
Counsel for the Debtors Atlantic Neurosurgical Specialists PA and
ANS Newco LLC:
GREENBAUM, ROWE, SMITH & DAVIS LLP
David L. Bruck, Esq.
P.O. Box 5600
Woodbridge, New Jersey 07095
Telephone: (732) 549-5600
Facsimile: (732) 476-2441
Email: dbruck@greenbaumlaw.com
Counsel to the Debtor Hanover Hills Surgery Center LLC:
FOX ROTHSCHILD LLP
Joseph J. DiPasquale, Esq.
Michael R. Herz, Esq.
Agostino A. Zammiello, Esq.
49 Market Street
Morristown, New Jersey 07960
Telephone: (973) 992-4800
Facsimile: (973) 992-9125
Email: jdipasquale@foxrothschild.com
mherz@foxrothschild.com
azammiello@foxrothschild.com
About Atlantic Neurosurgical Specialists
Atlantic Neurosurgical Specialists, P.A. is a neurosurgical
practice in New Jersey that treats the full spectrum of brain
tumors, neurovascular disorders and spine disorders.
Atlantic Neurosurgical Specialists and its affiliates filed Chapter
11 petitions (Bankr. D.N.J. Lead Case No. 24-15726) on June 5,
2024. At the time of the filing, Atlantic Neurosurgical Specialists
reported $1 million to $10 million in assets and $10 million to $50
million in liabilities.
David L. Bruck, Esq., at Greenbaum, Rowe, Smith & Davis, LLP is the
Debtors' legal counsel.
ATLAS PURCHASER: $423.7MM Bank Debt Trades at 57% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 42.9
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $423.7 million Payment in kind Term loan facility is scheduled
to mature on May 5, 2028. The amount is fully drawn and
outstanding.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATOMIC TATTOOS: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
The United States Bankruptcy Court, Middle District of Florida,
Orlando Division granted Atomic Tattoos Central Florida, LLC
authority to use cash collateral on an interim basis.
The court authorized Atomic Tattoos to utilize approximately
$286,000 in cash collateral through Nov. 20. This amount allows the
company to pay expenses, including U.S. trustee quarterly fees and
operating expenses, plus an amount not to exceed 10% for each line
item.
Regions Bank, a senior creditor, was granted a post-petition lien
on cash collateral to the same extent and with the same validity
and priority as its pre-bankruptcy lien.
The next hearing is scheduled for Nov. 20.
About Atomic Tattoos
Atomic Tattoos - Central Florida, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-04417) on August 22, 2024, with up to $50,000 in assets and up
to $500,000 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as bankruptcy counsel.
B.A.S.S. & M.: Seeks to Hire Husch Blackwell as Bankruptcy Counsel
------------------------------------------------------------------
B.A.S.S. & M., Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
Husch Blackwell LLP as counsel.
The firm's services include:
a. advising Debtors with respect to their rights and
obligations as debtors and debtors in possession and regarding
other matters of bankruptcy law;
b. advising and consulting on the conduct of the Chapter 11
Cases, including all of the legal and administrative requirements
of operating in chapter 11;
c. attending meetings and negotiations with representatives of
creditors and other parties in interest in the Chapter 11 Cases;
d. taking all necessary action to protect and preserve the
estates of the Debtors, including the prosecution of actions on
behalf of the Debtors, the defense of any actions commenced against
the Debtors, the negotiation of disputes in which the Debtors are
involved, and the preparation of objections to claims filed against
the Debtors' estates;
e. providing legal services to the Debtors with respect to
soliciting and obtaining financing and/or exit financing;
f. preparing on behalf of the Debtors, as debtors in
possession, necessary motions, applications, answers, orders,
reports, and other legal papers in connection with the
administration of the Debtors' estates;
g. representing the Debtors at the meeting of creditors, plan
disclosure, confirmation and related hearings, and any adjourned
hearings, therefore;
h. advising the Debtors in connection with any potential sale
of assets;
i. advising the Debtors regarding tax matters involving the
Debtors;
j. advising the Debtors in connection with any disputes or
litigation that may arise in connection with the Bankruptcy Case,
including with respect to the automatic stay, claims matters, the
pursuit of claims by the Debtors against third parties, and
otherwise;
k. performing all other necessary legal services for the
Debtors in connection with the prosecution of the Bankruptcy Case,
including (i) analyzing the Debtors' leases and contracts and the
assumption and assignment or rejection thereof; (ii) analyzing the
validity of any liens against the Debtors' assets; and (iii)
advising the Debtors on corporate and litigation matters involving
the Debtors;
l. taking all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtors'
estates;
m. representing the Debtors in adversary proceedings and other
contested bankruptcy matters; and
n. representing the Debtors in the above matters, and any
other matter that may arise in connection with the Chapter11 Cases
and their business operations.
The firm will be paid at these hourly rates:
Partners $575 to $1,250
Associates $375 to $850
Senior Counsel $450 to $1,200
Paralegals $225 to $500
Paraprofessionals $250 to $710
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Brandess, Esq., a partner at Husch Blackwell 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:
Michael A. Brandess, Esq.
HUSCH BLACKWELL LLP
120 South Riverside Plaza, Suite 2200
Chicago, IL 60606
Telephone: (312) 655-1500
Facsimile: (312) 655-1501
Email: michael.brandess@huschblackwell.com
About B.A.S.S. & M. Inc.
B.A.S.S. & M. Inc. is primarily engaged in renting and leasing real
estate properties.
B.A.S.S. & M. Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ill. Lead Case No. 24-15381) on Oct. 16,
2024. In the petition filed by Suzie B. Wilson, as authorized
representative, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtors tapped ARENTFOX SCHIFF LLP as general bankruptcy
counsel, and ROCK CREEK ADVISORS, LLC, as financial advisor.
STRETTO, INC., is the claims agent.
BAKER EQUITY: Seeks to Hire Havkin & Shrago as Legal Counsel
------------------------------------------------------------
Baker Equity LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to hire Havkin & Shrago,
Attorneys At Law as counsel.
The firm will provide these services:
(a) represent the Debtor at its initial interview;
(b) represent the Debtor at the meeting of creditors pursuant
to Bankruptcy Code Sec. 341(a) or any continuance thereof;
(c) represent the Debtor at all hearings before the bankruptcy
court;
(d) prepare legal papers;
(e) advise the Debtor regarding matters of bankruptcy law;
(f) represent the Debtor in contested matters;
(g) assist the Debtor in the preparation of a plan of
reorganization and the negotiation and implementation of the plan;
(h) analyze claims that have been filed in the Debtor's
bankruptcy case;
(i) negotiate with the Debtor's creditors regarding the amount
and payment of their claims;
(j) object to claims as may be appropriate; and
(k) provide all other necessary legal services.
The firm will be paid as follows:
Stella Havkin $535 per hour
David Jacob $395 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The retainer is $10,000.
Stella Havkin, Esq., a partner at Havkin & Shrago, Attorneys at
Law, 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:
Stella Havkin, Esq.
Havkin & Shrago, Attorneys at Law
5950 Canoga Avenue, #400
Woodland Hills, CA 91367
Tel: (818) 999-1568
Fax: (818) 293-2414
Email: stella@havkinandshrago.com
About Baker Equity LLC
Baker Equity LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor is the fee simple owner
of the real property located at 268 S. Almont Drive, Beverly Hills,
CA 90211 valued at $4.6 million.
Baker Equity LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-18314) on October 10,
2024. In the petition filed by Jila Youshaei, as managing member,
the Debtor reports total assets of $4,600,000 and total liabilities
of $2,265,000.
The Honorable Bankruptcy Judge Sheri Bluebond handles the case.
The Debtor is represented by Stella Havkin, Esq. at STELLA HAVKIN.
BBG SOUZA: Hires Nickless Phillips and O'Connor as Counsel
----------------------------------------------------------
BBG Souza Enterprises, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts to hire Nickless, Phillips
and O'Connor as counsel.
The firm will represent the Debtor in all matters related to the
proceeding, assist the Debtor in the preparation and filing of
pleadings in this Court, pursue civil litigation, dispose of and
recover assets, and in general to act on the Trustee's behalf in
the proceeding.
The firm will be paid $395 per hour for counsel, and $150 for
paralegals.
Nickless, Phillips and O'Connor received from the Debtor a retainer
of $7,262, plus filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
James L. O'Connor, Jr., Esq., a partner at Nickless, Phillips and
O'Connor, 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:
James L. O'Connor, Jr., Esq.
Nickless, Phillips and O'Connor
PO Box, 2101
780 Main Street, Suite 401
Fitchburg, MA 01420
Tel: (978) 342-4590
Email: joconnor@npolegal.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. at BBG Souza Enterprises, Inc. represents
the Debtor as legal counsel.
BFDICU 8090: Case Summary & 14 Unsecured Creditors
--------------------------------------------------
Debtor: BFDICU 8090 LLC
d/b/a Marco's Pizza
5321 S. Florida Ave.
Lakeland, FL 33813
Business Description: The Debtor owns and operates a pizza
restaurant.
Chapter 11 Petition Date: November 15, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-06756
Judge: Hon. Catherine Peek Mcewen
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Email: All@tampaesq.com
Total Assets: $43,389
Total Liabilities: $4,442,584
The petition was signed by Terry Burkholder 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/BR6KFRQ/BFDICU_8090_LLC__flmbke-24-06756__0001.0.pdf?mcid=tGE4TAMA
BLUESUMMIT MEDICAL: Court Stays Caudill Suit Due to Bankruptcy
--------------------------------------------------------------
The Honorable Michael J. Newman of the United States District Court
for the Southern District of Ohio has stayed the case captioned as
CHRISTAL L CAUDILL, Plaintiff, vs. RELIABLE HOME HEALTH CARE LLC,
et al., Defendants, Case No. 3:20-cv-481 (S.D. Ohio) under 11
U.S.C. Sec. 362(a), pending conclusion of Defendant BlueSummit
Medical Group, LLC's bankruptcy proceedings.
The Court is requiring BlueSummit to file a status report in the
present case every four months beginning on December 2, 2024.
A copy of the Court's decision dated November 7, 2024, is available
at https://urlcurt.com/u?l=1q7Z0p
About BlueSummit Medical Group
BlueSummit Medical Group LLC, doing business as BlueSummit Medical
Group, is a Health Care Business (as defined in 11 U.S.C. Sec.
101(27A)).
BlueSummit Medical Group and certain affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Lead Case
No. 24-61191) on Oct. 25, 2024. In the petition filed by Timothy
Bradbury, as owner, the Debtor estimated assets and liabilities
between $1 million and $10 million.
The Debtors are represented by:
Brittany B. Falabella, Esq.
HIRSCHLER FLEISCHER, P.C.
2100 East Cary Street
Richmond, VA 23223
Tel: 804-771-9500
Email: bfalabella@hirschlerlaw.com
BLUEWORKS CORP: Continued Operations to Fund Plan Payments
----------------------------------------------------------
Blueworks Corporation, filed with the U.S. Bankruptcy Court for the
Western District of North Carolina a Disclosure Statement for Plan
of Reorganization dated October 4, 2024.
The Debtor was founded in 2016 as an online seller of pool
supplies. The Debtor’s operations consist primarily of
straight-to-consumer sales through Amazon.
The Debtor sources its products from an affiliate manufacturer in
China, Ningbo C.F. Electronic Tech. Co., Ltd. ("NBCF"). NBCF
manufactures the products for the Debtor, which are then shipped to
the United States for retail sale through the Debtor's Amazon
storefront. To ensure customer satisfaction, the Debtor provides
various returns and warranties for its products, including certain
one-year or two-year warranties on the products sold through
Amazon.
At the end of 2020, Hayward Industries, Inc. targeted the Debtor
for selling aftermarket replacement products that work with
Hayward's products but are sold at a lower cost than Hayward's own
products. The District Court Case devastated the Debtor's financial
operations and management of its business. The Debtor paid all
legal fees for itself and its codefendants, resulting in roughly $5
million in legal fees in the Debtor's defense of the District Court
Case. As legal fees eroded the Debtor's assets, the Debtor ran up
trade payables to NBCF for the manufacture of the Debtor's
inventory, totaling roughly $3.7 million as of April 30, 2024.
Operationally, the Debtor has used the "breathing spell" provided
by the Bankruptcy Code to turn its attention from litigation of the
District Court Case to its business operations. The crush of
litigation, preparing for dispositive motions, preparing for trial,
and trying the District Court Case, distracted and disrupted the
Debtor's business such that the Debtor saw declining sales revenues
and financial performance. With the automatic stay in place, the
Debtor could refocus its energies on its business operations.
Although the Debtor's sales did not instantly rebound, the
trajectory trended positive with the Debtor realizing revenues of
$8,248.74 from June 11 to June 30; $121,656.94 during July; and
$204,266.53 during August. With the Chapter 11 Case ongoing, the
Debtor is also able to analyze and implement its financial plan for
calendar year 2025, a process normally occurring in November of the
preceding calendar year, without the distraction and disruption of
the District Court Case, which dominated and distracted the Debtor
in November 2023, causing in part the outlier sales year
experienced in 2024.
Class 5 consists of Allowed Unsecured Claims. Each Holder of an
Allowed Unsecured Claim shall be paid by the Reorganized Debtor
such Holder's Pro Rata Share of the Reorganized Debtor's Net Income
upon each Distribution Date in pari passu with Class 4 in annual
installments for the years ending in 2025, 2026, and 2027 with
payments being made on or before June 30, 2026; June 30, 2027; and
June 30, 2028; unless the Allowed Unsecured Claims are paid in full
prior to such Distribution Date. Class 5 is Impaired by the Plan.
Class 6 consists of Equity Interests. In return for waiving the
Chen Claim in the Priority Unsecured Amount of $15,150.00 and the
General Unsecured Amount of $197,350.00 and agreeing to a two
thirds reduction of his salary until all payments have been made
pursuant to this Plan, Chen will retain his Equity Interest in the
Reorganized Debtor. The H. Sun Equity Interest shall be deemed
cancelled on the Effective Date, and H. Sun shall not receive or
retain any property, rights, or interests of any nature whatsoever
under the Plan on account of the H. Sun Equity Interest. Also, Chen
will not receive any distribution on account of his equity interest
during the plan payment period.
The funds necessary for implementation of this Plan are expected to
be obtained through Net Income from the ongoing business operations
of the Reorganized Debtor.
A full-text copy of the Disclosure Statement dated October 4, 2024
is available at https://urlcurt.com/u?l=2maVcl from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Matthew L. Tomsic, Esq.
Natalie E. Kutcher, Esq.
Ashley B. Oldfield, Esq.
Rayburn Cooper & Durham, P.A.
1200 Carillon, 227 W. Trade St.
Charlotte, NC 28202
Telephone: (704) 334-0891
Email: mtomsic@rcdlaw.net
About Blueworks Corporation
Blueworks Corp. specializes in developing and manufacturing a
comprehensive range of swimming pool equipment. Products include
Salt Chlorinator, Salt Chlorinator Cell Replacement, Saltwater
System Parts, Pool Light, Pool Alarm, Pool Timer, Pool Pump and
more.
Blueworks Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.C. Case No. 24-30494) June 11, 2024.
In the petition signed by Michael Bowers, as CRO, the Debtor
reports estimated assets between $500,000 and $1 million and
estimated liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge Laura T. Beyer oversees the case.
The Debtor is represented by Matthew L. Tomsic, Esq. at RAYBURN
COOPER & DURHAM, P.A. Platinum Intellectual Property, PC as special
corporate counsel. Shumaker, Loop & Kendrick, LLP as special
counsel.
BRIGHT ANGLE: Hires Bradford Law Offices as Bankruptcy Counsel
--------------------------------------------------------------
The Bright Angle, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of North Carolina to hire Bradford Law
Offices to handle its Chapter 11 case.
The firm shall received a retainer in the amount of $16,738. It
will also seek reimbursement for expenses incurred.
Danny Bradford, Esq., an attorney at Bradford Law Offices,
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:
Danny Bradford, Esq.
Bradford Law Offices
455 Swiftside Drive, #106
Cary, NC 27518
Telephone: (919) 758-8879
Facsimile: (919) 803-0683
Email: dbradford@bradford-law.com
About The Bright Angle, LLC
The Bright Angle, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.C. 24-03864) on Nov. 5, 2024,
listing $50,001 to $100,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Pamela W Mcafee presides over the case.
Danny Bradford, Esq. at Paul D. Bradford, PLLC represents the
Debtor as counsel.
BROKEN ARROW: Unsecureds Owed $91K to Get 100% over 5 Years
-----------------------------------------------------------
Broken Arrow Construction LLC submitted a First Amended Plan of
Reorganization dated October 3, 2024.
The Debtor's First Amended Plan of Reorganization provides for the
continued operations of the Debtor in order to make monthly
payments to its creditors as set forth in this 5-year Plan.
The Debtor's operations include dirt work, clearing driveways,
ponds, and building engineered pads. Debtor's assets include its
cash on hand, accounts receivables, equipment and a vehicle. There
are fully secured creditors based on the liquidation analysis and
UCC filings. Any secured creditor not treated in this Plan as fully
secured are therefore under secured.
The Debtor will continue operating its business. The Debtor's Plan
will break the existing claims into six classes of Claimants. These
claimants will receive cash repayments over a period of time
beginning on or after the Effective Date.
Class 3 consist of Allowed Unsecured Claims. All allowed unsecured
creditors shall receive a pro rata distribution at zero percent per
annum over the next five years according to the projections.
Creditors shall receive monthly disbursements based on the
projection distributions of each 12-month period. Debtor will
distribute $90,910.66 to the general allowed unsecured creditor
pool over the 5-year term of the plan, including the under-secured
claim portions.
The Debtor's General Allowed Unsecured Claimants will receive 100%
of their allowed claims under this plan. Any potential rejection
damage claims from executory contracts that are rejected in this
Plan will be added to the Class 3 unsecured creditor pool and will
be paid on a pro-rata basis. The allowed unsecured claims total
$90,910.66.
Class 4 consists of Insider Claim. Debbie Coursey is the only
creditor that is an insider. Debbie Coursey has an unsecured claim
of $52,500.00. Debtor will pay the unsecured claim over 60 equal
monthly payments at 0% per annum. Debtor's total payments to Debbie
Coursey shall total $34,800. The first monthly payment will be due
and payable 30 days after the effective date, unless this date
falls on a weekend or federal holiday, in which case the payment
will be due on the next business day. Class 4 is impaired.
Class 5 consists of Equity Interest Holders (Current Members). The
two members of the Debtor, Julie and Bobby Coursey, each own a 50%
interest. These two members will receive no payments under the Plan
but they will be allowed to retain their ownership interests in the
Debtor. Class 5 Claimants are not impaired under the Plan.
The Debtor anticipates the continued operations of the business to
fund the Plan.
If the Plan is confirmed under section 1191(a), the Debtor, from
the Petition Date to the Effective Date, shall timely file
operating reports with the Bankruptcy Court for each month
(including any fraction thereof) in a form reasonably acceptable to
the U.S. Trustee.
If the Plan is confirmed under section 1191(b), the Reorganized
Debtor or Disbursing Agent, after the Effective Date, shall timely
file post-confirmation reports with the Bankruptcy Court for each
quarter (including any fraction thereof) in a form reasonably
acceptable to the U.S. Trustee until the Case is closed, dismissed,
or converted to a case under chapter 7 of the Bankruptcy Code.
A full-text copy of the First Amended Plan dated October 3, 2024 is
available at https://urlcurt.com/u?l=r8bkdK from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Robert C. Lane, Esq.
Joshua D. Gordon, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notifications@lanelaw.com
Joshua.gordon@lanelaw.com
About Broken Arrow Construction
Broken Arrow Construction LLC started operations in December 2020
and include dirt work, clearing driveways, ponds, and building
engineered pads.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-32248) on May
14, 2024, listing $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Eduardo V Rodriguez presides over the case.
Robert C Lane, Esq., at The Lane Law Firm, represents the Debtor as
counsel.
BRUIN XPRESS: Seeks to Hire Much Shelist P.C. as Legal Counsel
--------------------------------------------------------------
Bruin Xpress Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to hire Much Shelist, P.C. as
counsel.
The firm will provide these services:
a. provide legal advice with respect to the Debtor's powers
and duties as a debtor-in-possession under the Bankruptcy Code;
b. provide legal advice with respect to any plan filed in the
Cases and the approval or disapproval of and confirming or denying
of a plan;
c. prepare applications to employ attorneys, accountants or
other professional persons, motions for turnover, for the use, sale
or lease of property, to assume or reject executory contracts, and
other necessary actions within this Cases, plans, notices,
complaints, answers, orders, reports, objections to claims or to
motions filed by participants in the Cases other than the Debtors,
legal documents and any other necessary documents or pleadings, all
in furtherance of the goal of achieving the reorganization of
Debtor's business;
d. negotiate with creditors and other parties-in-interest,
appearing in Court to present necessary motions, applications, and
pleadings and otherwise protecting the interests of the Debtor,
including the objection or estimating of claims asserted against
the estate, as appropriate;
e. investigate the basis for possible avoidance actions; and
f. perform all of the legal services for the Debtor that may
be necessary and proper in these proceedings.
The firm will be paid at these rates:
Jeffrey Schwartz, Principal $685 per hour
Robert Glantz, Principal $705 per hour
Hajar Jouglaf, Associate $410 per hour
Anthony Hernandez, Paralegal $290 per hour
Much Shelist, P.C. received and advanced a retainer in the amount
of $30,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert W. Glantz, Esq., a partner at Much Shelist, P.C., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Robert W. Glantz, Esq.
Jeffrey M. Schwartz, Esq.
MUCH SHELIST, P.C.
191 N. Wacker Drive, Suite 1800
Chicago, IL 60606
Telephone: (312) 521-2000
Facsimile: (312) 521-3000
Email: rglantz@muchlaw.com
jschwartz@muchlaw.com
About Bruin Xpress Inc.
Bruin Xpress Inc. is a trucking company which primarily hauls in
Illinois, Wisconsin, Michigan, and Indiana.
Bruin Xpress Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-13626) on
September 16, 2024, listing $1,000,001 to $10 million in both
assets and liabilities.
The Honorable Bankruptcy Judge David D. Cleary oversees the case.
The Debtor is represented by Robert Glantz, Esq. at MUCH SHELIST
PC.
BUCKEYE PIZZA: Case Summary & 11 Unsecured Creditors
----------------------------------------------------
Debtor: Buckeye Pizza 8282 LLC
d/b/a Marco's Pizza
11182 66th St. N.
Largo, FL 33773
Business Description: The Debtor owns and operates a pizza store.
Chapter 11 Petition Date: November 15, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-06751
Judge: Hon. Roberta A Colton
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: All@tampaesq.com
Total Assets: $36,923
Total Liabilities: $4,295,120
The petition was signed by Terry Burkholder as manager.
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/3IUC3UI/Buckeye_Pizza_8282_LLC__flmbke-24-06751__0001.0.pdf?mcid=tGE4TAMA
CAREMAX INC: Medical Center for Elderly Seeks Chapter 11
--------------------------------------------------------
Jonathan Randles of Bloomberg News reports that CareMax Inc., a
provider of medical centers for elderly patients, has filed for
bankruptcy.
The Miami-based company filed for Chapter 11 protection in Texas on
November 17, 2024, reporting assets of $100 million to $500 million
and liabilities between $500 million and $1 billion. The filing
comes after unsuccessful efforts to reduce costs and refinance its
debt, according to the report.
CareMax also announced on November 17 that it had reached an
agreement with a Revere Medical affiliate to sell its management
services organization, which supports care for approximately 80,000
Medicare beneficiaries.
About CareMax Inc.
CareMax Inc. is a provider of medical centers for elderly
patients.
CareMax Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Tex. Case No. 24-80093) on November 17, 2024. In
its petition, the Debtor reports estimated liabilities between $500
million and $1 billion and estimated assets between $100 million
and $500 million.
The Debtor is represented by Thomas Robert Califano of Sidley
Austin LLP.
CASH CLOUD: Discovery Deadline Stipulation in McAlary Suit OK'd
---------------------------------------------------------------
The Honorable Mike K. Nakagawa of the United States Bankruptcy
Court for the District of Nevada approved the first stipulation to
continue discovery deadlines between the parties in the case
captioned as OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF CASH
CLOUD, INC. dba COIN CLOUD, Plaintiff, vs. CHRISTOPHER MCALARY,
Defendant, CHRISTOPHER MCALARY, Defendant and Third-Party Plaintiff
vs AMONDO REDMOND, Third Party Defendant, Adv. Case No.:
23-01125-mkn (Bankr. D. Nev.).
The discovery deadlines are extended as follows:
DESCRIPTION CURRENT DEADLINE PROPOSED DEADLINE
----------- ---------------- -----------------
12345678901234567890123456789012345678901234567890123456789012345
Deadline for filing motions Nov. 30, 2024 Jan. 14, 2025
to amend the pleadings
and/or to add parties
Expert Disclosure Deadline Dec. 13, 2024 Jan. 28, 2025
Rebuttal Disclosure Deadline Jan. 13, 2025 Feb. 26, 2025
Close of Discovery Jan. 30, 2025 March 18, 2025
Deadline for filing March 3, 2025 April 16, 2025
Dispositive Motions
Deadline for filing Due 30 days Due 30 days
Motions in Limine before the before the
pre-trial pre-trial
Conference Conference
A copy of the Court's decision dated November 12, 2024, is
available at https://urlcurt.com/u?l=gjEuHf
Counsel for Christopher McAlary:
Candace C. Carlyon, Esq.
Dawn M. Cica, Esq.
CARLYON CICA CHTD.
265 E. Warm Springs Road, Suite 107
Las Vegas, NV 89119
Phone: (702) 685-4444
Email: ccarlyon@carlyoncica.com
dcica@carlyoncica.com
Co-Counsel for Christopher McAlary:
Allan B. Diamond, Esq.
Christopher D. Johnson, Esq.
Justin Strother, Esq.
DIAMOND MCCARTHY LLP
909 Fannin, Suite 3700
Houston, TX 77010
Email:adiamond@diamondmccarthy.com
chris.johnson@diamondmccarthy.com
justin.strother@diamondmccarthy.com
About Cash Cloud
Cash Cloud Inc., doing business as Coin Cloud, operates automated
teller machines for buying and selling Bitcoin, Ethereum, Dogecoin,
and more than 40 other digital currencies with cash, card and
more.
Cash Cloud sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Nev. Case No. 23-10423) on Feb. 7, 2023, with $50
million to $100 million in assets and 100 million to $500 million
in liabilities. Chris McAlary, president of Cash Cloud, signed the
petition.
Judge Mike K. Nakagawa oversees the case.
The Debtor tapped Fox Rothschild, LLP as bankruptcy counsel; Baker
& Hostetler, LLP as regulatory counsel; and Province, LLC as
financial advisor. Stretto is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's case. The committee
tapped McDonald Carano, LLP and Seward & Kissel, LLP as legal
counsels; and FTI Consulting, Inc. as financial advisor.
CASTLE US: EUR500MM Bank Debt Trades at 36% Discount
----------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 63.6
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The EUR500 million Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CHICAGO WHIRLY: Unsecureds Will Get 100% of Claims in Plan
----------------------------------------------------------
Chicago Whirly, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of Illinois a Subchapter V Plan of Reorganization
dated October 2, 2024.
Chicago Whirly is a beloved family-owned company that has been a
cornerstone of Chicago's entertainment scene since its founding in
1995 and is known for its distinctive combination of sports and
entertainment.
While Chicago Whirly has been a successful business for decades, it
found itself entangled in a lease dispute with the landlord for one
of its non-debtor affiliate's leased premises. Despite best efforts
to resolve these disputes, the Debtor was forced to commence this
Chapter 11 Case to provide a constructive avenue for addressing its
guaranty with respect to that lease and accomplishing a financial
restructuring that provides the Debtor's business a positive path
to an enduring future.
The Plan provides that the Debtor's projected disposable income to
be received in the five-year period following the Effective Date,
which is $928,500 in aggregate, will be applied to make the
payments set forth in the Plan. Equity Interests shall remain in
place.
Navitas Credit Corp. asserts a security interest in all items
listed on invoice #254370 for SpectrumVoIP, Inc. dated April 26,
2022, together with any and all replacements, replacement parts,
accessions and attachments then-existing or thereafter made a part
of any of the equipment and all proceeds thereof (the "VoIP
Collateral"). The VoIP Collateral primarily consists of the
Debtor's VoIP phone system. On and after the Effective Date
pursuant to the Plan, the Debtor will make all payments to Navitas
under the Commercial Rental Agreement (the "Navitas Agreement")
dated as of April 26, 2022 as and when they become due in the
ordinary course of business pursuant to the terms of the Navitas
Agreement, and the lien on the VoIP Collateral will be reinstated.
All priority wage and benefit claims were previously paid pursuant
to the Bankruptcy Court's order authorizing such payments in the
ordinary course of business, and the Debtor does not contemplate
the payment of any other priority unsecured creditors (other than
Priority Tax Claims) under the Plan.
Class 2 is comprised of Unsecured Claims against Chicago Whirly,
totaling approximately 40 Creditors and an estimated $879,000
$928,500, in aggregate. Allowed Unsecured Claims in Class 2 shall
receive their pro rata share of installment payments starting at
the end of the first calendar quarter of 2025 in an amount not to
exceed the amount of the Allowed Unsecured Claim, without interest,
as follows: $61,900 at the end of each of the first, second, and
fourth calendar quarters of 2025, 2026, 2027, 2028, and 2029.
Accordingly, Holders of Allowed Unsecured Claims are estimated to
recover approximately 100% under the Plan, without interest. This
estimated recovery percentage is subject to change based on the
actual amount of Allowed Claims to be paid under the Plan.
The Debtor shall make all distributions to holders of Allowed
Claims as required by the Plan. Cash flows from the Debtor's
business are forecasted to be sufficient to meet all of Debtor's
obligations under the Plan. However, Whirl Management, Inc. ("Whirl
Management"), the Debtor's parent, has acquired the ILNAP Claim in
the amount of $627,147.31. Instead of receiving its full pro rata
share of installment payments under the Plan with respect to the
ILNAP Claim, Whirl Management has agreed to accept payment of only
$20,000 per installment payment until such time as all other
holders of Allowed Unsecured Claims are paid in full pursuant to
the Plan. Moreover, if the Debtor defaults in any payment required
under the Plan and fails to timely cure such default, Whirl
Management then agrees to subordinate the entirety of its
distribution rights under the Plan until all other creditors are
paid in full pursuant to the Plan.
On Confirmation of the Plan, all property of the Debtor, tangible
and intangible, including, without limitation, licenses, cash and
cash equivalents, contracts and contract rights, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equity Interests except as provided in the Plan, to the
Reorganized Debtor, subject to the security interest and other
rights of the Secured Creditors pursuant to this Plan. The Debtor
expects to have sufficient cash on hand to make the payments it has
agreed to pay on the Effective Date and expects the Reorganized
Debtor to make all other payments required under the Plan from its
cash flows from operations as set forth in the Financial
Projections.
A full-text copy of the Subchapter V Plan dated October 2, 2024 is
available at https://urlcurt.com/u?l=WJDzC3 from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Susan Poll Klaessy, Esq.
Mark L. Radtke, Esq.
FOLEY & LARDNER LLP
321 N. Clark Street, Suite 3000
Chicago, IL 60654
Tel: (312) 832-4500
Fax: (312) 832-4700
Email: spollklaessy@foley.com
mradtke@foley.com
Mary Rofaeil, Esq.
FOLEY & LARDNER LLP
2021 McKinney Avenue, Suite 1600
Dallas, TX 75201
Tel: (214) 999-3000
Fax: (214) 999-4667
Email: mary.rofaeil@foley.com
About Chicago Whirly Inc.
Chicago Whirly Inc. is in the Recreation Services business.
Chicago Whirly Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09116) on
June 20, 2024. In its petition, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Deborah L. Thorne oversees the case.
The Debtor is represented by Susan Poll Klaessy, Esq. at Foley &
Lardner LLP.
CHRIS PETTIT: Unsecureds' Recovery "Unknown" in Trustee's Plan
--------------------------------------------------------------
Eric Terry, Chapter 11 Trustee for Chris Pettit & Associates, P.C.
and Christopher John Pettit, submitted a Disclosure Statement
describing Chapter 11 Liquidating Plan for the Debtors dated
October 4, 2024.
Pettit was an attorney at law, licensed to practice law by the
state of Texas, and did business as Chris Pettit and Associates,
P.C., primarily in and around San Antonio, Texas.
The Debtors offered clients various legal services, including
probate representations, estate planning, trust formations and
management, tax advice, and facilitation of Section 1031 tax
advantaged transactions. The Debtors also offered clients
investment opportunities.
On June 3, 2022, two days after the Petition Date, Sharon Brimhall,
Executrix of the Estate of Harry Sims, filed a Motion for
Appointment of a Chapter 11 Trustee, which the Court granted on
June 13, 2022. The Court appointed Eric Terry as Chapter 11 Trustee
for the Debtors on June 22, 2022. An official committee of
unsecured creditors was appointed on July 6, 2022.
Upon appointment, the Chapter 11 Trustee immediately commenced
efforts to remove Pettit from control of property of the Estates.
The Chapter 11 Trustee and his team worked to secure property and
began to liquidate assets of the Estates, consulting with key
stakeholders and brokers and professionals familiar with the
relevant properties and markets, including extensive real and
personal property and causes of action with potential recoveries.
The Chapter 11 Trustee has now liquidated substantially all of the
real and personal property that belonged to the Debtors, and
continues to pursue and liquidate recoveries on causes of action
that belong to the Estates.
Ultimately, the Chapter 11 Trustee was able to obtain more than $19
million from the sale of real property recovered from Pettit, and
another approximately $500,000 from the sale of personal property,
including cars, much of which was paid to secured creditors. The
Chapter 11 Trustee has also realized in excess of $1 million in
proceeds from settlements with various stakeholders.
Ultimately, the Chapter 11 Trustee was able to negotiate a
settlement with Pettit, by which Pettit waived substantially all of
his exemptions, provided the Chapter 11 Trustee with information
useful for accessing Estates' assets, and turned over various
property to the Chapter 11 Trustee, in exchange for concessions
related to property for Pettit's minor child and the use of a
vehicle during the pendency of the Cases.
The Chapter 11 Trustee's Plan provides for the pursuit of claims
and causes of action owned by the Estates. The Plan places all the
Estates' remaining assets into the Liquidating Trusts which will
liquidate the assets and distribute the proceeds to holders of
allowed claims in the priority governed by the Bankruptcy Code,
subject to the voluntary subordinations set forth in the Plan.
Class 2A consists of General Unsecured Claims Against CP&A. Holders
of Allowed General Unsecured Claims against the CP&A Estate shall
receive Class 2A beneficial interests in the Liquidating CP&A Trust
in full satisfaction of such Allowed General Unsecured Claim. Class
2A beneficial interests in the Liquidating CP&A Trust will be paid
pro rata until paid in full with interest at the Plan Interest Rate
from assets contributed to the Liquidating CP&A Trust by the CP&A
Estate. The allowed unsecured claims total $273,447,368.30.
Class 2B consists of General Unsecured Claims Against Pettit.
Holders of Allowed General Unsecured Claims against the Pettit
Estate shall receive Class 2B beneficial interests in the
Liquidating Pettit Trust in full satisfaction of such Allowed
General Unsecured Claim. Class 2B beneficial interests in the
Liquidating Pettit Trust will be paid pro rata until paid in full
with interest at the Plan Interest Rate from assets contributed to
the Liquidating Pettit Trust by the Pettit Estate. The allowed
unsecured claims total $239,068,529.43.
The estimated recovery for General Unsecured Claims is "unknown",
according to the Disclosure Statement.
No Distribution of any kind will be made by the Liquidating
Trustees on account of Interests in CP&A unless and until all
Allowed Administrative Claims, Priority Tax Claims, Priority Non
Tax Claims, the Secured Claims, General Unsecured Claims, and
Subordinated Claims have been paid in full in accordance with the
terms of this Plan, including any and all interest accrued at the
Plan Interest Rate and fees allowable under applicable law.
Thereafter, as Cash in excess of the Liquidating Trustees'
Distributions to Allowed General Unsecured Claims and Allowed
Subordinated Claims is available from the Liquidating Trust Assets,
the Liquidating CP&A Trustee shall make pro rata Distributions to
holders of Interests in CP&A.
The Plan contemplates the establishment of the Liquidating Trusts
on the Effective Date to serve as the successors to the Debtors and
the Estates. Eric Terry will serve as the Liquidating Trustees of
the Liquidating Trusts to manage the assets, administration, and
distribution of the Liquidating Trusts' recoveries to creditors.
The Liquidating Trusts shall receive and hold the Estates'
remaining cash on hand, real and personal property, and other
assets, which include but are not limited to the Estates' Causes of
Action against third parties.
A full-text copy of the Disclosure Statement dated October 4, 2024
is available at https://urlcurt.com/u?l=1RkRdY from
PacerMonitor.com at no charge.
Counsel for Chapter 11 Trustee:
Jason M. Rudd, Esq.
Scott D. Lawrence, Esq.
Catherine A. Curtis, Esq.
Wick Phillips Gould & Martin, LLP
3131 McKinney Ave., Suite 500
Dallas, TX 75204
Tel: (214) 692-6200
Email: Jason.rudd@wickphillips.com
Scott.lawrence@wickphillips.com
About Chris Pettit & Associates
Chris Pettit & Associates, PC, a personal injury law firm in Texas,
and principal Christopher John Pettit sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Lead Case
No. 22-50591) on June 1, 2022. In the petition filed by Mr. Pettit,
the Debtors listed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Craig A. Gargotta oversees the cases.
Michael G. Colvard, Esq., at Martin & Drought, PC is the Debtors'
bankruptcy counsel.
Eric Terry, the trustee appointed in the Chapter 11 cases, is
represented by his bankruptcy counsel, Wick Phillips Gould &
Martin, LLP. Rogers Towers PA, Luttrell + Carmody Law Group, Villa
& White LLP, Jackson Walker LLP, Davis & Santos PLLC,
Mastrogiovanni PLLC, Langley & Banack Inc., Chamberlain, Hrdlicka,
White, Williams and Aughtry PC, Watts Guerra LLP, and Wick Phillips
Gould & Martin LLP serve as the trustee's special counsels.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
CINEWORLD GROUP: Serramonte Lease Assumed Under Plan, Court Says
----------------------------------------------------------------
Judge Marvin Isgur of the United States Bankruptcy Court for the
Southern District of Texas granted the motion filed by Regal
Cinemas to enforce its chapter 11 plan and confirmation order. Daly
City Serramonte Center, LLC's motion to vacate the confirmation
order is denied.
This matter concerns a dispute over whether a commercial lease
between Regal Cinemas and Daly City Serramonte Center, LLC
terminated before Regal filed its chapter 11 petition. The Court
confirmed Regal's chapter 11 plan, which provided for the
assumption of Regal's lease with Serramonte. The confirmed plan
specified a $0 cure amount. Serramonte seeks limited vacatur of the
Confirmation Order to clarify that the Order did not effectively
revive the Lease because it was allegedly terminated two years
before the commencement of the chapter 11 case. Regal seeks to
enforce the discharge and injunctive provisions of the Order.
Serramonte argues three bases for vacatur from judgment under FED.
R. CIV. P. 60(b) (made applicable through FED. R. BANKR. P. 9024):
* The Court lacked subject matter jurisdiction over the alleged
terminated lease;
* The Court lacked personal jurisdiction over Serramonte because
the procedural requirement of service was allegedly not satisfied;
* The assumption of the Lease violated Serramonte's due process
rights because notice of assumption was allegedly insufficient.
The Court says it does not need to consider the merits of each
basis for purposes of vacatur, because the Rule 60(b) motion is not
predicated on fraud. Section 1144 of the Bankruptcy Code is the
exclusive means for a court to vacate an order confirming a chapter
11 plan of reorganization.
Under Sec. 1144, the Court may, upon request of a party in interest
before 180 days after the date of the order of confirmation, and
after notice and a hearing, revoke the Confirmation Order if and
only if the Order was procured by fraud.
Judge Isgur explains, "Here, Serramonte filed its motion to vacate
on October 11, 2024. The Confirmation Order was entered on June 28,
2023, well over a year before the motion was filed. Moreover,
Serramonte failed to plead any basis that the Order was procured by
fraud. Serramonte's motion is denied."
According to the Court, Serramonte is bound by the terms of the
Confirmation Order, including the assumption of the Lease. The
Court does not decide whether a terminated lease is revived by a
lease assumption clause in a confirmed plan. The Court will not
presume that the Lease actually terminated before the filing of the
chapter 11 petition. That issue was not timely raised at the
confirmation hearing. At the confirmation hearing, the lease was
assumed and all breaches of the lease were deemed cured. The Court
must enforce the terms of the Confirmation Order and Plan, which
provide for the assumption of the Lease. Regal's motion to enforce
the Plan and Confirmation Order is granted.
A copy of the Court's decision dated November 7, 2024, is available
at https://urlcurt.com/u?l=x9c8ow
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the United States.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt. Judge Marvin
Isgur oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax services provider. Kroll Restructuring Administration, LLC
is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 23,
2022. The committee tapped Weil, Gotshal & Manges, LLP and
Pachulski Stang Ziehl & Jones, LLP as legal counsels; FTI
Consulting, Inc., as financial advisor; and Perella Weinberg
Partners, LP, as investment banker.
CLAIRE'S STORES: $502.4MM Bank Debt Trades at 16% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores Inc
is a borrower were trading in the secondary market around 83.8
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $502.4 million Term loan facility is scheduled to mature on
December 18, 2026. About $481.1 million of the loan has been drawn
and outstanding.
Claire's Stores, Inc. -- http://www.clairestores.com/-- is a
specialty retailer of jewelry, accessories, and beauty products for
young women, teens, "tweens," and kids. Through the Claire's brand,
the Claire's Group has a presence in 45 nations worldwide, through
a total combination of over 7,500 Company-owned stores, concessions
locations, and franchised stores. Headquartered in Hoffman Estates,
Illinois, the Company began as a wig retailer by the name of
"Fashion Tress Industries" founded by Rowland Schaefer in 1961. In
1973, Fashion Tress Industries acquired the Chicago-based Claire's
Boutiques, a 25-store jewelry chain that catered to women and
teenage girls. Following that acquisition,
Fashion Tress Industries changed its name to "Claire's Stores,
Inc." and shifted its focus to a full line of fashion jewelry and
accessories.
CLICKED AI: Creditors to Get Paid from Income over 4 Years
----------------------------------------------------------
Clicked AI submitted a First Amended Subchapter V Plan of
Reorganization dated October 2, 2024.
The Plan proposes to pay creditors from its disposable income from
operations to be received by CLICKED AI in the 4-year period
beginning on the date that the first payment is due under the Plan
in addition to obtaining a new loan or capital contribution from
Equity Interests prior to the expiration of the 4-year term of the
Plan to ensure that all Allowed Claims are paid in full.
Class 1 consists of Allowed Priority Claims. Each such holder of an
Allowed Priority Claim shall be treated as a Class 1 Claim and
shall receive the full amount of each Allowed Class 1 Claim in
accordance with section 1129(a)(C): Holders of such Priority Claims
shall receive regular installment payments in cash: (1) of a total
value, as of the Effective Date of the Plan, equal to the Allowed
amount of such Claim; (2) over a period ending not later than four
years after the Petition Date; and, (3) in a manner not less
favorable than the most favored nonpriority unsecured claim
provided for by the Plan.
Class 3 consists of General Unsecured Claims. Class 3 Claims shall
be paid on a Pro Rata basis in quarterly installments beginning the
first full calendar quarter after the Effective Date from CLICKED
AI's disposable income. CLICKED AI estimates that this Class will
be paid approximately $12,850 over the life of the plan, or
approximately five percent of the face amount of the unsecured
general nonpriority Claim. Class 3 is impaired.
CLICKED AI has continued its operations post-petition. Accordingly,
the funds to be distributed to timely filed Allowed Claims under
the Plan are comprised of CLICKED AI's Disposable Income.
On and after the Effective Date, CLICKED AI shall make the payments
required by this Plan to the holders of Allowed Claims. The
payments pursuant to the Plan shall be in full and complete
payment, settlement and satisfaction of all claims against the
Estate and CLICKED AI.
A full-text copy of the First Amended Subchapter V Plan dated
October 2, 2024 is available at https://urlcurt.com/u?l=dRaK4J from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Clark Stith, Esq.
505 Broadway
Rock Springs, WY 82901
Tel: (307) 382-5565
Fax: (307) 382-5552
Email: clarkstith@wyolawyers.com
About Clicked AI
Clicked AI is engaged in the business of purchasing and reselling
retail goods in bulk.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Wyo. Case No. 24-20226) on June 13,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Cathleen D. Parker oversees the case.
Clark D. Stith, Esq., represents the Debtor as counsel.
COHERENT CORP: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Coherent Corp.'s Long-Term Issuer
Default Rating (IDR) at 'BB'. Fitch has also affirmed Coherent's
senior secured revolver and Term Loan B at 'BBB-' and 'RR1'
Recovery Rating, as well as the company's senior unsecured notes at
'BB'/'RR4'. The Rating Outlook is Stable.
Coherent ratings and Outlook reflect its product and geographic
diversification, large cash balances inclusive of restricted cash
in its Silicon Carbide subsidiary and Coherent's EBITDA leverage,
which is approaching Fitch's sensitivities. The ratings also
consider Fitch's forecasted EBITDA improvement and FCF sufficient
to support normal investment in growth areas and prioritize debt
repayment.
Key Rating Drivers
Leverage Approaching Sensitivities: As of the LTM ended fiscal 1Q25
(ended Sept. 30, 2024), Coherent's EBITDA leverage was 3.75x, above
the 3.5x downgrade sensitivity. Leverage has exceeded this
threshold since II-VI Incorporated's acquisition of the legacy
Coherent business in July 2022 acquisition. Fitch forecasts
Coherent will reach the sensitivity by fiscal-end 2025, despite a
slower-than-expected deleveraging compared to prior forecasts. The
Stable Outlook reflects that the delay is not a structural change
in Fitch's leverage expectations and acknowledges Coherent's
commitment to reducing leverage, including an approximately $100
million discretionary debt repayment in 1Q25.
Improving End Market Demand: Sales in fiscal 2024 were impacted by
customers spending caution in a weaker macro environment and
market-specific trends, such as customers deferring purchases to
drawing down on excess inventory. The weakened demand environment
affected the entire industry, not just Coherent. Results in 1Q25,
particularly in the Communications End market (about half of the
company's revenues), show early signs of moving towards a more
mid-cycle demand environment. Secular trends, including increases
in generative AI computing requirements, support growth in
Coherent's transceivers business.
Potential Cash Inflows from Divestments: In June 2024, Coherent
began a portfolio review to evaluate assets that don't align with
strategic and financial growth criteria. Since then, Coherent has
announced the sale of its UK manufacturing facility and is
considering strategic alternatives for Its Lithium Sulfur Battery
Platform. Coherent capital allocation priorities are to fund its
organic growth engines and deleverage its balance sheet. Fitch
expects the resulting divestments to be relatively small and does
not anticipate any large-scale divestments in its forecast.
Emphasis on Margin Improvement: Coherent aims to improve its gross
margin to over 40% long term by leveraging pricing and cost
efficiencies, including divesting lower return projects. In 1Q25,
Coherent's EBITDA margins increased to 22.1% from 20.8% in fiscal
2024. This improvement positively impacts the credit profile within
the 'BB' rating category, though its effect is limited by
Coherent's relative revenue volatility. Fitch expects a modest
EBITDA margin increase during the forecast period, driven by better
operating leverage and ongoing restructuring efforts. Additional
margin upside beyond Fitch's forecast is possible with successful
portfolio optimization and price increases.
Restricted Silicon Carbide Cash: The fiscal 2024 sale of a 25%
interest in Coherent's Silicon Carbide business to DENSO and
Mitsubishi Electric for a total of $1 billion, effectively reduced
Coherent's capex burden to fund the Silicon Carbide business.
Proceeds from the sales are held as restricted cash at the Silicon
Carbide subsidiary for use in that business, shifting capital
spending requirements from Coherent to the subsidiary.
The Silicon Carbide subsidiary held $757 million in restricted cash
at 1Q25, which is separate from the approximately $1 billion of
readily available cash held on Coherent's balance sheet. The
investment by DENSO and Mitsubishi Electric, in addition to term
supply agreements, adds diverse partners where there are potential
opportunities to benefit from expanded relationships.
History of M&A Integration: Through successful M&A, Coherent
improved diversification by geography, end market and product line,
with only one customer now accounting for over 10% of revenue. The
communications segment's revenue contribution increased to 57% in
1Q25, down from approximately 65% before acquiring legacy Coherent.
Coherent's vertical integration and product suite, supported by an
annual R&D investment of about $500 million, help sustain its
market positions in competitive segments with heightened risk of
technological change.
Preferred Share Treatment: Fitch assigned Coherent's Series B
preferred shares 100% equity credit. Under Fitch's "Corporate
Ratings Criteria," these shares are treated as equity because they
are held by an investor in Bain Capital Private Equity LP, whose
economics and strategic interests are expected to remain aligned
with common equity holders. Fitch assumes these shares, payable at
Coherent's option in cash or in-kind, will remain paid-in-kind
(PIK) through the rating horizon.
The PIK characteristic of the Series B preferred shares, along with
Coherent's favorable interest rate swap and cap agreements, benefit
Coherent's coverage ratios, which were weakened with the legacy
Coherent acquisition. Forecast EBITDA interest coverage of 5.0x in
fiscal 2024 shows an improvement from 3.1x in fiscal 2023 and is
expected to continue improving to align with the typical 'BB'
rating category level during Fitch's forecast period.
Derivation Summary
Coherent compares with direct competitor MKS Instruments, Inc.
(BB/Stable), as the companies have similar revenue scale, with MKS
having modestly better EBITDA margins. Both companies increased
leverage for recent M&A, and have seen deleveraging expectations
affected by weaker than expected customer demand. MKS is further
outside Fitch's EBITDA Leverage sensitivities, with forecast fiscal
2024 EBITDA Leverage to be 5.3 compared to a 4.0x downgrade
sensitivity. This compares to Coherent's 3.7x EBITDA leverage for
the LTM ended fiscal 1Q25 that is approaching being below its 3.5x
downgrade sensitivity.
In the 'BB' rating category, Coherent also compares with Viavi
Solutions Inc. (BB-/Stable), which produces optical filters for 3-D
sensing. Viavi has smaller revenue scale and comparable operating
EBITDA margins. EBITDA leverage is comparable for the two companies
for Viavi due to an absence of actionable M&A opportunities,
Viavi's financial policies are have impacted its credit and while
Coherent long-term leverage target of 2.5x has not been reiterated
by the company recently, the company has operated directionally in
line with a commitment to leverage reduction evidence by
discretionary debt repayments.
Broadcom Inc. (BBB/Stable) is a direct competitor with Coherent in
semiconductor diodes for industrial and consumer markets. Broadcom
has substantially greater revenue scale, EBITDA margins and lower
EBITDA leverage. Similar to Coherent, Broadcom has a history of
M&A, and heightened leverage when transactions close.
Key Assumptions
- Revenue returns to yoy growth in fiscal 2025 and through the
remainder of the forecast period. Improved performance is supported
normalized customer inventory levels, and strong transceiver
demand, spurred by increasing AI data center requirements;
- EBITDA margins improve through yoy in fiscal 2025 toward 22% for
the year. Modest further improve in the forecast period, benefiting
from gross margin increase initiatives, further progress on site
rationalizing, and improved operating leverage and sales mix;
- Discretionary debt repayments in excess of amortization through
fiscal 2027 supporting leverage trending towards 2.5x;
- Series B preferred stock not converted and remains PIK during
forecast period;
- No further Silicon Carbide ownership stake sales during forecast.
Restricted cash in JV is adequate to meet Silicon Carbide funding
needs during forecast period;
- No cash dividends, share repurchases or further M&A during
forecast period;
- Base interest rates applicable to the company's revolving credit
facility obligations reflect current SOFR forward curve and range
between 4.1% and 3.4% during the forecast period. No revolving
facility draws in forecast.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- More balanced sales mix with overall EBITDA margin growth;
- EBITDA leverage sustained below 3.0x;
- (CFO-capex)/debt sustained above 12.5%.
Factors That Could, Individually Or Collectively, Lead To Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 3.5x;
- Shift to a more aggressive financial policy;
- (CFO-capex)/debt sustained below 7.5%.
Liquidity and Debt Structure
Large On-hand and Restricted Cash Positions: Coherent had $1.34
billion of liquidity at Sept. 30, 2024, consisting of $320 million
available on its $350 million revolving credit facility, as well as
$1.02 billion of unrestricted cash. Additionally, Coherent
consolidates $757 million of restricted cash on its balance sheet
that is restricted for use of its 75% owned Silicon Carbide
subsidiary. Fitch forecast of growing FCF over the rating horizon,
combined with Coherent's history of no dividends and rare share
repurchases, supports its ability to increase liquidity for
discretionary debt repayments.
Coherent has no meaningful near-term maturities before 2027 when
its revolver and originally $850 million term loan A are due,
followed by its originally $2.8 billion and $990 million senior
unsecured notes in 2029.
Issuer Profile
Coherent Corp. is a vertically integrated global leader in
materials, networking, and lasers. It that develops, manufactures,
and markets engineered materials, optoelectronic components and
lasers for use in the industrial, communications, electronics, and
instrumentation markets.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Coherent Corp. LT IDR BB Affirmed BB
senior unsecured LT BB Affirmed RR4 BB
senior secured LT BBB- Affirmed RR1 BBB-
DAAS GROUP: Files Chapter 11 Bankruptcy in California
-----------------------------------------------------
On November 6, 2024, DAAS Group LLC filed Chapter 11 protection in
the Eastern District of California. According to court documents,
the Debtor reports between $1 million and $10 million in debt owed
to one to 49 creditors. The petition states funds will be available
to unsecured creditors.
About DAAS Group LLC
DAAS Group LLC, doing business as Sunaina Properties, is primarily
engaged in renting and leasing real estate properties.
DAAS Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-25046) on November 6,
2024. In the petition filed by Amarpal Narang, as managing member,
the Debtor reports estimated assets between $10 million and $50
million and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Fredrick E. Clement oversees the case.
The Debtor is represented by:
Gabriel E. Liberman, Esq.
LAW OFFICES OF GABRIEL LIBERMAN, APC
1545 River Park Drive, Ste 530
Sacramento, CA 95815
Tel: 916-485-1111
Fax: 916-485-1111
Email: attorney@4851111.com
DIOCESE OF BURLINGTON: Hires Stretto as Claims and Noticing Agent
-----------------------------------------------------------------
Roman Catholic Diocese of Burlington, Vermont seeks approval from
the U.S. Bankruptcy Court for the District of Vermont to employ
Stretto, Inc. as claims and noticing agent.
The Debtor requires a claims and noticing agent to serve notices to
creditors, equity security holders and other concerned parties, as
well as provide computerized claims-related services.
The firm will be paid at these hourly rates:
Consultant $70 to $200
Director $210 to $250
Solicitation Associate $230
Director of Securities $250
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 Roman Catholic Diocese of Burlington
Roman Catholic Diocese of Burlington sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Vt. Case No. 24-10205) on
Sept. 30, 2024. In the petition signed by Reverend John Joseph
McDermott, bishop, the Debtor disclosed up to $50 million in assets
and up to $10 million in liabilities.
Judge Heather Z. Cooper oversees the case.
The Debtor tapped James Baillie, Esq., at Fredrikson & Byron, P.A.
as bankruptcy counsel and Obuchowski Law Office as local counsel.
DIXON FLEET: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Bankruptcy Administrator for the Eastern District of North
Carolina disclosed in a filing that no official committee of
unsecured creditors has been appointed in the Chapter 11 case of
Dixon Fleet Services, LLC.
About Dixon Fleet Services
Dixon Fleet Services, LLC, a limited liability company in Zebulon,
N.C., filed Chapter 11 petition (Bankr. E.D.N.C. Case No. 24-03534)
on October 8, 2024, with $1 million to $10 million in both assets
and liabilities. Billy W. Perry, Jr., member and manager, signed
the petition.
Judge David M. Warren oversees the case.
The Debtor is represented by Laurie B. Biggs, Esq., at Biggs Law
Firm, PLLC.
DOC VENTURES: Seeks to Hire Ritter Spencer Cheng as Counsel
-----------------------------------------------------------
Doc Ventures, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to hire Ritter Spencer Cheng PLLC as
general counsel.
The firms' services include:
(a) take all necessary action to protect and preserve the
estate;
(b) prepare on behalf of the Debtor all necessary legal
papers;
(c) formulate, negotiate, and propose a modified plan of
reorganization; and
(d) perform all other necessary legal services in connection
with these proceedings.
The firm's professionals will be paid at these hourly rates:
David Ritter, Attorney $400
Associates $300
Law Clerks & Paralegals $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm shall receive a retainer in the amount of $12,000.
Mr. Ritter 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:
David D. Ritter, Esq.
Ritter Spencer Cheng PLLC
15305 Dallas Parkway, 12th Floor
Addison, TX 75001
Telephone: (214) 295-5078
Facsimile: (214) 329-4362
Email: dritter@ritterspencercheng.com
About Doc Ventures, LLC
Doc Ventures, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-32595) on August
29, 2024, listing $100,001 to $500,000 in both assets and
liabilities.
Judge Stacey G Jernigan presides over the case.
David D. Ritter, Esq. at Ritter Spencer Cheng PLLC represents the
Debtor as counsel.
DOTDASH MEREDITH: S&P Places 'B+' ICR on CreditWatch Positive
-------------------------------------------------------------
S&P Global Ratings placed its 'B+' issuer credit rating on Dotdash
Meredith Inc. on CreditWatch with positive implications.
S&P said, "We expect to resolve the CreditWatch placement if IAC
completes a spin-off of Angi (potentially in 2025). Any potential
upgrade would be limited to one notch and depend on at least a 'BB'
rating on IAC. If the spin-off is not completed, we would affirm
our current rating on Dotdash."
Dotdash's parent company, IAC Inc., recently announced that it is
considering a spin-off of its ownership stake in Angi Inc. to its
shareholders. If completed, S&P would likely view IAC's business
more favorably, which could potentially result in a one notch
upgrade to its issuer credit rating on IAC.
The CreditWatch placement reflects that a spin-off of Angi would
likely result in a higher rating at IAC, which would remove the
ratings cap on Dotdash. Angi and Dotdash Meredith are the two
largest contributors to IAC's revenue, contributing 31% and 45% of
total revenue, respectively, for the last 12 months ended Sept. 30,
2024. S&P said, "If Angi becomes a stand-alone company, our view of
IAC's business risk would largely be driven by Dotdash, whose
business we view more favorably than that of Angi. Given the more
favorable view, we would likely raise IAC's issuer credit rating to
'BB' from 'BB-'. This would remove the current ratings cap on
Dotdash and loosen the threshold for an upgrade to 5x from 4x
currently. We forecast Dotdash will end 2024 with leverage of about
4.5x and it will continue to reduce leverage to about 4x in 2025."
S&P expects to resolve the CreditWatch placement if IAC completes a
spin-off of Angi (potentially in 2025). Any potential upgrade would
be limited to one notch and depend on at least a 'BB' rating on
IAC. If the spin-off is not completed, S&P would affirm its current
rating on Dotdash.
DOW CORNING: Korean Claimants Can't Seek Replacement Checks
-----------------------------------------------------------
In the case captioned as KOREAN CLAIMANTS, Interested
Parties-Appellants, v. DOW SILICONES CORPORATION, et al.,
Interested Parties-Appellees, No. 23-1936 (6th Cir.), the United
States Court of Appeals for the Sixth Circuit affirmed the order of
the United States District Court for the Eastern District of
Michigan that prevented Korean Claimants to seek replacement checks
from Dow Silicones Corporation because their originally distributed
settlement checks have expired.
For over two decades, Dow served as the predominant American
manufacturer of silicone gel breast implants. That market
collapsed, however, when the Food and Drug Administration
ordered sharp restrictions on the use of silicone gel implants,
given their potential link to various auto-immune diseases.
Hundreds of thousands of potentially affected implant recipients
sued Dow shortly thereafter, driving the company to file for
reorganization under Chapter 11 of the Bankruptcy Code in 1995.
Four years later, the bankruptcy court confirmed the Amended Joint
Plan of Reorganization. For those claimants interested in settling
their claims, the Plan directed them to the Settlement Facility.
Wielding funds with a then–net present value of $1.95 billion,
the Settlement Facility resolved claims pursuant to the Settlement
Facility and Fund Distribution Agreement and the Reorganization
Plan.
Comprised of certain Korean residents, the group opted for
settlement, and in turn qualified as "first-priority" claimants.
This designation meant they were "virtually guaranteed" to receive
payment from the Settlement Facility.
And indeed, more than a thousand eligible Claimants received
checks. Only one problem: 200 of them never cashed their payments
within the 180-day expiration window.
The Settlement Facility Agreement established June 3, 2019, as the
final deadline for filing claims. To enforce this deadline, the
district court issued a series of closing orders.
The first is Closing Order 2, which was issued in March 2019.
Closing Order 2 limited disbursements of replacement checks after
June 3, 2019, to two circumstances: where a claimant was deceased;
or where the claimant or their attorney demonstrated "good cause,"
as determined by the Claims Administrator. Closing Order 2 also
indicated that the district court would specify the last date upon
which the Settlement Facility could issue payments absent express
court direction, labeled the "final distribution deadline."
In October 2023, the district court entered an Order to implement
the terms of Closing Order 2. The Order established December 1,
2023, as the final distribution deadline. It also prohibited the
replacement of checks that expired before June 3, 2019, regardless
of "good cause" for such reissuance; prohibited replacement checks
for claimants with stale-dated checks who had requested a
replacement, whether granted or denied; and gave a one-month period
for all claimants outside these two groups to seek replacement
checks.
The Korean Claimants sought repayment to no avail. The Claims
Administrator denied repayment because their checks expired before
June 3, 2019. Rather than seek relief in district court, the
claimants appealed the Order.
The Korean Claimants first argue that the Order violates principles
of due process set forth in Mullane v. Central Hanover Bank & Trust
Co., 339 U.S. 306 (1950). Mullane instructs that notice must be
"reasonably calculated, under all the circumstances, to apprise
interested parties of the pendency of the action and afford them an
opportunity to present their objections." According to the Korean
Claimants, the Order failed to honor these guarantees.
The Sixth Circuit disagrees. On multiple occasions, the Korean
Claimants received sufficient notice of the final distribution
deadline.
Citing 11 U.S.C. Sec. 1129(b)(1), they allege that the Order
improperly discriminated against them or, alternatively, failed to
satisfy the statute's fair-and-equitable standard by closing claims
of those with uncashed checks.
The Sixth Circuit also finds that, even if Sec. 1129(b)(1) more
widely forbids discrimination and inequity, the Korean Claimants
still fall short. Far from serving a discriminatory purpose, the
Order broadly applies to all claims with expired checks issued
before the final deadline. Nor were the Korean Claimants treated
unjustly. Rather, they enjoyed 180 days to cash their checks before
they became stale-dated -- the customary action period for those
instruments, as well as four-and-a-half years to request
replacement checks according to the terms of Closing Order 2. Back
of the envelope math suggests that the Korean Claimants had at
least 1,764 days each to seek payment. Closing their claims past
that date does not strike as unfair, the Sixth Circuit concludes.
The Korean Claimants wage a final battle against the discharge of
their claims, one based on asserted promises by Dow. A bankruptcy
court's confirmation of a reorganization plan ordinarily discharges
the borrower from any debt -- including "liability on a claim," 11
U.S.C. Sec. 101(12) -- that arises before the confirmation date.
According to the Court, Dow's discharge would encompass the claims
made by the Korean Claimants. Claimants seek an exception to that
customary practice because Dow allegedly falsely stated in 1999
that the claimants "would be taken care [of] in priority and would
receive compensation in full."
According to the Sixth Circuit, as a starting point, Dow's
purported 25-year-old promise seems to have been honored by the
Settlement Facility, which made payments available to the Korean
Claimants. After all, the Korean Claimants received valid checks.
They simply failed to cash them in a timely manner.
Nor do the Sixth Circuit agrees with the Korean Claimants that the
district court abused its discretion in issuing the Order, which
they allege is inconsistent with the Reorganization Plan.
A copy of the Court's decision dated November 7, 2024, is available
at https://urlcurt.com/u?l=bZMS1x
About Dow Corning
Dow Corning Corp. -- http://www.dowcorning.com/-- produces and
supplies more than 7,000 silicon-based products and services to
more than 25,000 customers worldwide. Dow Corning is equally owned
by The Dow Chemical Company and Corning Incorporated.
The Company filed for Chapter 11 protection on May 15, 1995 (Bankr.
E.D. Mich. Case No. 95-20512) to resolve silicone implant-related
tort liability. The Company owed its commercial creditors more
than $1 billion at that time. A consensual Joint Plan of
Reorganization, amended on Feb. 4, 1999, offering to pay commercial
creditors in full with post-petition interest, establish a
multi-billion-dollar settlement trust for tort claims, and leave
Dow Corning's shareholders unimpaired, took effect on June 30,
2004.
EDGEWOOD FOOD: Court to Confirm Chapter 11 Subchapter V Plan
------------------------------------------------------------
Judge Lisa Ritchey Craig of the United States Bankruptcy Court for
the Northern District of Georgia will confirm Edgewood Food Mart,
Inc.'s Chapter 11 Small Business Subchapter V Plan. Lamar Lester's
objections to the plan are overruled.
Confirmation of the plan in this Subchapter V case filed by gas
station and convenience store Edgewood Food Mart, Inc. requires the
Court to resolve four central issues: whether Debtor's plan was
proposed in good faith, whether Debtor's plan is feasible, whether
the plan meets the liquidation test, and whether the plan is fair
and equitable. Debtor seeks confirmation of a nonconsensual plan
under Sec. 1191(b) that provides for payments of projected
disposable income over a three-year period. Creditor Lamar Lester
voted to reject the plan and objected to it, raising seven reasons
why the plan fails to satisfy Secs. 1191(b) and 1129(a)(3), (a)(7),
and (a)(11).
The Plan proposes paying creditors from Debtor's projected
disposable income by continuing operations and making payments over
a three-year period. If Debtor's actual income is insufficient to
make the payments, Debtor's principal, Amin "Alex" Panjwani, has
escrowed sufficient funds to make the payments by tendering
$159,000 to Debtor's attorney
to hold in trust. The Plan establishes four classes: Class 1:
Priority Tax claims of the Internal Revenue Service; Class 2:
General Unsecured Claims; Class 3: Interests; and Class 4: Mr.
Lester's Partially Secured Judgment Lien. The Plan assumes the
lease of the Property and, while the cure amount that would
ordinarily be required to be paid in full to as a priority claim
assume the lease is $145,577.27, 400 Edgewood has agreed to have
the cure amount treated as a Class 2 general unsecured claim.
Under the Plan, Debtor has bifurcated Mr. Lester's claim, providing
that Mr. Lester shall have a Class 4 secured claim in the amount of
$2,500, the value of the property to which Mr. Lester's judgment
lien attaches. Class 4 is to be paid first when monthly payments
commence. The remaining portion of Mr. Lester's claim is treated as
a Class 2 General Unsecured Claim. Class 2 claims are to be paid on
a pro rata basis in monthly payments until the projected disposable
income has been fully exhausted.
On August 8, 2024, the Court held an evidentiary hearing on
confirmation, at which Debtor, Mr. Lester, 400 Edgewood, LLC, the
Subchapter V Trustee, Truist Bank, and the United States Trustee
appeared. This is a core proceeding, over which the Court has
subject matter jurisdiction. The Court finds that the plan is
confirmable under Sec. 1191(b) and will direct Debtor's counsel to
submit a proposed confirmation order conforming to the Court's
Memorandum of Decision and Order with signatures of the Subchapter
V trustee and counsel for the United States Trustee.
Mr. Lester argues that the Plan was not proposed in good faith
because it was not proposed for the purpose of reorganization. Mr.
Lester asserts Debtor's purpose for filing this case was to keep
Debtor operating for the "minimum amount of time required under
Chapter 11 so that Mr. Lester's judgment will be discharged." In
response, Debtor submits that what becomes of Debtor's business
after performance of the Plan is irrelevant and does not impact
confirmation. Debtor further argues that the Plan goes above and
beyond the requirements of good faith by ensuring plan payments
will be made regardless of Debtor's profitability and maximizing
available funds for unsecured creditors.
According to the Court, contrary to Mr. Lester's assertions,
proposing a plan to obtain a discharge of debt after a period of
repayment that otherwise complies with the confirmation
requirements of Subchapter V is not bad faith. Receiving a
discharge in exchange for repayment of a portion of debt is a
fundamental feature of both Chapter 11 and Chapter 13.
The Court finds none of Mr. Lester's objections to Debtor's good
faith proposal of the Plan have merit. It holds, based on the
totality of the circumstances, that Debtor proposed the Plan in
good faith.
Under Sec. 1129(a)(11), a plan is feasible if confirmation of the
plan is not likely to be followed by liquidation or further
financial reorganization of the debtor or any successor to the
debtor under the plan, unless such liquidation or reorganization is
proposed in the plan.
With the plan payments guaranteed and the money waiting in the
bank, the Court finds the Plan is feasible.
There is a split of authority as to whether Sec. 1191(c) contains a
presumption that a three-year payment period is fair and equitable,
which the court can extend upon a showing of unusual circumstances,
or whether, upon objection, the debtor has the burden to prove that
the minimum plan length is fair and equitable, regardless of the
existence of unusual circumstances.
Having considered all the evidence presented at the confirmation
hearing, the Court concludes that, whether the Court applies a
presumption that three years is sufficient absent unusual
circumstances, or instead requires Debtor to establish that a
five-year plan is not required to treat Mr. Lester fairly and
equitably, the Plan meets the fair and equitable requirement. The
Bankruptcy Code requires a Subchapter V debtor to use the
disposable income it is projected to receive over the plan term to
make payments under the plan. It does not require the debtor pay
its projected disposable income to a particular creditor or a class
of creditors. In this case, Debtor would like to exit this case
after the minimum three years and is essentially willing to pay its
Class 2 creditors in three years what they would have gotten paid
in a longer plan, the Court notes.
A copy of the Court's decision dated November 7, 2024, is available
at https://urlcurt.com/u?l=9aZbt5
About Edgewood Food Mart
Edgewood Food Mart, Inc., owns a gas station and convenience store.
It filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-61204) on Nov. 10,
2023, with up to $500,000 in assets and up to $10 million in
liabilities. Tamara Miles Ogier, Esq., at Ogier, Rothschild &
Rosenfeld, PC, is the Debtor's legal counsel.
EMERALD TECH: CSWC Marks $3.4MM Loan at 18% Off
-----------------------------------------------
Capital Southwest Corporation has marked its $2,748,000 loan
extended to Emerald Technologies US AcuisitionCo, Inc to market at
$2,829,000 or 82% of the outstanding amount, according to a
disclosure contained in CSWC's Form 10-Q for the quarterly period
ended September 30, 2024, filed with the Securities and Exchange
Commission.
CSWC is a participant in a First Lien Term Loan B to Emerald
Technologies US AcuisitionCo, Inc. The Loan accrues interest at a
rate of 11.46% (SOFR+7.50% (Floor 1.00%)/Q) per annum. The loan
matures on December 29, 2027.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Emerald Technologies AcquisitionCo., Inc. -- Emerald EMS --
headquartered in Salem, New Hampshire, is a tier-3 EMS provider of
high mix, low volume (HMLV) design, prototyping, assembly, and
lifecycle support services (supply chain management, order
fulfilment, and reverse logistics) for original equipment
manufacturer (OEM) customers in "non-traditional" end markets
including semiconductor equipment, industrial controls, A&D,
utility infrastructure, and medical. Emerald specializes in high
complexity electronic assemblies, specifically printed circuit
boards (PCBA) and box builds/systems integrations, for
customer-specific products with significant design variations.
ENDRA LIFE: Effects 1-for-35 Reverse Stock Split
------------------------------------------------
ENDRA Life Sciences Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on November 4,
2024, the Company filed with the Secretary of State of the State of
Delaware an amendment to the Certificate of Incorporation to effect
the Reverse Stock Split at 12:01 a.m. Eastern Time on November 7,
2024. On November 7, 2024, the Common Stock began trading on a
split-adjusted basis under a new CUSIP, 29273B 500.
As previously disclosed, at the Special Meeting of Stockholders of
ENDRA Life Science Inc. held on October 28, 2024, the stockholders
of the Company approved amendments to the Company's Fourth Amended
and Restated Certificate of Incorporation effecting reverse stock
splits of the Company's Common Stock, $0.0001 par value per share,
and authorized the Company's Board of Directors, in its discretion,
to effect a reverse stock split of Common Stock , whereby each
issued and outstanding share of Common Stock would be reclassified
and converted into a fraction of a share between 1/4 and 1/35,
inclusive. Following the Special Meeting, the Board approved a
Ratio of 1/35.
About ENDRA Life
Headquartered in Ann Arbor, Mich., ENDRA Life Sciences Inc. --
http://www.endrainc.com-- is the pioneer of Thermo Acoustic
Enhanced UltraSound (TAEUS), a groundbreaking technology that
characterizes tissue similar to an MRI, but at 1/40th the cost and
at the point of patient care. TAEUS is designed to work in concert
with the more than 700,000 ultrasound systems in use globally
today. TAEUS is initially focused on the non-invasive assessment of
fatty tissue in the liver. Steatotic liver disease (SLD, formerly
known as NAFLD-NASH) is a chronic liver disease spectrum that
affects over two billion people globally, and for which there are
no practical diagnostic tools. Beyond the liver, ENDRA is exploring
several other clinical applications of TAEUS, including
non-invasive visualization of tissue temperature during
energy-based surgical procedures.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated March
28, 2024, citing that the Company has suffered recurring losses
from operations, generated negative cash flows from operating
activities, has an accumulated deficit, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of June 30, 2024, ENDRA Life Sciences had $10,442,529 in total
assets, $1,448,588 in total liabilities, and $8,993,941 in total
stockholders' equity.
ENVIVA INC: Davis Polk & McGuireWoods Update List of Creditors
--------------------------------------------------------------
The law firms Davis Polk & Wardwell LLP and McGuireWoods LLP filed
a second supplemental verified statement pursuant to Rule 2019 of
the Federal Rules of Bankruptcy Procedure to disclose that in the
Chapter 11 cases of Enviva Inc. and affiliates, the firms represent
the Ad Hoc Group.
In or around November 2023, the Ad Hoc Group engaged Davis Polk to
represent it in connection with the Members' holdings under the
2026 Senior Notes. In or around February 2024, the Ad Hoc Group
engaged McGuireWoods to act as co-counsel in the Chapter 11 Cases.
On March 14, 2024, Counsel filed the Verified Statement Regarding
Ad Hoc Group of Creditors Pursuant to Bankruptcy Rule 2019. On May
9, 2024, Counsel filed the First Supplemental Verified Statement
Regarding Ad Hoc Group of Creditors Pursuant to Bankruptcy Rule
2019. Counsel submits this Second Supplemental Statement to update
or clarify information disclosed in the Original Statement and the
First Supplemental Statement.
The Members, collectively, beneficially own (or are the investment
advisors or managers for funds that beneficially own) or manage
approximately (i) $738,808,000 in aggregate principal amount of the
2026 Senior Notes; (ii) $548,923,557 in aggregate principal amount
of the Prepetition Senior Secured Debt, (iii) $195,530,000 in
aggregate principal amount of the Epes Green Bonds; (iv)
$95,100,000 in aggregate principal amount of the Bond Green Bonds;
(v) $455,263,739 in aggregate principal amount of DIP Indebtedness;
(vi) approximately $37,865,000 of Other Unsecured Claims; and (vii)
5,073,753 shares of common stock of Enviva Inc, in each case.
Counsel does not hold any claim against, or interests in, the
Debtors or their estates, other than claims for fees and expenses
incurred in representing the Ad Hoc Group. Davis Polk's address is
450 Lexington Avenue, New York, New York 10017. McGuireWoods's
address is Gateway Plaza, 800 East Canal Street, Richmond, Virginia
23219.
The Ad Hoc Group Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors are:
1. ALLSPRING GLOBAL INVESTMENTS
1415 Vantage Park Drive 3rd Floor
Charlotte, NC 28203
* $20,425,000 in aggregate principal amount of 2026
Senior Notes
* $3,502,000 in aggregate principal amount of DIP
Indebtedness
2. AMERICAN INDUSTRIAL PARTNERS
450 Lexington Avenue 40th Floor
New York, NY 10017
* $40,340,296 in aggregate principal amount of
Prepetition Senior Secured Debt
* $327,564,000 in aggregate principal amount of 2026
Senior Notes
* $31,000,000 in aggregate principal amount of Epes Green Bonds
* 3,249,767 shares of common stock of Enviva Inc.
* $147,305,705 in aggregate principal amount of DIP
Indebtedness
3. ARENA CAPITAL ADVISORS, LLC
12121 Wilshire Boulevard Suite 1010
Los Angeles, CA 90025
* $90,500,000 in aggregate principal amount of
Prepetition Senior Secured Debt
* $86,085,000 in aggregate principal amount of 2026
Senior Notes
* $147,305,705 in aggregate principal amount of DIP
Indebtedness
4. ARES MANAGEMENT LLC
2000 Avenue of the Stars 12th Floor
Los Angeles, CA 90067
* $21,014,889 in aggregate principal amount of
Prepetition Senior Secured Debt
* $89,207,000 in aggregate principal amount of 2026
Senior Notes
* $38,151,044 in aggregate principal amount of DIP
Indebtedness
* approximately $1,000,000 of Other Unsecured Claims
5. BARCLAYS BANK PLC
745 Seventh Avenue
New York, NY 10019
* $70,046,589 in aggregate principal amount of
Prepetition Senior Secured Debt
* $7,186,000 in aggregate principal amount of 2026
Senior Notes
* $50,100,000 in aggregate principal amount of Bond Green Bonds
* $7,833,077 in aggregate principal amount of DIP
Indebtedness
6. CYRUS CAPITAL PARTNERS, L.P.
65 East 55th Street 35th Floor
New York, NY 10022
* $119,460,783 in aggregate principal amount of
Prepetition Senior Secured Debt
* $125,830,000 in aggregate principal amount of 2026
Senior Notes
* $28,390,000 in aggregate principal amount of Epes
Green Bonds
* $27,018,000 in aggregate principal amount of Bond
Green Bonds
* $90,717,500 in aggregate principal amount of DIP
Indebtedness
7. DIAMETER CAPITAL PARTNERS LP
55 Hudson Yards Suite 29B
New York, NY 10001
* $14,026,000 in aggregate principal amount of DIP
Indebtedness
8. EATON VANCE MANAGEMENT, BOSTON MANAGEMENT AND RESEARCH,
CALVERT RESEARCH AND MANAGEMENT and MORGAN STANLEY
INVESTMENT MANAGEMENT INC.
Two International Place
Boston, MA 02110 and 1585 Broadway
New York, NY 10036
* $36,909,000 in aggregate principal amount of 2026
Senior Notes
* $12,402,494 in aggregate principal amount of DIP
Indebtedness
9. HUDSON BAY CAPITAL MANAGEMENT LP
28 Havemeyer Place 2nd Floor
28 Havemeyer Place 2nd Floor
* $125,500,000 in aggregate principal amount of Epes
Green Bonds
* $20,251,000 in aggregate principal amount of DIP
Indebtedness
10. KEYFRAME CAPITAL PARTNERS, L.P
65 East 55th Street 35th Floor
New York, NY 10022
* $5,527,000 in aggregate principal amount of
Prepetition Senior Secured Debt
* $30,000,000 in aggregate principal amount of 2026
Senior Notes
* $10,640,000 in aggregate principal amount of Epes
Green Bonds
* $17,982,000 in aggregate principal amount of Bond
Green Bonds
* 1,823,986 shares of common stock of Enviva Inc.
* $25,746,396 in aggregate principal amount of DIP
Indebtedness
* approximately $1,000,000 of Other Unsecured Claims
11. MONARCH ALTERNATIVE CAPITAL LP
535 Madison Avenue 26th Floor
New York, NY 10022
* $128,534,000 in aggregate principal amount of
Prepetition Senior Secured Debt
* $27,185,023 in aggregate principal amount of DIP
Indebtedness
* approximately $34,865,000 of Other Unsecured Claims
12. MORGAN STANLEY & CO. LLC
1585 Broadway 3rd Floor
New York, NY 10036
* $18,000,000 in aggregate principal amount of 2026
Senior Notes
* $1,749,000 in aggregate principal amount of DIP
Indebtedness
13. OAKTREE CAPITAL MANAGEMENT, LP
333 S Grand Avenue 29th Floor
Los Angeles, CA 90071-1504
* $73,500,000 in aggregate principal amount of
Prepetition Senior Secured Debt
* $16,700,500 in aggregate principal amount of DIP
Indebtedness
Co-Counsel for the Ad Hoc Group of Creditors:
Dion W. Hayes, Esq.
K. Elizabeth Sieg, Esq.
Connor W. Symons, Esq.
McGUIREWOODS LLP
Gateway Plaza
800 East Canal Street
Richmond, VA 23219
Telephone: (804) 775-1000
Facsimile: (804) 775-1061
Email: dhayes@mcguirewoods.com
bsieg@mcguirewoods.com
csymons@mcguirewoods.com
-and-
Damian S. Schaible, Esq.
David Schiff, Esq.
Joseph W. Brown, Esq.
Hailey W. Klabo, Esq.
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
Telephone: (212) 450-4000
Facsimile: (212) 701-5800
Email: damian.schaible@davispolk.com
david.schiff@davispolk.com
hailey.klabo@davispolk.com
About Enviva Inc.
Enviva Inc. is a publicly traded Delaware corporation that
develops, constructs, acquires, and owns and operates fully
contracted wood pellet production plants to process wood fibers
into densified, uniform pellets, which are primarily sold to
customers through long-term, take-or-pay contracts with
creditworthy customers in the United Kingdom, the European Union,
and Japan.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Lead Case No. 24-10453) on March
13, 2024, with $2,893,581,000 in assets and $2,631,263,000 in
liabilities. Glenn T. Nunziata, interim chief executive officer and
chief financial officer, signed the petitions.
Judge Brian F. Kenney presides over the case.
The Debtors tapped VINSON & ELKINS LLP as general bankruptcy
counsel; KUTAK ROCK LLP as local counsel; and ALVAREZ & MARSAL
HOLDINGS, LLC as financial adviser.
EPIC COMPANIES: Seeks to Extend Plan Exclusivity to May 5, 2025
---------------------------------------------------------------
EPIC Companies Midwest, LLC, and affiliates asked the U.S.
Bankruptcy Court for the District of North Dakota to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to May 5, 2025 and July 6, 2025, respectively.
The Debtors claim that they believe that the limited proposed
extension to formulate and file a plan sought in the Motion will be
beneficial to the estates, will allow the plan to be based on more
accurate information, and will result in a more efficient use of
their estates' assets for the benefit of all creditors.
The Debtors explain that the requested extensions of the exclusive
period and solicitation period are essential to allow the Debtors
to proceed with the plan process as contemplated by the Bankruptcy
Code. Moreover, the possibility of multiple plans would inevitably
lead to unnecessary and costly confrontations that would likely
cause a dramatic increase in the professional fee burden borne by
the estates and reduce potential distributions to creditors.
Th Debtors assert that an acceptable plan can be developed within
the requested extensions of the exclusivity period and solicitation
period but reserve the right to request additional extensions. The
Debtors' request for an extension is modest and does not
impermissibly extend the dates for filing and solicitation past the
time periods provided for in Section 1121(d)(2)(A) and (B) of the
Bankruptcy Code. Accordingly, the exclusivity period and
solicitation period should be extended to afford the Debtors a full
and fair opportunity to negotiate, propose, and seek acceptance of
a plan.
Attorneys for the Debtors:
Michael S. Raum, Esq.
FREDRIKSON & BYRON, P.A.
51 Broadway, Suite 400
Fargo, ND 58102-4991
701.237.8200
Email: mraum@fredlaw.com
Steven R. Kinsella, Esq.
Katherine A. Nixon, Esq.
FREDRIKSON & BYRON, P.A.
60 South 6th Street, Suite 1500
Minneapolis, MN 55402-4400
612.492.7000
Email: skinsella@fredlaw.com
knixon@fredlaw.com
About EPIC Companies Midwest
EPIC Companies Midwest, LLC is a real estate investing and
development firm in Minot, N.D.
EPIC and its affiliates filed voluntary Chapter 11 petitions
(Bankr. D.N.D. Lead Case No. 24-30281) on July 8, 2024. Patrick
Finn, chief restructuring officer, signed the petitions.
At the time of the filing, EPIC reported $10 million to $50 million
in both assets and liabilities.
Judge Shon Hastings oversees the cases.
Steven Kinsella, Esq., at Fredrikson & Byron, PA represents the
Debtors as legal counsel.
The U.S. Trustee for Region 12 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by the law firm of Stinson, LLP.
EVEREST TRANSPORTATION: CSWC Marks $6.2MM Loan at 15% Off
---------------------------------------------------------
Capital Southwest Corporation has marked its $6,250,000 loan
extended to Everest Transportation Systems, LLC to market at
$5,312,000 or 85% of the outstanding amount, according to a
disclosure contained in CSWC's Form 10-Q for the quarterly period
ended September 30, 2024, filed with the Securities and Exchange
Commission.
CSWC is a participant in a First Lien Loan to Everest
Transportation Systems, LLC. The Loan accrues interest at a rate of
12.95% (SOFR+6% (Floor 1.00%)/M) per annum. The loan matures on
August 26, 2026.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
"Everest Transportation Systems is a high-growth, unique freight
brokerage, currently focused on over-the-road surface
transportation. Through an innovative organizational design and
go-to-market model, Everest is disrupting traditional freight
brokerage by delivering exponential growth, operational excellence,
and high-touch service 24×7 -- at scale. Everest specializes in
full truckload, LTL, drayage, intermodal, hazmat, temperature
controlled, expedited, and volume partials, with a focus on stable,
non-cyclical industries such as food and beverage."
EXACTECH INC: Has Restructuring Deal, Sale to Investor Group
------------------------------------------------------------
The Healthcare Technology Report says Exactech Inc. has entered
into a restructuring agreement and sale of its assets to an
investor group.
Exactech, a global leader in medical technology, has reached an
asset acquisition and restructuring support agreement with several
of its existing investors to overcome its financial challenges,
according to the report.
As the "stalking horse" bidder, this group will acquire nearly all
of Exactech's assets and provide an additional $85 million to
support ongoing operations. The reorganization is aimed at
addressing the company's unsustainable liabilities related to past
knee and hip implant recalls, the report says.
Exactech will continue to offer high-quality orthopedic implants
and surgical instruments, using the restructuring process to
improve its financial health and reinforce its commitment to
patients and healthcare professionals, the report adds.
The investor group, led by private equity firms with over $25
billion in combined assets, supports Exactech's goal of advancing
innovation in orthopedics. The sale, subject to court approval,
will proceed through a voluntary reorganization in the U.S.
Bankruptcy Court for the District of Delaware.
According to the report, Exactech has filed motions to ensure
business continuity, including paying employees and sales
representatives and continuing research and development
activities.
President and CEO Darin Johnson expressed confidence in the
company's future, noting that the reorganization will position
Exactech for sustainable growth and long-term value for its
stakeholders, the report states.
About Exactech Inc.
Exactech Inc. -- https://www.exac.com/ -- is a joint-replacement
implant manufacturer owned by TPG Capital.
Exactech Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-12441) on October 29, 2024. In the
petition filed by Donna H. Edwards, as general counsel and senior
vice president, the Debtor reports estimated assets and liabilities
between $100 million and $500 million each.
The Debtor is represented by:
Ryan M. Bartley, Esq.
Young Conaway Stargatt & Taylor, LLP
2320 NW 66th Court
Gainesville, FL 32653
FARGO BREWING: Court OKs Use of Cash Collateral
-----------------------------------------------
The U.S. Bankruptcy Court for the District of North Dakota granted
The Fargo Brewing Company, LLC authorization to use cash
collateral.
The court order authorized the company to use $16,838.32 in cash
collateral as well as post-petition cash generated from inventory
sales, accounts receivable, or other cash sources of income during
the period from Nov. 1 to 30.
The debtor's use of cash collateral must stay under the total
budgeted sum, and any overage in one or more expense categories
will reduce the amount available to fund expenses in other
categories.
As adequate protection for the use of cash collateral, the U.S.
Small Business Administration and First Western Bank & Trust were
granted replacement liens in Fargo's post-petition accounts
receivable, cash, and inventory.
Fargo is not authorized to grant replacement liens in Chapter 5
causes of action.
About The Fargo Brewing Company
The Fargo Brewing Company, LLC, is a craft brewery company in
Fargo, N.D.
The Debtor sought protection under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. N.D. Case No. 24-30152) on
April 15, 2024, with up to $500,000 in assets and up to $10 million
in liabilities. Jared Hardy, president of Fargo, signed the
petition.
Judge Shon Hastings oversees the case.
Caren Stanley, Esq., at Vogel Law Firm, is the Debtor's bankruptcy
counsel.
FARRAND STREET: Unsecureds Will Get 20% of Claims in Plan
---------------------------------------------------------
Farrand Street Associates LLC filed with the U.S. Bankruptcy Court
for the District of New Jersey a Combined Plan of Reorganization
and Disclosure Statement dated October 4, 2024.
The Debtor is a single asset real estate entity which owns a 75,000
square foot warehouse facility located at 46-50 Farrand Street,
Bloomfield, New Jersey 07003 (the "Warehouse Property").
The Debtor acquired the Property on September 14, 2021. The
acquisition was financed with a loan in the amount of $9,100,000
from NuBridge. The NuBridge loan matured on July 1, 2022. While the
Debtor made regular monthly payments to NuBridge until maturity,
the Debtor was unable to pay the full amount due upon maturity. The
Debtor became delinquent at that point. NuBridge commenced the
Foreclosure Action on October 27, 2022, which the Debtor did not
oppose.
The Debtor valued the Property at $13,000,000.00 in its petition.
This was based upon a valuation adopted by NuBridge, the holder of
the first mortgage on the Warehouse Property.
The Plan is a liquidating plan and contemplates a prompt sale of
the Debtor's primary asset, a 75,000 square foot warehouse facility
located at 46-50 Farrand Street, Bloomfield, New Jersey 07003 (the
"Warehouse Property"). Pursuant to the Plan, Debtor will sell the
Warehouse Property to partially satisfy the Debtor's secured
obligation to first mortgagee NuBridge Commercial Lending, LLC.
General Unsecured Creditors will receive a dividend of twenty
percent from the proceeds of the anticipated sale, funded 10% by a
carve-out from the closing proceeds agreed upon by NuBridge, and
10% by a contribution of capital by the Debtor's principal, Michael
Kaufman.
The Debtor scheduled non-disputed unsecured claims totaling
$160,790.29.
Class 2 consists of General Unsecured Claims. Unsecured Creditors
shall receive 20% of allowed claims, payable upon the sale of the
Warehouse Property, funded 10% by a carve-out from the closing
proceeds agreed upon by NuBridge, and 10% by a contribution of
capital by the Debtor's principal, Michael Kaufman.
Equity Interest Holder Michael Kaufman shall retain interest.
On August 28, 2024, the Debtor entered into a Contract of Sale to
convey the Warehouse Property to Soyemi Partners LLC for
consideration of $10,500,000. On September 17, 2024, the Debtor
filed a motion with the Bankruptcy Court seeking approval of the
sale. The Sale Agreement provides for a deposit of $525,000 which
is only due after the entry of a Court order approving the sale.
The Sale Agreement contains a thirty-day contingency for Buyer
inspections and due diligence.
The Sale Agreement has a mortgage financing contingency as well,
though the Debtor has been advised that Buyer has obtained
financing. The Sale Agreement specifies a closing date of November
15, 2024, but the Debtor anticipates closing will, in fact, be by
December 31, 2024. The sale of the Property constitutes a sale of
substantially all of the Debtor's assets.
The payments to NuBridge due under this Plan will be funded from
the proceeds of the sale of the Warehouse Property which will be
directly from closing. NuBridge will escrow with the title company
of the purchaser of the Warehouse Property any lien discharges
required to assure the conveyance of clear title. Payments to
administrative claims of the Debtor (Fees due to the Office of the
United States Trustee and the fees of attorneys and other
professionals) shall be funded by a carve-out of $25,000 from the
proceeds of the sale of the Warehouse Property. In the event that
this carve out is insufficient, the Debtor's principal, Michael
Kaufman, will fund the balance.
A full-text copy of the Combined Plan and Disclosure Statement
dated October 4, 2024 is available at
https://urlcurt.com/u?l=fowdvq from PacerMonitor.com at no charge.
Counsel to the Debtor:
Stephen B. McNally, Esq.
McNALLYLAW, LLC
93 Main Street
Newton, New Jersey 07860
(973) 300-4260
About Farrand Street Associates LLC
Farrand Street Associates LLC is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
Farrand Street Associates LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-16821) on July 9,
2024. In the petition filed by Michael Kaufman, as managing member,
the Debtor reported estimated assets between $10 million and $50
million, and estimated liabilities between $1 million and $10
million.
The Honorable Bankruptcy Judge John K. Sherwood handles the case.
The Debtor is represented by Stephen B. McNally, Esq., at
McNallyLaw, LLC.
FOUR SEAS: Wins Interim Access to Cash Collateral
--------------------------------------------------
Four Seas Mobile Catering, LLC received interim approval from the
U.S. Bankruptcy Court for the Western District of North Carolina to
use cash collateral.
The court authorized Four Seas Mobile Catering to utilize $57,910
in cash collateral for operational expenses set forth in its
projected budget.
The company's expenses must not exceed the budget by more than 10%
per line item on a cumulative basis.
Creditors were granted a replacement lien on the company's property
with the same priority as their pre-bankruptcy lien.
About Four Seas Mobile Catering
Four Seas Mobile Catering, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D.N.C. Case No.
24-30880) on October 8, 2024, listing up to $50,000 in assets and
up to $1 million in liabilities.
Judge Ashley Austin Edwards oversees the case.
John C. Woodman, Esq., at Essex Richards represents the Debtor as
counsel.
FRANCISCAN FRIARS: Exclusivity Period Extended to April 24, 2025
----------------------------------------------------------------
Judge William J. Lafferty, III of the U.S. Bankruptcy Court for the
Northern District of California extended Franciscan Friars of
California, Inc.'s ("FFCI") exclusive periods to file a plan of
reorganization and disclosure statement, and obtain acceptance
thereof to April 24, 2025 and June 24, 2025, respectively.
As shared by Troubled Company Reporter, FFCI filed this Bankruptcy
Case to reorganize its financial affairs pursuant to a plan of
reorganization that will, among other things, fairly, justly, and
equitably compensate survivors of sexual abuse by clergy or others
associated with FFCI and bring healing to survivors, parishioners
and others affected by past acts of sexual abuse.
The Debtor explains that this case is complex. Among other
complicating factors, there are 94 pending sexual abuse cases and
approximately 800 creditors. Negotiation with these creditors,
insurance companies, and others will be complex and will require
significant time. In the meantime, negotiations have begun and have
progressed significantly.
The Debtor claims that it is making good progress toward a
reorganization. Specifically, the Debtor brought and prosecuted its
motion to establish deadlines and procedures for filing proofs of
claim. The insurers have proposed a specific mediator for all
insurance-related issues, to whom the Debtor would agree. That name
remains under consideration by the Official Committee of Unsecured
Creditors (the "OCC").
Franciscan Friars of California, Inc. is represented by:
Robert G. Harris, Esq.
Julie H. Rome-Banks, Esq.
Wendy W. Smith, Esq.
Reno Fernandez, Esq.
BINDER MALTER HARRIS & ROME-BANKS LLP
2775 Park Avenue
Santa Clara, CA 95050
Tel: (408) 295-1700
Fax: (408) 295-1531
Email: rob@bindermalter.com
julie@bindermalter.com
wendy@bindermalter.com
reno@bindermalter.com
About Franciscan Friars of California
Franciscan Friars of California, Inc. is a tax-exempt religious
organization in Oakland, Calif. The Debtor was formed to provide
religious, charitable, and educational acts, ministry, and service
to the poor.
Franciscan Friars of California, Inc., filed its voluntary petition
for Chapter 11 protection (Bankr. N.D. Cal. Case No. 23-41723) on
Dec. 31, 2023, listing $1 million to $10 million in assets and $10
million to $50 million in liabilities. David Gaa, OFM, president
of the Debtor, signed the petition.
Judge William J. Lafferty oversees the case.
The Debtor tapped Binder Malter Harris & Rome-Banks LLP as
bankruptcy counsel; Hanson Bridgett LLP, Weintraub Tobin Chediak
Coleman Grodin Law Corporation, and Bledsoe, Diestel, Treppa &
Crane LLP as special counsel; and GlassRatner Advisory & Capital
Group LLC, doing business as B. Riley Advisory Services, as
financial advisor. Donlin, Recano & Company, Inc. is the Debtor's
administrative advisor.
The U.S. Trustee appointed an official committee of unsecured
creditors. The committee selected Lowenstein Sandler LLP and
Keller Benvenutti Kim LLP as counsel and Berkeley Research Group,
LLC as its financial advisor.
FRIARS CLUB: Nov. 26, 2024 Foreclosure Sale Set
-----------------------------------------------
Pursuant to the final judgment of foreclosure and sale entered on
Sept. 13, 2024, in the total sum of $18,600,605.30 plus
post-judgment interest, wherein Kairos Credit Strategies Operating
Partnership LP is the Plaintiff and The Friars Club National
Association Inc. et al. are the defendants.
The receiver will sell at a public foreclosure sale the real
property located at 57 East 55th Street, New York, New York 10022
(block 1291, Lot 127).
The receiver will conduct the public auction sale on Nov. 26, 2024,
at 2:30 p.m. outside the front entrance of the Daniel Patrick
Moynihan United States Courthouse, 500 Pearl Street, New York, New
York 10016.
Any bidder seeking to participate in the auction and seeking
information regarding the assets should contact the receiver's
marketing agent, Greg Corbin of Northgate Real Estate Group by
Telephone at 212-369-1800 or by email at gcorbin@northgate.com.
GLOBAL WOUND: Seeks to Hire Ankura Consulting as Financial Advisor
------------------------------------------------------------------
Global Wound Care Medical Group seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Ankura Consulting Group, LLC as financial and restructuring
advisor.
The firm will render these services:
(a) advise and assist the Debtor with bankruptcy filing
preparation and case management, including without limitation, the
development of business and financial information required for
filing of first and second day motions, schedules of assets and
liabilities, statements of financial affairs, monthly operating
reports and other required bankruptcy disclosures;
(b) advise and assist the Debtor and its bankruptcy counsel in
developing, negotiating and supporting a bankruptcy exit plan;
(c) advise and assist the Debtor with analysis of potential
claims and negotiation of claim recoveries;
(d) advise and assist the Debtor with developing a short-term
liquidity forecast and, if requested, a short-term and long-term
financial projection model;
(e) advise and assist the Debtor with developing initiatives
to enhance and preserve the Debtor's liquidity;
(f) advise and assist the Debtor with communications and
negotiations with other parties in interest, including, but not
limited to, landlords, creditors, vendors, and lenders;
(g) advise and assist the Debtor in connection with responding
to information requests from the Debtor's stakeholders and the
preparation of various stakeholder presentations and financial
reports required to support stakeholder negotiations and
coordination;
(h) advise and assist the Debtor in its review and assessment
of vendor relationships and other executory contracts; and
(i) advise and assist the Debtor with internal and external
communications concerning the bankruptcy filing; and
(j) perform such other professional services as may be
requested by the Debtor and agreed to by Ankura in writing.
The firm will be paid at these rates:
Managing Directors $1,000 and $1,120 per hour
Other Professionals $460 to $1,350 per hour
Paraprofessionals $360 to $415 per hour
Ankura received a total of $136,683.72 in retainers and
replenishments.
In addition, the firm will seek reimbursement for expenses
incurred.
Ankura does not hold any interest adverse to the Debtors' estates,
and is a "disinterested person' as that term is defined in section
101(14) of the Bankruptcy Code, as modified by section 1107(b) of
the Bankruptcy Code, according to court filings.
The firm can be reached through:
Isaac Lee
Ankura Consulting Group, LLC
555 S. Flower St., Suite 4220
Los Angeles, CA 90071
Tel: (213) 670-3200
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.
GMB TRANSPORT: Mark Schlant Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at
Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for GMB
Transport, LLC.
Mr. Schlant will be paid an hourly fee of $320 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schlant declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark J. Schlant, Esq.
Zdarsky, Sawicki & Agostinelli, LLP
1600 Main Place Tower
350 Main St.
Buffalo, NY 14202
Phone: (716) 855-3200
Email: mschlant@zsalawfirm.com
About GMB Transport
GMB Transport, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-60857) on October 27,
2024, with up to $500,000 in assets and up to $1 million in
liabilities. Scott J. Bornt, chief executive officer, signed the
petition.
Judge Patrick G. Radel oversees the case.
Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as
bankruptcy counsel.
GOL LINHAS: Seeks to Extend Plan Exclusivity to March 20, 2025
--------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., and its affiliates asked the
U.S. Bankruptcy Court for the Southern District of New York to
extend their exclusivity periods to file a plan of reorganization
and obtain acceptance thereof to March 20, 2025 and May 19, 2025,
respectively.
The Debtors explain that the companies, led by the Restructuring
Committee, used the prior extension of the Exclusive Periods to
work toward consensus among representatives of the Debtors' largest
creditor constituencies, Abra and the Committee.
The Debtors believe that these negotiations will lay the groundwork
for a value-maximizing chapter 11 plan and avoid potentially costly
litigation that would only serve to delay the Debtors' successful
emergence from chapter 11 and otherwise deplete value that would be
available for distribution to creditors. In addition, the Debtors
believe that reaching agreement on these key issues will allow the
Debtors to begin meaningful negotiations with other key
stakeholders, such as the Gol 2026 Senior Secured Notes Ad Hoc
Group, to build further consensus for a chapter 11 plan.
The Debtors claim that the sheer size of the Debtors' cases alone
warrants the requested extension of their Exclusive Periods. Given
the size and complexity of these Chapter 11 Cases, the current
Exclusive Periods are inadequate to finalize negotiations on the
terms of a chapter 11 plan and raise the necessary exit capital,
especially where, as here, the Debtors did not have the ability to
"prenegotiate" a plan with their key stakeholders before the
Petition Date.
Moreover, the fact that the terms of the final order approving the
DIP Financing (the "DIP Order") provides the Debtors with the
unilateral right (which the Debtors have exercised) to extend the
maturity of the DIP Financing and the related milestones, including
those related to the plan confirmation process, consistent with the
proposed extension of their Exclusive Periods, is an indication
that the Debtors' stakeholders understood at the outset of these
Chapter 11 Cases that the Debtors would likely need additional time
to formulate and confirm a consensual chapter 11 plan.
The Debtors assert that their request to extend the Exclusive
Periods is not a negotiating tactic, but rather a reflection of the
fact that the Debtors have already accomplished a great deal, but
need additional time to negotiate with all of their key
stakeholders, pursue debt and equity exit financing, and propose
what will hopefully be a fully consensual chapter 11 plan. A
further extension of the Exclusive Periods will benefit all parties
in interest by providing them with an organized and efficient
process that maximizes value for all.
The Debtors further assert that termination of the Exclusive
Periods at this time would serve no purpose, would disrupt the
positive momentum that the Debtors have built through their
negotiations to date, and could lead to a contested, value
destructive confirmation process in contravention of the intent and
objectives of chapter 11. Moreover, should there be a significant
change in circumstances, any party in interest may move to reduce
or terminate the Exclusive Periods.
The Debtors' Counsel:
Evan R. Fleck, Esq.
Andrew C. Harmeyer, Esq.
Bryan V. Uelk, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
Telephone: (212) 530-5000
Facsimile: (212) 530-5219
Email: efleck@milbank.com
aharmeyer@milbank.com
buelk@milbank.com
- and -
Gregory A. Bray, Esq.
MILBANK LLP
2029 Century Park East, 33rd Floor
Los Angeles, CA 90067
Telephone: (424) 386-4000
Facsimile: (213) 629-5063
Email: gbray@milbank.com
- and -
Andrew M. Leblanc, Esq.
Erin E. Dexter, Esq.
MILBANK LLP
1850 K St. NW, Suite 1100
Washington, DC 20006
Telephone: (202) 835-7500
Facsimile: (202) 263-7586
Email: aleblanc@milbank.com
edexter@milbank.com
About Gol GOLL4.SA
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring
Administration LLC is the claims agent.
GP INC: Seeks to Hire Sanborn and Company as Business Broker
------------------------------------------------------------
GP, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Colorado to employ Sanborn and Company, Inc. as
broker.
The broker will assist the Debtor in selling the business.
Mark Valente, a broker at Sanborn and Company, will be in charge of
the Debtor's account. Mr. Valente will be compensated with a sales
commission of 10 percent of the gross sales price in U.S. dollars,
but not less than $15,000.
Mr. Valente assured the court that he does not hold or represent
any interest adverse to the Debtor or the Debtor's estate and is a
"disinterested person" as that term is defined in 11 U.S.C. Sec.
101(14).
The broker can be reached through:
Mark Valente
Sanborn and Company, Inc.
2191 S Platte River Dr
Denver, CO 80223
Phone: (303) 220-7919
About GP, Inc.
GP, Inc. sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 23-15319) on November 16,
2023, listing up to $50,000 in assets and $500,001 to $1 million in
liabilities.
Jeffrey Weinman, Esq. at Allen Vellone Wolf Helfrich & Factor P.C.
represents the Debtor as counsel.
H-FOOD HOLDINGS: $1.15BB Bank Debt Trades at 34% Discount
---------------------------------------------------------
Participations in a syndicated loan under which H-Food Holdings LLC
is a borrower were trading in the secondary market around 65.6
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.15 billion Term loan facility is scheduled to mature on May
30, 2025. About $1.07 billion of the loan has been drawn and
outstanding.
H-Food Holdings, LLC and Matterhorn Parent, LLC is a food contract
manufacturer.
H-FOOD HOLDINGS: $515MM Bank Debt Trades at 34% Discount
--------------------------------------------------------
Participations in a syndicated loan under which H-Food Holdings LLC
is a borrower were trading in the secondary market around 65.6
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $515 million Term loan facility is scheduled to mature on May
30, 2025. About $485.4 million of the loan has been drawn and
outstanding.
H-Food Holdings, LLC and Matterhorn Parent, LLC is a food contract
manufacturer.
HIGHLANDS GROUP: Seeks to Extend Plan Exclusivity to Jan. 20, 2025
------------------------------------------------------------------
Highlands Group LLC asked the U.S. Bankruptcy Court for the Western
District of Pennsylvania to extend its exclusivity periods to file
a Small Business Plan of Reorganization and Disclosure Statement to
January 20, 2025.
The Debtor owns and operates a golf course complex that include a
nine-hole golf course, tennis center, and bar/restaurant.
The Debtor believes that an extension of 90 days to file a Chapter
11 Plan will allow the Debtor to prepare for the next season while
also potentially selling some of the currently listed property
and/or listing more acreage for sale.
Moreover, based on the value of the real property owned by the
Debtor, all creditors are adequately protected for an extension of
time to file a Plan, as the value of the real property exceeds the
amount of estate debt.
The Debtor believes that no parties will be harmed or prejudiced by
the extension of the exclusivity period to file a Chapter 11 Plan.
The Highlands Group LLC is represented by:
Christopher M. Frye
Steidl and Steinberg, P.C.
2830 Gulf Tower, 707 Grant Street,
Pittsburgh, PA 15219
Telephone: (412)391-8000
Facsimile: (412) 391-0221
Email: chris.frye@steidl-steinberg.com
About Highlands Group LLC
The Highlands Group LLC in Johnstown, PA, filed its voluntary
petition for Chapter 11 protection (Bankr. W.D. Pa. Case No.
24-70160) on April 22, 2024, listing as much as $1 million to $10
million in both assets and liabilities. Brian C. Durham as member,
signed the petition.
STEIDL & STEINBERG, P.C. serve as the Debtor's legal counsel.
HYPERION UTS: Court OKs Use of Cash Collateral
----------------------------------------------
Hyperion UTS, Inc. received interim approval from the U.S.
Bankruptcy Court for the Western District of North Carolina to use
cash collateral to fund its operating expenses.
The interim order penned by Judge Laura Beyer authorized the
company to use the cash collateral of its creditors according to
its projected budget. However, the company must not exceed the
budget by more than 10% per line item on a cumulative basis.
Hyperion UTS was authorized to continue factoring invoices with
Phoenix on a post-petition basis, and Phoenix was granted a senior
security interest in the collateral.
The order also granted a replacement lien to creditors and requires
the company to make payments to Phoenix.
The next hearing is scheduled for Nov. 20.
About Hyperion UTS Inc.
Hyperion UTS Inc., doing business as United Trucking Solutions, is
an active interstate freight carrier based out of Huntersville,
North Carolina.
Hyperion UTS sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-30777) on Sept.
10, 2024, with $500,000 to $1 million in assets and $1 million to
$10 million in liabilities.
Yurii Stiahlii signed the petition as officer of the company.
Hyperion UTS is represented by John C. Woodman, Esq., at Essex
Richards, PA.
IAC INC: S&P Places 'BB-' ICR on Watch Pos. on Angi Inc Spin-Off
----------------------------------------------------------------
S&P Global Ratings placed its 'BB-' issuer credit rating on IAC
Inc. on CreditWatch with positive implications.
S&P said, "We expect to resolve the CreditWatch placement if the
company completes a spin-off of Angi (potentially in 2025). Any
potential upgrade would be limited to one notch. If the company
does not pursue a spin-off, we would affirm our current rating on
IAC.
"IAC Inc. recently announced that it is considering a spin-off of
its ownership stake in Angi Inc. to its shareholders, which if
completed, would likely strengthen our view of IAC's business.
"The CreditWatch placement reflects that a spin-off of Angi would
likely improve our view of IAC's business. Angi and Dotdash
Meredith are the two largest contributors to IAC's revenue,
contributing 31% and 45% of total revenue, respectively, for the
last 12 months ended Sept. 30, 2024. If Angi becomes a stand-alone
company, our view of IAC's business risk would largely be driven by
Dotdash, whose business we view more favorably than that of Angi.
Dotdash has a portfolio of well-known brands, greater diversity of
customer verticals, and a higher percentage of organic user
traffic. Given Dotdash's greater scale and higher percentage of
organic traffic, its S&P Global Ratings-adjusted EBITDA margins are
also higher at about 20% versus 9% for Angi.
"Assuming Angi is successfully spun off, we would not expect a
large change in IAC's credit metrics. We expect IAC to end 2024
with S&P Global Ratings-adjusted gross leverage of about 6x,
similar to 2023. IAC is currently reviewing the corporate functions
that Angi uses to determine what potential resources (such as
infrastructure or headcount) it may need as a separate company. If
any IAC functions are reallocated to Angi, it could potentially
reduce IAC's corporate expenses and modestly improve our leverage
forecast.
"We expect to resolve the CreditWatch placement if the company
completes a spin-off of Angi (potentially in 2025).
"In resolving the CreditWatch, we will evaluate our improved view
of IAC's business risk, its EBITDA and cash flow generation without
Angi, and financial policy based upon the company's remaining
assets. Any potential upgrade would be limited to one notch.
"If the company does not pursue a spin-off of Angi, we would affirm
our existing 'BB-' rating on IAC."
ID ELECTRIC: Hires Allen Jones & Giles as Bankruptcy Counsel
------------------------------------------------------------
ID Electric, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Arizona to hire Allen Jones & Giles, PLC as
counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
Chapter 11 bankruptcy proceeding;
b. representing the Debtor in negotiations involving
creditors;
c. representing the Debtor at court hearings; and
d. preparing legal papers necessary to assist in the Debtor's
reorganization.
The firm will be paid at these rates:
Thomas H. Allen, Member $500 per hour
David B. Nelson, Associate $375 per hour
Ryan M. Deutsch, Associate $300 per hour
Legal Assistants and Law Clerks $150 - 225 per hour
The firm received a retainer in the amount of $17,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas Allen, Esq., a member at Allen, Jones & Giles, disclosed in
a court filing that his firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas H. Allen, Esq.
David B. Nelson, Esq.
Ryan M. Deutsch, Esq.
ALLEN, JONES & GILES, PLC
1850 N. Central Ave., Suite 1025
Phoenix, AZ 85004
Ofc: (602) 256-6000
Fax: (602) 252-4712
Email:tallen@bkfirmaz.com
dnelson@bkfirmaz.com
rdeutsch@bkfirmaz.com
About ID Electric, LLC
ID Electric, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09494) on November
5, 2024, listing up to $50,000 in assets and $100,001 to $500,000
in liabilities.
Judge Brenda K Martin presides over the case.
Thomas H. Allen, Esq. at Allen, Jones & Giles, PLC represents the
Debtor as counsel.
IHEARTMEDIA INC: Launches Debt Exchange Ahead of Creditor Fight
---------------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that iHeartMedia Inc., a radio
and podcast company, launched a contentious debt exchange offer on
Friday, November 15, 2024.
The exchange involves four notes with maturities between 2026 and
2028, totaling approximately $2.97 billion in outstanding
principal, according to Bloomberg data. Simultaneously, the company
initiated an exchange on its existing term loans, as stated in an
announcement.
A group of bondholders plans to challenge the proposed debt
exchange, potentially paving the way for a hostile debt
restructuring, Bloomberg reported last week, citing sources
familiar with the matter.
About iHeartMedia
iHeartMedia Capital I, LLC, operates as a media and entertainment
company. As of December 31, 2017, it owned 849 radio stations,
including 240 AM and 609 FM stations servicing approximately 160
markets in the United States. The company was formerly known as
Clear Channel Capital I, LLC, and changed its name to iHeartMedia
Capital I, LLC, in September 2014. The company is headquartered in
San Antonio, Texas.
INDOCHINE RESTAURANT: Bankr. Administrator Unable to Appoint Panel
------------------------------------------------------------------
The U.S. Bankruptcy Administrator for the Eastern District of North
Carolina disclosed in a filing that no official committee of
unsecured creditors has been appointed in the Chapter 11 cases of
Indochine Restaurant, LLC and its affiliates.
The affiliates are Indochine Express Southport, LLC, Indochine
Express Oleander, LLC, Indochine Express Leland, LLC, Cafe Chinois,
LLC, and Cocochine of NC, LLC.
About Indochine Restaurant
Indochine Restaurant, LLC operates a restaurant in Wilmington,
N.C., serving Thai and Vietnamese Asian cuisine.
Indochine Restaurant and five affiliates filed Chapter 11 petitions
(Bankr. E.D.N.C. Lead Case No. 24-03490) on October 4, 2024. At the
time of the filing, Indochine Restaurant reported up to $50,000 in
assets and up to $10 million in liabilities.
Judge: David M Warren oversees the cases.
The Debtors are represented by George Mason Oliver, Esq., at The
Law Offices of Oliver & Cheek, PLLC.
INDRA HOLDINGS: $50MM Bank Debt Trades at 44% Discount
------------------------------------------------------
Participations in a syndicated loan under which Indra Holdings Corp
is a borrower were trading in the secondary market around 55.9
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $50 million Term loan facility is scheduled to mature on
December 23, 2024. The amount is fully drawn and outstanding.
Indra Holdings Corp was founded in 2014. The company's line of
business includes holding or owning securities of companies other
than banks.
INDUSTRIAL RESOURCE: Jill Durkin Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Jill Durkin, Esq.,
at Durkin Law, LLC as Subchapter V trustee for Industrial Resource
Services, LLC.
Ms. Durkin will be paid an hourly fee of $325 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Durkin declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jill E. Durkin, Esq.
Durkin Law, LLC
401 Marshbrook Road
Factoryville, PA 18419
Phone number: (570) 881-4158
Email: jilldurkinesq@gmail.com
About Industrial Resource Services
Industrial Resource Services, LLC sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No.
24-02756) on Oct. 25, 2024, with $1 million to $10 million in both
assets and liabilities. The petition was signed by Joseph Gilchrist
as member.
Bankruptcy Judge Mark J. Conway handles the case.
The Debtor is represented by Robert E. Chernicoff, Esq., at
Cunningham, Chernicoff & Warshawsky, P.C.
INGENOVIS HEALTH: $675MM Bank Debt Trades at 30% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Ingenovis Health
Inc is a borrower were trading in the secondary market around 70.3
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $675 million Term loan facility is scheduled to mature on March
6, 2028. About $652.1 million of the loan has been drawn and
outstanding.
Ingenovis Health is an Ohio based temporary healthcare staffing
agency providing nurses on assignments to hospitals and medical
centers, including both traditional and fast response staffing,
across the US. The company also supplies nurses during strikes and
provides interventional cardiologists for rural and remote
hospitals. Ingenovis is majority owned by Cornell and Trilantic
Capital Partners (the Investor Group).
INTRUM AB: Bondholders Want Chapter 11 Filing Dismissed
-------------------------------------------------------
Libby Cherry of Bloomberg Law reports that a group of Intrum AB's
2025 bondholders is contesting the Swedish debt collector's U.S.
bankruptcy filing, arguing that the proposed deal unfairly
disadvantages short-term debt holders.
In a motion filed on November 18 in the U.S. Bankruptcy Court for
the Southern District of Texas, the creditors argue that Intrum's
Chapter 11 case was filed in bad faith.
A group of bondholders cites several reasons for seeking dismissal,
including:
-- Lack of genuine financial distress
-- Violation of international comity
According to Bloomberg Law, the group also accuses Intrum of
fabricating U.S. eligibility, venue, and jurisdiction by recently
establishing a Texas-based unit. On November 15, 2024, the
bondholders initiated legal proceedings in Sweden to void
amendments made to Intrum’s notes. They are also requesting the
court to lift the automatic stay under the bankruptcy code to
permit the Swedish legal action to move forward.
About Intrum AB
Intrum AB is a Swedish debt collector.
Intrum AB sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Tex. Case No. 24-90575) on November 15, 2024. In
its petition, the Debtor reports estimated assets and liabilities
both between $1 billion and $10 billion each.
Honorable Bankruptcy Judge Christopher M. Lopez oversees the case.
The Debtor is represented by John F Higgins, IV of Porter Hedges
LLP.
INTRUM AB: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------
Lead Debtor: Intrum AB
Riddargatan 10
Stockholm 11435
Business Description: Intrum is a European provider of credit
management services. A publicly listed
company on the Nasdaq Stockholm exchange
since 2002, the Company operates in 22
countries and has approximately 10,000
employees.
Chapter 11 Petition Date: November 15, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Intrum AB (Lead Case) 24-90575
Intrum AB of Texas LLC 24-90574
Judge: Hon. Christopher M Lopez
Debtors'
General
Bankruptcy
Counsel: Jaimie Fedell, Esq.
Dennis F. Dunne, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
Tel: (212) 530-5000
Fax: (212) 530-5219
Email: ddunne@milbank.com
jfedell@milbank.com
- and –
Andrew M. Leblanc, Esq.
Melanie Westover Yanez, Esq.
MILBANK LLP
1850 K Street, NW, Suite 1100
Washington, DC 20006
Tel: (202) 835-7500
Fax: (202) 263-7586
Email: aleblanc@milbank.com
mwyanez@milbank.com
Debtors'
Bankruptcy
Co-Counsel: John F. Higgins, Esq.
M. Shane Johnson, Esq.
PORTER HEDGES LLP
1000 Main Street, 36th Floor
Houston TX 77002
Tel: (713) 226-6000
Fax: (713) 226-6248
Email: jhiggins@porterhedges.com
sjohnson@porterhedges.com
Debtors'
Financial
Advisor &
Consultant: HOULIHAN LOKEY EMEA, LLP
Debtors'
Financial
Advisor: ALIXPARTNERS
Debtors'
Claims,
Noticing &
Solicitation
Agent: KROLL RESTRUCTURING ADMINISTRATION LLC
Estimated Assets
(on a consolidated basis): $1 billion to $10 billion
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by Andres Rubio as president and CEO.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/2MRQOTI/Intrum_AB_of_Texas_LLC__txsbke-24-90574__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/2XQOTOI/Intrum_AB__txsbke-24-90575__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Citibank, N.A. London Branch EUR850m 2027 SUNs $902,923,300
25 Canada Square
London, UK E14 5LB
Attn: Robert Montgomery
Phone: +44 207 500 5877
Email: at.debt@citi.com
2. Citibank, N.A. London Branch EUR850m 2025 SUNs $875,090,150
25 Canada Square
London, UK E14 5LB
Attn: Robert Montgomery
Phone: +44 207 500 5877
Email: at.debt@citi.com
3. Citibank, N.A., London Branch EUR800m 2026 SUNs $872,000,000
25 Canada Square
London, UK E14 5LB
Attn: Robert Montgomery
Phone: +44 207 500 5877
Email: at.debt@citi.com
4. Citibank, N.A., London Branch EUR450m 2028 SUNs $490,500,000
25 Canada Square
London, UK E14 5LB
Attn: Robert Montgomery
Phone: +44 207 500 5877
Email: at.debt@citi.com
5. Nordic Trustee SEK 1,250m 2025 MTNs $119,900,000
Norrlandsgatan 16
Stockholm, Sweden 111 43
Att: Anna Litewka
Phone: +46 8 783 79 00
Email: Litewka@nordictrustee.com
6. Nordic Trustee SEK1,100m 2025 MTNs $105,512,000
Norrlandsgatan 16
Stockholm, Sweden 111 43
Attn: Anna Litewka
Phone: +46 8 783 79 00
Email: Litewka@nordictrustee.com
7. Nordic Trustee SEK 1,000m 2026 MTNs $95,920,000
Norrlandsgatan 16
Stockholm, Sweden 111 43
Attn: Anna Litewka
Phone: +46 8 783 79 00
Email: Litewka@nordictrustee.com
8. Citibank, N.A., London Branch EUR PP Notes 2025 $81,750,000
25 Canada Square
London, UK E14 5LB
Attn: Robert Montgomery
Phone: +44 207 500 5877
Email: at.debt@citi.com
9. Skandinaviska Enskilda SEK 400m 2025 MTNs $38,368,000
Banken AB
Corporate Actions/ A B 3
Stockholm, Sweden 106 40
Phone: + 46 771 621 000
10. Accenture AB Trade Debt $5,290,567
P.O. Box 12502
Stockholm, 102 29
Attn: Jonas Lagerstedt
Phone: +46 730 514 177
Email: jonas.lagerstedt@accenture.com
11. Temenos Cloud Switzerland Trade Debt $843,879
2 Rue L'Ecole De Chimie
Geneva, 1212
Attn: Isabelle Delin
Phone: +41 22 708 11 50
Email: idelin@temenos.com
12. Cognizant Worldwide Limited Trade Debt $555,118
280 Bishopsgate
London, EC2M 4AG
Attn: Carl Norrman
Phone: +45(0) 73 416 55 17
Email: Carl.norrman@cognizant.com
13. Advania Sverige AB (EUR) Trade Debt $310,433
Fredsborgsgatan 24
Stockholm, 100 73
Attn: Par Indstrom
Phone: +46 761400041
Email: par.lindstrom@advania.com
14. Genesys Cloud Services B.V. Trade Debt $280,351
Prins Bernhardplein 20
Amsterdam, 01097 JB
Attn: Knut Markegaard
Phone: +4740448485
Email: Knut.Markegaard@genesys.com
15. Fujitsu Sweden AB (EUR) Trade Debt $248,401
Box 40
Kista, 164 93
Attn: Ulrik Moberg
Phone: +46 8 793 70 00
Email: ulrik.moberg@fujitsu.com
16. Emagine Consulting AB Trade Debt $241,150
David Bagares Gata 3
Stockholm, 111 38
Attn: Tommy Bravelius
Phone: +46 72 200 54 58
Email: tommy.bravilius@emagineconsulting.se
17. Workday Limited Trade Debt $223,475
Kings Building 152
155 Church St
Dublin, D 9
Attn: Ingemar Alstermark
Phone: +45(0)702 630 300
Email: ingemar.alstermark@workday.com
18. Insclear Trade Debt $190,474
Hollandargatan 10
Stockholm, 0 111 36
Attn: Robin Moen
Phone: +46 60 - 19 52 00
Email: jobba@insclear.se
19. Spencer Stuart Scandinavia KB Trade Debt $168,336
Sveavagen 52
Stockholm, 0 111 34
Attn: Jesper Ramso
Phone: +46 8 534 801 50
Email: JRamso@SpencerStuart.com
20. Micro Focus Sverige AB Trade Debt $144,920
Kronborgsgrand 1
Kista, 16446
Attn: Ali Becerikogullari
Phone: +45 8 506 102 00
Email: ali.becerikogullari@microfocus.com
21. Leanix GMBH Trade Debt $124,130
Baunschedidstrabe 17
Boon, 531 13
Attn: Michael Mcnevitts
Phone: +49 228 2862992
Email: michael.mcnevitts@leanix.net
22. IMTF Siron GMBH Trade Debt $107,882
Stubenwald - Allee - 19
Benscheim, 64625
Attn: Dr. Sebastian Hetzler
Phone: +49 6251 82672790
Email: administrationtonbeller@fico.com
23. Sofigate Sweden AB Trade Debt $95,390
Box 6351
Stockholm, 102 35
Attn: Josefin Ackrell
Phone: +46 31 309 791
Email: josefin.ackrell@sofigate.com
24. Kurppa Hosk Trade Debt $91,949
Kornhamnstorg 49
Stockholm, 11127
Phone: +46(8) 7914010
Email: INFO@kurppahosk.com
25. Subone Group Limited Trade Debt $73,068
4th Floor 18 St. Cross Street
London, EC1N 8UN
Phone: +44(7869) 784658
Email: admin@sub.one
26. Nox Consulting AB Trade Debt $72,279
Brahegatan 2
Stockholm, 114 37
Attn: Lovisa Lundin
Phone: +46(0)8 - 7682531
Email: ekonomi@noxconsulting.se
27. Microsoft AB Trade Debt $66,993
Regeringsgatan 25
Stockholm, 111 53
Attn: Alexander Acchiardo
Phone: +45(8) 7525600
Email: alexander.acchiardo@microsoft.com
28. OneTrust Technology Spain, SLU Trade Debt $60,126
Paseo De La Castellana 77
Madrid, 28046
Phone: +44(147) 042 - 2054
Email: criel@onetrust.com
29. Extravar BV Netherlands Trade Debt $57,448
Rontgenlaan 33
Zoetermeer, 2719 DX
Attn: I Bozdag
Phone: +31(79) 3612933
Email: i.bozdag@extravar.nl
30. Officespace Software Inc. Trade Debt
$38,383
228 Park Ave S
New York, 10003
Phone: 646 201 - 9664
Email: billing@officespacesoftware.com
INTRUM AB: Seeks Confirmation of Prepackaged Restructuring Plan
---------------------------------------------------------------
Swedish debt collector Intrum AB filed for Chapter 11 protection in
Houston, Texas, with a prepackaged plan of reorganization that
would extend maturities of debt owed to revolving lenders and
bondholders and grant bondholders 10% of the equity in the
company.
Intrum is one of Europe's largest credit management companies. The
Company serves more than 80,000 clients across 19 countries and
employs approximately 10,000 individuals across 22 countries. In
2022 alone, more than four million customers across Europe became
debt-free with the Company.
While Intrum AB's origins are in traditional debt collection on a
client's behalf, today the Company offers a wide range of
additional services thanks to development and the Company's
innovation and acquisitions. Through its servicing line of
business, the Company provides clients with tailored debt
collection strategies and solutions to maximize cash flow streams
from loans and other overdue receivables. The Company also offers
value-added services and alternative solutions prior to loans and
other receivables becoming overdue, including credit information
and analysis, data extraction, and accounts receivable services.
Through its portfolio investing line of business, the Company
purchases portfolios of loans and other overdue receivables at a
discount and then services those portfolios using its own debt
collection measures.
In the months leading up to the Petition Date, the Company faced
numerous challenges from the broader macroeconomic market. High
inflation, reduced access to capital markets, and a slowing
European economy all put downward pressure on the Company. European
central banks sharply increased interest rates to combat high
inflation, with the European Central Bank only beginning to cut
rates in June 2024. The combination of slow growth and high
inflation has placed significant stress on households and
businesses throughout Europe: "Stage 2" loans, or loans where
credit risk has increased significantly, were almost 60% higher in
2023 than compared to 2019. These challenges, in turn, negatively
impacted Intrum AB's business and led to market speculation
concerning Intrum AB's ability to repay its 2024 and 2025 debt
maturities.
In January 2024, Intrum AB announced that it would receive a
liquidity boost from a major sale of a portfolio of assets. The
markets, however, reacted negatively to the announcement of the
sale, and in February 2024 Intrum AB began experiencing a series of
downgrades by rating agencies. Following these events, Intrum AB's
share price also dropped significantly.
The Company recognized the significant risk of not being able to
address its debt liabilities on the capital markets, which fell in
successive years from 2024 through 2028 -- including $3.497 billion
in 2025 and 2026 alone -- and that its debt was jeopardizing the
future health of the Company.
To help address these challenges, in the second quarter of 2024
Intrum AB approached creditors regarding potential restructuring
transactions. It thereafter engaged in months of extensive, good
faith negotiations with two separate groups of creditors as well as
its lenders under its revolving credit facility (the "RCF"), and
discussions with an ad hoc group of its noteholders eventually
culminated on July 10, 2024, with entry into a Lock-Up Agreement
(the "Lock-Up Agreement") with beneficial holders of a majority by
principal amount of the notes issued by the Company.
Overwhelming Support for Plan
Given the extensive negotiations with its lenders in advance of the
Petition Date and significant lender support for the Restructuring,
the Debtors elected to pursue a prepackaged restructuring and have
entered these chapter 11 cases with a fully-solicited Plan.
Lenders holding 100% by principal amount of voting claims under the
RCF and holders of approximately 82% by principal amount of voting
claims under the Debtors' nine unsecured notes issuances have voted
to accept the Plan.
"I believe that the Plan will not only help stabilize the
reorganized Debtors' business in the near-term but will position
them to operate successfully and be competitive within their
industry in the long-term. As a result of the Plan, I believe the
Debtors will emerge from these Chapter 11 Cases as a stronger
enterprise, with a sustainable capital structure that is better
aligned with the Debtors' present and future operating prospects,"
Andres Rubio, CEO of Intrum AB said in the U.S. Court filing.
Prepetition Capital Structure
The Debtors have incurred funded debt through three primary types
of debt instruments: (i) the RCF; (ii) the Senior Secured Term Loan
Facility; and (iii) nine unsecured notes issuances. The aggregate
principal indebtedness as of the Petition Date is as follows:
Facility Principal Balance Outstanding
-------- -----------------------------
RCF $1.116 billion
Senior Secured Term Loan Facility $95 million
2025 Eurobonds $843 million
2026 Eurobonds $840 million
2027 Eurobonds $870 million
2028 Eurobonds $473 million
PPNs $79 million
SEK 1.1b 2025 MTNs $100 million
SEK 400m 2025 MTNs $36 million
SEK 1.25b 2025 MTNs $114 million
SEK 1b 2026 MTNs $91 million
--------------
Unsecured Notes (aggregate) $3.445 billion
--------------
Total $4.656 billion
Dissenting Bondholders
In March, Intrum AB announced that it hired Milbank LLP and
Houlihan Lokey to assist it in undertaking a review of its debt
capital structure.
Two bondholder groups formed: a group of short-dated bondholders
holding primarily 2024- and 2025-maturing notes represented by Weil
Gotshal & Manges LLP (the "Minority Ad Hoc Group"), and a group of
bondholders holding widely across Intrum AB's notes issuances
represented by Latham & Watkins LLP (the "Notes Ad Hoc Group").
Shortly thereafter, each of the Minority Ad Hoc Group and Notes Ad
Hoc Group shared two very different transaction proposals with
Intrum AB. With the Minority Ad Hoc Group, Intrum AB negotiated
the terms of a potential uptiering refinancing transaction that
would have refinanced the 2024 and/or 2025 notes on a secured
basis, using existing capacity under Intrum AB's notes indentures.
The potential transaction would have required Intrum AB to (i)
refinance the entirety of the 2025 notes maturities, (ii) obtain
consent from the lenders under the RCF, and (iii) deleverage,
through refinancing 2025 notes at a discount and/or buying back
longer dated notes maturities at a discount.
Negotiations with the Minority Ad Hoc Group ultimately stalled, as
Intrum AB reached an agreement in principle with the Notes Ad Hoc
Group and perceived that the likely benefits of the transaction on
the terms the Minority Ad Hoc Group was willing to offer did not
outweigh the significant complexity and risk of undertaking the
transaction.
With the Notes Ad Hoc Group, Intrum AB negotiated the terms of a
potential pari passu transaction, which ultimately resulted in the
Restructuring. Unlike the potential transaction with the Minority
Ad Hoc Group, the Restructuring addressed Intrum AB's entire
maturity profile and delivered deleveraging to the business by
capturing discount. It also benefitted from being a less complex
transaction, which Intrum AB perceived would improve its ability to
agree to a maturity extension with the RCF lenders and build broad
based support.
On July 10, 2024, Intrum AB entered into the Lock-Up Agreement with
beneficial holders of a majority by principal amount of the Notes
issued by Intrum AB. On the same day, the Lock-Up Agreement was
publicly launched via a website set up and maintained by Kroll
Issuer Services Limited, in its capacity as Information Agent.
Throughout May, June, July, and August, the Company also engaged in
negotiations with a group that collectively holds approximately 76%
of the total commitments under the RCF (the "RCF Steerco Group").
On August 15, 2024, the Company and a requisite majority of
consenting noteholders reached agreement with the RCF Steerco Group
on revised terms of the Restructuring; most notably, the revisions
included a contemplated reduction in total RCF commitments to $1.1
billion, a two-year maturity extension subject to certain springing
maturities, and adjustments to the payment waterfall and
application of proceeds with respect to the new money notes. The
parties' agreement was documented in an amendment and restatement
agreement to the Lock-Up Agreement.
Following the amendment and restatement to the Lock-Up Agreement,
the Company sought support from additional creditors, and as of the
Petition Date, lenders holding approximately 97% by value of the
total commitments represented by the RCF and 73% in principal
amount of the Notes have agreed to support the Restructuring and
vote to accept the Plan by executing the Lock-Up Agreement.
Despite the significant increase in creditor support during the
period from the signing of the initial Lock-Up Agreement in July
2024 until the signing of the amended and restated Lock-Up
Agreement in August 2024, two separate minority ad hoc groups of
Noteholders -- the Minority Ad Hoc Group and another group
represented by Ropes & Gray LLP -- have refused to support the
Restructuring and accede to the Lock-Up Agreement. Holdings of both
groups are understood to be primarily in the 2025 Eurobonds and
2025 MTNs. Notwithstanding months of good faith discussions with
these dissenting ad hoc groups to encourage their support of the
Restructuring, as of the date hereof, the dissenting groups have
not agreed to support the Restructuring and are not party to the
Lock-Up Agreement.
The concerns of the dissenting noteholders appear to be primarily
focused on the pari passu nature of the Restructuring as it relates
to the Debtors' notes issuances: regardless of maturity, pursuant
to the Plan each noteholder receives its pro rata share of the
exchange notes and noteholder equity allotment with no distinction
based on the various maturities. But the dissenting noteholders
have been unable to offer the Debtors an actionable restructuring
alternative compared to the Restructuring that enjoys such
broad-based support throughout the capital structure.
Accordingly, given the significant support for the Debtors'
restructuring, the Debtors elected to pursue a prepackaged
restructuring to maximize value by minimizing both the costs of
restructuring and the impact on the Debtors' businesses
Terms of Chapter 11 Plan
The Lock-Up Agreement and Plan contemplate, among other things: (i)
an approximately two-year extension of the RCF maturity to June 30,
2028 (subject to certain springing maturity rights) and a reduction
of the overall RCF from $1.962 billion to $1.116 billion
(equivalents) in exchange for certain fees, pricing increase, and
an enhanced collateral package; (ii) reinstatement of the Senior
Secured Term Loan; (iii) the exchange of all existing unsecured
notes issuances into second-lien exchange notes at a 10% discount
to face value with staggered maturity dates from 2027-2030 (each
existing unsecured notes issuance to be allocated proportionately
across each exchange notes maturity), in exchange for, among other
things, 10% of post-dilution equity and certain fees payable to
consenting noteholders; (iv) a fully-backstopped new money
injection of approximately EUR526 million ($573 million
equivalent)11 in new secured notes to be utilized for discounted
buy-backs; and (v) payment in full of all general unsecured
claims.
The Plan contemplates the following stakeholder recoveries:
* Each Holder of an Allowed RCF Claim will receive, in full and
final satisfaction, settlement, release and discharge of such Claim
its pro rata share of the SSRCF; provided, that notwithstanding the
foregoing, all Ancillary Facility Claims shall be Reinstated and
each Ancillary Facility shall continue in accordance with its terms
and constitute an ancillary facility under the SSRCF in accordance
with the terms of the SSRCF Credit Agreement. For the avoidance of
doubt, each Holder of an Ancillary Facility Claim shall retain its
rights and claims under the applicable Ancillary Facility;
* The Senior Secured Term Loan Claim will be Reinstated or
otherwise paid in full in cash;
* Each Holder of an Allowed Notes Claim will receive, in full
and final satisfaction, settlement, release, and discharge of such
Claims (i) its pro rata share of the Exchange Notes; and (ii) its
pro rata share of the Noteholder Ordinary Shares. Holders of
Allowed Notes Claims will also receive their pro rata share of the
Subscription Rights in accordance with the Lock-Up Agreement and
the Rights Offering Documents;
* Each Holder of an Allowed General Unsecured Claim will receive
either: (i) Reinstatement of such Allowed General Unsecured Claim;
or (ii) payment in full in cash on (a) the Effective Date, or (b)
the date due in the ordinary course of business in accordance with
the terms and conditions of the particular transaction giving rise
to such Allowed General Unsecured Claim;
* All Allowed Other Secured Claims and Allowed Other Priority
Claims will be rendered Unimpaired; and
* The Existing Equity Interests will be reinstated on the
Effective Date.
In connection with the Restructuring, it is also proposed that the
Company's corporate structure will be reorganized and all assets
and liabilities of Intrum AB hived down to newly created
subsidiaries of Intrum AB. Under the new structure, Intrum AB will
have no material functions other than acting as the entity with
listed shares. Intrum AB's direct subsidiary, Intrum Investments
and Financing AB ("HoldCo"), will become the borrower under the RCF
and the issuer of the new money notes and the exchange notes.
HoldCo's direct subsidiary, Intrum Group Operations AB ("MidCo"),
will assume all operational functions of the Company and become the
immediate parent of the rest of the group. As part of the Company
reorganization, it is also proposed that certain regulated entities
of the Company will be moved from their existing position in the
corporate structure to be held directly by MidCo, subject to
ongoing tax and regulatory analysis, and obtaining all necessary
regulatory approvals. The steps required to implement the Company
reorganization will be set out in a steps plan, agreed between the
Debtors, the Majority Participating Lenders and the Majority Core
Noteholder Company (as such terms are defined in the Disclosure
Statement).
About Intrum
Intrum AB is a provider of credit management services with a
presence in 20 markets in Europe. By helping companies to get paid
and supporting people with their late payments, Intrum leads the
way to a sound economy and plays a critical role in society at
large. Intrum has circa 10,000 dedicated professionals who serve
around 80,000 companies across Europe. In 2023, income amounted to
SEK 20.0 billion. Intrum is headquartered in Stockholm, Sweden and
publicly listed on the Nasdaq Stockholm exchange. On the Web:
http://www.intrum.com/
On November 15, 2024, Intrum AB and U.S. affiliate Intrum AB of
Texas LLC each filed a voluntary petition for the relief under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of Texas (Bankr.
S.D. Tex. Lead Case No. 24-90575) to seek confirmation of their
Prepackaged Reorganization Plan.
The cases are pending before the Honorable Christopher M. Lopez.
Milbank LLP and Porter Hedges LLP are serving as counsel in the
U.S. restructuring. Houlihan Lokey is the advisor to Intrum.
Kroll Issuer Services Limited is the information agent. Kroll
Restructuring Administration is the claims agent. Brunswick Group
is also serving as advisers to Intrum.
Latham & Watkins LLP and Latham & Watkins (London) LLP, and
Advokatfirmaet Schjodt AS, are advising a group of bondholders
holding widely across Intrum AB's notes issuances (the "Notes Ad
Hoc Group"). PJT Partners (UK) Limited is financial advisor to the
noteholder ad hoc group.
Weil Gotshal & Manges LLP is representing a group of short-dated
bondholders holding primarily 2024- and 2025-maturing notes
("Minority Ad Hoc Group").
Ropes & Gray LLP is representing another minority group of
bondholders.
Clifford Chance US LLP is counsel to the group that collectively
holds approximately 76% of the total commitments under the RCF (the
"RCF Steerco Group").
INW MANUFACTURING: CSWC Marks $2MM Loan at 16% Off
--------------------------------------------------
Capital Southwest Corporation has marked its $2,040,000 loan
extended to INW Manufacturing,LLC to market at $1,714,000 or 84% of
the outstanding amount, according to a disclosure contained in
CSWC's Form 10-Q for the quarterly period ended September 30, 2024,
filed with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to INW
Manufacturing,LLC. The Loan accrues interest at a rate of 10.62%
(SOFR+5.75% (Floor .75%)/Q) per annum. The loan matures on March
25, 2027.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
INW Manufacturing, LLC is in the Vitamin, Nutrient, and Hematinic
Preparations for Human Use business.
ISAGENIX INTERNATIONAL: CSWC Marks $757,000 Loan at 73% Off
-----------------------------------------------------------
Capital Southwest Corporation has marked its $757,000 loan extended
to Isagenix International, LLC to market at $208,000 or 27% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to Isagenix
International, LLC. The Loan accrues interest at a rate of 11.89%
(2.50%, SOFR+4.10% Payment In Kind (Floor 1.00%)/Q) per annum. The
loan matures on April 14, 2028.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Isagenix International LLC is a privately held multi-level
marketing company that sells dietary supplements and personal care
products. The company, based in Gilbert, Arizona, was founded in
2002 by John Anderson, Jim Cover, and Kathy Cover.
ISUN INC: Updates Prepetition Loan Claims Details
-------------------------------------------------
iSun, Inc., and its Debtor Affiliates submitted a Modified Joint
Chapter 11 Plan of Liquidation dated October 4, 2024.
The Plan provides for the wind down of the Debtors' affairs,
continued liquidation of the Debtors' remaining assets to Cash and
the distribution of the net proceeds realized therefrom, in
addition to Cash on hand on the Effective Date of the Plan, to
creditors holding Allowed Claims as of the Record Date in
accordance with the relative priorities established in the
Bankruptcy Code.
The Plan does not provide for a distribution to holders of
Intercompany Claims, Subordinated Claims, or Interests, and their
votes are not being solicited. The Plan contemplates the
appointment of a Liquidation Trustee to, among other things,
finalize the wind down of the Debtors' affairs, liquidate remaining
assets of the Debtors, resolve Disputed Claims, implement the terms
of the Plan, and make Distributions to holders of Allowed Claims.
Class 4 consists of all Prepetition Loan Claims. Consistent with
the terms of the Sale Order and the Wind-Down Term Sheet, holders
of Allowed Class 4 Prepetition Loan Claims shall receive, to the
extent not yet distributed, (i) Sale Proceeds up to the amount of
the Prepetition Loan Secured Claim, less the Decathlon Trust
Funding Amount, the Committee Budget Supplement, the Cedar Advance
Settlement Amount and the Additional Cash Contribution; (ii)
proceeds of any of Decathlon's Liens that are not Sale Proceeds or
Liquidation Trust Assets up to the remaining amount of the
Prepetition Loan Secured Claim, and (iii) Class A Beneficial Trust
Interests on account of any Prepetition Loan Deficiency Claim,
provided that the Liquidation Trust Agreement shall provide that
the Class A Beneficial Trust Interests shall be entitled to (i) 25%
of all distributions of Liquidation Trust Assets until such time as
the Decathlon Trust Funding Amount is repaid in full, and (ii)
thereafter, their pro rata share of all distributions of
Liquidation Trust Assets along with the Class B Beneficial Trust
Interests.
Class 5 consists of all General Unsecured Claims. Except to the
extent that a holder of an Allowed General Unsecured Claim agrees
to less favorable treatment, in exchange for full and final
satisfaction, settlement, and release of each Allowed General
Unsecured Claim, each holder of such Allowed General Unsecured
Claim shall receive its pro rata share of Class B Beneficial Trust
Interests, which Class B Beneficial Trust Interests shall entitle
the holders thereof to receive (i) their pro rata share of 75% of
distributions of the Liquidation Trust Assets until such time as
the Decathlon Trust Funding Amount is repaid in full, and (ii)
thereafter, their pro rata share of all distributions of the
Liquidation Trust Assets along with the holders of Class A
Beneficial Trust Interests.
Distributions under the Plan on account of the Beneficial Trust
Interests will be funded by the Liquidation Trust Assets. All other
distributions under the Plan, other than distributions on account
of Beneficial Trust Interests, will be funded by the Liquidation
Trust Claims Reserve or the Professional Fee Claim Reserve. On the
Effective Date, the Debtors shall fund the Liquidation Trust Claims
Reserve, and Professional Fee Claim Reserve in full in Cash.
On the Effective Date, the Liquidation Trust shall be created in
accordance with the Liquidation Trust Agreement for the benefit of
holders of Beneficial Trust Interests. The Liquidation Trust
Agreement shall (i) be in form and substance consistent in all
respects with this Plan and (ii) contain customary provisions for
trust agreements utilized in comparable circumstances, including
any and all provisions necessary to ensure continued treatment of
the Liquidation Trust as a grantor trust and the holders of
Beneficial Trust Interests as the grantors and owners thereof for
federal tax purposes.
A full-text copy of the Modified Liquidating Plan dated October 4,
2024 is available at https://urlcurt.com/u?l=sG1ySe from EPIQ
Corporate Restructuring LLC, claims agent.
Counsel for the Debtors:
Michael Busenkell, Esq.
Amy D. Brown, Esq.
Michael Van Gorder, Esq.
Gellert Seitz Busenkell & Brown, LLC
1201 N. Orange Street Suite 300
Wilmington, DE 19801
Tel: (302) 425-5812
Fax: (302) 425-5814
Email: mbusenkell@gsbblaw.com
abrown@gsbblaw.com
mvangorder@gsbblaw.com
-and-
Jennifer R. Hoover, Esq.
Kevin M. Capuzzi, Esq.
John C. Gentile, Esq.
Benesch, Friedlander, Coplan & Aronoff LLP
1313 North Market Street, Suite 1201
Wilmington, DE 19801
Telephone: (302) 442-7010
Facsimile: (302) 442-7012
Email: jhoover@beneschlaw.com
kcapuzzi@beneschlaw.com
jgentile@beneschlaw.com
About iSun Inc.
iSun, Inc. (doing business as iSun) is a provider of solar energy
services and infrastructure. Its services include solar, storage
and electric vehicle infrastructure, design, development and
professional services, engineering, procurement, installation, O&M
and storage.
iSun and 11 of its affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11144) on
June 3, 2024. In the petition signed by Jeff Peck as president and
chief executive officer, iSun disclosed as much as $50,000 in
assets and liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Gellert Seitz Busenkell & Brown, LLC as general
reorganization counsel; and England & Company as investment banker
and advisor. EPIQ Corporate Restructuring, LLC is the Debtors'
claims and noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Seward & Kissel, LLP, Benesch, Friedlander, Coplan & Aronoff, LLP
and Dundon Advisers, LLC serve as the committee's bankruptcy
counsel, Delaware counsel and financial advisor, respectively.
JOE'S AUTO: Seeks to Hire Prism LLC as Accountant
-------------------------------------------------
Joe's Auto Service, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Indiana to employ Prism LLC dba
Prism Tax and Advisory as accountant.
The firm will render these services:
(a) organize Debtor's financial books and records;
(b) prepare federal and state tax returns; and
(c) prepare projections and formulate a Plan of Reorganization
in this proceeding.
The accountant shall be paid an hourly rate for services. Said fees
shall be capped at $2,500.
Prism LLC is a disinterested party and does not have an adverse
relationship to this case, according to court filings.
The accountant can be reached through:
Savilla K. Beam, CPA
Prism LLC
dba Prism Tax and Advisory
880 Monon Grn Blvd, Suite 101
Carmel, IN 46032
Phone: (317) 536-2377
Email: info@prism-cpa.com
About Joe's Auto Service
Joe's Auto Service, Inc., formerly known as Big O Tires,
specializes in brake repairs, diagnostic procedures, and tackling
automotive issues from battery problems. The company is based in
Noblesville, Ind.
Joe's Auto Service filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Ind. Case No. 24-04264) on
August 9, 2024, with $500,000 to $1 million in assets and $1
million to $10 million in liabilities. Joe Peil, president, signed
the petition.
Judge Jeffrey J. Graham presides over the case.
David Krebs, Esq., at Hester Baker Krebs, LLC represents the Debtor
as legal counsel.
JONES COMMODITIES: Asset Sale Proceeds to Fund Plan
---------------------------------------------------
Jones Commodities LLC filed with the U.S. Bankruptcy Court for the
District of Idaho a Plan of Reorganization dated October 3, 2024.
Jones Commodities LLC is a trucking company, based in Burley, Idaho
that also resells commodities to various dairy and cattle
operations.
The Debtor has been hit hard financially by the on-and-off nature
of one of its major suppliers, a large ethanol plant in the Burley
area, and rising commodity prices and trucking costs. It is no
longer viable.
The Debtor has already entered into a stipulation for plan
treatment with its most significant creditor who has liens on most
of its assets and an interest in its profits, Agricultural Products
Extension LLC. That agreement, coupled with the existing stay
relief already granted will result in the sale of numerous vehicles
by Apex reducing the Debtor's obligation thereto. And, the Debtor
has negotiated a credit against its obligation to Apex based on
invoices owed to it by Apex.
More importantly, the Debtor is in the process of finalizing a deal
to sell the remainder of its assets and transfer many of its
ongoing financial obligations to Arlo G. Lott Trucking Inc. That
will result in the Debtor receiving some cash and generating
significant receivables that can be applied toward Debtor's
obligations. This Plan incorporates those elements.
Class UC1 consists of General Unsecured Claims. All other claims
filed shall be treated as unsecured claims and paid pro-rata from
all remaining funds after the previous category claims, in which
the Debtor is making payments towards, are paid in full.
The Debtor anticipates in entering into a sale to Lott, which after
Court approval, will provide the Debtor with cash and relieve the
Debtor of key obligations. Said cash shall first be used to satisfy
Debtor's obligations to Apex, then in order, its Administrative,
Priority and then Unsecured Claims.
The Debtor anticipates in entering into a sale to Lott, which after
Court approval, will allow the Debtor to collect on its accrued
accounts receivable. Cash generated from such collections shall
first be used to satisfy Debtor's obligations to Apex, then in
order, its Administrative, Priority and then Unsecured Claims.
Pursuant to the Confirmation Order and upon Confirmation of this
Plan, the Debtor shall be authorized to take all necessary steps,
and perform all necessary acts, to consummate the terms and
conditions of this Plan, in accordance with its terms. On or before
the Effective Date, Debtor may file with the Bankruptcy Court such
agreements and other documents as may be necessary or appropriate
to effectuate or further evidence the terms and conditions of this
Plan and the other agreements referred to herein.
A full-text copy of the Plan of Reorganization dated October 3,
2024 is available at https://urlcurt.com/u?l=nJefDh from
PacerMonitor.com at no charge.
Jones Commodities, LLC, is represented by:
Steve Taggart, Esq.
Olsen Taggart PLLC
1449 E. 17th Street, Ste A
Idaho Falls, ID 83404
Tel: (208) 552-6442
Email: staggart@olsontaggart.com
About Jones Commodities
Jones Commodities, LLC, is a trucking company, based in Burley,
Idaho that also resells commodities to various dairy and cattle
operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-40345) on June 21,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Cameron Smith, manager, signed the petition. Steve
Taggart, Esq., at Olsen Taggart, PLLC, is the Debtor's legal
counsel.
JULIO & SONS: Secured Party Sets Nov. 20 Foreclosure Sale
---------------------------------------------------------
Acquiom Agency Services LLC as collateral agent ("secured party")
will conduct a foreclosure sale of substantially all of the assets
of Julio & Sons Company and its affiliates ("Debtors") on Nov. 20,
2024, at 9:00 p.m. (Prevailing Central Time) via video conference.
Interested parties who intend to bid on the collateral must contact
Lisa Schutz at Acquiom Agency via email at ioagency@srsacquiom.com
with copy to Kaylan Das at Greenberg Traurig LLP via email at
kal.das@gtlaw.com and to Marcus Helth at McDermott Will & Emery LLP
via email at Mhelt@mwe.com not less than three business days prior
to the date of the sale to receive the bidding procedures and
information about how to qualify for the public sale as a qualified
bidder.
The Debtors are in the food and restaurant business. The assets to
be sold include inventory, intellectual property, fixtures and
equipment, accounts, chattel paper, documents, furniture, general
intangibles, and goods.
KING ESTATES: Holly Miller Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Holly Miller, Esq.,
at Gellert Scali Busenkell & Brown, LLC as Subchapter V trustee for
King Estates, LLC.
Ms. Miller will be paid an hourly fee of $425 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Miller declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Holly S. Miller, Esq.
Gellert Scali Busenkell & Brown, LLC
1628 John F. Kennedy Boulevard, Suite 1901
Philadelphia, PA 19103
Telephone: (215) 238-0012
Facsimile: (215) 238-0016
Email: hsmiller@gsbblaw.com
About King Estates
King Estates, LLC is the owner of six properties located in New
Jersey having a total current value of $1.88 million.
King Estates sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-20454) on October
22, 2024, with total assets of $1,880,100 and total liabilities of
$1,019,965. The petition was signed by Donald Hill as authorized
representative.
The Debtor is represented by Allen I. Gorski, Esq., at Gorski &
Knowlton, PC.
KMS INC: CSWC Marks $17.7MM Loan at 27% Off
-------------------------------------------
Capital Southwest Corporation has marked its $17,765,000 loan
extended to KMS INC to market at $13,004,000 or 73% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to KMS INC. The Loan
accrues interest at a rate of 14.50% (SOFR+9.75%(Floor 1%)/Q) per
annum. The loan matures on October 2, 2026.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
KMS is one of the largest wholesale resellers of closeout consumer
products in the U.S. The Company provides a solution for brands to
monetize excess or reconditioned inventory and supplies off-price
and alternative sales channels with branded products at attractive
price points.
LASERSHIP INC: $455MM Bank Debt Trades at 83% Discount
------------------------------------------------------
Participations in a syndicated loan under which Lasership Inc is a
borrower were trading in the secondary market around 16.7
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $455 million Term loan facility is scheduled to mature on May
7, 2029. The amount is fully drawn and outstanding.
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LAVIE CARE: Plan Exclusivity Period Extended to December 30
-----------------------------------------------------------
Judge Paul Baisier of the U.S. Bankruptcy Court for the Northern
District of Georgia extended LaVie Care Centers, LLC and its Debtor
Affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to December 30, 2024 and February 27,
2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that
the Chapter 11 Cases are sufficiently large and complex to warrant
the requested extension of the Exclusive Periods. There are 282
Debtors involved in the Chapter 11 Cases, including Debtors that
operate 43 skilled nursing facilities across the United States and
are responsible for the care of the several thousand residents of
those facilities. The Combined Disclosure Statement and Plan now
reflects the terms of the settlement reached amongst the Debtors,
the Committee, the DIP Lenders, and the Plan Sponsor.
Moreover, the Debtors are now authorized to solicit and seek
confirmation of the Combined Disclosure Statement and Plan.
Solicitation alone will require mailing and tabulation of thousands
of solicitation packages to voting creditors in six voting classes.
Thus, the Debtors submit that the size and complexity of the
Chapter 11 Cases weigh in favor of granting the requested extension
of the Exclusive Periods.
The Debtors claim that they have made and will continue to make
timely payments on their undisputed post-petition obligations in
the ordinary course, meaning that the requested extension of the
Exclusive Periods will not prejudice the legitimate interests of
post-petition creditors. As such, this factor also weighs in favor
of extending the Exclusive Periods.
Counsel for the Debtors:
Daniel M. Simon, Esq.
McDERMOTT WILL & EMERY LLP
1180 Peachtree Street NE, Suite 3350
Atlanta, Georgia 30309
Tel: (404) 260-8535
Fax: (404) 393-5260
E-mail: dsimon@mwe.com
- and -
Emily C. Keil, Esq.
Jake Jumbeck, Esq.
Catherine Lee, Esq.
McDERMOTT WILL & EMERY LLP
444 West Lake Street, Suite 4000
Chicago, Illinois 60606
Tel: (312) 372-2000
Fax: (312) 984-7700
E-mail: ekeil@mwe.com
jjumbeck@mwe.com
clee@mwe.com
About Lavie Care Centers
LaVie Care Centers, LLC, is the parent company of skilled nursing
facility operators and providers, with facilities primarily located
in Mississippi, North Carolina, Pennsylvania and Virginia. The
company operates 43 licensed facilities, with 4,300 beds, providing
short-term rehabilitation, comprehensive post-acute care, and
long-term care to its residents.
On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul
Baisier in Atlanta.
The Debtors tapped McDermott Will & Emery, LLP as legal counsel;
Stout Capital, LLC as investment banker; and Ankura Consulting as
financial advisor. M. Benjamin Jones, senior managing director at
Ankura, serves as the Debtors' chief restructuring officer.
Kurtzman Carson Consultants, LLC is the claims agent, and maintains
the page http://www.kccllc.com/LaVie
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
LEITMOTIF SERVICES: Carol Fox Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner
as Subchapter V trustee for Leitmotif Services, LLC.
Ms. Fox will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fox declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Carol Fox
GlassRatner
200 East Broward Blvd., Suite 1010
Fort Lauderdale, FL 33301
Tel: 954.859.5075
Email: cfox@brileyfin.com
About Leitmotif Services
Leitmotif Services, LLC is a retailer of a wide selection of
electric scooters. The Debtor is based in Miami, Fla., with a
self-operated service center in Brooklyn, N.Y., and an expanding
network of service partners.
Leitmotif Services sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21215) on
October 28, 2024, with total assets of $1,410,835 and total
liabilities of $2,584,500. Julian Fernau, chief executive officer,
signed the petition.
Judge Laurel M. Isicoff handles the case.
The Debtor is represented by Brett Lieberman, Esq., at Edelboim
Lieberman, PLLC.
LLFLEX LLC: CSWC Marks $9.9MM Loan at 21% Off
---------------------------------------------
Capital Southwest Corporation has marked its $9,986,000 loan
extended to LLFlex, LLC to market at $7,859,000 or 79% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to LLFlex, LLC. The Loan
accrues interest at a rate of 13.48% (SOFR+5%, 3% Payment in kind
(Floor 1.00%)/Q) per annum. The loan matures on August 14, 2026.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
LLFlex is a leader in wire & cable, construction and tobacco
materials solutions, particularly aluminum, steel, paperboard and
film industrial laminates produced across its manufacturing and
converting network.
LODGING ENTERPRISES: Exclusivity Period Extended to Jan. 22, 2025
-----------------------------------------------------------------
Judge Dale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas extended Lodging Enterprises, LLC's exclusive periods to
file a plan of reorganization and obtain acceptance thereof to
January 22, 2025 and March 23, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor has not engaged
in any pattern of delay in this case and is not seeking this
extension as a negotiating tactic to impede the conclusion of the
case or leverage creditors with an unreasonable plan of
reorganization. To the contrary, this request is intended to
maintain a framework conducive to an orderly, efficient and
cost-effective resolution of this case.
The Chapter 11 case has been on file for less than four months and
this Motion therefore constitutes Debtor's first request for an
extension of exclusivity.
The Debtor explains that it has addressed and, to some extent,
continues to address various issues. The Debtor has successfully
engaged with its major creditor constituencies (i.e. the
prepetition lender and the Unsecured Creditors Committee) in
establishing a firm basis for post-petition business operations
through consensual budgets and corresponding authorization for the
use of cash collateral.
Lodging Enterprises, LLC is represented by:
Jonathan Margolies, Esq.
SEIGFREID & BINGHAM, P.C.
2323 Grand Boulevard Suite 1000
Kansas City, MO 64108
Tel: (816) 265-4195
Fax: (816) 474-3447
Email: jmargolies@sb-kc.com
- AND -
Timothy A. ("Tad") Davidson II, Esq.
Brandon Bell, Esq.
Kaleb Bailey, Esq.
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Phone: (713) 220-4200
Email: taddavidson@HuntonAK.com
bbell@HuntonAK.com
kbailey@HuntonAK.com
- AND -
Jason W. Harbour, Esq.
HUNTON ANDREWS KURTH LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Phone: (804) 788-8200
Email: jharbour@HuntonAK.com
About Lodging Enterprises
Founded in 1984, Lodging Enterprises, LLC, a company in Wichita,
Kansas, offers a full suite of crew accommodations, specializing in
24-hour food, lodging and hospitality services. A large segment of
the company's clientele are composed of railroad, and other
transportation-industry workers for whom it is essential that
lodging is available. The company owns and operates 44
Wyndham-branded hotels and 27 restaurants located in 23 states
across the country.
Lodging Enterprises filed Chapter 11 petition (Bankr. D. Kan. Case
No. 24-40423) on June 26, 2024, with $100 million to $500 million
in both assets and liabilities.
Jonathan Margolies, Esq., at SEIGFREID & BINGHAM, P.C., is the
Debtor's counsel.
LOGIX HOLDING: $250MM Bank Debt Trades at 24% Discount
------------------------------------------------------
Participations in a syndicated loan under which Logix Holding Co
LLC is a borrower were trading in the secondary market around 76
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $250 million Term loan facility is scheduled to mature on
December 23, 2024. About $178.1 million of the loan has been drawn
and outstanding.
Logix Holding Company, LLC operates as a holding company. The
Company, through its subsidiaries, provides wireline telecom
services. Logix Holding serves customers in the United States.
LOGIX HOLDINGS: CSWC Marks $3.5MM Loan at 26% Off
-------------------------------------------------
Capital Southwest Corporation has marked its $3,555,000 loan
extended to Logix Holdings Company, LLC to market at $2,641,000 or
74% of the outstanding amount, according to a disclosure contained
in CSWC's Form 10-Q for the quarterly period ended September 30,
2024, filed with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to Logix Holdings
Company, LLC. The Loan accrues interest at a rate of 12.75%
(P+4.75% (Floor 2.00%)/Q) per annum. The loan matures on December
22, 2024.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Logix Holding Company, LLC operates as a holding company. The
Company, through its subsidiaries, provides wireline telecom
services. Logix Holding serves customers in the United States.
LOOK CINEMAS II: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: LOOK Cinemas ll, LLC
12222 Merit Drive
Suite 1700
Dallas TX 75251
Business Description: The Debtor is part of the motion picture and
video industries.
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-33696
Judge: Hon. Michelle V Larson
Debtor's Counsel: Frank Wright, Esq.
LAW OFFICES OF FRANK J. WRIGHT, PLLC
1800 Valley View Lane 250
Farmers Branch TX 75234
Tel: 214-238-4153
Email: frank@fjwright.law
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian E. Schultz as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/MFYYRJA/LOOK_Cinemas_ll_LLC__txnbke-24-33696__0001.0.pdf?mcid=tGE4TAMA
LUMEN TECHNOLOGIES: S&P Places 'CCC+' ICR on CreditWatch Positive
-----------------------------------------------------------------
S&P Global Ratings placed its ratings on U.S.-based
telecommunications service provider Lumen Technologies Inc.,
including the 'CCC+' issuer credit rating, on CreditWatch with
positive implications, indicating the possibility of a one-notch
upgrade. S&P expects to resolve the CreditWatch after Lumen reports
fourth-quarter earnings and provides 2025 guidance.
New hyperscaler deals bolster Lumen's liquidity and increase
financial flexibility. Lumen announced a series of new private
custom fiber (PCF) sales to hyperscalers and large technology
companies in the form of long-term IRUs valued at over $3 billion.
These deals have similar economics to the more than $5 billion of
PCF business wins with Microsoft (and other hyperscalers) to
provide connectivity for AI data demand. They primarily consist of
dark fiber sales, with much of the cash payments being front-end
loaded, most likely within the first four years. Lumen management
also indicated that these PCF transactions came from the $7 billion
funnel of potential deal that was announced in August 2024,
implying there is approximately $3.5 billion still being
negotiated. The company suggested that the remaining funnel would
have a greater mix of new routes to be built rather than leveraging
its existing fiber network, which could have less favorable
economics but still improve longer-term financial flexibility.
Secular industry pressures persist and will weigh on earnings.
Headwinds continue in all of Lumen's business segments given its
exposure to legacy products and services. During the third quarter
of 2024, total revenue, excluding divestitures and the sale of
certain CDN contracts, fell 8% from the year-ago period, with the
company showing little progress in offsetting legacy declines with
growth from newer technologies. At the same time, EBITDA decreased
10% because of negative operating leverage, coupled with
transformation expenses to improve the cost structure longer term.
S&P said, "In our view, it will likely take several years to
increase revenue from newer products and services at scale to
offset lost revenue from higher-margin legacy services. We believe
these factors, coupled with transformation costs, will sharply
reduce EBITDA in 2025."
S&P said, "We expect to resolve the CreditWatch after Lumen reports
fourth-quarter earnings and 2025 guidance. We could raise the
issuer credit rating on Lumen one notch once we quantify the
potential impact of these hyperscaler deals on the company's
leverage profile and free operating cash flow (FOCF) generation
over the next couple of years, factoring in the effect of secular
industry pressures and network and IT systems integration on
earnings and cash flow." An upgrade would be contingent upon S&P's
review to ensure:
-- The profitability of these new PCF deals;
-- Adequate liquidity runway when factoring in capital required to
fund the buildout of routes under the new PCF deals;
-- A longer-term path to leverage reduction; and
-- A path to refinance its debt instruments in advance of its
large maturities in 2029 at market rates that support positive
FOCF.
LV OPPORTUNITY 6: Unsecureds Will Get 4.9% over 36 Months
---------------------------------------------------------
LV Opportunity Zone LLC, Series 6 filed with the U.S. Bankruptcy
Court for the District of Nevada a Small Business Plan of
Reorganization under Subchapter V dated October 2, 2024.
The Debtor is a Nevada series limited liability company treated as
a partnership with two members, Christopher Craig and Abdul-Latif
Saleh, which was organized December 30, 2023, to purchase rental
property.
The Debtor acquired its property from Maria S. Navarro.
Negotiations on this property started February 2024 to attempt a
short sale with the junior lien holders, and the Debtor obtained a
grant deed on June 9, 2024, which was recorded on June 14, 2024.
The debtor obtained an appraisal on the property on June 24, 2024,
which valued the property at $427,000.00.
Currently, the Debtor's property is rented on a 4-month lease at
$6,500.00 per month, which includes utilities. At the election of
tenant, they can continue month to month at the end of the
four-month term until their home is repaired. The current tenant
was procured through ALE Solutions, which helps homeowners find
housing while their homes are being repaired because of damage like
fire or water, etc. Once this existing tenant has vacated, the
Debtor will lease the property to a section 8 tenant for $3,300.00
per month, which includes utilities.
Accordingly, the Debtor filed for bankruptcy reorganization to
right size the property and turn it into a performing rental asset
based upon the appraised value, and for a prompt cure of any
alleged defaults of the first mortgage, and to preserve its
valuable rights for the benefit of all creditors and parties in
interest.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $10,800.00, which is more
akin to a lump sum payment.
The final Plan payment is expected to be paid within 36 months
after the effective date or in a proposed lump sum payment within
six months after the effective date.
The Debtor's managing members are sufficiently capitalized that
they will make all the necessary capital contributions to cure the
first mortgage arrears and contribute any other amounts necessary.
The Debtor will provide declarations from its members and an
account statement showing the members have sufficient cash to fund
the Plan in the form of capital contributions seven days prior to
the confirmation hearing.
This Plan of Reorganization proposes to pay creditors of the Debtor
from an infusion of capital, from the Debtor's members (capital
contribution), and cash flow from rents received during the
36-month life of the Plan.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately less than 4.9% of their claims (assuming an
estimated $219,397.52 of allowed general unsecured claims, and a
$10,800.00 total distribution to that class; provided, however,
these numbers may change given the final amount of allowed general
unsecured claims and other factors and is only an estimate) This
Plan also provides for the payment of administrative and priority
claims.
Class 3 consists of Non-Priority Unsecured Creditors. Holders of
Class 3 Non-Priority/General Unsecured Claims on the Effective Date
shall, in full satisfaction, settlement, release and exchange for
such Allowed General Unsecured Claims, shall receive quarterly pro
rata disbursements of the Debtor's Disposable Monthly Income,
during the Plan Term. All portions of allowed Class 3 unsecured
claims that remain unpaid and at the conclusion of all quarterly
plan payments required under this Plan (the "Plan Term"), will
cease 36 months after the Effective Date and shall be forever
discharged and rendered non-collectable against the Debtor. The
Debtor will make one lump sum payment of $10,800.00 to this class
within six months after the effective date of the Plan through
capital contributions of its members, if necessary.
To the extent necessary, the Plan shall be treated as a motion and
the Confirmation Order will constitute the Bankruptcy Court's
finding and determination that the transactions reflected in the
Plan are (1) in the best interests of the Debtor, its estate and
all Holders of Claims and Equity Interests, (2) fair, equitable and
reasonable, (3) made in good faith and (4) approved by the
Bankruptcy Court pursuant to Section 363 of the Bankruptcy Code and
Bankruptcy Rules 9014 and 9019, as each may be applicable. Class 3
is impaired under this Plan.
Class 4 consists of Equity Security Holders of the Debtor. Except
to the extent that the Holders of Class 4 Equity Interests agree to
less favorable treatment, they shall retain their equity interests,
subject to the terms and conditions of this Plan.
This Plan will be funded with the projected rental income of the
Debtor and an infusion of capital from the Debtor's members if
necessary. To the extent any claim is a secured claim, Debtor may
surrender collateral to the secured creditor, in Debtor's
discretion.
A full-text copy of the Plan of Reorganization dated October 2,
2024 is available at https://urlcurt.com/u?l=V6umu1 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Andrew J. Van Ness, Esq.
Hunter Parker LLC
3815 S. Jones Blvd., Ste. 1A
Las Vegas, NV 89103
Telephone: (702) 686-9297
Email: andrew@hunterparkerlaw.com
About LV Opportunity Zone
LV Opportunity Zone LLC, Series 6 was organized December 30, 2023,
to purchase rental property.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 24-14401) on August 26,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge August B. Landis presides over the case.
Andrew J. Van Ness, Esq., at Hunter Parker LLC represents the
Debtor as legal counsel.
MARRIOTT INTL: Announces Lay Offs in Maryland Amid Restructuring
----------------------------------------------------------------
Sana Azem of abc7 News reports that Marriott International, Inc.,
will lay off over 800 workers as part of its restructuring plan for
2025, according to a spokesperson who confirmed the news to 7News.
The company announced that 833 employees in Bethesda, Maryland,
will be affected by the layoffs, the report relates. However, the
spokesperson added that several hundred internal job openings will
be offered to the impacted employees.
The company’s statement indicates that it expects laid-off
workers to apply for and be selected for the upcoming available
positions.
A Marriott spokesperson gave the following statement to 7News:
"Earlier this year, we began a strategic review of all aspects of
Marriott International's business across geographies to enhance our
enterprise-wide effectiveness and discussed this initiative on our
Q3 earnings call. While always difficult, these job reductions at
our corporate and continent offices will reshape the way we work
and are expected to be largely in place in Q1 2025. As a part of
this initiative, several hundred job openings will be made
available. Many affected associates are expected to apply for and
be selected for these roles and will remain employed with the
Company."
About Marriott International
Marriott is an American multinational company that operates,
franchises, and licenses lodging brands that include hotel,
residential, and timeshare properties.
MAVENIR SYSTEMS: $145MM Bank Debt Trades at 26% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Mavenir Systems Inc
is a borrower were trading in the secondary market around 74
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $145 million Term loan facility is scheduled to mature on
August 18, 2028. About $142.6 million of the loan has been drawn
and outstanding.
Mavenir Systems, Inc. provides software-based networking solutions.
The Company offers internet protocol based voice, videos,
communication, and messaging services, as well as multimedia
subsystem, evolved packet core, and session border controller.
MDM RESTORATION: Marc Albert Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Marc Albert, Esq., a
partner at Stinson, LLP, as Subchapter V trustee for MDM
Restoration, Inc.
Mr. Albert will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Albert declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Marc E. Albert
Stinson, LLP
1775 Pennsylvania Ave, NW, Suite 800
Washington, DC 20006
Phone: (202) 728-3020
Email: marc.albert@stinson.com
About MDM Restoration
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 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, with total assets of $72,179 and total
liabilities of $1,075,612. Roberto Antonio Fuenttes Ventura,
director and owner, signed the petition.
The Debtor is represented by Richard G. Hall, Esq.
MEDICAL SOLUTIONS: $1.05BB Bank Debt Trades at 29% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Medical Solutions
Holdings Inc is a borrower were trading in the secondary market
around 70.8 cents-on-the-dollar during the week ended Friday,
November 15, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $1.05 billion Term loan facility is scheduled to mature on
November 1, 2028. The amount is fully drawn and outstanding.
Medical Solutions L.L.C. operates as a travel nursing company. The
Company provides benefits such as personalized pay package, medical
and dental insurance, paid private housing, and loyalty programs,
as well as pet care, education and training, and friendly housing
services for travel nurses. Medical Solutions serves customers in
the United States.
MEDICAL SOLUTIONS: $270MM Bank Debt Trades at 38% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Medical Solutions
Holdings Inc is a borrower were trading in the secondary market
around 62.2 cents-on-the-dollar during the week ended Friday,
November 15, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $270 million Term loan facility is scheduled to mature on
November 1, 2029. The amount is fully drawn and outstanding.
Medical Solutions L.L.C. operates as a travel nursing company. The
Company provides benefits such as personalized pay package, medical
and dental insurance, paid private housing, and loyalty programs,
as well as pet care, education and training, and friendly housing
services for travel nurses. Medical Solutions serves customers in
the United States.
MICHAELS COS: $1.95BB Bank Debt Trades at 27% Discount
------------------------------------------------------
Participations in a syndicated loan under which Michaels Cos
Inc/The is a borrower were trading in the secondary market around
73.4 cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.95 billion Term loan facility is scheduled to mature on
April 17, 2028. The amount is fully drawn and outstanding.
The Michaels Companies, Inc. doing business as Michaels operates as
a chain of arts and crafts stores. The Company provides arts,
crafts, floral and wall decor, framing, and merchandise for makers
and do-it-yourself home decorators. Michaels Companies serves
customers in North America.
MOFONGO & STEAKHOUSE: Angela Shortall Named Subchapter V Trustee
----------------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Angela Shortall of
3Cubed Advisory Services, LLC as Subchapter V trustee for Mofongo &
Steakhouse, Inc.
Ms. Shortall will be paid an hourly fee of $525 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Shortall declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Angela L. Shortall
3Cubed Advisory Services, LLC
111 S. Calvert St., Suite 1400
Baltimore, MD 21202
Phone: 410-783-6385
About Mofongo & Steakhouse
Mofongo & Steakhouse, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-11988) on
October 25, 2024, with $50,001 to $100,000 in assets and $500,001
to $1 million in liabilities.
Jeffery T. Martin, Jr., Esq. at Martin Law Group, P.C. represents
the Debtor as bankruptcy counsel.
NAJAR TRUCKING: Unsecureds Will Get 1.5% of Claims in Plan
----------------------------------------------------------
Najar Trucking, Inc. submitted an Amended Subchapter V Plan of
Reorganization dated October 2, 2024.
The Debtor's financial projections show that it will have projected
disposable income of $50,004 over the next three years. The final
Plan payment is expected to be paid by November 2027. These
Projections are based on the Debtor's recent historical operating
results and its expectations of its future business.
This Plan of Reorganization under chapter 11 of the Code proposes
to pay creditors of the Debtor from cash flow from future
operations as needed.
Non-priority unsecured creditors holding Allowed claims will
receive distributions, which the Debtor has valued at about $0.015
on the dollar, based on $3,173 in total distributions to this
Class, divided by an estimated $210,893 in claims in this Class,
and thus a distribution of about 1.5%. This projected distribution
amount could change based on the final Allowed amount of Claims in
that class. This Plan also provides for the payment in full of
administrative and priority claims.
Class 3 consists of NonPriority General Unsecured Claims. Each
holder of an Allowed general unsecured, non-priority claim in Class
3 shall receive its pro rata share of the aggregate sum of
$3,173.00, or such greater amount as the Court may require at the
confirmation hearing on the Plan and as consistent with Sections
1190 and 1191 of the Code, which aggregate sum shall be paid in
equal quarterly disbursements of $317.30 per calendar quarter, and
commencing on the 15th day of the 9th month following the Effective
Date, and continuing each and every calendar quarter (10 total
quarters) thereafter until the aggregate sum is paid in full. Class
3 is impaired and thus is entitled to vote on the Plan.
Class 4 consists of Equity security holders of the Debtor. Except
to the extent that the Holders of Class 4 Equity Interests agree to
less favorable treatment, they shall retain their Equity Interests,
subject to the terms and conditions of this Plan. Class 4 is
unimpaired and thus is deemed to accept the Plan.
This Plan will be funded through cash on hand as of the Plan's
Effective Date, and cash flow generated from the future operations
of the Debtor's business.
A full-text copy of the Amended Subchapter V Plan dated October 2,
2024 is available at https://urlcurt.com/u?l=CmEQUS from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Matthew C. Zirzow, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NV 89101
Telephone: (702) 382-1170
Facsimile: (702) 382-1169
Email: mzirzow@lzlawnv.com
About Najar Trucking
Najar Trucking, Inc. is a small family trucking company based in
Las Vegas, Clark County, Nevada that has been in business since
2008.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 24-14221) on Aug. 16,
2024, with as much as $1 million in both assets and liabilities.
Judge Mike K. Nakagawa oversees the case.
Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC serves as the
Debtor's legal counsel.
NAKED JUICE: $1.82BB Bank Debt Trades at 30% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 69.9
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.82 billion Term loan facility is scheduled to mature on
January 24, 2029. The amount is fully drawn and outstanding.
Naked Juice LLC is the entity resulting from a spin-off from
PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39%
stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and
other select juice brands.
NAKED JUICE: $450MM Bank Debt Trades at 46% Discount
----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 54.2
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $450 million Term loan facility is scheduled to mature on
January 24, 2030. The amount is fully drawn and outstanding.
Naked Juice LLC is the entity resulting from a spin-off from
PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39%
stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and
other select juice brands.
NATIONAL CREDIT: CSWC Marks $11.8MM Loan at 25% Off
---------------------------------------------------
Capital Southwest Corporation has marked its $11,875,000 loan
extended to National Credit Care, LLC to market at $8,906,000 or
75% of the outstanding amount, according to a disclosure contained
in CSWC's Form 10-Q for the quarterly period ended September 30,
2024, filed with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Term Loan B to National
Credit Care, LLC. The Loan accrues interest at a rate of 12.93%
(SOFR+7.50% (Floor 1.00%)/Q) per annum. The loan matures on
December 23, 2026.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
National Credit Care Corporation is a Colorado corporation
headquartered in Westminster, Colorado. The company provides credit
repair and restoration services.
NATIONWIDE MEDICAL: Gets Final OK to Use Cash Collateral
--------------------------------------------------------
Nationwide Medical Transportation Services, Inc. received final
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to use cash collateral.
The company is allowed to use cash collateral of BankUnited, N.A.
but must grant replacement liens to the bank as adequate
protection. These liens apply only to the extent the creditor held
a valid pre-bankruptcy lien on the company's assets.
BankUnited will be granted a priority lien on the company's assets
in case the replacement liens are insufficient.
About Nationwide Medical
Nationwide Medical Transportation Services, Inc. is a family-owned
and operated medical transportation company in Boca Raton, Fla.,
offering ambulatory and wheelchair services specializing in workers
compensation and surgical and diagnostic clients. The company
conducts business under the name Tri County Medical
Transportation.
Nationwide Medical Transportation Services filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
24-14386) on May 2, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. Aleida Martinez
Molina, Esq., serves as Subchapter V trustee.
Judge Mindy A. Mora oversees the case.
Jonathan T. Crane, Esq., at Furr & Cohen, is the Debtor's legal
counsel.
NCL CORP: EUR338MM Bank Debt Trades at 21% Discount
---------------------------------------------------
Participations in a syndicated loan under which NCL Corp Ltd is a
borrower were trading in the secondary market around 79.4
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The EUR338 million Term loan facility is scheduled to mature on
April 6, 2035. The amount is fully drawn and outstanding.
NCL Corporation Ltd. operates as a cruise line operator. The
Company was founded in 2013 and is based in Miami, Florida. NCL
Corporation Ltd. operates as a subsidiary of Norwegian Cruise Line
Holdings Ltd.
NCL CORP: EUR450MM Bank Debt Trades at 21% Discount
---------------------------------------------------
Participations in a syndicated loan under which NCL Corp Ltd is a
borrower were trading in the secondary market around 79.4
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The EUR450 million Term loan facility is scheduled to mature on
April 6, 2035. The amount is fully drawn and outstanding.
NCL Corporation Ltd. operates as a cruise line operator. The
Company was founded in 2013 and is based in Miami, Florida. NCL
Corporation Ltd. operates as a subsidiary of Norwegian Cruise Line
Holdings Ltd.
NO2SAC TRANSPORTATION: Taps Derbes Law Firm as Bankruptcy Counsel
-----------------------------------------------------------------
No2Sac Transportation, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Louisiana to hire The Derbes Law
Firm, L.L.C. as its counsel.
The firm's services include:
(a) providing legal advice with respect to its powers and
duties as debtor-in-possession in the continued management of its
business and property;
(b) attending meetings with representatives of its creditors
and other parties in interest;
(c) taking all necessary action to protect and preserve the
Debtor's estate;
(d) preparing on behalf of the Debtor motions, applications,
answers, orders, reports, and papers necessary to the
administration of the estate;
(e) negotiating and preparing on the Debtor's behalf a plan of
reorganization, and all related agreements and/or documents, and
taking any necessary action on behalf of the Debtor to obtain
confirmation of such plan;
(f) appearing before this Court to protect the interests of
the Debtor before this Court;
(g) performing all other necessary legal services and provide
all necessary legal advice to the Debtor in connection with this
Chapter 11 case;
(h) advising the Debtor concerning executory contract and
unexpired lease assumptions, assignments and rejections and lease
restructuring and recharacterizations; and
(i) commencing and conducting litigation necessary and
appropriate to assert rights held by the Debtor, protect assets of
the Debtor's Chapter 11 estate or otherwise further the goal of
completing the Debtor's successful reorganization.
The firm will be paid at these rates:
Albert J. Derbes, IV, Esq. $475 per hour
Mark S. Goldstein, Esq. $495 per hour
Eric J. Derbes, Esq. $425 per hour
Patrick S. Garrity, Esq. $475 per hour
Wilbur J. "Bill" Babin, Jr., Esq. $495 per hour
McKenna D. Dorais, Esq. $175 per hour
Beau P. Sagona, Esq. $475 per hour
Hugh J. Posner, CPA $250 per hour
Frederick L. Bunol, Esq. $375 per hour
Bryan J. O'Neill, Esq. $280 per hour
Jared S. Scheinuk, Esq. $280 per hour
Notary $90 per hour
Paralegal(s) $80 per hour
Legal Assistant $60 per hour
The firm received an an initial advance deposit of $11,000.
Derbes Law Firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Eric Derbes, Esq., a partner at Derbes Law Firm, L.L.C., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Eric J Derbes, Esq.
DERBES LAW FIRM, L.L.C.
3027 Ridgelake Drive
Metairie, LA 70002
Telephone: (504) 207-0913
Facsimile: (504) 832-0327
Email: ederbes@derbeslaw.com
About No2Sac Transportation, LLC
No2Sac Transportation, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No.
24-12136) on Oct. 30, 2024, listing $500,001 to $1 million in both
assets and liabilities.
Judge Meredith S Grabill presides over the case.
Eric J Derbes, Esq. at The Derbes Law Firm, LLC represents the
Debtor as counsel.
OREGON TOOL: $850MM Bank Debt Trades at 27% Discount
----------------------------------------------------
Participations in a syndicated loan under which Oregon Tool
Holdings Inc is a borrower were trading in the secondary market
around 72.9 cents-on-the-dollar during the week ended Friday,
November 15, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $850 million Term loan facility is scheduled to mature on
October 16, 2028. The amount is fully drawn and outstanding.
Oregon Tool Holdings, Inc., headquartered in Portland, Oregon, is a
global manufacturer and distributor of professional-grade,
consumable parts and attachments for use in forestry, lawn and
garden, agriculture and concrete cutting applications.
ORIGINAL MOWBRAY'S: Hires Brian Weiss of Force Ten Partners as CRO
------------------------------------------------------------------
Original Mowbray's Tree Service, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Force Ten Partners, LLC to provide Brian Weiss as chief
restructuring officer and restructuring advisor personnel.
The firm's services include:
(a) managing the restructuring affairs of the Debtor,
supervising the Debtor's professionals, and providing periodic
reports to the Debtor's senior management and board of directors;
(b) assisting legal counsel and the Debtor in executing the
Debtor's restructuring efforts;
(c) assisting in connection with motions, responses, or other
court activity as directed by legal counsel;
(d) evaluating and developing restructuring plans and other
strategic alternatives for maximizing the value of the Debtor and
its assets and recommending to the Board various plans and
strategic alternatives from time to time, and upon receipt of the
Board’s approval of a proposed course of action, using
commercially reasonable efforts to attempt to implement such course
of action, subject to, as applicable, approval of any court of
competent jurisdiction;
(e) assisting in negotiations with the Debtor's creditors and
the Debtor's efforts to manage accounts payable and accounts
receivable; and
(f) preparing declarations, reports, depositions, and
testimony.
Additionally, the CRO has and/or expects to:
(g) participate in meetings and provide support to the Debtor
and its professionals in responding to information requests,
communicating with creditors, any official committees of unsecured
creditors, the Office of the United States Trustee for the Central
District of California, other parties in interest, and
professionals hired by the same;
(h) advise the Board in the development, negotiation, and
implementation of restructuring initiatives and evaluation of
strategic alternatives;
(i) prepare information and analysis necessary for the
confirmation of a plan of reorganization, including information
contained in the disclosure statement such as a liquidation
analysis, if applicable;
(j) assist in implementing a chapter 11 plan of
reorganization, if applicable;
(k) render testimony, as requested, about the matters
regarding which Force Ten and its personnel are providing services;
and
(l) provide such other restructuring or advisory services as
are consistent with the role of the CRO and/or the above-described
services, requested by the Debtor or counsel to the Debtor, that
are not duplicative of services provided by other professionals,
and as agreed by Force Ten.
The firm will be paid at these rates:
CRO $850 per hour
Partners $850 to $950 per hour
Managing Directors $600 to $695 per hour
Directors $550 to $595 per hour
Analysts $325 to $500 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brian Weiss, a partner at Force Ten Partners, LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Brian Weiss
Force Ten Partners, LLC
5271 California Ave., Suite 270
Irvine, CA 92617
Tel: (949) 357-2360
About Original Mowbray's Tree Service
Original Mowbray's Tree Service Inc., doing business as Mowbray's
Tree Service, is a family owned and operated business committed to
providing its client-partners with solution to their vegetation
management needs. It offers hazard tree mitigation, integrated
vegetation management, mechanized tree removal, emergency response,
crane services, and green waste & debris management.
Original Mowbray's Tree Service sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12674) on
Oct. 18, 2024, with $10 million to $50 million in both assets and
liabilities. Brian Weiss, chief restructuring officer, signed the
petition.
Judge Theodor Albert oversees the case.
The Debtor tapped Raines Feldman Littrell, LLP as general
bankruptcy counsel; Force Ten Partners, LLC as restructuring
advisor; and Grobstein Teeple, LLP as financial advisor.
ORIGINAL MOWBRAY'S: Taps Raines Feldman Littrell as Counsel
-----------------------------------------------------------
Original Mowbray's Tree Service, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Raines Feldman Littrell LLP as its general bankruptcy counsel.
The firm will render these services:
1. advise the Debtor with respect to the requirements and
provisions of the Bankruptcy Code, Federal Rules of Bankruptcy
Procedure, Local Bankruptcy Rules, U.S. Trustee Guidelines, and
other applicable requirements that may affect the Debtor;
2. assist the Debtor in preparing and filing its schedules and
statement of financial affairs, complying with and fulfilling U.S.
Trustee requirements, and preparing other documents as may be
required after the initial filing of a chapter 11 case;
3. assist the Debtor in the preparation of a disclosure
statement and formulation of a chapter 11 plan of reorganization;
4. advise the Debtor concerning the rights and remedies of the
estate and the Debtor in regard to adversary proceedings that may
be removed to, or initiated in, the Bankruptcy Court; and
5. represent the Debtor in any proceeding or hearing in the
Bankruptcy Court in any action where the rights of the estate or
the Debtor may be litigated or affected.
The firm will undertake representation of the Debtor at an hourly
rate of between $425 and $975.
Raines Feldman Littrell received a total pre-petition retainer in
the amount of $427,265.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert S. Marticell, Esq., a partner at Raines Feldman Littrell
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:
Robert S Marticell, Esq.
Raines Feldman Littrell LLP
1900 Avenue of the Stars, 19th Floor
Los Angeles, CA 90067
Telephone: (310) 440-4100
Email: rmarticello@raineslaw.com
About Original Mowbray's Tree Service
Original Mowbray's Tree Service Inc., doing business as Mowbray's
Tree Service, is a family owned and operated business committed to
providing its client-partners with solution to their vegetation
management needs. It offers hazard tree mitigation, integrated
vegetation management, mechanized tree removal, emergency response,
crane services, and green waste & debris management.
Original Mowbray's Tree Service sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12674) on
Oct. 18, 2024, with $10 million to $50 million in both assets and
liabilities. Brian Weiss, chief restructuring officer, signed the
petition.
Judge Theodor Albert oversees the case.
The Debtor tapped Raines Feldman Littrell, LLP as general
bankruptcy counsel; Force Ten Partners, LLC as restructuring
advisor; and Grobstein Teeple, LLP as financial advisor.
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 52% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Packers Holdings
LLC is a borrower were trading in the secondary market around 48.1
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.24 billion Term loan facility is scheduled to mature on
March 9, 2028. About $1.20 billion of the loan has been drawn and
outstanding.
Packers Holdings, LLC, known as PSSI, founded in 1972 and
headquartered in Kieler, Wisconsin, is a provider of contract
sanitation services to the food processing industry in the U.S. and
Canada.
PAR THREE PROPERTIES: Sec. 341(a) Meeting of Creditors on Dec. 11
-----------------------------------------------------------------
On November 7, 2024, Par Three Properties Inc. seek 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 be
available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 11,
2024 at 10:00 AM.
About Par Three Properties Inc.
Par Three Properties Inc. is an excavating contractor in
Morristown, New Jersey.
Par Three Properties Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-21111) on November
7, 2024. In the petition filed by Anthony D'Auria, as president,
the Debtor reports estimated assets between $10 million and $50
million and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Joseph M. Casello, Esq.
COLLINS, VELLA & CASELLO, LLC
2317 Route 34, Suite 1A
Manasquan, NJ 08736
Tel: 732-751-1766
Email: jcasello@cvclaw.net
PARADOX ENTERPRISES: Unsecureds to Split $50K over 5 Years
----------------------------------------------------------
Paradox Enterprises, LLC filed with the U.S. Bankruptcy Court for
the Eastern District of Tennessee a Combined Disclosure Statement
and Chapter 11 Plan dated October 3, 2024.
The Debtor owns a collection of residential rental properties in
Middle and East Tennessee.
The Debtor holds approximately 72 properties in 3 cities, spanning
3 counties: Manchester (Coffee County); Knoxville (Knox County);
and Oak Ridge (Anderson County), Tennessee. It also owns a 40%
interest in a property maintenance and renovation company, Paradox
Home Maintenance, LLC ("PHM").
The Debtor intends to reorganize under Chapter 11 through a
combination of selling a portion of its real property and
committing cash generated from continued operations. The company in
which the Debtor holds 40% interest, PHM, will continue to improve
certain of the Debtor's real estate and will defer all payment
therefore until after the monetary obligations to other creditors
in this Plan are satisfied.
This Plan provides for two classes of secured claims and one class
of unsecured claims. It further provides for immediate payments on
the Effective Date of the Plan, to ensure payment in full to all
administrative expense holders, taxing authorities, and other
priority claimants. Specifically, the general unsecured creditors
of the Debtor other than PHM shall receive the lesser of (i) the
total amount of Allowed Claims in the general unsecured class, or
(ii) a pool of $50,000.
Class 4 consists of all Allowed Unsecured Claims against the
Debtor, other than those Claims that are separately classified. On
or before the fifth anniversary of the Effective Date, each Class 4
Claimant shall be entitled to a pro rata distribution of $50,000.00
(the "General Unsecured Pool") from the Debtor.
The Class 4 Claimants shall be entitled to payment only after their
Claim becomes an Allowed Claim. Upon entry of a Final Order
creating an Allowed Claim from a Disputed Claim, the Class 4
Claimants shall be paid promptly the total amount of installment
payments that would have been due on their Claims if they had been
Allowed as of the Effective Date.
Class 5 consists of all Claims held by insiders of the Debtor,
which Claims shall be Allowed in full. However, the Debtor shall
make no distributions to any holders of Claims in this Class unless
and until the obligations to other classes set forth in the Plan
are satisfied. This Class further consists of the ownership
interests in Debtor held as of the Petition Date. In consideration
of retention of the ownership interest, the Debtor's equity holder
shall (i) waive all affirmative rights to payment on all member
loans and other amounts that might be due from Debtor, and (ii)
ensure that the value in improving the real properties to be sold
to recover $4,500,000 on the Class 2 Claim is supplied by PHM.
Confirmation of this Plan shall operate as an assumption of all
unexpired residential leases in which the Debtor is landlord.
Except for executory contracts and unexpired leases that have been
assumed, and if applicable assigned, before the Effective Date or
expressly assumed under this Plan, or that are the subject of a
pending motion to assume, and if applicable assign, the Debtor will
be conclusively deemed to have rejected all executory contracts and
unexpired leases as of the Effective Date.
Until the Effective Date, the Debtor shall continue to make
adequate protection payments to Legalist in the same manner in
which it has since the Petition Date, i.e., weekly payments via
electronic transfer. All payments due under this Plan after the
Effective Date shall be made by the Debtor via electronic transfer,
if such information is furnished by the respective recipient.
The Plan provides for $4,500,000 to be generated from the sale of
19 properties. On or before the Effective Date, the Debtor shall
have at least 6 of the 19 properties listed for sale. All of the 19
contemplated sales shall close within the Marketing Period;
provided, however, in the event a sales contract is obtained but a
closing has not occurred before conclusion of the Marketing Period,
the Marketing Period shall be extended by up to 60 days to close
such sale.
A full-text copy of the Combined Disclosure Statement and Plan
dated October 3, 2024 is available at
https://urlcurt.com/u?l=AxOxId from PacerMonitor.com at no charge.
Paradox Enterprises, LLC is represented by:
Gray Waldron, Esq.
DUNHAM HILDEBRAND, PLLC
2416 21st Ave S, Ste 303
Nashville, TN 37212
Tel: 629-777-6519
Fax: 615-777-3765
E-mail: gray@dhnashville.com
About Paradox Enterprises
Paradox Enterprises, LLC, owns various properties valued at $6.1
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-10826) on April 5,
2024. In the petition signed by Eric Shelley, managing member, the
Debtor disclosed $6,174,373 in assets and $13,012,125 in
liabilities.
Judge Nicholas W. Whittenburg oversees the case.
Gray Waldron, Esq., at DUNHAM HILDEBRAND, PLLC, is the Debtor's
legal counsel.
PHYSICIAN PARTNERS: $600MM Bank Debt Trades at 49% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Physician Partners
LLC is a borrower were trading in the secondary market around 51.5
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $600 million Term loan facility is scheduled to mature on
December 22, 2028. The amount is fully drawn and outstanding.
Physician Partners LLC (dba Better Health Group) is a value-based
primary care physician group and managed service organization
network that services over 250,000 members, with over 1,000
providers and 111 owned centers. Private equity firm, Kinderhook
Industries, is an investor in Better Health Midco, LLC with LTM
revenue as of June 30, 2023 of approximately $1.1 billion.
PHYSMODO INC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Physmodo, Inc.
2251 Vantage Street, Suite 100
Dallas, TX 75207
Business Description: Physmodo is a merchant wholesaler of
professional and commercial equipment and
supplies.
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-33699
Debtor's Counsel: Melissa S. Hayward, Esq.
HAYWARD PLLC
10501 N. Central Expressway
Suite 106
Dallas, TX 75231
Tel: 972-755-7100
Email: mhayward@haywardfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Andrew Menter as CEO.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/4DJWS5Y/Physmodo_Inc__txnbke-24-33699__0005.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/UCXCHBQ/Physmodo_Inc__txnbke-24-33699__0001.0.pdf?mcid=tGE4TAMA
PREMIER GLASS: Court Denies Confirmation of Subchapter V Plan
-------------------------------------------------------------
The Honorable Deborah L. Thorne of the United States Bankruptcy
Court for the Northern District of Illinois denied confirmation of
Premier Glass, L.L.C.'s Subchapter V plan of reorganization without
prejudice.
Premier Glass L.L.C. and Christopher Glass & Aluminum, Inc. have
been litigating for years. CGI has accused Premier Glass and its
principal, Romeo de la Cruz, of stealing CGI's customers and book
of business. Prior to the petition date, the parties arbitrated the
dispute, resulting in an award in favor of CGI -- and against both
Premier Glass and de la Cruz -- for, among other things, tortious
interference with CGI's business.
Shortly after the entry of the arbitration award, Premier Glass
filed a Subchapter V chapter 11 petition in the Bankruptcy Court
for the District of Delaware. On the motion of CGI, the case was
removed to this court.
Premier filed an Amended Plan on July 17, 2024. The plan placed all
general unsecured claims into Class 1 and placed CGI and Premier
Glass's prepetition lawyers' claims into Class 2. Within this
class, CGI's claim is valued at $2,081,676.45; the prepetition
lawyers' claim is valued at $325,925.28. Premier Glass reserved the
right to object to claims for 180 days after confirmation of the
plan but has not objected at this time to CGI's claim. Any funds to
be paid on account of the claims of CGI and the prepetition lawyers
are to be held in escrow by a third party until the claims are
finally liquidated. CGI objects to the plan and specifically to
three line items in the projected budget: (1) legal fees, (2)
depreciation expenses, and (3) taxes.
CGI, the largest creditor, did not vote in favor of the plan, so
Premier Glass must confirm it as a nonconsensual plan, which
requires, among other things, that the debtor commit its projected
disposable income toward payments to unsecured creditors.
The Court points out the minimum length of commitment for a
nonconsensual plan is three years, but "the court may fix" a longer
commitment period under Sec. 1191(c)(2)(A) and (B). The date of the
first payment under the plan is the beginning of the commitment
period.
Premier Glass provided projections for the years 2024-2028, but it
proposed to make its first payment in 2025. In effect, the debtor
has provided projections and a payment scheduled for a four-year
plan (or just over), not a five-year plan, the Court notes.
CGI also objected to Premier Glass's line-item deductions for
depreciation expenses, taxes, and legal fees.
The Court finds Premier Glass did not meet its burden of explaining
how it had calculated the line item for taxes deducted from
disposable income. Because Premier Glass did not meet its burden
of showing that its projections for taxes and depreciation were
credible, the Court had no basis to conclude that the plan was fair
and equitable, and it cannot be confirmed, the Court concludes.
The Court further finds Premier Glass also failed to carry its
burden regarding what appears to be a novel legal issue, the legal
fees. According to the Court, the debtor did not show that the line
item for legal fees was based on a reasoned projection, and it did
not show that paying the legal fees was necessary for the
continuation, preservation, or operation of the business of the
debtor. In a more general sense, the Court was unconvinced that,
based on the evidence before it, the line item for legal fees was
fair and equitable.
The Court finds the debtor has not met its burden of showing that
the plan is fair and equitable pursuant to 11 U.S.C. Sec. 1191(c)
and (d).
A copy of the Court's decision dated November 8, 2024, is available
at https://urlcurt.com/u?l=PlIRkg
About Premier Glass Services
Premier Glass Services, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-05367) on
February 16, 2024, with $500,001 to $1 million in assets and
$1,000,001 to $10 million in liabilities.
Judge Deborah L. Thorne presides over the case.
Karen M. Grivner and Kevin H. Morse at Clark Hill PLC represents
the Debtor as legal counsel.
PROJECT EVEREST: S&P Upgrades ICR to 'B', Outlook Stable
--------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
revenue lifecycle solutions software provider Project Everest
Ultimate Parent LLC (Conga) to 'B' from 'B-'. The outlook is
stable.
S&P said, "In addition, we raised our issue-level ratings on the
company's $50 million first-lien revolving credit facility due 2026
and $565 million first-lien term loan due 2028 to 'B'. The
issue-level ratings reflect our '3' recovery rating, indicating our
expectation of meaningful (50%-70%; rounded estimate: 65%) recovery
in the event of default.
"The stable outlook reflects our expectation the company will
increase revenue in the mid-single-digit percent area and continue
to improve EBITDA margins over the next year due to gradual
customer migration on to Conga's in house platform. Additionally,
we expect it will generate FOCF to debt (excluding preferred
equity) of greater than 10% sustainably.
"The upgrade reflects our expectation that Conga will continue to
grow EBITDA and expand EBITDA margin, with FOCF to debt (excluding
preferred shares) well above 10% sustainably. Conga's operating
performance over the first six months of 2025, ended July 31, 2024
has exceeded our expectations, with adjusted EBITDA margins
increasing roughly 800 basis points (bps) from the previous
comparable period to almost 25%. This represents quite a bit of
outperformance, as our prior forecast considered only 70 bps of
margin improvement this year. The improved profitability, coupled
with a reduction in interest expense from debt repricing earlier in
the year, is also producing improved levels of cash flow
generation. Over the first six months of fiscal 2025, reported FOCF
was approximately $60 million compared to just under $30 million
last year. The company has benefitted from its ongoing migration of
existing customers and the onboarding of new customers on to
Conga's in-house platform, which has resulted in reduced Salesforce
royalties. While we expect this to be a multiyear process, we
anticipate ongoing gradual growth in the company's gross profit
margin as migrations continue. In addition, management has enacted
structural reductions to the company's cost structure, which it
started to realize in the second quarter of fiscal year 2025. While
the full operational benefit of these actioned savings will be
realized over time, we forecast EBITDA margin growth of 850 bps and
140 bps in 2025 and 2026, respectively. Conga's S&P Global
Ratings-adjusted credit metrics do not fully capture the company's
better-than-expected performance, given they continue to be
burdened by the value of its Thoma Bravo-owned preferred class A
shares that we consider to be debt-like (estimated at about $2
billion). The resulting adjustment elevates our forecasted S&P
Global Ratings-adjusted leverage to about 20x and diminishes
expected FOCF to debt to 1%. While we typically consider these
adjusted metrics very weak, we believe they overstate financial
risk given the shares do not require mandatory cash dividend
payments or contain any financial maintenance covenants. Excluding
the preferred shares would equate to leverage in the low-4x area
and FOCF to debt above 13% this year, which is much more in line
with 'B' rated peers.
"Under our updated base case we assume Conga will continue
migrating customers to its proprietary platform, which we believe
will be a gradual, multiyear process. In addition, further
realization of actioned structural cost improvements will grow
EBITDA margins to the high-20% area over the next few years.
Similarly, FOCF will increase above $70 million and above $90
million in 2025 and 2026, respectively. Leverage will likewise
decline to the low-4x area (20x inclusive of the aforementioned
preferred shares) and the company's FOCF to debt generation will
increase towards the low-teens percentage range (just under 3%
including preferred shares) in 2025.
"Financial policy will likely constrain rating upside in the near
term. While the company has maintained a reserved financial policy
in recent years regarding leveraging dividends or aggressive
mergers and acquisitions (M&A), we continue to see financial policy
risks that limit upside to our ratings during the forecast period.
Given the costly acquisition multiples and the stage of Thoma
Bravo's investment (six years since the initial 2018 leveraged
buyout of Apttus), we think it is unlikely the company will pursue
large leveraged acquisitions. That said, based on the company's
strong performance, there could be an incentive to consider
shareholder-rewarding activities, such as repurchasing a portion of
the class A shares held by Thoma Bravo using debt."
Conga competes in a fragmented marketplace with larger competitors
and lacks the scale necessary for a higher rating. The company
offers software-enabled, mission-critical revenue acquisition
software to a sticky customer base where it sees annual gross
retention rates in the 90% area. That said, the market in which it
operates is fragmented, with larger and better capitalized peers
such as DocuSign Inc., SAP S.E., and Oracle Corp., as well as
Salesforce's proprietary competing product. The level of revenue
visibility and increasing margins are potential mitigants to S&P's
assessment, as well as the declining reliance on customer software
access through the Salesforce ecosystem.
S&P said, "A key credit risk for the company in the past was its
dependence on Salesforce, where we estimated it generated roughly
85% of annual recurring revenue. Over the past couple years, the
company made crucial investments in the development of its own
in-house platform, which has allowed customers to forego using
Salesforce altogether to access Conga's software. The result has
been meaningfully credit positive for Conga, with the reduction in
Salesforce royalties expected to continue growing profitable
operations.
"The stable outlook reflects our expectation the company will
increase revenue in the mid-single-digit percent area and continue
to improve EBITDA margins over the next year due to gradual
customer migration on to Conga's in house platform. Additionally,
we expect it will generate FOCF to debt (excluding preferred
equity) of greater than 10% sustainably under its existing capital
structure.
"Governance factors are a moderately negative consideration in our
credit rating analysis of the company, as is the case for most
rated entities owned by private-equity sponsors. We believe Conga's
highly leveraged financial risk profile points to corporate
decision-making that prioritizes the interests of controlling
owners." This also reflects the generally finite holding periods
and a focus on maximizing shareholder returns.
Q'BOLE INC: Lisa Holder Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Q'Bole, Inc.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Q'Bole Inc.
Q'Bole, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-24816) on October
26, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Fredrick E. Clement presides over the case.
Peter G. Macaluso, Esq., represents the Debtor as legal counsel.
R. GREGORY INVESTMENTS: Seeks to Hire Camelot Realty as Broker
--------------------------------------------------------------
R. Gregory Investments, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Camelot Realty Group as broker
The broker will assist with the marketing and sale of the Debtor's
property located at 7227 Cemetery Rd, Houston, Texas.
The firm will render these services:
a. use reasonable efforts to act diligently to market the
property for sale, procure a buyer, and negotiate the sale of the
property;
b. advertise the property through means including but not
limited to, placing a "For Sale" sign, creating or placing
information, internet; and
c. disseminate information about the property to other
realtors and prospects, including applicable disclosures, and
notices concerning the debtor's property;
d. market and advertise the property in order to procure
potential buyers; and
e. assist the Debtor with real estate strategy.
Camelot Realty shall be compensated in the form of a 5.5 percent
commission of the sales price.
As disclosed in the court filings, Camelot Realty Group does not
hold or represent an interest adverse to the estate, and is
disinterested person.
The firm can be reached through:
Tom Cervone
Camelot Realty Group
4306 Yoakum Blvd. Suite 430
Houston, TX 77006
Phone: (713)201-7488
Email: tom@camelothouston.com
About R. Gregory Investments, LLC
R. Gregory Investments, LLC in _ Manvel, TX, sought relief under
Chapter 11 of the Bankruptcy Code filed its voluntary petition for
Chapter 11 protection (Bankr. S.D. Tex. Case No. 24-34097) on Sept.
1, 2024, listing $2,503,600 in assets and $1,739,000 in
liabilities. Ryan Gregory as managing member, signed the petition.
Judge Eduardo V Rodriguez oversees the case.
TRAN SINGH, LLP serve as the Debtor's legal counsel.
RACKSPACE TECHNOLOGY: $2.30BB Bank Debt Trades at 64% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Rackspace
Technology Global Inc is a borrower were trading in the secondary
market around 36.4 cents-on-the-dollar during the week ended
Friday, November 15, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $2.30 billion Term loan facility is scheduled to mature on
February 15, 2028. About $61.9 million of the loan has been drawn
and outstanding.
Rackspace Technology Global, Inc., supports and manages cloud
platforms, as well as offers managed hosting, colocation, security,
data processing, and enterprise application development.
RANGER BEARINGS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Ranger Bearings, LLC
1332 Louisiana Street
Memphis, TN 38106
Chapter 11 Petition Date: November 13, 2024
Court: United States Bankruptcy Court
Western District of Tennessee
Case No.: 24-25657
Judge: Hon. Denise E Barnett
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
601 Renaissance Way
Suite A
Ridgeland, MS 39157
Tel: 601-427-0048
- and -
Jerome C. Payne, Esq.
PAYNE LAW FIRM
3525 Ridge Meadow Parkway
Suite 100
Memphis, TN 38115
Tel: 904-794-0884
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Haines O'Neil as managing member of
American Railway Services, LLC.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XMOCOHY/Ranger_Bearings_LLC__tnwbke-24-25657__0001.0.pdf?mcid=tGE4TAMA
RAZEL & RUZTIN: Unsecured Creditors to Split $150K over 5 Years
---------------------------------------------------------------
Razel & Ruztin, LLC, d/b/a Walnut Creek Willows, filed with the
U.S. Bankruptcy Court for the Northern District of California a
Small Business Plan of Reorganization under Subchapter V dated
October 2, 2024.
Since 2007, the Debtor has been in the business of a residential
care facility for the elderly (as well as dementia patients) in an
upscale, large facility in downtown Walnut Creek, California.
The Debtor's financial projections show that the Debtor will have
projected disposable income of a $3,805.33 month average projected
disposable income based on one year of projections beginning
September 2024; then $4,000.33 beginning March, 2025; then
$4,111.13 beginning March, 2026; then $4,370.46 beginning March
2027; $4,545.25 beginning March, 2028; $4,828.96 beginning March
2029 and ending August, 2029.
The final Plan payment is expected to be paid on August, 2029,
which is anticipated to be 60 months after the effective date.
Class 3 consists of non-priority unsecured creditors. Holders of
general unsecured claims in Class 3 will be paid from a "Pot" of
$149,935.67 over five years, with the first payment of $1,879.65
being due on the Plan's Effective Date and $1,879.65 for the next 5
months; followed by a payment of $2,074.65 for the next 12 months;
then $2,185.45 for the next 12 months; then $2,444.78 for the next
12 months; then $2,619.57 for the next 13 months; then $4,828.96
for the next 5 months. This Class is impaired.
Class 4 consists of equity security holders of the Debtor. The
Debtor's responsible individual (Ms. Elizabeth Cortes) is the 100%
equity owner of the Debtor and she does not have any pre or post-
petition claims against the Debtor. Her interest will remain the
same/unchanged as of the Plan's Effective Date.
Distributions to Creditors under this Plan will be funded primarily
from:
* Debtor's cash on hand on the Plan’s Effective Date; and
* Net income from the continued operations of the business.
The Plan proposed to pay creditors using the net disposable income
of the Debtor over the 5-year period after the Plan's Effective
Date. This Plan offers a Pot recovery of $149,935.67 to the Class 3
(general unsecured and non-insider creditors/claimants) which is
32%, compared to 0% if the Debtor's assets were sold in a
hypothetical Chapter 7 liquidation and the proceeds paid out to
each respective creditor.
A full-text copy of the Plan of Reorganization dated October 2,
2024 is available at https://urlcurt.com/u?l=cvkjSf from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Arasto Farsad, Esq.
Farsad Law Office, P.C.
1625 The Alameda Suite 525
San Jose, CA 95126
Telephone: (408) 641-9966
Facsimile: (408) 866-7334
Email: farsadlaw1@gmail.com
About Razel & Ruztin
Razel & Ruztin, LLC, doing business as Walnut Creek Willows, filed
its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41003) on July 9,
2024, listing up to $50,000 in assets and up to $1 million in
liabilities. Judge Charles Novack presides over the case.
Arasto Farsad, Esq., at Farsad Law Office, P.C. serves as the
Debtor's bankruptcy counsel.
Blanca Castro is the patient care ombudsman appointed in the
Debtor's cases.
REALD INC: $60MM Bank Debt Trades at 13% Discount
-------------------------------------------------
Participations in a syndicated loan under which RealD Inc is a
borrower were trading in the secondary market around 87.1
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $60 million Term loan facility is scheduled to mature on
November 30, 2024. The amount is fully drawn and outstanding.
RealD Inc. is a private company known for its RealD 3D system,
which is used for projecting films in stereoscopic 3D using
circularly polarized light.
RED BAY COFFEE: Gets Final OK to Use Cash Collateral
----------------------------------------------------
Red Bay Coffee Company, Inc. received final approval from the U.S.
Bankruptcy Court for the Northern District of California, Oakland
Division, to use cash collateral.
The final order, signed by Judge Dennis Montali, authorized Red Bay
Coffee to use cash collateral to preserve assets of the estate;
maintain the operation of its business; maintain insurance; timely
pay commercial lease obligations; and pay employee wages and other
costs and expenses associated with the business and Chapter 11
case.
The court determined that the proposed adequate protection, a
sequestration of $1,500 in the company's debtor-in-possession (DIP)
account, is sufficient to protect the $1,052 secured lien balance
owed to Bank of America Leasing and Capital, LLC.
About Red Bay Coffee Company
Red Bay Coffee Company, Inc. is a wholesale specialty coffee
roasting company based in Oakland, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41317) on August
29, 2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Keba A. Konte, chief executive officer,
signed the petition.
Judge Dennis Montali presides over the case.
Matthew D. Metzger, Esq., at Belvedere Legal, PC represents the
Debtor as bankruptcy counsel.
REFRESHING USA: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Refreshing
USA, LLC.
The committee members are:
1. Jeff Greco
Keystone Water Holdings, LLC
Alkaline Water Holdings, LLC
H20 Holdings, LLC
45 E. City Avenue, Suite 372
Bala Cynwyd, PA 19004
jeff@legacycomp.com
2. David Grillo
Stillwater Ventures, Rosewater Ventures, Coldwater Vending
8272 Sunset Blvd., Ste B
West Hollywood, CA 90046
davidrgrillo@gmail.com
3. Simon Fry
5161 LLC
23 Watercress
Irvine, CA 92603
sfry@6161llc.com
4. Ronald N Cole
Cole WS Tech LLC
2960 Lewallen Place
Decatur, IL 63521
RCMCFC@comcast.net
5. Donald E Gray
Gray Family Enterprises; Donald and Bonnie Gray Trust
23233 N. Pima Rd., Ste., 113-367
Scottsdale, AZ 85255
don@grayandassoc.com
6. David Schroeder
Indiana Water Technology, LLC
6404 Myrtle Ln.
Indianapolis, IN 46280
davidaschroeder@yahoo.com
7. Kwansoo Lee
2305 43rd Street SE
Puyallup, WA 98374
oosnawk@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Refreshing USA
Alleged creditors filed an involuntary Chapter 11 petition for
Refreshing USA, LLC (Bankr. S.D. Texas Case No. 24-33919) on August
27, 2024.
The alleged petitioners are Donald E. Bonnie L. Gray of Revocable
Living Trust, Tyler Hellman and Annamarie Briggs. The petitioners
are represented by Ericka F. Johnson, Esq. and Steven D. Adler,
Esq. at BAYARD, P.A.
Judge Jeffrey P. Norman presides over the case.
RESIDENT RESEARCH: Gets Court Nod to Use Cash Collateral
--------------------------------------------------------
Resident Research, LLC got the green light from the U.S. Bankruptcy
Court for the Western District of North Carolina, Charlotte
Division to use its cash collateral.
The order authorized the use of cash collateral to pay the
company's operating expenses set forth in its projected budget,
which shows total projected expenses of $198,968.59 for the period
from Oct. 27 to Nov. 1.
Secured creditors will be granted a replacement lien to the extent
their collateral is used by the company. Additionally, the Internal
Revenue Service will receive monthly payments of $848 until
confirmation of the company's Chapter 11 plan.
About Resident Research
Resident Research, LLC provides organizations large and small
resident and employment screening solutions. The primary goal of
the company is to assist landlords and property managers in
identifying and, thereby, eliminating delinquent tenants as
potential renters.
Resident Research sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-30533) on
June 21, 2024, with total assets of $2,439,105 and total
liabilities of $3,751,297. David Plank, a member of Resident
Research, signed the petition.
Judge Laura T. Beyer oversees the case.
The Debtor is represented by John C. Woodman, Esq., at Essex
Richards, PA.
RITE AID: Real Property Lease Not Deemed Rejected, Court Rules
--------------------------------------------------------------
The Honorable Michael B. Kaplan of the United States Bankruptcy
Court for the District of New Jersey denied Fair Oaks, LLC's motion
to compel rejection of unexpired real estate lease in the
bankruptcy case of Rite Aid Corp. and its affiliates.
The Debtors and Fair Oaks are counterparties to an unexpired
pre-petition lease for real property located at 2150 Roosevelt
Avenue, Redwood City, California. Prior to the filing of the
Bankruptcy Petitions, Debtors provided notice to Fair Oaks of its
desire to extend and renew the lease for a second five-year
extension period beginning November 3, 2023. In October 2023,
however, Debtors filed for bankruptcy, which triggered 11 U.S.C.
Sec. 365(d)(4) and created a deadline by which Debtors had to
assume or reject unexpired leases of non-residential property. On
December 20, 2023, the Court entered an Order extending the time
for the Debtors to assume or reject under Sec. 365(d)(4) up to and
including May 13, 2024.
On February 26, 2024, Debtors collectively issued a Notice of
Assumption of Certain Unexpired Leases and attached as an Exhibit a
list of locations and leases that Debtors intended to assume, which
included the Fair Oaks Lease. Fair Oaks objected, arguing that
Debtors were in non-monetary default of its lease for failing to
maintain the required level of Fire and Hazard Insurance as
stipulated in the Lease. Thereafter, on March 6, 2024, the Court
entered an Order confirming Debtors were permitted and required to
vacate any lease not assumed by May 13. Shortly after, Debtors
filed a Draft Schedule of Assumed Leases and Unexpired Leases to
its Plan Supplement to its Second Amended Joint Chapter 11 Plan.
Fair Oaks' Lease was again included on the list of desired assumed
leases. Subsequently, Debtors filed notices and/or motions relating
to its deadlines for rejection and creditors' deadlines for the
filing of objections to either assumption or assumption and
assignment. Nevertheless, the parties do not dispute -- and the
Court agrees -- that the Assumption Deadline remained May 13, 2024.
Fair Oaks contends that Debtors' failure to file a motion to extend
the Assumption Deadline means that the Sec. 365(d)(4) deadline
passed, and the Lease is deemed rejected. In contrast, the Debtors
argue that they took the required action and timely satisfied the
Sec. 365(d)(4) deadline by filing the Assumption Schedule prior to
the expiration of the Assumption Deadline.
The Court finds that Debtors complied with the statute and assumed
the Lease under Sec. 365 before the Assumption Deadline expired. In
as much as the Lease is not deemed rejected under Sec.
365(d)(4)(A), Fair Oaks' motion fails. Debtors are directed to
submit an Order consistent with this ruling.
A copy of the Court's decision dated November 6, 2024, is available
at https://urlcurt.com/u?l=d2aWaZ
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
* * *
On October 16, 2023, the Debtors filed their Joint Plan of
Reorganization and the Disclosure Statement related thereto. The
Bankruptcy Court's hearing to consider conditional approval of the
adequacy of the Disclosure Statement was held on March 28, 2024, at
11:00 a.m., prevailing Eastern Time, before the Honorable Chief
Judge Michael B. Kaplan. On March 28, 2024, the Bankruptcy Court
entered an order conditionally approving the adequacy of the
Disclosure Statement. The Bankruptcy Court's combined hearing to
consider confirmation of the Plan and final approval of the
Disclosure Statement was held June 27, 2024, at 10:00 a.m.,
prevailing Eastern Time. On August 16, 2024, the Bankruptcy Court
entered an order approving the Disclosure Statement on final basis
and confirming the Plan. On August 30, 2024, the Effective Date of
the Plan occurred and the Plan was consummated.
ROBERTSHAW PARENT: S&P Assigns 'CCC+' ICR, Outlook Positive
-----------------------------------------------------------
S&P Global Ratings assigned its 'CCC+' issuer credit rating to
Itasca, Ill.-based components and control systems manufacturer
Robertshaw Parent LLC (Robertshaw).
S&P said, "We also assigned our 'B' issue-level rating and '1'
recovery rating to the company's first-out term loan and our 'CCC+'
issue-level rating and '3' recovery rating to the company's
second-out term loan, both of which are issued at its subsidiary
Robertshaw Controls Company.
"At the same time, we withdrew our 'D' issuer credit rating on
Range Parent Inc., and all our issue-level ratings on debt at its
subsidiary Robertshaw US Holdings Corp., following a repayment and
conversion of all of its pre-bankruptcy debt.
"The positive outlook reflects our forecast that Robertshaw's lower
debt load, combined with anticipated improvements in its EBITDA and
cash flow generation, could lead to S&P Global Ratings-adjusted
leverage in the 5x-6x range over the next 12 months and that its
liquidity will remain adequate. The outlook also incorporates our
view that the company will continue to execute its operational
improvements plan, including pricing initiatives and solidifying
its customer and supplier relationships.
"The main factors that inform our view of Robertshaw's business
risk are its spec'd-in nature and longstanding customer
relationships, offset by its niche product offerings and
profitability challenges it has faced in the appliance markets over
the past couple of years. The company's products include gas and
water valves, burners, ignitors, and energy regulators that are
sold to leading residential and commercial appliance, heating,
ventilation and air conditioning (HVAC), and transportation
original equipment manufacturers (OEM) including Whirlpool, LG,
Samsung, Bosch, Carrier, Illinois Tool Works, and others. The
company also generates a portion of its revenues from selling
after-market components directly to distributors. The spec'd-in
nature of Robertshaw's products and high-cost of failure creates
moderate barriers to entry within the applications it serves. In
addition, the company's longstanding relationships with its core
customer base and distribution network (some of which span several
decades) provides a relatively recurring revenue base."
However, the company's narrow scope of operations, high customer
concentration, and heavy exposure to raw material pricing
volatility led to significant operational inefficiencies over the
past three years and ultimately resulted in its bankruptcy.
Robertshaw first began to experience operating challenges in late
fiscal 2022 (period ended March 31, 2022) when supply chain issues
and rapidly rising raw material prices caused a large price/cost
imbalance. These challenges were further exacerbated by a decline
in demand for gas appliances across the globe in fiscal 2023. The
company's high fixed-cost structure and inability to pass through
pricing and efficiently manage its operations during this period of
weaker demand added to its earnings volatility.
S&P said, "Even though we expect higher EBITDA in fiscal 2025, we
view the company's margin profile as below average among rated
peers and that its margins could remain subdued until organic
volumes improve. In addition, Robertshaw will need to remain
competitive to maintain its customer base and support sustainable
operations. Furthermore, we believe risks in certain emerging
jurisdictions regarding the use of gas-based appliances could
hinder the company's longer-term demand trends. However, we believe
this shift will be gradual, and limited to certain geographical
regions, and that Robertshaw will continue to diversify its product
offering."
While Robertshaw's capital structure has significantly improved,
secular pressures continue to pose risk to S&P's forecast. The
Chapter 11 bankruptcy eliminated approximately $688 million of
debt, leaving the company with about $200 million in debt
obligations on its balance sheet as of Oct. 1, 2024. The lower debt
burden and accompanying lower interest expense, less onerous
financial covenants, and extension of debt maturities significantly
improves the company's capital structure and liquidity profile.
However, low housing turnover in the residential markets caused by
still-high interest rates, elevated gas prices in Europe from the
continuation of the Russia/Ukraine war, and a pull-forward in
consumer spending patterns during the pandemic all are weighing on
global demand for new appliances. With no clear catalyst for a
material near-term rebound in the North American major domestic
appliance industry, Robertshaw will likely need to rely on future
price increases to support topline growth.
S&P said, "We anticipate a return to profitability in fiscal 2025.
Due to the operational inefficiencies and inability to pass pricing
through to customers, Robertshaw generated negligible EBITDA in
total on an S&P Global Ratings-adjusted basis over the past two and
a half years. However, recently implemented pricing initiatives,
organizational cost reductions, supply chain consolidation, and
footprint rationalization actions should lead to improvements in
profitability. As a result, we anticipate EBITDA of about $40
million-$50 million in fiscal 2025 and leverage in the mid-5x area.
"We expect the company will continue to follow an aggressive
financial policy. After its emergence from bankruptcy, Robertshaw
is owned by a group of creditors and financial sponsor One Rock
Capital. Given its concentrated ownership, we expect the company's
financial policy will remain aggressive. While we do not include
any debt-funded dividends or acquisitions in our forecast, we
expect corporate decision-making will prioritize the interests of
its owners. We also believe the ownership structure of the
post-bankruptcy creditor-owned businesses suggests a generally
finite holding period.
"In our view, Robertshaw will maintain adequate liquidity over the
next 12 months, despite minimal free operating cash flow (FOCF)
generation. In fiscal 2024, the company faced substantial FOCF
deficits due to severe operating underperformance that caused a
liquidity crisis. While we expect FOCF to materially improve, it
could fluctuate as the company works through its outstanding
payables and other supply chain initiatives. We also expect an
increase in its capital expenditures (capex) as Robertshaw invests
in new product introductions and equipment improvements. As a
result, we anticipate a FOCF deficit of about $20 million to $25
million in fiscal 2025 (excluding reorganization costs) and
relatively flat FOCF thereafter. With just over $20 million of cash
on the balance sheet and $30 million of availability on its
asset-based lending (ABL) facility post-emergence, the company
should have adequate liquidity and covenant headroom to manage its
operating needs for at least the next 12 months.
"The positive outlook reflects our forecast that Robertshaw's lower
debt load, combined with anticipated improvements in its EBITDA and
cash flow generation, could lead to S&P Global Ratings-adjusted
leverage in the 5x-6x range over the next 12 months and that its
liquidity will remain adequate.
"The outlook also incorporates our view that the company will
continue to execute its operational improvement plans, including
pricing initiatives and solidifying its customer and supplier
relationships.
"Governance factors are a negative consideration in our credit
rating analysis of Robertshaw. In our view, poor strategic planning
and effectiveness in navigating the changing business conditions
was a factor in the company's recent severe earnings misses and
ultimately its bankruptcy. Our view also incorporates a limited
track record of post-emergence operating performance."
ROYSTONE ON QUEEN: Updates 5 Roy Claim Details; Files Amended Plan
------------------------------------------------------------------
Roystone on Queen Anne LLC submitted a Second Revised Disclosure
Statement for the Second Amended Chapter 11 Plan of Reorganization
dated October 2, 2024.
Roystone owns real property and multi-family improvements commonly
known as the Roystone Apartments, located in the heart of lower
Queen Anne at 5 W Roy Street in Seattle, Washington.
Development and construction of the Property spanned seven years.
The actual, vertical construction largely occurred during the
COVID-19 pandemic. Roystone is working to complete the remaining
work, as designated and required by the City of Seattle, to obtain
its final certificate of occupancy. When project funding under the
FIB Loan ceased, numerous inspections and permits were left open,
including insulation, framing, and structural inspections, Smoke
Control, Site Final, Side-Sewer, Boiler Permits, and right-of-way
work.
Currently, all have been signed off except for the boiler permits
and right-of-way work. The necessary work for boiler permit sign
off was completed on September 20, 2024, and Roystone has requested
final inspection. Unfortunately, the general contractor has not
provided details regarding the remaining right-of-way work.
However, Roystone has engaged the sub-contractor who performed the
initial work to assist in completing any outstanding tasks and
obtaining sign-off. Once this is done, the final inspection for the
Certificate of Occupancy (CO) can be completed, with an estimated
completion date of November 13, 2024.
The Schedules reflect general Unsecured Claims as of the Petition
Date totaling approximately $698,247.86. In addition to its Secured
Claim, Pavilion asserts a general Unsecured Claim in the amount of
$1,020,616.00 in its Proof of Claim. IPP Financial Advisers Pte
Ltd. ("IPP"), which has a relationship with some of the Debtor's
investors, provided a prepetition unsecured loan to the Debtor in
the amount of $627,123.29 to support the Debtor's efforts to
complete construction of its Property.
The Debtor scheduled this loan. 5 Roy contends this is an insider
loan and notes that it appears that there was at least an effort to
pledge membership interests in the Debtor to IPP to secure the loan
and that such pledge is in violation of loan covenants in the FIB
construction loan. The Debtor includes these disclosures at 5 Roy's
request and contends that none of these issues affect the Plan or
other Creditors.
As detailed in the Plan, each Allowed Claim in Classes 1–6 shall
be paid in full from cash on hand, Net Income, proceeds of the Exit
Loan, and the proceeds of a refinance of the Secured Claims and/or
sale of the Property. If a sale of the Property is not sufficient
to pay the Class 1 Allowed Claim of 5 Roy in full, 5 Roy will have
the right to credit bid pursuant to Section 1129(b)(2)(A)(ii) of
the Bankruptcy Code or pursue its remedies under applicable law.
Section 8.9 of the Plan defines and sets forth creditors’ rights
the event of default under the Plan and the remedies creditors may
exercise in the event a default remains uncured following the
expiration of any applicable cure period.
Specifically, Section 8.9 of the Plan provides that upon an uncured
Plan Default, a creditor may proceed with any remedy available to
it under applicable law. 5 Roy does not agree to the proposed
changes to its loan documents and reserves all rights to make
arguments with respect to those proposed changes at any appropriate
time in this Chapter 11 case. The Holders of Equity Interests shall
retain their Interests following Confirmation. Vibrant Cities, the
Debtor's Manager, will continue to own, manage and operate the
Debtor and the Property.
The Plan provides the Debtor with the option to either refinance
the Secured Claims, or sell the Property, so long as either event
creates Net Proceeds sufficient to pay all Allowed Claims in full.
The Debtor through its management believes that, in the case of a
sale, the value of the Property will be more than sufficient prior
to the Plan Maturity Date to pay all Allowed Claims in full.
The Plan also anticipates that the amount of the 5 Roy Claim that
is allowable as a Secured Claim pursuant to section 506(a) of the
Bankruptcy Code (and therefore treated as a Class 1 Claim under the
Plan) will not be determined prior to Confirmation, as such amount
will be dependent upon, among other things, (i) the value of the
Property, and (ii) the outcome of the Debtor's pending objection to
5 Roy's accruing default interest and potentially its entitlement
to recover fees and costs, and (iii) any potential claims that may
become known to the Debtor through the pending lawsuit discussed
above against Citymark.
The Plan identified that 5 Roy asserts the initial amount of the
Class 1 Claim in the amount of $31,793,489.27 based on the 5 Roy
Proof of Claim. The ultimate amount of the Allowed Claim of 5 Roy
shall be subject to Final Order of the Court and the Debtor's right
to object to any amounts of the Claim it believes are not properly
included.
Class 6 consists of all Unsecured Claims other than Allowed Claims
that qualify for or elect treatment under Class 5 (each, a "Class 6
Claim"). The Class 6 Allowed Claims shall be paid as follows:
* Each Holder of a Class 6 Allowed Claim shall be paid from
the Net Proceeds of a Financial Event after payment in full of
Classes 1, 2, 2A, and 3.
* Each Holder of a Class 6 Allowed Claim shall be paid pro
rata with Holders of Allowed Claims in Classes 2, 2A, and 3 from
the Net Proceeds generated from any Litigation Claims or Avoidance
Claims.
* Upon the occurrence of a Financial Event, the remaining
balance of all Class 6 Allowed Claims, if any, shall be paid in
full.
* Interest shall accrue on Class 6 Allowed Claims at the
federal judgment rate, which shall be adjusted annually.
Upon the Effective Date of the Plan, Equity Funding, LLC shall
provide a loan in the form of a multiple advance line of credit in
the total amount of $2,750,000.00 to supplement and insure Plan
payments to 5 Roy. Assuming the Bankruptcy Court approves the Exit
Loan, the Exit Loan has closed, and that Equity Funding holds a
valid and enforceable deed of trust against the Property securing
the Exit Loan, the Exit Loan shall become an Allowed Secured Claim
and will be included and treated in the Plan as part of the Class 3
Claim of Equity Funding.
A full-text copy of the Second Revised Disclosure Statement dated
October 2, 2024 is available at https://urlcurt.com/u?l=PEOJx4 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Richard B. Keeton, Esq.
Bush Kornfeld Llp
601 Union Street, Suite 5000
Seattle, WA 98101
Tel: (206) 292-2110
Email: rkeeton@bskd.com
About Roystone On Queen Anne
Roystone on Queen Anne, LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments located
at 5 W. Roy Street, Seattle, Wash. The property has an appraised
value of $39,056,543.
Roystone on Queen Anne filed its voluntary petition for Chapter 11
protection (Bankr. W.D. Wash. Case No. 24-11462) on June 12, 2024,
listing $39,433,126 in assets and $35,776,259 in liabilities. James
H. Wong, manager of Vibrant Cities, LLC, signed the petition.
Judge Christopher M. Alston oversees the case.
Bush Kornfeld, LLP serves as the Debtor's legal counsel.
S & O INVESTMENTS: Case Summary & 10 Unsecured Creditors
--------------------------------------------------------
Debtor: S & O Investments, Inc.
DBA Notting Hill Rentals
2125 Buffalo Heights Dr
Garden City, KS 67846
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
District of Kansas
Case No.: 24-11167
Judge: Hon. Mitchell L Herren
Debtor's Counsel: Nicholas R. Grillot, Esq.
HINKLE LAW FIRM LLC
1617 N. Waterfront Parkway, Suite 400
Wichita, KS 67206
Tel: 316-267-2000
Fax: 316-264-1518
Email: ngrillot@hinklaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amro M. Samy as president.
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/BI2RTYQ/S__O_Investments_Inc__ksbke-24-11167__0001.0.pdf?mcid=tGE4TAMA
S&B RESTAURANTS: Amends Plan to Include Merchant Cash Advance Claim
-------------------------------------------------------------------
S&B Restaurants, d/b/a Gio's Pizza, submitted a Combined Plan of
Reorganization and Disclosure Statement dated October 4, 2024.
On March 27, 2024, the Debtor filed the instant case to try to
reorganize his debt and maintain his business by coming up with a
structured payment plan to keep the business alive and manage the
currently overwhelming debt load.
The main revision in this Disclosure Statement and Combined Plan
from the version Dated August 16, 2024 is the addition of potential
claims against the Merchant Cash Advance Lenders, according to a
footnote in the Disclosure Statement.
* iTria Ventures (Biz2 Credit, Inc.). These MCAs are subject
to a flurry of recent class action/fraud litigation and so Debtor
would like to retain his rights to sue/obtain damages. The amount
of claim in this Class total $93,526.68 and any all applicable
damages.
* RBLX Funding Group. These MCAs are subject to a flurry of
recent class action/fraud litigation and so Debtor would like to
retain his rights to sue/obtain damages. The amount of claim in
this Class total $33,727.48 and any all applicable damages.
* The LCF Group. These MCAs are subject to a flurry of recent
class action/fraud litigation and so Debtor would like to retain
his rights to sue/obtain damages. The amount of claim in this Class
total $35,704.97 and any all applicable damages.
* VIDA Equity Group, LLC. These MCAs are subject to a flurry
of recent class action/fraud litigation and so Debtor would like to
retain his rights to sue/obtain damages. The amount of claim in
this Class total $24,624.00 and any all applicable damages.
Class 2 consists of General Unsecured Claims. Creditors will
receive eight percent of their allowed claim in 60 equal monthly
installments, due on the 10th day of the month, starting on the
Plan's Effective Date. The allowed unsecured claims total
$381,122.43. This Class will receive a distribution of $30,489.63.
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.
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 Combined Plan and Disclosure Statement
dated October 4, 2024 is available at
https://urlcurt.com/u?l=9dsSvI from PacerMonitor.com at no charge.
Counsel to the Debtor:
Arasto Farsad, Esq.
Farsad Law Office, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: (408) 641-9966
Fax: (408) 866-7334
Emails: farsadlaw1@gmail.com
About S&B Restaurants d/b/a Gio's Pizza
S&B Restaurants is a small, highly rated pizzeria in Santa Rosa,
CA.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-10160) on March 27,
2024. In the petition signed by Barindervir Singh Sidhu, president,
the Debtor disclosed up to $1 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
Arasto Farsad, Esq., at FARSAD LAW OFFICE, P.C., represents the
Debtor as legal counsel.
S&G HOSPITALITY: Plan Exclusivity Period Extended to December 2
---------------------------------------------------------------
Judge Mina Nami Khorrami of the U.S. Bankruptcy Court for the
Southern District of Ohio extended S&G Hospitality, Inc. and
affiliates' exclusive periods to file their plan of reorganization
to December 2, 2024.
As shared by Troubled Company Reporter, the Debtors explain that an
extension of their exclusive periods is justified by progress in
the resolution of issues facing the debtor's creditors and estates.
The Debtors continue making consistent and substantial progress in
resolving issues in these cases. Notably, since the filing of the
last motion seeking an extension of the exclusive periods, the
Debtors have filed the proposed Plan.
The Debtors claim that they have also reached agreement with Hilton
that the franchise agreement for the Hampton Inn Lancaster can be
assumed without requiring a consent under the "hypothetical" test,
which resolved the declaratory judgment adversary proceeding the
Debtors had filed regarding that franchise agreement. The Debtors
have also had productive discussions with Hilton regarding reaching
agreed upon cure amounts for the assumption of that franchise
agreement. These all constitute progress towards confirmation of a
plan in these cases.
The Debtors assert that the extension of the Exclusive Filing
Period requested herein will not harm their creditors or other
parties in interest. To the contrary, the requested extension will
permit the Debtors to focus on filing and pursuing court approval
of a disclosure statement prior to the current expiration of the
Exclusive Solicitation Period and responding to the recent
discovery served by RSS in connection with its motion to dismiss or
convert these cases without the additional administrative costs and
distractions that would be incurred in responding to any plans
filed other parties in these cases.
Counsel to the Debtors:
David Beck, Esq.
CARPENTER LIPPS LLP
280 North High Street, Suite 1300
Columbus, OH 43215
Tel: (614) 365-4100
Fax: (614) 365-9145
E-mail: beck@carpenterlipps.com
About S&G Hospitality
S&G Hospitality, Inc. is part of the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-52859) on August 18,
2023. In the petition signed by Abijit Vasani, president, the
Debtor disclosed up to $10 million in assets and up to $1 million
in liabilities.
Judge Mina Nami Khorrami oversees the case.
The Debtor tapped David Beck, Esq., at Carpenter Lipps LLP as legal
counsel and Contemporary Business Solutions, Inc. as accountant.
SIGNIA AEROSPACE: S&P Assigns 'B' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned a 'B' issuer credit rating to Signia
Aerospace LLC. At the same time, S&P assigned a 'B' issue-level
rating to Signia's proposed $1.8 billion term loan B, with a
recovery rating of '3' (rounded estimate recovery: 55%).
S&P said, "The stable outlook reflects our expectations that credit
metrics will improve over the next year or two and remain
appropriate for the rating. We forecast the company's strategic
acquisition of Kaman Corp.'s wheel and brake business and strong
growth within existing niche markets will lead to EBITDA expansion
and positive free cash flow.
"We expect EBITDA growth to support improved credit metrics
post-closing of the transaction. Signia has proposed raising $1.8
billion term loan B, a $250 million new revolving credit facility,
and a new $150 million delayed term loan. We expect proceeds from
the transaction to be allocated toward refinancing the company's
existing capital structure, while also supporting the $385 million
acquisition of Kaman's W&B business unit with remaining cash being
held on the balance sheet. As a result of the transaction, we
expect leverage to be elevated at 2024 year-end, between 6.75x and
7.25x. Near-term EBITDA growth is supported by a full year of
EBITDA from acquisitions and strong demand for legacy business
units, resulting leverage improving to between 6.0x and 6.5x in
2025.
"We expect favorable market conditions to drive top line growth.
Signia is sole supplier of many critical components, including
thermal management and engine and related components, and has a
significant installed base across many of its end markets. The
company's product lines are often specified into original equipment
manufacturer (OEM) designs and 80% of its revenue is protected by
intellectual property (IP). As fixed wing and helicopter build
rates improve following supply chain stabilization, original
equipment volumes will increase. Aftermarket demand is also strong
due to the company's significant installed base with many platforms
within a mature phase of their life cycles. The company's protected
market position yields significant pricing power, resulting in
margins that are above industry averages. Management's focus on
operational efficiency also supports the company's strong margin
profile. We expect EBITDA margins to be between 27% and 32% in 2024
and 2025. While the inclusion of W&B and boost in earnings among
legacy business units will drive EBITDA growth, we expect
aftermarket volumes are to drive margin expansion improving credit
metrics and cash flow. We expect funds from operations (FFO) to
debt to measure between 9% and 12% in 2024 and 2025.
"We expect that Signia's financial policy will incorporate periodic
acquisitions. Signia has been an aggressive player in the merger
and acquisitions (M&A) market. Management maintains a strong
pipeline of targets seeking opportunities to strategically expand
on capabilities and build scale. We expect Signia to continue to
pursue acquisitions with market positions that are IP protected and
have significant aftermarket exposure allowing for high margins.
Larger, debt-funded acquisitions could have a drag on the company's
S&P Global Ratings' adjusted debt to EBITDA metric; however, we
expect the company to focus on smaller, bolt-on targets.
"The stable outlook reflects our view that Signia is well
positioned to benefit from sustained strong OEM and aftermarket
demand. Business jet utilization is stable and mission critical
platforms such as rescue helicopters and defense platforms require
nondeferable maintenance services. Signia's IP and sole-source
product offering will allow for strong margin performance,
resulting in positive free cash flow in 2024 and 2025. While
debt-funded acquisitions will drive leverage up to about 7.0x in
2024, we forecast improvement below 6.5x in 2025.
"We could lower our rating on Signia within the next 12 months if
debt to EBITDA rises above 7.0x and we do not expect improvement."
This could occur if:
-- Demand weakens significantly;
-- Supply chain bottlenecks, labor costs, or other inflationary
pressures erode EBITDA margins significantly; or
-- The company pursues a more aggressive financial policy than S&P
currently expects.
S&P could raise its rating on Signia within the next 12 months if
debt to EBITDA declines below 5.0x and S&P expects it to remain
there even with possible acquisitions.
This could occur if:
-- Topline growth exceeds our current forecast;
-- The company avoids debt financed acquisitions; and
-- The sponsor commits to maintaining leverage below 5.0x.
SOVIRISH CORPORATION: Taps Law Offices of Ryan C. Wood as Counsel
-----------------------------------------------------------------
Sovirish Corporation received approval from the U.S. Bankruptcy
Court for the Northern District of California to hire the Law
Offices of Ryan C. Wood, Inc. to handle its Chapter 11 bankruptcy
case.
The firm will be compensated at $450 per hour and will be
reimbursed for out-of-pocket expenses incurred. The initial
retainer is $2,262.
Ryan Wood, Esq., a partner at the Law Offices of Ryan C. Wood,
disclosed in a court filing that his firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ryan C. Wood, Esq.
LAW OFFICES OF RYAN C. WOOD, INC.
611 Veterans Blvd. Ste. 218
Redwood City, CA 94063
Tel: (650) 366-4858
Fax: (650) 366-4875
Email: Ryan@WestCoastBK.com
About Sovirish Corporation
Sovirish Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51532) on October
9, 2024, with as much as $50,000 in assets and liabilities.
Ryan C. Wood, Esq., at the Law Offices of Ryan C. Wood, Inc.
represents the Debtor as bankruptcy counsel.
SPECTRUM GROUP: $507MM Bank Debt Trades at 14% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Spectrum Group
Buyer Inc is a borrower were trading in the secondary market around
85.9 cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $507 million Term loan facility is scheduled to mature on May
19, 2028. The amount is fully drawn and outstanding.
Spectrum Group Buyer, Inc. is operating through Pixelle Specialty
Solutions LLC, a manufacturer of specialty papers for diverse end
markets. The company is owned by funds affiliated with H.I.G.
Capital.
SPECTRUM OF HOPE: CSWC Marks $22.2MM Loan at 20% Off
----------------------------------------------------
Capital Southwest Corporation has marked its $22,296,000 loan
extended to Spectrum of Health, LLC to market at $17,837,000 or 80%
of the outstanding amount, according to a disclosure contained in
CSWC's Form 10-Q for the quarterly period ended September 30, 2024,
filed with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to Spectrum of Health,
LLC. The Loan accrues interest at a rate of 13.98% (SOFR+8.50%
(Floor 1.00%)/Q) per annum. The loan matures on August 9, 2026.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Spectrum Health, a federally qualified community health center,
provides affordable medical & mental health services to all in
Philadelphia.
SPIRIT AIRLINES: Files Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Jonathan Randles and Mary Schlangenstein of Bloomberg News report
that Spirit Airlines Inc. has filed for bankruptcy, citing
intensified competition from rival carriers and financial strain
following its failed merger with JetBlue Airways Corp. It reports
assets and liabilities ranging from $1 billion to $10 billion,
according to court documents.
According to Bloomberg News, the filing comes after prolonged
negotiations with creditors following a federal judge's decision to
block JetBlue's $3.8 billion acquisition of Spirit. The judge ruled
that the merger would harm cost-sensitive travelers by increasing
ticket prices, aligning with the federal government's antitrust
concerns. A separate merger discussion with Frontier Group Holdings
Inc. also collapsed.
Spirit has faced mounting pressure from larger airlines offering
more competitive fares, further challenging its financial
stability.
According to a statement, Spirit reached an agreement with a
majority of its loyalty and convertible bondholders for a
comprehensive debt restructuring, the report relates. The plan
includes converting $795 million of existing debt into equity,
giving bondholders control of the company, which will be delisted.
Additionally, bondholders committed $350 million in fresh equity
and $300 million in debtor-in-possession financing to support the
airline during the Chapter 11 process.
The airline, struggling since the COVID-19 pandemic, has posted
annual losses since 2020 and seen its stock drop 93% in 2023
through November 15. Larger U.S. carriers have increasingly
attracted budget-conscious travelers with basic economy fares,
further eroding Spirit's market share.
In response to consumer demand for premium options, Spirit recently
introduced offerings such as extra legroom and free checked bags.
Despite these efforts, it joins Brazilian budget carrier Gol Linhas
Aereas Inteligentes SA in bankruptcy, as Gol filed for Chapter 11
earlier this year.
The case is Spirit Airlines Inc., 24-11988, US Bankruptcy Court,
Southern District of New York (Manhattan).
About Spirit Airlines
Spirit Airlines Inc. is a major United States ultra-low cost
airline headquartered in Miramar, Florida, in the Miami
metropolitan area.
Spirit Airlines Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11989) on November 18,
2024. In its petition, the Debtor listed estimated assets and
liabilities between $1 billion and $10 billion each.
SPIRIT AIRLINES: Files for Chapter 11 With Debt-for-Equity Plan
---------------------------------------------------------------
Spirit Airlines, Inc. (NYSE: SAVE) has sought Chapter 11 protection
after reaching with bondholders the terms of a restructuring plan
that would equitize $795 million of funded debt.
Spirit Airlines said it it has entered into a restructuring support
agreement (the "RSA") supported by a supermajority of Spirit's
loyalty and convertible bondholders on the terms of a comprehensive
balance sheet restructuring. Parties to the Restructuring Support
Agreement are:
1. Spirit Airlines,
2. Holders of 78.6% of the aggregate principal amount of the
senior secured notes claims (including loaned claims), and
3. Holders of 84.1% of the aggregate principal amount of
convertible notes claims;
The RSA and the proposed pre-arranged plan of reorganization
contemplate the equitization of $410 million of outstanding Senior
Secured Notes and $385 million of outstanding Convertible Notes, as
well as a backstopped $350 million new money equity raise upon
emergence from the Chapter 11 cases.
According to a regulatory filing, the Restructuring Support
Agreement and the Plan provide, in pertinent part:
-- Vendors, aircraft lessors and holders of secured aircraft
indebtedness will continue to be paid in the ordinary course and
will not be impaired;
-- The Supporting Stakeholders have committed to provide a $300
million new money senior secured superpriority debtor-in-possession
facility (the "DIP Facility"). The DIP Facility is expected to be
repaid in full in cash on the effective date of the Plan (the
"Effective Date").
-- On the Effective Date, the Company (as reorganized,
"Reorganized Spirit") will issue a single class of common equity
interests (the "New Common Equity") to certain of its creditors as
follows: (a) 76% pro rata to the Senior Secured Noteholders and (b)
24% pro rata to the Convertible Noteholders, subject to dilution on
account of the Management Incentive Plan, the $350 million Equity
Rights Offering, and certain adjustments set forth in the Plan.
-- On the Effective Date, Reorganized Spirit will issue $840
million of senior secured notes (the "Exit Secured Notes") to
certain of its creditors as follows: (a) $700 million in the
aggregate, pro rata, to the Senior Secured Noteholders and (b) $140
million in the aggregate, pro rata, to the Convertible Noteholders,
subject to certain adjustments set forth in the Plan.
-- All of the Company's existing common stock and other equity
interests will be cancelled without any distributions to the
holders of such common stock and other equity interests on account
thereof.
The Company noted in the SEC filing that it expects that holders of
the Company’s common stock will not receive distributions in the
Chapter 11 Cases, and that the equity will be canceled under the
Plan.
The Restructuring Support Agreement includes certain milestones for
the progress of the Chapter 11 Cases, which include the dates by
which Spirit is required to, among other things, obtain certain
court orders and consummate the transactions contemplated therein.
Spirit has entered into a Backstop Commitment Agreement with the
backstop commitment parties named therein. The backstop parties
have agreed to backstop an equity rights offering of new common
equity for an aggregate purchase price of $350 million at 70% of
Plan Equity Value.
Spirit has secured a commitment from certain of its prepetition
debtholders (collectively, the "DIP Lenders"), to provide
approximately $300 million in financing in the form of a senior
secured debtor-in-possession facility (the "DIP Facility"). The
DIP Facility is comprised of (i) new money term loans and (ii) new
money notes (collectively, the "DIP Commitments"). Spirit's
obligations under the proposed DIP Facility will be guaranteed by
each subsidiary of Spirit. The DIP Facility will bear an interest
rate equal to Spirit's choice of (a) SOFR plus 7.00% per annum or
(b) Alternate Base Rate plus 6.00% per annum.
Spirit expects to continue operating its business in the normal
course throughout this prearranged, streamlined chapter 11 process.
Guests can continue to book and fly without interruption and can
use all tickets, credits and loyalty points as normal. The chapter
11 process itself will not impact Team Member wages or benefits,
which are continuing to be paid and honored for those employed by
Spirit. Vendors, aircraft lessors and holders of secured aircraft
indebtedness will continue to be paid in the ordinary course and
will not be impaired.
Counsel to the Debtors:
Marshall Huebner, Esq.
Darren S. Klein, Esq.
Christopher S. Robertson, Esq.
Moshe Melcer, Esq.
Kayleigh Yerdon, Esq.
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
Email: spirit.notice@davispolk.com
Counsel to the Consenting Senior Secured Noteholders:
Michael Stamer, Esq.
Jason P. Rubin, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, NY 10036
Email: mstamer@akingump.com, jrubin@akingump.com
Counsel to the Consenting Convertible Noteholders:
Matthew L. Warren, Esq.
Geoffrey King, Esq.
PAUL HASTINGS LLP
71 S. Wacker Drive
Chicago, IL 60606
E-mail: mattwarren@paulhastings.com
geoffking@paulhastings.com
- and –
Zach Cochran, Esq.
PAUL HASTINGS LLP
1170 Peachtree Street N.E., Suite 100
Atlanta, GA 30309
E-mail: zachcochran@paulhastings.com
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is a low-fare carrier committed to
delivering the best value in the sky by offering an enhanced travel
experience with flexible, affordable options. Spirit serves
destinations throughout the United States, Latin America and the
Caribbean with its Fit Fleet, one of the youngest and most
fuel-efficient fleets in the U.S. On the Web:
http://wwww.spirit.com/
Spirit Airlines, Inc. filed a petition seeking relief under chapter
11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-11988) on Nov. 18, 2024, after reaching terms of a pre-arranged
plan with bondholders.
Davis Polk & Wardwell LLP is the Debtors' attorneys, and Alvarez &
Marsal North America, LLC, is the financial advisor. Epiq is the
claims agent.
Paul Hastings LLP and Ducera Partners LLC are advising the Ad Hoc
Group of Convertible Noteholders.
Akin Gump Strauss Hauer & Feld LLP, and Evercore Group L.L.C. are
advising the Ad Hoc Group of Senior Secured Noteholders.
SRP CAPITAL: Hires Robert C. Nisenson as Attorney
-------------------------------------------------
SRP Capital LLC seeks approval from the U.S. Bankruptcy Court for
the District of New Jersey to employ Robert C. Nisenson, LLC, as
attorney.
Brick Oven Pizza requires Robert C. Nisenson to represent and
provide legal services to the Debtor in the Chapter 11 bankruptcy
proceedings.
The firm will be paid at the hourly rate of $350. It will be paid a
retainer in the amount of $4,000 and $1,717 for filing fees.
Robert C. Nisenson will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Robert C. Nisenson, the firm's founding partner, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Robert C. Nisenson can be reached at:
Robert C. Nisenson, Esq.
ROBERT C. NISENSON, LLC
10 Auer Court
East Brunswick, NJ 08816
Tel: (732) 238-8777
Email: r.nisenson@rcn-law.com
About SRP Capital
SRP Capital LLC filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 23-15309)
on June 20, 2023, with as much as $1 million in both assets and
liabilities. Judge Stacey L. Meisel oversees the case.
Robert C. Nisenson, LLC serves as the Debtor's bankruptcy counsel.
SSM INDUSTRIES: Gets OK to Use Cash Collateral for Utility Deposit
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee,
Northern Division, granted SSM Industries, Inc.'s motion to use
$10,000 in cash collateral to pay a post-petition security deposit
to Middle Tennessee Natural Gas Utility District.
SSM Industries' most recent cash budget does not provide for
payment of the security deposit. The bankruptcy court's approval to
pay the deposit from SSM Industries' cash collateral will ensure
uninterrupted propane gas supply from the utility service provider
during the company's bankruptcy.
About SSM Industries
SSM Industries, Inc., a company in Spring City, Tenn., filed
Chapter 11 petition (Bankr. E.D. Tenn. Case No. 24-31617) on Sept.
16, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Suzanne H. Bauknight oversees the case.
Maurice K. Guinn, Esq., at Gentry Tipton & McLemore, P.C. is the
Debtor's legal counsel.
STATINMED LLC: CSWC Marks $7.5MM Loan at 85% Off
------------------------------------------------
Capital Southwest Corporation has marked its $7,560,000 loan
extended to Statinmed, LLC to market at $1,134,000 or 15% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to YS Garments, LLC. The
Loan accrues interest at a rate of 14.79% (SOFR+9.50%, Payment in
Kind (Floor 2%)/M) per annum. The loan matures on July 1, 2027.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
STATinMED (www.statinmed.com) provides services including outcomes
research analysis, meta-analysis, literature review, medical
writing, litigation support, data visualization and educational
seminars.
STERLING CREDIT: Plan Exclusivity Period Extended to December 2
---------------------------------------------------------------
Judge Tiffany P. Geyer of the U.S. Bankruptcy Court for the Middle
District of Florida extended Sterling Credit Corp.'s exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to December 2, 2024 and January 31, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor explains that in
this case, the extension of each of the Exclusive Periods is fully
justified. As to size and complexity, the case involves over $47
million in debt, of which approximately $25 million is secured. The
Park credit facility and the negotiations regarding it are complex,
and there are lien valuation (and perhaps validity) issues
regarding the Mathes Claims.
The Debtor claims that as to its progress to date, it is currently
conducting successful operations using its cash collateral subject
to the liens of Park and the holders of the Mathes Claims, and it
has made significant progress in restructuring its operations, and
ultimately its post-bankruptcy balance sheet.
The Debtor submits that no creditor will be harmed if this relief
is granted, because the existing orders maintain the status quo
with Park and the short extension should have no negative effect on
any junior lienholder or general unsecured creditor. The Debtor is
also current on its obligations to the United States Trustee and is
in compliance with all of this Court's orders.
Sterling Credit Corp., is represented by:
Robert Drake Wilcox, Esq.
WILCOX LAW FIRM
1301 Riverplace Blvd. Suite 900
Jacksonville FL 32207
Tel: (904) 405-1250
E-mail: rw@wlflaw.com
About Sterling Credit Corp.
Sterling Credit Corp. provides capital and collection services to
customers. It is based in Altamonte Springs, Fla.
Sterling Credit sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02830) on June 4,
2024, with $10 million to $50 million in both assets and
liabilities. William R. Ward, president, signed the petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Robert Drake Wilcox, Esq., at Wilcox
Law Firm.
On July 17, 2024, the U.S. Trustee for the Middle District of
Florida appointed an official committee of unsecured creditors in
this Chapter 11 case. The committee tapped Shuker & Dorris, PA as
its counsel.
STEWARD HEALTH: Ad Hoc Committee Defends Bid to Appoint Tort Panel
------------------------------------------------------------------
The ad hoc committee representing personal injury claimants
defended its bid for the appointment of an official tort claimants
committee in the Chapter 11 case of Steward Health Care System,
LLC.
Earlier this month, the company and its official committee of
unsecured creditors opposed the ad hoc committee's motion, saying
the tort claimants are already represented by the creditors
committee. Both also argued that the ad hoc committee did not
provide enough evidence of the adversity of tort claimants to the
non-tort claimants that currently dominate the creditors
committee.
Adam Schiffer, Esq., the ad hoc committee's attorney, said tort
claimants are at a "distinct disadvantage" in pursuing their rights
under a Chapter 11 plan or otherwise due to the domination of the
creditors committee by commercial creditors.
"The fact admitted by the [creditors committee] that there exist
both [tort claimants] direct claims against third parties and
estate derivative claims against the same parties puts tort
claimants in direct conflict with the commercial creditors that
dominate the [creditors committee]," Mr. Schiffer said.
The U.S. Trustee for Region 7 on May 16 formed a nine-member
committee of unsecured creditors, which includes one personal
injury claimant and eight holders of commercial claims.
"Allowing a [creditors committee], 89%-controlled by non-tort
claimants, to craft the details of a plan that evaluates and
potentially determines outcomes for tort claimants with adverse
claims and rights against a similar asset pool is a recipe for a
coercive bargain," the attorney said.
According to Mr. Schiffer, court records show that Steward provided
"substandard care" to at least hundreds of patients.
"The suggestion of [Steward] and the [creditors committee] that
tort plaintiffs must be placed in a pool to share recoveries with
all other creditors is not consistent with applicable law and basic
fairness. Yet, this is the exact outcome that is likely to occur
here if the tort claimants are denied representation by an
estate-funded committee," Mr. Schiffer further said.
Meanwhile, Gabriela Gonzalez and Bruno Nascimiento, who hold
personal injury claims against the company, expressed their support
for the appointment of an official tort claimants committee. The
claimants are represented by the law firm of Stearns Weaver Miller
Weissler Alhadeff & Sitterson, P.A.
Stearns can be reached through:
Patricia A. Redmond, Esq.
Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.
Museum Tower, Suite 2200
150 West Flagler Street
Miami, FL 33130
Telephone: (305) 789-3200
Email: predmond@stearnsweaver.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.
STUDENT RESOURCE: CSWC Marks $9.6MM Loan at 61% Off
---------------------------------------------------
Capital Southwest Corporation has marked its $9,644,000 loan
extended to Student Resource Center LlC to market at $3,761,000 or
39% of the outstanding amount, according to a disclosure contained
in CSWC's Form 10-Q for the quarterly period ended September 30,
2024, filed with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to Student Resource
Center LlC. The Loan accrues interest at a rate of 8.50% Payment in
Kind per annum. The loan matures on December 30, 2027.
CSWC said, the loan is on non-accrual status as of September 30,
2024, meaning the Company has ceased to recognize interest income
on the investment.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Student Resource Center, LLC provides Education Administration
Programs.
SYNAPTICS INC: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook on Synaptics Inc. to stable
from negative and affirmed its 'BB-' issuer credit rating. This
reflects its belief that the business is on track to reduce
leverage below 5x by fiscal 2025, further supported by ample
liquidity.
S&P said, "At the same time, we raised the issue-level rating to
'BB-' from 'B+' and revised recovery rating to '4' from '5' on the
$400 million senior notes (rounded estimate 45%). The new
convertible notes will not be rated.
"We expect Synaptics' revenue and margins to expand modestly over
the next year, leading to forecast leverage below 5x by fiscal
2025. Since our last rating action in April, Synaptics has reported
two consecutive quarters of revenue growth, 8.8% in June and 8.4%
in September, as headwinds from industrywide excess inventory have
significantly eased and demand gradually recovers. Core Internet of
Things (IoT) products continue to show strong growth, driven by
increased demand for wireless connectivity, edge processors, and
AI-enabled features. Synaptics' Enterprise PC and Mobile segments
are also modestly improving, partly offset by sluggish demand in
the automotive market. We expect momentum to strengthen in the
coming quarters, with projected organic growth of 7% for fiscal
2025. Alongside top-line improvement, we anticipate profitability
and margins to increase, with the S&P Global Ratings-adjusted
EBITDA margin in the 18%-19% range, up 2%-3% from fiscal 2024. Pro
forma for the refinancing, we forecast leverage to be mid-4x by the
end of fiscal 2025 and free operating cash flow (FOCF) to exceed
$100 million, with the FOCF-to-debt ratio in the low-teens
percents."
The refinancing will meaningfully reduce cash interest expense, in
addition to reducing balance sheet debt levels. Following the
transaction, Synaptics' gross debt will decline to approximately
$825 million, down from $972 million as of Sept. 30, 2024. The new
capital structure comprises $400 million in senior unsecured notes
due in 2029 with a 4% annual coupon rate and $425 million in
convertible notes due in 2031 with a 1%-1.5% coupon rate. S&P
anticipates that the combination of reduced debt, lower interest
rates, and removal of debt amortization will have approximately $50
million annual savings.
Liquidity remains ample, providing flexibility for investments,
though the rating cushion is limited for large mergers and
acquisitions. S&P said, "At deal close, we expect Synaptics to
retain about $530 million cash, with additional liquidity from the
fully available $350 million revolver and operational cash flow.
This should support ongoing operational and growth investment needs
or smaller strategic acquisitions. We currently don't expect large
deals since the company emphasized its focus on organic growth and
restructuring in the near term during its latest earnings call.
That said, should it make a large deal, we may reassess the rating
given the limited cushion within the current category."
S&P said, "The stable outlook reflects our expectation that
Synaptics' operating performance will gradually improve over the
next 12 months as the industry recovers from a market downturn. We
expect revenue and margins will improve sequentially. Pro forma for
the refinancing, we expect S&P Global Ratings-adjusted leverage
will improve below 5x in fiscal 2025."
S&P may consider lowering the rating if:
-- Key customer losses, weak market demand, operational missteps,
or aggressive debt-funded acquisitions sustain leverage above 5x;
-- The FOCF-to-debt ratio falls below the high single-digit
percentages; and
-- S&P no longer view liquidity as strong due to a significant
decline in balance sheet cash or a draw on the revolver.
Although unlikely in the next 12 months, S&P could raise the rating
if:
-- Performance stabilizes with a sustained pivot toward IoT,
enabling revenue growth and stronger technological differentiation
while maintaining leverage in the low-2x range;
-- The company demonstrates a consistent financial policy,
maintaining leverage in the low-2x area on a sustained basis across
market cycles and mergers and acquisitions; and
-- It maintains a strong liquidity position.
TARRANT COUNTY SENIOR: Court Confirms Prepack Chapter 11 Plan
-------------------------------------------------------------
Judge Scott Everett of the U.S. Bankruptcy Court for the Northern
District of Texas approved Tarrant County Senior Living Center,
Inc.'s solicitation procedures and disclosure statement, and
confirmed its prepackaged plan of reorganization pursuant to
Chapter 11 of the Bankruptcy Code.
The Court held that the Disclosure Statement contains:
(i) sufficient information of a kind consistent with the
disclosure requirements of all applicable nonbankruptcy laws,
rules, and regulations, including the Securities Act (to the extent
applicable), and
(ii) "adequate information" (as such term is defined in section
1125(a) of the Bankruptcy Code and used in section 1126(b)(2) of
the Bankruptcy Code) with respect to the Debtor, the Plan, and the
transactions contemplated therein, and is approved in all respects.
The filing of the Disclosure Statement with the clerk of the
Bankruptcy Court satisfied Bankruptcy Rule 3016(b), the Court
finds.
Solicitation
Prior to commencing the Chapter 11 Case, the Debtor caused the
Solicitation Package to be transmitted and served in compliance
with sections 1125(g) and 1126(b) of the Bankruptcy Code, the
Bankruptcy Rules, including Bankruptcy Rules 3017 and 3018, the
Local Rules, and all other applicable provisions in the Bankruptcy
Code, and all other applicable rules, law, and regulations
applicable to such solicitation. The form of ballots used to
solicit votes to accept or reject the Plan from Holders of Bond
Claims in Class 3, which are the only Holders of Claims entitled to
vote to accept or reject the Plan, adequately addressed the
particular needs of the Chapter 11 Case and were appropriate for
Holders in the Voting Class to accept or reject the Plan, the Court
finds.
Confirmation of the Plan
The Plan complies with the applicable provisions of the Bankruptcy
Code, and, as required by Bankruptcy Rule 3016, the Plan is dated,
identifies the Debtor as the plan proponent, and clearly identifies
the injunction proposed under the Plan, thereby satisfying section
1129(a)(1) of the Bankruptcy Code, the Court concludes.
With the exception of Administrative Expense Claims, Fee Claims,
and Priority Tax Claims which need not be classified, section 3 of
the Plan classifies the Classes of Claims against the Debtor. The
Claims placed in each Class are substantially similar to the other
Claims in each such Class. Valid business, factual, and legal
reasons exist for separately classifying the various Classes of
Claims created under the Plan, and the Plan does not unfairly
discriminate between Holders of Claims in each Class or between
Classes. Accordingly, the Plan satisfies sections 1122 and
1123(a)(1) of the Bankruptcy Code.
Sections 3 and 4 of the Plan specifies which Classes of Claims are
Unimpaired under the Plan within the meaning of section 1124 of the
Bankruptcy Code, thereby satisfying section 1123(a)(2) of the
Bankruptcy Code.
Sections 3 and 4 of the Plan specify which Class of Claims is
Impaired under the Plan within the meaning of section 1124 of the
Bankruptcy Code and clearly specify the treatment of the Claims
that Class, thereby satisfying section 1123(a)(3) of the Bankruptcy
Code.
The Plan provides for the same treatment for each Claim in each
respective Class unless the Holder of a particular Claim has agreed
to less favorable treatment for such Claim, thereby satisfying
section 1123(a)(4) of the Bankruptcy Code.
The Debtor has proposed the Plan, including all documents necessary
to effectuate the Plan, and the transactions contemplated by the
Plan in good faith and not by any means forbidden by law, thereby
satisfying the requirements of section 1129(a)(3) of the Bankruptcy
Code. The Debtor's good faith is evident from the facts and record
of this Chapter 11 Case, the Disclosure Statement, and the record
of the Confirmation Hearing and other proceedings held in this
Chapter 11 Case. The Debtor's Chapter 11 Case was filed, and the
Plan was proposed, with the legitimate purpose of allowing the
Debtor to implement the Refinancing Transaction, reorganize, and
successfully emerge from chapter 11. The Plan (including all
documents necessary to effectuate the Plan), the Plan Support
Agreement, and the 2024 Bond Documents were negotiated in good
faith and at arm's length among the Debtor, Buckner, the Trustee,
and the Supporting Holders. Additionally, the Refinancing
Transaction embodied in the Plan, reflects the best possible
compromise that could be reached given the facts and circumstances
surrounding the Debtor and this Chapter 11 Case. Further, the
Plan's classification, exculpation, release, and injunction
provisions are consistent with sections 105, 1123(b)(3)(A),
1123(b)(6), 1129, and 1142 of the Bankruptcy Code and applicable
case law in the Fifth Circuit, have been negotiated in good faith
and at arms' length, are integral to the Plan, and supported by
valuable consideration.
As reported by the Troubled Company Reporter, Tarrant County Senior
Living Center, Inc., doing business as The Stayton at Museum Way,
returned to Chapter 11 bankruptcy to seek confirmation of a
prepackaged Chapter 11 plan that would refinance its existing bond
obligations.
The Plan is supported by several of the Debtor's key stakeholders,
including, (i) BOKF, N.A., as Successor Trustee, at the direction
of the Supporting Holders; (ii) each beneficial holder or
investment manager or advisor for such beneficial holders of the
Bonds that are signatories to the Plan Support Agreement or execute
joinders thereto, which holders currently collectively hold at
least 67% of the aggregate principal amount of the outstanding
Bonds; and (iii) Buckner Retirement Services, Inc.
Class 4 consists of all General Unsecured Claims against the
Debtor. Except to the extent that a Holder of an Allowed General
Unsecured Claim against the Debtor agrees to a different treatment
of such Claim, on and after the Effective Date, the Reorganized
Debtor shall continue to pay or dispute each General Unsecured
Claim in the ordinary course of business as if the Chapter 11 Case
had never been commenced. This Class will receive a distribution of
100% of their allowed claims.
The Debtor is a nonprofit corporation, and, as such, there are no
equity interests in the Debtor to be classified and treated under
the Plan.
A full-text copy of the Disclosure Statement dated October 1, 2024
is available at https://urlcurt.com/u?l=BRl0VB from
PacerMonitor.com at no charge.
A copy of the Court's decision dated November 12, 2024, is
available at https://urlcurt.com/u?l=oHSOlb
Proposed Counsel for the Debtor:
Martin A. Sosland, Esq.
Candice Carson, Esq.
BUTLER SNOW LLP
2911 Turtle Creek Blvd., Suite 1400
Dallas, Texas 75219
Tel: (469) 680-5500
Fax: (469) 680-5501
E-mail: martin.sosland@butlersnow.com
candice.carson@butlersnow.com
- and -
Adam M. Langley, Esq.
Kenneth Groce, Esq.
BUTLER SNOW LLP
6075 Poplar Avenue, Suite500
Memphis, TN 38119
Tel: (901) 680-7200
Fax: (901) 680-7201
E-mail: adam.langley@butlersnow.com
kenneth.groce@butlersnow.com
- and -
Xan Flowers, Esq.
BUTLER SNOW LLP
1819 Fifth Avenue North, Suite 1000
Birmingham AL 35203
Tel: (205) 297-2200
Fax: (205) 297-2201
E-mail: xan.flowers@butlersnow.com
About Tarrant County Senior Living Center
Incorporated in 2006, Stayton owns and operates a continuing care
retirement community in Fort Worth, Texas dedicated to giving its
residents a vibrant, active, and independent lifestyle. Stayton
offers its senior residents a continuum of care in a luxury
campus-style setting, providing living accommodations and related
health care and support services to a market of seniors aged 62 and
older.
Tarrant County Senior Living Center, Inc. filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Case No. 24-80068) on October 1, 2024, listing $100
million to $500 million in assets and $100 million to $500 million
in liabilities. The petition was signed by Jeff Gentry as SVP and
chief financial officer.
Judge Scott W Everett presides over the case.
Butler Snow LLP represents the Debtor as counsel.
TASTE OF TRELAWNY: Hires Vivona Pandurangi as Bankruptcy Counsel
----------------------------------------------------------------
Taste of Trelawny LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to hire Vivona Pandurangi, PLC
as counsel.
The firm's services include:
(a) serve as general bankruptcy counsel;
(b) prepare schedules and related forms;
(c) represent the Debtor at hearings before the Bankruptcy
Court;
(d) advise the Debtor of its duties and responsibilities under
the Bankruptcy Code;
(e) assist in preparation of monthly operating reports;
(f) analyze the Debtor's financial matters;
(g) advise the Debtor in connection with executory contracts;
(h) draft documents to reflect agreements with creditors;
(i) resolve motions for relief from stay and adequate
protection;
(j) negotiate for obtaining financing and use of cash
collateral, as necessary;
(k) determine whether reorganization, dismissal, or conversion
is in the best interests of the Debtor and its creditors;
(l) work with the creditors' committee and other counsel, if
any;
(m) draft any disclosure statement and plan of reorganization;
and
(n) handle other matters that arise in the normal course of
administration of this bankruptcy estate.
The firm will be paid at an hourly rate of $400 plus reimbursement
for expenses incurred.
The Debtor paid the firm a prepetition retainer in the amount of
$9,238.
Ashvin Pandurangi, Esq., an attorney at Vivona Pandurangi,
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:
Ashvin Pandurangi
VIVONA PANDURANGI, PLC
211 Park Ave.
Falls Church, VA 22046
Tel: (571) 969-6540
Fax: (571) 699-0518
Email: ashvinp@vpbklaw.com
About Taste of Trelawny LLC
Taste of Trelawny LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
24-12065) on Nov. 4, 2024, listing up to $50,000 in assets and
$500,001 to $1 million in liabilities. Ashvin Pandurangi, Esq. at
Vivona Pandurangi, PLC represents the Debtor as counsel.
TELESAT LLC: $1.91BB Bank Debt Trades at 53% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Telesat LLC is a
borrower were trading in the secondary market around 47.2
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.91 billion Term loan facility is scheduled to mature on
December 7, 2026. About $1.42 billion of the loan has been drawn
and outstanding.
Telesat LLC operates as a satellite operator. The Company offers
satellite delivered communications solutions to broadcast, telecom,
corporate, and government customers, as well as provides technical
consultancy services. Telesat serves clients worldwide.
TELESCOPE PROPERTIES: Taps Paramount One Realty as Broker
---------------------------------------------------------
Telescope Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to employ Paramount One
Realty, LLC as real estate broker.
The broker will sell the Debtor's interest in 12062 Klinger Street,
Hamtramck, MI 48212.
Paramount One Realty will receive a commission of 6 percent plus
$395.
As disclosed in the court filings, Paramount One Realty is a
"disinterested person" within the meaning of 11 U.S.C. 101(14).
The firm can be reached through:
Jennifer Smitherman
Paramount One Realty, LLC
33532 Five Mile Rd
Livonia, MI 48154
Phone: (734) 206-2000
Email: paramountonerealty@gmail.com
About Telescope Properties, LLC
The Debtor is a Single Asset Real Estate (as defined in 11 U.S.C.
Section 101(51B)).
Telescope Properties, LLC in Flint, MI, filed its voluntary
petition for Chapter 11 protection (Bankr. E.D. Mich. Case No.
24-30425) on March 6, 2024, listing $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. Shabi Jafri as
principal, signed the petition.
Judge Joel D. Applebaum oversees the case.
Robert N. Bassel, Esq. serve as the Debtor's legal counsel.
THREE SEAS: Gets Interim Approval to Use Cash Collateral
--------------------------------------------------------
Three Seas Atlanta, LLC received interim approval from the U.S.
Bankruptcy Court for the Western District of North Carolina to use
cash collateral.
The court authorized the company to utilize cash collateral for the
payment of its operating expenses as detailed in its budget, which
shows a total of $44,975 in weekly expenses.
The company's expenses must not exceed the budget by more than 10%
per line item on a cumulative basis.
The interim order granted creditors a replacement lien on the
company's property with the same priority as their pre-bankruptcy
lien.
About Three Seas Atlanta
Three Seas Atlanta, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. N.C. Case No.
24-30881) on October 8, 2024, listing up to $50,000 in assets and
up to $1 million in liabilities.
Judge Ashley Austin Edwards presides over the case.
John C. Woodman, Esq., at Essex Richards represents the Debtor as
counsel.
TIDAL REAL: Holiday Inn May Not be Demolished in Receivership
-------------------------------------------------------------
Dane Huffman of Triangle Business Journal reports that the fate of
the iconic Holiday Inn on Hillsborough Street in Raleigh remains
uncertain, as plans for its demolition may be reconsidered.
Originally set to be replaced by a luxury Kimpton hotel, New
York-based developer Tidal Real Estate Partners is reportedly
exploring the possibility of renovating the property instead,
according to the report.
The 20-story hotel, a staple of Raleigh's skyline since 1969, is
only accepting reservations through February 28, the report says,
citing interim general manager Ray Lakes. While Lakes declined to
provide details and referred questions to property manager
StepStone Hospitality, city records show no demolition plans have
been submitted.
A renovation would align with market trends and the hotel's steady
performance, the report adds.
Similar retro-style properties, such as the Longleaf Hotel in
Raleigh, have successfully undergone updates, suggesting a
potential shift in Tidal's strategy.
Tidal Real Estate Partners purchased the hotel site and an adjacent
parking lot for $23.8 million in 2021. The company announced plans
in 2022 for a 20-story mixed-use tower featuring a hotel,
apartments, and parking, later securing an agreement to bring
Raleigh its first Kimpton hotel. By May 2023, however, Tidal was
reevaluating its options. Former general manager Damian Cortez
indicated that a decision would be made in October regarding the
hotel's future.
Lakes noted that bookings remain strong, and on Thursday, the lobby
was bustling with activity. "We're busy constantly," he said,
emphasizing the hotel's continued popularity.
About Tidal Real Estate Partners
Tidal Real Estate Partners is a New York-based real estate
developer.
TRANS-LUX CORP: Naibin Tang Replaces Nicholas Fazio as New CEO
--------------------------------------------------------------
Trans-Lux Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company accepted
the resignations of Nicholas Fazio from his positions as Director
and Chief Executive Officer of the Company and of Jie Feng from his
position as Director of the Company. Messrs. Fazio and Feng's
departures were not the result of any disagreement related to any
matter involving the Company's operations, policies or practices.
On October 30, 2024, Trans-Lux Corporation announced the
appointments of Messrs. Naibin (Robin) Tang and Xu He as Directors
of the Company. Mr. Tang was also appointed as the Chief Executive
Officer of the Company. Neither Mr. Tang or Mr. He is a party to
any transaction required to be disclosed pursuant to Item 404(a) of
Regulation S-K except with respect to their employment with
Unilumin, the Company's largest stockholder. There are no
arrangements or understandings between Messrs. Tang and He and any
other person pursuant to which such individuals were selected as a
director. Mr. Tang has been Chief Operating Officer of Unilumin
US, LLC since April 2024. Previously Mr. Tang had been Chief
Executive Officer of Quken Technology Co., Ltd., Vice President of
Samsung Semiconductor, and Channel Sales Manager of Phillips
Lighting. At this time, Mr. Tang will continue to receive
compensation from Unilumin Group for his employment as Chief
Executive Officer of the Company and will be entitled to the
compensation the Company offers its other employee directors from
time to time, including any annual retainers and equity
compensation. Mr. He will be entitled to the compensation the
Company offers its other non-employee directors from time to time,
including any annual retainers and equity compensation.
About Trans-Lux
Headquartered in New York, New York, Trans-Lux Corporation --
http://www.trans-lux.com-- is a supplier of LED technology for
display applications. The essential elements of these systems are
the real-time, programmable digital products that the Company
designs, manufactures, distributes and services. Designed to meet
the digital signage solutions for any size venue's indoor and
outdoor needs, these displays are used primarily in applications
for the financial, banking, gaming, corporate, advertising,
transportation, entertainment and sports markets. The Company
operates in two reportable segments: Digital product sales and
Digital product lease and maintenance.
New Haven, CT-based Marcum LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, Trans-Lux had $7.93 million in total assets,
$24.34 million in total liabilities, and a total stockholders'
deficit of $16.41 million.
TROY 3440 LLC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Troy 3440 LLC
3440 Troy Dr
Los Angeles CA 90068
Business Description: Troy 3440 LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: November 14, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11896
Judge: Hon. Martin R Barash
Debtor's Counsel: George J. Paukert, Esq.
8584 Alpine Vineyards Court
Las Vegas NV 89139
Tel: (310) 850-0231
E-mail: paukburt@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Avis Copelin as CEO.
The Debtor indicated it has no unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/RM3VVOI/Troy_3440_LLC__cacbke-24-11896__0001.0.pdf?mcid=tGE4TAMA
TRUCK & TRAILER: Unsecureds Will Get 10% of Claims over 5 Years
---------------------------------------------------------------
Truck & Trailer Leasing Avenue, LLC and Pigeon Freight Services,
Inc. filed with the U.S. Bankruptcy Court for the Northern District
of Illinois a Disclosure Statement in conjunction with the Joint
Plan of Reorganization dated October 3, 2024.
Pigeon Freight was formed as an Illinois corporation in 2013. For
several years, Pigeon Freight owned and operated equipment,
consisting of trucks and trailers, and operated an interstate long
distance trucking business.
In 2019, Truck & Trailer was formed as an Illinois limited
liability company. The intention was to have Truck & Trailer
purchase and own trucks and trailers, with Pigeon Freight being the
"operating" company, contracting with customers and hauling
freight, while paying lease payment to the equipment owner, Truck &
Trailer.
Pigeon Freight continues to be the main source of income for the
two debtor companies, as it is the operating company that contracts
with shippers. Its monthly income has increased from approximately
$1.4 million/month to over $1.7 million/month. The Debtor projects
future income to be approximately $2 million/month and expects that
it will operate at a sufficient profit to make all payments under
the Plan. The Debtor and intends to continue its factoring
arrangement with Pro Funding, Inc., to facilitate collection of
accounts receivable.
The Debtors' Joint Plan of Reorganization provides for payment in
full of all priority claims in full, with interest at 6%, per
annum, over four years, and the payment of all claims secured by
trucks and trailers, to the extent of the value of collateral, with
interest at 7.5% per annum, over six years.
The creditor secured by a mortgage in real estate will be paid
interest-only for five years, upon which time the full amount of
the claim will come due. All general unsecured creditors, including
the unsecured deficiency claims of under-secured creditors, and the
general unsecured portion of any governmental claims, will be paid
a 10% distribution, in quarterly payments, over a period of five
years.
Class VI consists of the claims of all other general unsecured
creditors of the Debtors as the same are allowed and ordered paid
by the court. This class consists of one claim in the Truck &
Trailer case, in the amount of $26,795.52, and two claims in the
Pigeon Freight case, which total $110,991.18.
The claims of all other general unsecured creditors of the Debtors
will receive a 10% distribution over five years, in quarterly
payments. The total amount of claims in this class is $137,786.70.
The 10% distribution of $13,778.67 will be paid in quarterly
installments of $6,889.34, divided pro rata among all creditors in
this Class.
Each Debtor has one equity owner, Sergiu Tintiuc, who is the sole
member of Truck & Trailer Leasing Avenue LLC and owns 100% of the
stock of Pigeon Freight Services, Inc. Sergiu Tintiuc is the
manager of Truck & Trailer and the president of Pigeon Freight, and
will continue in those roles. During the pendency of this case, has
not received any compensation from either Debtor. The Debtors do
not have any plans to pay compensation to Mr. Tintiuc in the
immediate future, but will pay compensation at a reasonable rate if
and when funds become available.
The Plan provides for the current equity owner of the Debtors,
Sergiu Tintiuc, to retain his equity interest in the debtor
entities, with payment of $1,000.00 in new value to each estate as
required to satisfy the "absolute priority rule" under Section
1129(b)(2) of the Bankruptcy Code. In order to determine the value
of the equity interest and the adequacy of the new value
contribution by the Debtors' equity owner, each Debtor will conduct
an auction of the equity interest of the Debtor on a date to be
determined, at the office of the Debtor's counsel. The auction will
be conducted according to the provisions of the Plan.
The Debtors will continue to operate their trucking business, which
the Debtors expect will provide sufficient funding to pay all
expenses and all payments to creditors under the Plan. The Debtors
will continue the factoring arrangement with Pro Funding, Inc.,
which will facilitate collection of accounts receivable.
A full-text copy of the Disclosure Statement dated October 3, 2024
is available at https://urlcurt.com/u?l=oYiIJS from
PacerMonitor.com at no charge.
Counsel to the Debtors:
David P. Lloyd, Esq.
David P. Lloyd, Ltd.
615B S. LaGrange Rd.
LaGrange IL 60525
708-937-1264
Fax: 708-937-1265
Email: courtdocs@davidlloydlaw.com
Saulius Modestas, Esq.
Modestas Law Offices, P.C.
401 S. Frontage Rd.
Suite C
Burr Ridge IL 60527
312-251-4460
Email: smodestas@modestaslaw.com
About Truck & Trailer Leasing Avenue
Truck & Trailer Leasing Avenue LLC was formed as an Illinois
limited liability company.
The Debtor filed a Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-04137) on March 21, 2024. The Debtor estimated assets and debt
of $10 million to $50 million as of the bankruptcy filing. David P.
Lloyd, Ltd. serves as the Debtor's counsel.
TYRON PROPERTY: Enters Receivership After Loan Default
------------------------------------------------------
Elise Franco of Charlotte Business Journal reports that JLL, a
Chicago-based commercial real estate firm, has been appointed as
the receiver for an uptown Charlotte office tower after a lender
filed a lawsuit against the property owners over a $93.5 million
loan default. The loan had financed the $133.5 million purchase of
the property in 2018, according to the report.
The lawsuit was filed on November 5, 2024 by 400 South Tryon
Property LLC, linked to Citizens Bank and Synovus Bank, against
Tryon Property Owner LP, the report relates. It sought the
appointment of a limited receiver to manage the 32-story,
587,000-square-foot office tower at 400 South Tryon St. during
foreclosure proceedings.
In 2018, Los Angeles-based Oaktree Capital Group purchased the
building for $133.5 million, with Trinity Capital Advisors
retaining a partial stake after its 2014 acquisition with DRA
Advisors. The purchase was financed with a $93.5 million loan from
Citizens Bank, which was restructured later that year, transferring
over $30 million of the debt to Synovus Bank, the report says.
The property fell into default on July 26, 2023, with the
outstanding principal and interest exceeding $90.7 million as of
November 4, 2024. According to the lawsuit, the noteholder was
unable to take control of the property, protect its collateral, or
manage it properly, causing irreparable harm.
On November 8, 2024, the court issued a temporary order appointing
JLL as the receiver and imposing a restraining order pending a
preliminary injunction hearing. The order is set to expire on
November 18, 2024. Attempts to reach representatives from JLL,
Oaktree, Trinity, and the plaintiffs' attorneys were unsuccessful,
the report notes.
About Tryon Property Owner LP
Tryon Property Owner LP owns 32-story, 587,000-square-foot office
tower in Chicago, Illinois.
UPTOWN DENTAL: Areya Holder Aurzada Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq.,
at Holder Law as Subchapter V trustee for Uptown Dental Solutions,
PLLC.
Ms. Aurzada will be paid an hourly fee of $575 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Aurzada declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Areya Holder Aurzada, Esq.
Holder Law
901 Main Street, Ste. 5320
Dallas, TX 75202
Office: 972-438-8800
Mobile: 817-907-4140
About Uptown Dental Solutions
Uptown Dental Solutions, PLLC is a full-service practice offering
comprehensive range of dental services including, cosmetic,
general, and family dentistry in Rockwall, Texas. It conducts
business under the name Lakeside Dental Solutions.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33352) on October
25, 2024, with $1 million to $10 million in both assets and
liabilities. Rashid Beirute-Prada, sole member, signed the
petition.
Brandon Tittle, Esq., at Tittle Law Group, PLLC, represents the
Debtor as bankruptcy counsel.
US TELEPACIFIC: CSWC Marks $2.4MM Loan at 60% Off
-------------------------------------------------
Capital Southwest Corporation has marked its $2,470,000 loan
extended to US Telepacific Corp to market at $988,000 or 40% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to Us Telepacific Corp.
The Loan accrues interest at a rate of 12.42% (SOFR+1.00%, 6.25%
Payment In Kind (Floor 1.00%)/Q) per annum. The loan matures on May
2, 2026.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
US TelePacific Corp., doing business as TPx Communications,
provides communications and managed services.
US TELEPACIFIC: CSWC Marks $230,000 Loan at 75% Off
---------------------------------------------------
Capital Southwest Corporation has marked its $230,000 loan extended
to Us Telepacific Corp to market at $58,000 or 25% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a Third Lien Loan to Us Telepacific Corp.
The loan matures on May 2, 2027.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
US TelePacific Corp., doing business as TPx Communications,
provides communications and managed services.
VG IMPERIAL: Files Amendment to Disclosure Statement
----------------------------------------------------
VG Imperial Inc. submitted an Amended Disclosure Statement for the
Amended Small Business Plan of Reorganization dated October 1,
2024.
The asset of the Debtor is Kenworth T680 Truck 2016, with a market
value of $30,000.00. According to the Debtor's monthly operating
report for July 2024, the cash on hand at the end of the month is
$1,436.86. The Debtor has no account receivable.
General unsecured claims are not secured by property of the estate.
The claim of NYS Department of Labor will not receive any treatment
as this claim was filed in the amount of $0. As a result, Class 1
is impaired and is entitled to vote pursuant to Section 1126(f) of
the Bankruptcy Code.
Equity interest holder Viktor V. Ryptyk retains his interest.
The Plan will be financed by continuing the reorganized business
operations of the Debtor as well as by funds accumulated in the
Debtor in Possession bank account.
Viktor V. Ryptyk, as the president and 100% shareholder of the
Debtor, will continue to manage the day-to-day business operations
of the Debtor and will continue to be employed by the business,
with the monthly compensation rate of $1,200.00.
The only known risk factors are as follows: though it is highly
unlikely in light of the recent and current level of operations of
the Debtor, it is impossible that the Debtor may not be able to
continue operations at one point, or the Debtor's business may
suffer a decline, due to unexpected changes in market conditions,
or other unforeseen events, causing the Debtor to be unable to make
timely plan payments. This is not a significant risk factor as the
Debtor's financial projections provide for sufficient funds in this
scenario.
A full-text copy of the Amended Disclosure Statement dated October
1, 2024 is available at https://urlcurt.com/u?l=oKTnaf from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Email: alla@kachanlaw.com
About VG Imperial Inc.
VG Imperial Inc. is a corporation located at 1760 66th Street, Apr
2R, Brooklyn, NY 11204.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42627) on October 21,
2022. In the petition signed by Viktor V. Ryptyk, president, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Alla Kachan, PC, represents the Debtor as legal
counsel.
VORTEX OPCO: $1.60BB Bank Debt Trades at 34% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Vortex Opco LLC is
a borrower were trading in the secondary market around 66
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.60 billion Term loan facility is scheduled to mature on
December 15, 2028. About $1.60 billion of the loan has been drawn
and outstanding.
Vortex Opco LLC, is a new subsidiary created by United Site
Services Inc. to issue new debt, which includes $431 million in
first-lien, first-out debt, $1.66 billion of first-lien, second-out
term loans, and $125 million of first-lien, third-out 8% senior
secured notes. USS provides portable sanitation and related site
services.
WATER GREMLIN: Plan Exclusivity Period Extended to Jan. 17, 2025
----------------------------------------------------------------
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for
the District of Delaware extended Water Gremlin Company and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to January 17, 2025 and April 18, 2025,
respectively.
As shared by Troubled Company Reporter, the complexity of the
Debtors' chapter 11 cases warrant an extension of the Exclusivity
Periods. The multitude of tort claims, the various Sales of the
Debtors' assets to multiple buyers, the involvement of governmental
regulators in the sale order process, and the myriad of reporting
obligations with respect to local, state, and federal regulatory
agencies that the Debtors complied with through the Sales lends to
the complexity of these Chapter 11 Cases.
The Debtors have obtained and paid off post-petition financing;
engaged in a robust sale and marketing process and closed on three
Sales of the assets of the various Debtor entities to maximize the
value of their estates; set their various Bar Dates; rejected
various executory contracts and leases while assigning others to
the new owners of the Debtors' sold assets; and participated in a
mediation session with the Parties; and the Debtors are continuing
their claims reconciliation process and will soon commence the
filing of claim objections.
The Debtors are closer to achieving a global resolution with the
Committee and other stakeholders of the treatment of various claims
asserted against the Debtors, and to developing a chapter 11 plan
of liquidation based on the outcome of such discussions. Thus, the
Debtors' substantial progress administering these Chapter 11 Cases
weighs in favor of an extension of the Exclusivity Periods.
The Debtors are not seeking an extension of the Exclusivity Periods
to pressure or prejudice any of their stakeholders. The Debtors
have been diligently moving these Chapter 11 Cases forward and are
progressing towards a global resolution for many of their
unliquidated claims. Accordingly, the relief requested herein is
without prejudice to the Debtors' creditors and will benefit the
Debtors' estates, their creditors, and all other key parties in
interest.
Counsel for the Debtors:
DORSEY & WHITNEY (DELAWARE) LLP
Eric Lopez Schnabel, Esq.
Alessandra Glorioso, Esq.
300 Delaware Avenue, Suite 1010
Wilmington, Delaware 19801
Telephone: (302) 425-7171
Email: schnabel.eric@dorsey.com
glorioso.alessandra@dorsey.com
-and-
Eric Lopez Schnabel, Esq.
Michael Galen, Esq.
Courina Yulisa, Esq.
Laura Goforth, Esq.
Dorsey & Whitney LLP
51 West 52nd Street
New York, NY 10019
Tel: (212) 415-9200
Fax: (212) 953-7201
Email: schnabel.eric@dorsey.com
About Water Gremlin Company
Water Gremlin Company is the world's technological and market
leader in battery terminals. It was founded in 1949 as a
manufacturer of recreational fishing products. In 1970, the Debtor
expanded to battery terminal production. Water Gremlin uses custom
engineering, design, and automation to deliver consistent quality
solutions for industries like automotive, agriculture, commercial
trucking, marine, telecommunications, recreation, and military and
government operations.
Water Gremlin and its affiliates filed Chapter 11 petitions (Bankr.
D. Del. Lead Case No. 23-11775) on Oct. 27, 2023. At the time of
the filing, Water Gremlin reported $10 million to $50 million in
both assets and liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Alessandra Glorioso, Esq., at Dorsey & Whitney
(Delaware) LLP as bankruptcy counsel; Intrepid Investment Bankers,
LLC as investment banker; Riveron RTS, LLC as financial advisor.
Kekst CNC and Padilla provide public relations services to the
Debtors.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Norman Pernick, Esq.
WELLPATH HOLDINGS: $110MM Bank Debt Trades at 99% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Wellpath Holdings
Inc is a borrower were trading in the secondary market around 0.7
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $110 million Term loan facility is scheduled to mature on
October 1, 2026. The amount is fully drawn and outstanding.
Wellpath Holdings, headquartered in Nashville, Tennessee, provides
medical, dental, and behavioral health services to patients in
local detention facilities, federal and state prisons and
behavioral healthcare facilities. Wellpath is privately owned by
H.I.G. Capital.
WESTCLIFF INVESTORS: Gets OK to Use Cash Collateral Until Dec. 6
----------------------------------------------------------------
The U.S. Bankruptcy Court, Central District of California, Los
Angeles Division approved a stipulation allowing Westcliff
Investors, LLC and Beitler Texas Enterprises, LLC to use the cash
collateral of their lender, Jasper Lake Ventures Two, LLC, until
Dec. 6.
The evidentiary hearing on Westcliff's motion to use cash
collateral has been moved to Dec. 4, at 10:00 a.m. (Pacific Time).
About Westcliff Investors
Westcliff Investors, LLC owns and operates the Vineyard Court
Designer Suites Hotel located at 1500 George Bush Drive, East
College Station, Texas.
Westcliff Investors and its affiliate, Beitler Texas Enterprises,
LLC, filed Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No.
24-15224) on July 1, 2024, disclosing $1 million to $10 million in
both assets and liabilities. Logan A. Beitler, manager, signed the
petitions.
Judge Julia W. Brand oversees the cases.
The Debtors are represented by Gary E. Klausner, Esq., at Levene,
Neale, Bender, Yoo & Golubchik, L.L.P.
WESTERN RISE: Gets Final OK to Use Cash Collateral
--------------------------------------------------
Western Rise, Inc. received final approval from the U.S. Bankruptcy
Court for the District of Colorado to use the cash collateral of GZ
Impact Fund I, L.P. and its other secured creditors.
The final order authorized the company to use its secured
creditors' cash collateral only until Nov. 30, unless GZ consents
in writing to an extension or the court issues a further order. The
company's right to use cash collateral can be terminated if it
violates the order.
Western Rise must adhere to its projected budget, subject to a
line-item deviation on expenses not to exceed 10% without the prior
agreement of GZ or an order of the court.
Secured creditors will be granted replacement liens on Western
Rise's post-petition assets in case the value of their collateral
decreases. To the extent that the replacement liens prove to be
insufficient, each secured creditor will be granted superpriority
administrative expense claim.
In addition, GZ will receive payments of $15,000 as adequate
protection.
About Western Rise
Western Rise, Inc. is a manufacturer of travel clothing and
accessories in Telluride, Colo.
Western Rise filed its voluntary petition for Chapter 11 protection
(Bankr. D. Colo. Case No. 24-13394) on June 19, 2024, with
$3,401,871 in assets and $5,266,556 in liabilities. Kelly Watters,
president, signed the petition.
Judge Joseph G. Rosania Jr. oversees the case.
The Debtor tapped Kutner Brinen Dickey Riley, PC as bankruptcy
counsel and Potomac Law Group, PLLC and Catalyst Law Group as
special counsel.
WESTERN URANIUM: MMCAP International Holds 9.99% Equity Stake
-------------------------------------------------------------
MMCAP International Inc. SPC disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 5,829,121 shares of
Western Uranium & Vanadium Corp's Common Shares [which includes
2,702,666 Common Shares and an additional 3,126,455 Common Shares
underlying warrants that are exercisable within 60 days],
representing 9.99% of the (x) 55,223,113 Common Shares outstanding
as of August 14, 2024, as reported in the Company's Form 10-Q filed
with the SEC on August 14, 2024; and (y) an additional 3,126,455
Common Shares underlying the warrants.
A full-text copy of 's SEC Report is available at:
https://tinyurl.com/2fb9pzec
About Western Uranium
Western Uranium & Vanadium Corp is engaged in the business of
exploring, developing, mining and producing uranium and vanadium
resources. In addition to the flagship property located in the
prolific Uravan Mineral Belt, the production pipeline also includes
conventional projects in Colorado and Utah. The Maverick Minerals
Processing Plant and Pinon Ridge Corporation processing plants will
be licensed to include the kinetic separation process.
Mississauga, Canada-based MNP LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has incurred continuing
losses and negative cash flows from operations and is dependent
upon future sources of equity or debt financing in order to fund
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, Western Uranium & Vanadium had $34.96 million
in total assets, $4.14 million in total liabilities, and $30.83
million in total shareholders' equity.
WINESTEAD LLC: Seeks to Hire J. Luke Hendrix as Bankruptcy Counsel
------------------------------------------------------------------
Winestead, LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to hire Law Offices of J. Luke
Hendrix as bankruptcy counsel.
The firm's services include:
a. advising the Debtor regarding matters of bankruptcy law;
b. assisting the Debtor with the requirements of the Office of
the United States Trustee;
c. assisting the Debtor in the administration of the estate's
assets and liabilities;
d. representing the Debtor at the initial interview and 341
meetings of creditor;
e. representing the Debtor with respect to any cash collateral
motions or other first day motions;
f. preparing the Chapter 11 plan and supporting documents;
g. responding to any objections to plan confirmation and
preparing an amended plan prior to confirmation;
h. advising the Debtor regarding creditor claims and
objections to those claims;
i. appearing at all hearings; and
j. representing the Debtor in other matters related to its
Chapter 11 case.
J. Luke Hendrix, Esq., the firm's attorney who will be providing
the services, will be paid at the rate of $375 per hour.
The firm received payment in the amount of $10,000 from the Debtor
prior to the filing of the case.
Mr. Hendrix disclosed in a court filing that he and his firm are
"disinterested persons" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Luke J. Hendrix, Esq.
Law Offices of J. Luke Hendrix
28465 Old Town Front St, Suite 212
Temecula, CA 92590
Phone: (951) 221-3721
Email: luke@jlhlawoffices.com
About Winestead LLC
Winestead LLC -- https://www.orangecoastwinery.com -- is a
restaurant known for offering great lunch, dinner and brunch. It
conducts business under the name Wine Ranch Grill and Cellars.
Winestead filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-16223) on October
17, 2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge Mark Houle oversees the case.
The Debtor is represented by Robert B Rosenstein, Esq., at
Rosenstein & Associates.
WINTER GARDEN: Court Denies Bid to Use Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, denied the motion by Winter Garden Health and
Wellness to use cash collateral.
The court denied the motion as moot, meaning that the issue is no
longer relevant or applicable.
About Winter Garden Health and Wellness
Winter Garden Health and Wellness, LLC is a full-service medical
practice providing compassionate and reliable quality care.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01581) on March 29,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. L. Todd Budgen, Esq., a practicing attorney
in Longwood, Fla., serves as Subchapter V trustee.
Judge Tiffany P. Geyer presides over the case.
Robert B. Branson, Esq., and Jeffrey Ainsworth, Esq., at Bransonlaw
PLLC, represent the Debtor as bankruptcy counsel.
WOOF HOLDINGS: $138.5MM Bank Debt Trades at 29% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Woof Holdings Inc
is a borrower were trading in the secondary market around 71
cents-on-the-dollar during the week ended Friday, November 15,
2024, according to Bloomberg's Evaluated Pricing service data.
The $138.5 million Term loan facility is scheduled to mature on
December 21, 2027. The amount is fully drawn and outstanding.
Headquartered in Tewksbury, Massachusetts, Woof Holdings, Inc.,
through its acquisition of The Wellness Pet Food Holdings Company,
Inc., is a manufacturer of premium pet food and treats, mainly in
North America.
YS GARMENTS: CSWC Marks $2.7MM Loan at 22% Off
----------------------------------------------
Capital Southwest Corporation has marked its $2,748,000 loan
extended to YS Garments, LLC to market at $2,144,000 or 78% of the
outstanding amount, according to a disclosure contained in CSWC's
Form 10-Q for the quarterly period ended September 30, 2024, filed
with the Securities and Exchange Commission.
CSWC is a participant in a First Lien Loan to YS Garments, LLC. The
Loan accrues interest at a rate of 12.89% (SOFR+7.50% (Floor 1%)/Q)
per annum. The loan matures on August 9, 2026.
CSWC is an internally managed investment company that specializes
in providing customized financing to middle market companies in a
broad range of investment segments located primarily in the United
States. CSWC has elected to be regulated as a business development
company under the 1940 Act.
CSWC is led by Bowen S. Diehl, President and Chief Executive
Officer; and Michael S. Sarner, Chief Financial Officer, Secretary
and Treasurer. The fund can be reach through:
Bowen S. Diehl
Capital Southwest Corporation
8333 Douglas Avenue, Suite 1100
Dallas, TX 75225
Tel No.: (214) 238-5700
Headquartered in Torrance, California, YS Garments, LLC's (dba
"Next Level Apparel") designs and provides branded active wear to
the premium basic segment of the US wholesale wearables
promotional
products industry. Private equity firm Blue Point Capital Partners
acquired a majority stake in the company in August 2018.
*********
Monday's edition of the TCR delivers a list of indicative prices
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