/raid1/www/Hosts/bankrupt/TCR_Public/241127.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, November 27, 2024, Vol. 28, No. 331
Headlines
175 NASSAU: Property Sale Proceeds to Fund Plan Payments
1908 BED AND BREAKFAST: Hires David Harris Jr. as Special Counsel
1982 ENSIGN: Court Issues Amended Order Allowing Property Sale
344 SOUTH STREET: Updates Unsecureds & Several Secured Claims Pay
76 M INC: Seeks to Hire Bray Financial as Commercial Loan Broker
A GRANDE PROMOTION: Begins Subchapter V Bankruptcy Process
ABILITY AUTOS: Updates Several Tax Claims Pay Details
ACCURIDE CORP: Court Orders Appointment of Gunite Retiree Panel
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 25% Discount
AFAKORI INC: U.S. Trustee Unable to Appoint Committee
AIMBRIDGE ACQUISITION: $795MM Bank Debt Trades at 38% Discount
ALTA VISTA: Seeks to Hire Ferris & Britton as Special Counsel
AMERICAN TIRE: $1BB Bank Debt Trades at 81% Discount
AMERICAN TIRE: King & Young Conaway Update List of Term Lenders
AMERINVEST LLC: Stephen Metz Named Subchapter V Trustee
ANCHOR GLASS: $671.8MM Bank Debt Trades at 23% Discount
APEX COMMERCIAL: Unsecured Creditors Will Get 39% over 5 Years
AQUA POOL: U.S. Trustee Unable to Appoint Committee
ASSETS HOLDING: Updates Several Secured Claims Pay; Amends Plan
ATLAS PURCHASER: $134.6MM Bank Debt Trades at 98% Discount
AZTEC FUND: Gets Court Okay to Sell Property for $4.5-Mil.
BARRACUDA NETWORKS: $455MM Bank Debt Trades at 17% Discount
BARTLEY INVESTMENTS: Taps Accounting & Business as Accountant
BAYER & SONZ: Sec. 341(a) Meeting of Creditors on Dec. 17
BC AVENTURA: Seeks Chapter 11 Bankruptcy to Reorganize Business
BODY OASIS: Kristofor Sodergren Named Subchapter V Trustee
BROUDY GROUP: Seeks to Hire Spector & Cox as Bankruptcy Counsel
CADUCEUS PHYSICIANS: Seeks to Extend Exclusivity to Jan. 24, 2025
CADUCEUS PHYSICIANS: U.S. Trustee Unable to Appoint Committee
CAPITAL COMMERCIAL: U.S. Trustee Unable to Appoint Committee
CAREMAX INC: Reaches $100-Mil. Sale Deal with ClareMedica
CAREMAX INC: Ropes & Kelly Hart Represent Ad Hoc Group
CAREPOINT HEALTH: Seeks to Hire Epiq as Administrative Advisor
CAREPOINT HEALTH: U.S. Trustee Appoints Creditors' Committee
CASABLANCA THE RESTAURANT: Robert Goe Named Subchapter V Trustee
CASTLE US: $295MM Bank Debt Trades at 43% Discount
CASTLE US: EUR500MM Bank Debt Trades at 43% Discount
CLASS ACT: Seeks to Extend Plan Exclusivity to Feb. 26, 2025
COBRA HOLDINGS: $560MM Bank Debt Trades at 15% Discount
COMMSCOPE HOLDING: Reaches New Debt Negotiations w/ Creditor Group
CONCORDIA ANESTHESIOLOGY: Gets OK to Tap Forbes & Co. as Accountant
COOKQUEEN LLC: Sec. 341(a) Meeting of Creditors on Dec. 18
CPC ACQUISITION: $225MM Bank Debt Trades at 38% Discount
CRITICAL REHAB: Kathleen DiSanto Named Subchapter V Trustee
CUBIC CORP: $1.48BB Bank Debt Trades at 34% Discount
CUBIC CORP: $300MM Bank Debt Trades at 32% Discount
CUT & FILL: Court Approves Interim Use of Cash Collateral
D&R MACHINERY: Continued Operations to Fund Plan Payments
DEL MONTE FOODS: $472.4MM Bank Debt Trades at 40% Discount
DIOCESE OF ROCKVILLE: Settlement Agreements with Insurers Okayed
DOTLESS LLC: Plan Exclusivity Period Extended to December 6
DR. POWER: Seeks to Hire Gordon Mosley as Legal Counsel
DRF LOGISTICS: Gets Court Okay for Chapter 11 Wind-Down
DT BUILDERS: Case Summary & 11 Unsecured Creditors
E & H ENTERPRISES: Matthew Brash Named Subchapter V Trustee
ECO ROOF: Committee Seeks to Hire Steptoe & Johnson as Counsel
EDGEWATER CONSTRUCTION: Fee Requests in Balfour Dispute Tossed
EDGEWATER CONSTRUCTION: May Offset Against Balfour Beatty Claim
EDGIO INC: Secures Court Approval for $180-Mil. Asset Sale
ELETSON HOLDINGS: Creditors Want Reed Smith Sanctioned in Ch. 11
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 30% Discount
ENERFLEX LTD: Fitch Alters Outlook on BB- LongTerm IDR to Positive
EPIC SWEETS: Amy Denton Mayer Named Subchapter V Trustee
ERIS HARMONIA: Michael Markham Named Subchapter V Trustee
EXACTECH INC: Milbank & Richards Represent Ad Hoc Group
EXACTECH INC: U.S. Trustee Appoints Creditors' Committee
FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 42% Discount
FINTHRIVE SOFTWARE: $460MM Bank Debt Trades at 59% Discount
FIREPAK INC: Seeks to Hire Lydcker LLP as Bankruptcy Counsel
FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 18% Discount
FLORES PEDIATRICS: Stephen Moriarty Named Subchapter V Trustee
FOUNDEVER WORLDWIDE: $1.40BB Bank Debt Trades at 36% Discount
FRANCHISE GROUP: U.S. Trustee Appoints Creditors' Committee
FREE SPEECH: The Onion's Infowars Takeover Stalled Pending Hearing
FREIRICH FOODS: Plan Exclusivity Period Extended to Feb. 1, 2025
FUNMILAYO OJUOLAPE: Chapter 15 Case Summary
G-FORCE POWERSPORTS: U.S. Trustee Unable to Appoint Committee
GILL RANCH: Case Summary & 11 Unsecured Creditors
GLOBAL CLEAN: Four Proposals Passed at Annual Meeting
GLOBAL CLEAN: Incurs $76.04 Million Net Loss in Third Quarter
GOTO GROUP: $958.9MM Bank Debt Trades at 57% Discount
GRADE A HOME: Melissa Haselden Named Subchapter V Trustee
GRANDE PROMOTION: Christopher Simpson Named Subchapter V Trustee
GREG TAHMISIAN: Can't Add Punitive Damages Claim Against Netacent
GUARDIAN ELDER: Cuarzo Landlords Not Entitled to Seek Rent Payment
H-FOOD HOLDINGS: $515MM Bank Debt Trades at 30% Discount
HEARTHSIDE FOOD: Plans to Exit Chapter 11 by March 2025
HOW TO BUILD: Unsecureds to Get 100 Cents on Dollar in Plan
HUBBARD RADIO: $206.9MM Bank Debt Trades at 25% Discount
ICEY-TEK USA: Michael Coury Named Subchapter V Trustee
ID ELECTRIC: Joseph Cotterman Named Subchapter V Trustee
IDEAL PROPERTY: Six New Committee Members Appointed
IMS GROUP: Andrew Layden Named Subchapter V Trustee
INDRA HOLDINGS: $50MM Bank Debt Trades at 43% Discount
INGENOVIS HEALTH: $85MM Bank Debt Trades at 30% Discount
INGEVITY CORP: Fitch Affirms BB LongTerm IDR, Outlook Stable
INGRAM MICRO: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable
INK! COFFEE: Updates Newtek Secured Claims Pay; Amends Plan
INSTANT BRANDS: Founder Disputes Role in Bankruptcy Filing
INTEGRITY REAL ESTATE: Taps Allen Vellone Wolf Helfrich as Counsel
INTRUM AB: Clifford Chance Represents RCF SteerCo Group
INTRUM AB: Latham, H&B Represent Notes Ad Hoc Group
INTRUM AB: Quinn Emanuel Represents Ad Hoc Committee
IR4C INC: Gets Interim OK to Use Cash Collateral
IVANTI SOFTWARE: $1.75BB Bank Debt Trades at 22% Discount
IVANTI SOFTWARE: $465MM Bank Debt Trades at 19% Discount
J&A TRUCKING: U.S. Trustee Unable to Appoint Committee
JACKSON GARDENS: Seeks Approval to Hire Ben Szlafrok as Bookkeeper
JETT HOLDINGS: In Chapter 11 Bankruptcy, Dec. 16 Creditors' Meeting
KAYA HOLDINGS: Incurs $2.50 Million Net Loss in Third Quarter
KENDON INDUSTRIES: Unsecureds Will Get 29% over 36 Months
KENREG LLC: Christopher Hayes Named Subchapter V Trustee
KOLOGIK LLC: Proposes Immaterial Modifications to Plan
L.O.F. INC: Seeks to Hire Brian K. McMahon as Bankruptcy Counsel
LABRUZZO COMMERCIAL: Seeks 30-Day Extension of Plan Filing Deadline
LABRUZZO WOODLANDS: Seeks 30-Day Extension of Plan Filing Deadline
LAVIE CARE: No Complaints at 11565 Harts Facility, PCO Report Says
LAVIE CARE: No Complaints at N.C. Facilities, 1st PCO Report Says
LAVIE CARE: No Complaints at Pa. Facilities, PCO Report Says
LEGENCE HOLDINGS: Moody's Lowers CFR to B3, Outlook Stable
LEITMOTIF SERVICES: Gets Interim OK to Use Cash Collateral
LEROUX CREEK: Seeks to Sell Red Hat Property for $330,000
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 74% Discount
LOGIX HOLDING: $250MM Bank Debt Trades at 22% Discount
LSR TANGLEWOOD: Brad Odell of Mullin Named Subchapter V Trustee
LTC TRANSPORTATION: Gets Interim OK to Use Cash Collateral
LUDLOW HOSPITALITY: Michael Abelow Named Subchapter V Trustee
LYNN S. GREEN: Case Summary & Five Unsecured Creditors
MACADAMIA BEAUTY: Gets Final Approval to Use Cash Collateral
MAGIPORT GROUP: Gets Interim Approval to Use Cash Collateral
MAGLEV ENERGY: Ruediger Mueller Named Subchapter V Trustee
MAGLEV ENERGY: Seeks Chapter 11 Bankruptcy Protection in Fla.
MARTINS INTERSTATE: Court OKs Saint Matthews Property Sale
MBMG HOLDING: U.S. Trustee Appoints Suzanne Richards as PCO
MCR HEALTH: Seeks to Hire Shumaker Loop & Kendrick as Counsel
MCR HEALTH: Shutts & Bowen Represents Landlords
MEGA NEWCO: Chapter 15 Case Summary
MES FASTENERS: Amends Plan to Include Harry Epstein Unsecured Claim
MILAN SAI: Mark Weisbart Named Subchapter V Trustee
MOMENTUM CONSULTING: Mark Schlant Named Subchapter V Trustee
MOSHE GOLD: Martinez Suit Stayed Due to Bankruptcy Filing
MUSTANG SHOP: Unsecureds Will Get 25% of Claims over 60 Months
MYSTICAL STARS: U.S. Trustee Appoints Creditors' Committee
NAKED JUICE: $1.82BB Bank Debt Trades at 32% Discount
NEWFOLD DIGITAL: $1.94BB Bank Debt Trades at 24% Discount
NORTHVOLT AB: Outgoing CEO Says Restructuring in Sweden Possible
NORTHWEST BANCORP: Court Allows $1.14-Mil. in Counsel Fees
NOSTRUM LABORATORIES: Asks Court to Extend Automatic Stay to CEO
OAK MOUNTAIN: Unsecureds Will Get 10% of Claims over 60 Months
OMEROS CORP: $67.1MM Bank Debt Trades at 28% Discount
OPEN ARMS HEALTH: Gets Interim OK to Use Cash Collateral
OUTPUT SERVICES: $135MM Bank Debt Trades at 36% Discount
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 54% Discount
PDK LLC: Creditors to Get Proceeds From Liquidation
PERFECT VIEW: Seeks to Hire Shraiberg Page as Bankruptcy Counsel
PHUNWARE INC: Incurs $2.76 Million Net Loss in Third Quarter
PLAY DAY: Unsecured Creditors to Split $18K over 36 Months
PLAZA MARIACHI: Seeks 90-Day Extension of Plan Filing Deadline
POSEIDON CHARTERS: Unsecureds to Split $40K via Quarterly Payments
PRECISION SWISS: Hits Chapter 11 Bankruptcy Protection
PURDUE PHARMA: Creditors Committee's Standing Motion Granted
RANDOLPH TOWN CENTER: USLR Capital Contribution to Fund Plan
RAPSYS INC: Court OKs Interim Use of Cash Collateral Until Jan. 10
RAYMOND L. BOLT: Amends IRS & Valley Bank Claims Pay
REDSTONE HOLDCO 2: $1.11BB Bank Debt Trades at 25% Discount
REFRESHING USA: Two New Committee Members Appointed
RENOVARO INC: Chief Operating Officer Resigns
RENOVARO INC: Incurs $44.21 Million Net Loss in First Quarter
ROCKSTAD HOLDINGS: Chapter 15 Case Summary
S&B RESTAURANTS: Updates Merchant Cash Advance Claim Details
SASSY C'S: James Cross Named Subchapter V Trustee
SELECT MEDICAL: Moody's Rates New Senior Unsecured Notes 'B1'
SHINY HEALTH: Files for Bankruptcy, B Riley Farber Named Trustee
SIDHU TRANSPORTS: Judy Wolf Weiker Named Subchapter V Trustee
SKS BOTTLE: Hires Nolan Heller Kauffman as Bankruptcy Counsel
SOLDIER OPERATING: Seeks to Hire Texas Well Consulting as Broker
SOUND INPATIENT: $215MM Bank Debt Trades at 84% Discount
SOUTH BROADWAY: Unsecured Creditors Unimpaired in Plan
SOUTH COAST EQUIPMENT: Gets Final Approval to Use Cash Collateral
SPARTAN GROUP: Selling 15 Flatbed Trailers for $103,500
SPIRIT AIRLINES: Fitch Lowers LongTerm IDR to 'CC'
SPIRIT AIRLINES: Hires Ernst & Young LLP as Audit and Tax Provider
SPIRIT AIRLINES: Wants Speedy Chapter 11 Bankruptcy Exit
SQRL SERVICE: Court OKs Appointment of Anne Burns as Trustee
STARSHIP LOGISTICS: Court Approves Interim Use of Cash Collateral
STG LOGISTICS: $750MM Bank Debt Trades at 45% Discount
STOOL AND DINETTE: U.S. Trustee Unable to Appoint Committee
TENABLE HOLDINGS: S&P Alters Outlook to Pos., Affirms 'BB-' ICR
THE LINK UP: Craig Geno Named Subchapter V Trustee
THREE PARTRIDGE: Amends Hanover Bank Secured Claim Pay
TRINITY EXCAVATORS: Seeks Bankruptcy Protection in Texas
TUPPERWARE BRANDS: Dec. 13, 2024 Claims Filing Deadline Set
UNIVERSAL SCREEN: Court Orders Involuntary Liquidation
UPSTREAM NEWCO: $140MM Bank Debt Trades at 22% Discount
UPSTREAM NEWCO: $883MM Bank Debt Trades at 17% Discount
WCCM GROUP: Unsecured Creditors Will Get 100% of Claims in Plan
WELLPATH HOLDINGS: $500MM Bank Debt Trades at 70% Discount
WELLPATH HOLDINGS: Court Stays Fahrni, et al. Due to Bankruptcy
WOOF HOLDINGS: $138.5MM Bank Debt Trades at 32% Discount
ZACHRY HOLDINGS: Unsecureds Will Get 100% of Claims in Plan
ZANO INDUSTRIES: Hires Goldberg Weprin Finkel Goldstein as Counsel
*********
175 NASSAU: Property Sale Proceeds to Fund Plan Payments
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175 Nassau Road Holding, Inc., filed with the U.S. Bankruptcy Court
for the Eastern District of New York a Disclosure Statement
describing Plan of Liquidation dated October 11, 2024.
The Debtor is a privately owned New York corporation established in
2012. The Debtor is a single asset real estate debtor within the
meaning of Bankruptcy Code section 101(51B).
The Debtor owns commercial real property located at 163-175 Nassau
Road, Roosevelt, New York 11575 (the "Property"). The Property is
divided into nine units which are each leased to commercial
tenants. The monthly rental income received is approximately
$20,000.
As of the Petition Date, the Debtor was owned and/or operated by
(i) Latasha Smith, as President and minority shareholder owning
37.25% interest in the Debtor, (ii) Carmen Eustache, as Vice
President and majority shareholder owning 62.75% interest in the
Debtor, and (iii) Louis Eustache, as Manager with no ownership
interest.
On July 15, 2024, the Debtor filed a voluntary petition under
Chapter 11 of the Bankruptcy Code with the Bankruptcy Court. The
Debtor's goal since well before the Petition Date has been to sell
the Property and address its creditor obligations.
Having been afforded the protections of the Bankruptcy Code, the
Debtor has begun to stabilize its business and commence its
reorganization efforts. Shortly after the filing, the Receiver was
terminated by Order of the Bankruptcy Court. The Receiver had only
been passively managing the Property, as opposed to the Debtor
being reinstalled to affirmatively and effectively manage the
Property, which ultimately preserves the value of the Debtor's
assets for the benefit of the estate and its creditors.
At this juncture, the Debtor is now proceeding with a sale of the
Property to a new buyer. By virtue of such sale, the Debtor will be
able to make distributions to the greatest extent possible to its
creditors in accordance with the priorities of the Bankruptcy Code.
In the near future, the Debtor anticipates entering an agreement of
sale with a new buyer, which will be subject to Bankruptcy Court
approval.
Upon execution of the sale agreement, the Debtor intends to file a
sale motion with the Bankruptcy Court in accordance with Section
363 of the Bankruptcy Code, free and clear of liens and
encumbrances (the "Liens"), with such Liens to attach to the
proceeds of sale. Accordingly, the Debtor's liquidation efforts in
connection with the sale and the Plan will maximize the level of
recovery to creditors in an expeditious and expedient manner.
Class 5 consists of the Allowed General Unsecured Claims. The
approximate amount of claims in this class is $215,000. Upon and as
reasonably practicable after the Effective Date, and subsequent to
the sale of the Property, and after the date upon which all
objections to Class 5 General Unsecured Claims have been resolved
or adjudicated by the Bankruptcy Court, from and to the extent of
available funds, each holder of an Allowed Class 5 Claim shall
receive payment on account of its Allowed General Unsecured Claim
in the amount of its pro rata share of available funds, after
payment in full of the secured Allowed Class 1 Claims, Allowed
Class 2 Claims, Allowed Class 3 Claims, Allowed Class 4 Claims,
Allowed Administrative Expense Claims, and Allowed Priority Tax
Claims, and subject to any Court approved carve out and/or section
506(c) determination, and any reserves for post-confirmation
professional fees, except as otherwise agreed with the holder of
such Claims.
Class 6 consists of the Allowed Shareholder Interests of the
Debtor. Class 6 Interests consist of the shares of the Debtor held
by Carmen Eustache and Latasha Smith. The foregoing shareholders
shall not retain their Class 6 Interests under the Plan. On the
Effective Date, the Class 6 Interests shall be cancelled. Class 6
Interests will only receive pro rata Distributions under the Plan
based upon available funds, and only in the event that all senior
classes of Allowed Claims have been paid in full.
The Debtor's goal since well before the Petition Date has been to
effectuate a sale of the Property. The liquidating Plan
contemplates such a sale and from the sale proceeds, the Defaulted
Buyer's deposit funds, and rents to pay to the maximum extent the
creditors of the Debtor's estate in accordance with the
requirements and priorities under the Bankruptcy Code and non
bankruptcy law.
A full-text copy of the Disclosure Statement dated October 11, 2024
is available at https://urlcurt.com/u?l=903IB1 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
LaMonica Herbst & Maniscalco, LLP
Adam P. Wofse, Esq.
3305 Jerusalem Avenue
Wantagh, New York 11793
(516) 826-6500
About 175 Nassau Road Holding Inc.
175 Nassau Road Holding Inc. is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
175 Nassau Road Holding sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-72765) on July 15,
2024. In the petition filed by Latasha Smith, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge Robert E. Grossman oversees the
case.
The Debtor is represented by Adam P. Wofse, Esq. at LAMONICA HERBST
& MANISCALCO, LLP.
1908 BED AND BREAKFAST: Hires David Harris Jr. as Special Counsel
-----------------------------------------------------------------
1908 Bed and Breakfast, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Mississippi to employ
David N. Harris, Jr. Law Firm as special counsel.
The firm will provide professional services pursuant of claims tort
and contract claims against multiple parties regarding the purchase
of real estate located at 1012 Beach Boulevard, Biloxi,
Mississippi.
The firm's hourly rates are:
David N. Harris, Jr., Esq. $350
Paralegal Staff $125
Mr. Harris 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 N. Harris, Jr., Esq.
David N. Harris, Jr. Law Firm
134 Rue Magnolia, Ste. A
Biloxi, MS 39530
Telephone: (228) 236-7616
About 1908 Bed and Breakfast
1908 Bed and Breakfast, Inc., doing business as 1908 Coastal
Historic Bed and Breakfast, owns and operates a rental property in
Biloxi, Miss. The current owners who recently purchased the
property has just completed another major renovation to convert the
property to six fully contained units. The property is located
right on the Gulf Coast's shoreline on Beach Blvd (U.S. 90).
1908 Bed and Breakfast filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Miss. Case No.
24-50029) on Jan. 10, 2024, with $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. Rebecca Center,
president, signed the petition.
Judge Katharine M. Samson oversees the case.
The Debtor tapped Michael T. Ramsey, Esq., at Sheehan and Ramsey,
PLLC as legal counsel and David N. Harris, Jr. Law Firm as special
counsel.
1982 ENSIGN: Court Issues Amended Order Allowing Property Sale
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
San Jose Division, has amended its order on the approval of the
motion filed by 1982 Ensign Way LLC to sell its Property, free and
clear of aliens and encumbrances.
The Debtor is granted to sell its property located at 1982 Ensign
Way, San Jose, CA 95133 to Marcelina Estoesta, legal owner via non
trust custodial IRA with AET, as the highest and best offer.
The purchase offer of the Property in the amount of $1,670,000 is
in accordance with the terms and conditions that are set fort in
the purchase agreement between the Debtor and the buyer, which is
attached to the Declaration of Marcelina Estoesta filed in support
of the Motion.
The sale transaction will no longer be handled by Fidelity National
Title Company as the escrow agent.
The Court also authorized the Debtor to pay the undisputed liens or
claims at closing of the sale out of escrow: Santa Clara County Tax
Collector, and the U.S. Bank National Association, not in its
individual capacity but as trustee for NRZ Pass-Through Trust
XVI-B.
The sale of the Assets will vest in the Buyer all right, title and
interest of the Debtor and the bankruptcy estate in the Sale
Assets, free and clear of all liens, claims or interests of the
Affected Interests.
About 1982 Ensign Way LLC
1982 Ensign Way LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-50669) on May 6, 2024, listing $1,000,001 to $10 million in both
assets and liabilities.
Judge Stephen L. Johnson presides over the case.
Oxana Kozlov, Esq. at the Law Offices Of Oxana Kozlov represents
the Debtor as counsel.
344 SOUTH STREET: Updates Unsecureds & Several Secured Claims Pay
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344 South Street Corporation submitted a Third Amended Plan of
Reorganization dated October 11, 2024.
This Plan is designed to permit Debtor to resolve all Claims and
Interests, whether manifested or unmanifested, of all Holders of
Claims or Interests, whether known or unknown. This Plan provides
for the full payment of administrative and priority claims over the
lifetime of this Plan.
Except as otherwise provided in this Plan, the Reorganized Debtor
shall continue to exist on and after the Effective Date as a
corporation, with all of the powers of such an entity under the
laws of the state where incorporated and as provided under the
Debtor's governing documents in effect immediately prior to the
Effective Date. Moreover, all Assets comprising the Estate shall
vest in the Reorganized Debtor free and clear of all Liens, Claims,
charges, and other encumbrances.
Specifically, upon the Effective Date, the following assets, among
others, shall revest in the Reorganized Debtor: (i) the Debtor's
Cash and Cash equivalents; (ii) the Debtor's property; and (iii)
all Causes of Action including, among others, all Avoidance
Actions. Further, the Reorganized Debtor shall not assume any
Claims or liabilities of the Debtor, except as specifically
provided herein, which Claims or liabilities shall be discharged as
against the Reorganized Debtor in accordance with the terms of the
Plan.
The Debtor's operations post-petition have for the most part been
profitable. However, Debtor understands that the amount of rent
that it was paying on its Lease with 344 SSI, LLC/344 HG South, LLC
was not sustainable under the circumstances, and therefore Debtor
rejected its lease at 344-348 South Street with possession of the
leased property turned over to the landlord. Debtor has moved its
operations to a location next door, which it leases at 338-342
South Street.
Plan payments under the Debtor's proposed plan are achievable with
the cash flow the Debtor has demonstrated since entering Chapter
11, and that will continue at the new location. The Debtor is
currently under a month to month tenancy at 338-342 South Street
with its landlord, Rick Millan, and Debtor's operations have moved
to the property. These decisions by Debtor will substantially
reduce its ongoing rent expense freeing up more cash to pay
creditors. An addendum to the Plan setting forth in more detail the
plan payment projections is attached hereto.
Class 2 consists of the claim of 344 SSI, LLC/344 HG South, LLC.
344 SSI, LLC/344 HG South, LLC will receive payment of $137,950.41
for a portion of its claim over a period of 5 years (60 months) in
monthly installments. In year 1, while the Debtor's profits
increase after moving to a new location, Debtor will make monthly
payments to the Creditor in the amount of $1,000.00 per month and
in year 2, year 3, year 4, and year 5 of the Plan, Debtor will make
monthly payments of $2,623.97 to the Creditor. The balance of its
claim will be treated as a Class 4 General Unsecured Claim, the
amount of which is to be determined.
Class 3 consist of the claim of Havana Banana Group, Inc. Havana
Banana Group, Inc.'s secured claim in the amount of $32,759.00 will
be paid in full beginning in year 2 of the Plan, and will be paid
over a period of 3 years (36 months) in monthly installments
totaling $909.98 per month. The balance of its claim is unsecured,
and will be treated as a Class 4 General Unsecured Claim, the
amount of which is to be determined.
Class 4 consists of General Unsecured Claims. Unsecured Creditors
will receive $3,000 pro rata on the Effective Date and if the plan
is not consensual, shall receive any disposable income that is
available to pay unsecured creditors as required under the
Bankruptcy Code. The expected disposable income is set forth in the
plan addendum attached hereto.
All existing ownership interests by the two remaining shareholders
of the Debtor totaling 100% of the interests in the company shall
be retained. This class will not receive a distribution under the
Plan.
The Plan will be funded by the ongoing operations of Debtor as well
as a cash infusion of $50,000 into the Debtor to be made by
shareholder, Nick Ventura on the Effective Date of the Plan.
A full-text copy of the Third Amended Plan dated October 11, 2024
is available at https://urlcurt.com/u?l=kyZ3Qw from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Jeffrey S. Cianciulli, Esq.
Weir Greenblatt Pierce, LLP
The Widener Building
1339 Chestnut St., Suite 500
Philadelphia, PA 19107
Telephone: (215) 665-8181
Facsimile: (215) 665-8464
Email: jcianciulli@wgpllp.com
About 344 South Street
344 South Street Corp. has operated as a restaurant, serving
Spanish and Mexican cuisine in Philadelphia's South Street
District. Recognizable for its bright blue exterior with green
accents, the Copabanana was opened on the corner of 4th and South
streets in 1978 by William Curry. The restaurant is most known for
its menu, which includes margaritas, burgers and fries, and its
live events and nightlife.
344 South Street Corp. filed for bankruptcy three times in the past
nine years. The two previous filings in 2015 and 2019 had since
been closed. Both of the filings were related to taxes and other
payments owed to the City of Philadelphia and the Internal Revenue
Service.
344 South Street Corporation filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
23-11548) on May 26, 2023, with as much as $50,000 in both assets
and liabilities. Holly Miller, Esq., at Gellert Scali Busenkell &
Brown, LLC, has been appointed as Subchapter V trustee.
Judge Patricia M. Mayer oversees the case.
The Debtor is represented by Jeffrey S. Cianciulli, Esq., at Weir
Greenblatt Pierce, LLP.
76 M INC: Seeks to Hire Bray Financial as Commercial Loan Broker
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76 M, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Columbia to employ Bray Financial, Inc. as commercial
loan broker.
The Debtor needs a broker for refinancing its property located at
5410 Indian Head Highway, Oxon Hill, Maryland.
The firm is anticipated to receive a compensation of $12,000 for
its services.
`
Roderick Bray, founder of Bray Financial, Inc., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Roderick Bay
Bray Financial, Inc.
407 Hearthstone Drive
Fredericksburg, VA 22401
About 76 M Inc.
76 M Inc. is primarily engaged in renting and leasing real estate
properties.
76 M Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. C. Case No. 24-00003) on Jan. 3,
2023, listing up to $50,000 in assets and $1 million to $10 million
in liabilities. The petition was signed by Peter Odagbodo as
president.
Judge Elizabeth L. Gunn presides over the case.
John D. Burns, Esq. at The Burns Law Firm, LLC represents the
Debtor as counsel.
A GRANDE PROMOTION: Begins Subchapter V Bankruptcy Process
----------------------------------------------------------
On November 5, 2024, A Grande Promotion Company LLC filed Chapter
11 protection in the District of Arizona. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 10,
2024 at 9:00 AM.
About A Grande Promotion Company LLC
A Grande Promotion Company LLC owns a marble and granite
fabrication business specializing in detailed craftsmanship and
custom projects, ensuring each piece is meticulously designed and
tailored to its clients' unique specifications.
A Grande Promotion Company LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.
24-09458) on November 5, 2024. In the petition filed by Eugene
Medrano, as member/manager, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The case is overseen by Honorable Bankruptcy Judge Scott H. Gan.
The Debtor is represented by:
Allan D. NewDelman, Esq.
ALLAN D. NEWDELMAN, P.C.
80 East Columbus Avenue
Phoenix, AZ 85012
Tel: 602-264-4550
Fax: 602-277-0144
Email: anewdelman@adnlaw.net
ABILITY AUTOS: Updates Several Tax Claims Pay Details
-----------------------------------------------------
Ability Autos LLC and R.A.M. Advertizing, Inc., submitted a Third
Amended Plan of Reorganization dated October 15, 2024.
This Third Amended Plan proposes to pay creditors both from future
income by the continuing operations of R.A.M. Advertizing Inc and
the liquidation of all assets of Ability Autos LLC.
Creditors of Ability Autos will only be paid out of the proceeds of
the liquidation of Ability Autos. Ability Autos is not contributing
to the payment of creditors of R.A.M. Creditors of R.A.M. will only
be paid by the continued operations of R.A.M. R.A.M. is not
contributing to the payment of creditors of Ability Autos.
The Debtor will continue operating R.A.M. Advertizing Inc. Ability
Autos LLC is being liquidated in this Plan. The Debtor's Plan will
break the existing claims into nine classes of Claimants. These
claimants will receive cash repayments over a period of time
beginning on the Effective Date. Creditors of Ability Autos LLC
will be paid after liquidation is completed. Credtiors of R.A.M.
Advertizing Inc. will be paid over a period not to exceed five
years. Nothing prevents Debtors from prepaying its claims.
Class 2 Claimant Tax Claims of Ability Autos (These Claims are
impaired) Allowed Priority Claims are for estimated tax returns.
This claim is secured and the amounts are based on estimated
returns and will be paid on the effective date as to the actual
amount owed. The following class contains Debtor's estimated tax
priority claim for pre-petition estimated amounts and the proposed
treatment under the Plan:
3-2 Houston Community College System (R.A.M.) ("HCCS" pertains to
the allowed secured claim of Houston Community College System in
the amount of $14.78 (24-30353; Claim No. 2-1). The delinquent
taxes due for 2023 ($7.39 due to HCCS) shall be paid with statutory
interest accruing from the Petition Date, upon the earlier of
liquidation or thirty days after the Effective Date of the Plan,
whichever occurs first.
The taxes for 2024 will be paid in the ordinary course, as billed
under Texas law, before they come due in 2025. If the Reorganized
Debtor fails to pay the 2024 or post-petition taxes prior to
delinquency under Texas law, it shall be considered a default of
this Plan and interest shall accrue as provided under Texas law.
Reorganized Debtor shall pay all post-petition ad valorem tax
liabilities (tax year 2025 and subsequent tax years) owing to the
RAM Taxing Authorities in the ordinary course of business as such
tax debts comes due and prior to said ad valorem taxes becoming
delinquent without the need to file an administrative expense claim
and/or request for payment.
The Reorganized Debtor may pre-pay the pre-petition tax debt to
HCCS at any time. The Reorganized Debtor shall have sixty days from
the Effective Date to object to the HCCS's claim; otherwise, the
HCCS claim shall be deemed as an allowed secured claim in the
amount of its Proof of Claim. HCCS shall retain its statutory lien
securing its pre-petition and post-petition tax debts until such
time as the tax debt is paid in full. Reorganized Debtor shall pay
all postpetition ad valorem tax liabilities (tax year 2025 and
subsequent tax years) owing to HCCS in the ordinary course of
business as such tax debt comes due and prior to said ad valorem
taxes becoming delinquent without the need of HCCS to file an
administrative expense claim and/or request for payment.
3-3 City of Houston (R.A.M.) ("City of Houston" pertains to the
allowed secured claim of City of Houston in the amount of $83.16
(24-30353; Claim No. 3-1). The delinquent taxes due for 2023
($41.58 due to City of Houston shall be paid with statutory
interest accruing from the Petition Date, upon the earlier of
liquidation or thirty days after the Effective Date of the Plan,
whichever occurs first.
The taxes for 2024 will be paid in the ordinary course, as billed
under Texas law, before they come due in 2025. If the Reorganized
Debtor fails to pay the 2024 or post-petition taxes prior to
delinquency under Texas law, it shall be considered a default of
this Plan and interest shall accrue as provided under Texas law.
Reorganized Debtor shall pay all postpetition ad valorem tax
liabilities (tax year 2025 and subsequent tax years) owing to the
RAM Taxing Authorities in the ordinary course of business as such
tax debts comes due and prior to said ad valorem taxes becoming
delinquent without the need to file an administrative expense claim
and/or request for payment.
The Reorganized Debtor may pre-pay the pre-petition tax debt to
City of Houston at any time. The Reorganized Debtor shall have
sixty days from the Effective Date to object to the City of
Houston's claim; otherwise, the City of Houston claim shall be
deemed as an allowed secured claim in the amount of its Proof of
Claim. City of Houston shall retain its statutory lien securing its
pre-petition and post-petition tax debts until such time as the tax
debt is paid in full. Reorganized Debtor shall pay all
post-petition ad valorem tax liabilities (tax year 2025 and
subsequent tax years) owing to City of Houston in the ordinary
course of business as such tax debt comes due and prior to said ad
valorem taxes becoming delinquent without the need of City of
Houston to file an administrative expense claim and/or request for
payment.
The Third Amended Plan does not alter the proposed treatment for
unsecured creditors:
Class 7 consists of Unsecured Claims of Ability Autos. All allowed
unsecured creditors shall receive a pro rata distribution at zero
percent per annum after all of Ability Autos assets are liquidated.
Debtor will distribute $7,231.87to the general allowed unsecured
creditor pool. The Debtor's General Allowed Unsecured Claimant will
receive 2.86% of their allowed claims under this plan. Any
creditors listed in the schedules of Ability Autos LLC as disputed
and did not file a claim will not receive distributions under this
plan. This Class is impaired.
Class 8 consists of Unsecured Claims of R.A.M. All allowed
unsecured creditors shall receive a pro rata distribution at zero
percent per annum over the next 5 years beginning not later than
the 15th day of the first full calendar month following 30 days
after the effective date of the plan. Debtor will distribute
$115,000.00 to the general allowed unsecured creditor pool over the
5-year term of the plan. The Debtor shall make monthly payments as
to the Class 5 Claimants. The Debtor's General Allowed Unsecured
Claimants will receive 41.58% of their allowed claims under this
plan. Any creditors listed in the schedules of Ability Autos LLC as
disputed and did not file a claim will not receive distributions
under this plan. This Class is impaired.
The Debtor anticipates the continued operations of the business to
fund the Plan.
A full-text copy of the Third Amended Plan dated October 15, 2024
is available at https://urlcurt.com/u?l=zshcPw from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Robert C. Lane, Esq.
Joshua D. Gordon, Esq.
A. Zachary Casas, 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
zach.casas@lanelaw.com
About Ability Autos LLC
Ability Autos, LLC and R.A.M. Advertizing, Inc. filed petitions
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 24-30351) on January 31, 2024. Jarrod Martin,
Esq., a practicing attorney in Houston, serves as Subchapter V
trustee.
At the time of the filing, Ability Autos disclosed up to $500,000
in both assets and liabilities while R.A.M. Advertizing disclosed
up to $50,000 in assets and $100,001 to $500,000 in liabilities.
Judge Jeffrey P. Norman oversees the cases.
Robert C. Lane, Esq., at The Lane Law Firm, is the Debtor's
bankruptcy counsel.
ACCURIDE CORP: Court Orders Appointment of Gunite Retiree Panel
---------------------------------------------------------------
A U.S. bankruptcy judge overseeing the Chapter 11 case of Gunite
Corporation ordered the appointment of an official committee that
will represent retired employees of the company.
In her order, Judge J. Kate Stickles of the U.S. Bankruptcy Court
for the District of Delaware directed the U.S. Trustee for Region 3
to appoint a committee consisting of Gunite retirees who are
currently receiving benefits under the company's retiree plan.
Gunite, an affiliate of Accuride Corporation, provides benefits to
approximately 136 retired workers under the Gunite Corporation
Master Retired Bargained Employee Health Benefit Plan.
On average, the annual cost to the company of providing benefits
under the plan is approximately $740,000.
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ACPRODUCTS HOLDINGS: $1.40BB Bank Debt Trades at 25% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ACProducts Holdings
Inc is a borrower were trading in the secondary market around 75.4
cents-on-the-dollar during the week ended Friday, November 22,
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.
AFAKORI INC: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee for Region 16 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Afakori, Inc.
About Afakori Inc.
Afakori Inc. is engaged in the business of steel product
manufacturing from purchased steel. The company is based in Ladera
Ranch, Calif.
Afakori sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. C.D. Calif. Case No. 24-12573) on October 9, 2024, with $1
million to $10 in assets and $500,000 to $1 million in liabilities.
Amir Alizadeh, chief executive officer, signed the petition.
Judge Scott C. Clarkson handles the case.
The Debtor is represented by Jeffrey B. Smith, Esq., at Curd,
Galindo & Smith, LLP.
AIMBRIDGE ACQUISITION: $795MM Bank Debt Trades at 38% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aimbridge
Acquisition Co Inc is a borrower were trading in the secondary
market around 62.5 cents-on-the-dollar during the week ended
Friday, November 22, 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.
Aimbridge Acquisition Co Inc owns and operates a chain of hotels.
The Company offers its services in the United States.
ALTA VISTA: Seeks to Hire Ferris & Britton as Special Counsel
-------------------------------------------------------------
Alta Vista Gardens, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Ferris &
Britton, A Professional Corporation as its special counsel.
The firm will assist the Debtor in connection with the defense of a
wage and hour investigation initiated by the Department of Labor,
as well as any litigation that may result from the investigation.
The firm's counsel and staff will be paid at these hourly rates:
Elyssa Kulas, Attorney $400
Scott Toothacre, Attorney $400
Paraprofessionals $135
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a post-petition retainer of $5,000 from the
Debtor.
`
Ms. Kulas 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:
Elyssa K. Kulas, Esq.
Ferris & Britton, APC
501 West Broadway, Ste. 1450
San Diego, CA 92101
Telephone: (619) 233-3131
Facsimile: (619) 232-9316
About Alta Vista Gardens
Alta Vista Gardens, Inc. in Los Angeles, CA, filed its voluntary
petition for Chapter 11 protection (Bankr. C.D. Cal. Case No.
24-11780) on March 7, 2024, listing up to $50,000 in assets and up
to $10 million in liabilities. Staci Marmershteyn, board member,
signed the petition.
Judge Deborah J. Saltzman oversees the case.
The Debtor tapped RHM Law, LLP as legal counsel; Ferris & Britton,
APC as special counsel; and Michael Rudnitsky as accountant.
AMERICAN TIRE: $1BB Bank Debt Trades at 81% Discount
----------------------------------------------------
Participations in a syndicated loan under which American Tire
Distributors Inc is a borrower were trading in the secondary market
around 19.3 cents-on-the-dollar during the week ended Friday,
November 22, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $1 billion Term loan facility is scheduled to mature on October
23, 2028. The amount is fully drawn and outstanding.
American Tire Distributors, Inc. distributes motor vehicle parts.
The Company offers custom wheels, tires, and other related
products. American Tire Distributor serves customers in the United
States.
AMERICAN TIRE: King & Young Conaway Update List of Term Lenders
---------------------------------------------------------------
In the Chapter 11 cases of American Tire Distributors, Inc. and its
affiliates, the Ad Hoc Group of Excluded Term Lenders filed an
amended 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.
K&S and YCST do not own, nor have they ever owned, any claims
against the Debtors except for claims for services rendered to the
Ad Hoc Group of Excluded Term Lenders. K&S and YCST may at some
future time seek to have their fees and disbursements incurred on
behalf of the Ad Hoc Group of Excluded Term Lenders paid by the
Debtors' estates pursuant to title 11 of the United States Code or
as otherwise permitted in the Debtors' chapter 11 cases.
K&S and YCST do not perceive any actual or potential conflict of
interest with respect to the representation of the Ad Hoc Group of
Excluded Term Lenders in the Debtors' chapter 11 cases.
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
7. CastleKnight Management LP
888 Seventh Avenue, 24th
Floor, New York, NY 10019
Attn: Dustin Shapir
* Aggregate Principal Amount of Term Loans: $4,000,000.00
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.
AMERINVEST LLC: Stephen Metz Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Stephen Metz of
Offit Kurman, P.A. as Subchapter V trustee for Amerinvest, LLC.
Mr. Metz will be paid an hourly fee of $545 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Metz declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen Metz
Offit Kurman, P.A.
7501 Wisconsin Avenue, Suite 1000W
Bethesda, Maryland 20814
Phone: (240) 507-1723
Email: smetz@offitkurman.com
About Amerinvest LLC
Amerinvest, LLC is a company in McLean, Va., engaged in renting and
leasing real estate properties.
Amerinvest 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 the Law Office of David C. Jones, Jr.
represents the Debtor as bankruptcy counsel.
ANCHOR GLASS: $671.8MM Bank Debt Trades at 23% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Anchor Glass
Container Corp is a borrower were trading in the secondary market
around 77.4 cents-on-the-dollar during the week ended Friday,
November 22, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $671.8 million Payment in kind Term loan facility is scheduled
to mature on December 8, 2025. The amount is fully drawn and
outstanding.
Anchor Glass Container Corporation manufactures containers. The
Company produces glass containers for the food, beverage, beer,
liquor, and consumer product industries.
APEX COMMERCIAL: Unsecured Creditors Will Get 39% over 5 Years
--------------------------------------------------------------
Apex Commercial Construction, Inc., d/b/a Kuehne Company, filed
with the U.S. Bankruptcy Court for the Eastern District of
Wisconsin a Plan of Reorganization dated October 10, 2024.
The Debtor was incorporated on December 21, 2020. Its principal
office is located at 6830 South Howell Avenue, Oak Creek, WI 53154.
The Debtor is in the business of construction, erosion control,
guardrail installation, and landscaping for street, road and
highway projects.
The Debtor experienced cash flow problems due to a highway project
where the general contractor was Michels Road & Stone, Inc. The
Debtor was awarded the project for $5,000,000. It was a three-year
project that started out well, but the Debtor suffered significant
losses due to weather delays as well as incorrect quotes given to
Apex by material suppliers ("Michels Project").
The Debtor often employs skilled labor for production and operation
through Wisconsin Unions and Benefit Funds (collectively "Union and
Benefit Funds"). Due to the problems on the Michels Project, the
Debtor became delinquent on payments to the Unions and Benefit
Funds under their collective bargaining agreements ("Union
Contracts").
With this Plan of Reorganization, the Debtor seeks to stretch out
payments for claims owed to the Union and Benefit Funds and other
creditors, while reducing its total general unsecured debt all in
an effort to improve cash flow. The Plan of Reorganization will
maximize the return for all interested parties as payments to
creditors are expected to exceed what they would receive in a
Chapter 7 liquidation.
This Plan of Reorganization proposes to pay priority, secured and
administrative claims in full, and general unsecured creditors
approximately 39% over a period of five years.
This Plan of Reorganization proposes to pay the Debtor's creditors
from the income generated by its road construction business.
Non-priority unsecured creditors holding allowed claims, that are
not contingent, unliquidated or disputed will receive
distributions, which the Debtor has valued at approximately 39
cents on the dollar.
Class 8 consists of Nonpriority unsecured creditors. The estimated
total amount owed to this Class exceeds $1.6Million. Debtor will
pay approximately 39% of the total amount paid quarterly in the sum
of $31,750 to be distributed on pro rata basis over the 5-year term
of the Plan. Payments to begin on March 25, 2025 and paid quarterly
thereafter.
Class consists of Equity Holders. The Debtor's equity holders shall
retain their ownership interest upon confirmation of this Plan.
However, Debtor's equity holders shall receive no distributions
under the Plan, or from the Debtor, until the allowed claims of the
Debtor's creditors are paid in accordance with the terms and
provisions of this Plan.
The Debtor shall implement that Plan through the income generated
by its road construction business.
A full-text copy of the Plan of Reorganization dated October 10,
2024 is available at https://urlcurt.com/u?l=ISIlgS from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
KREKELER LAW S.C.
Kristin J. Sederholm, Esq.
26 Schroeder Court, # 300
Madison, WI 53711
608-258-8555 (Phone)
608-258-8299 (Fax)
Email: ksederho@ks-lawfirm.com
About Apex Commercial Construction
Apex Commercial Construction, Inc., operating under the name Kuehne
Company, is a construction firm involved in various commercial
projects. It provides construction services, likely specializing in
commercial infrastructure and related operations.
A group of creditors filed an involuntary Chapter 7 petition
against Apex Commercial Construction, Inc. (Bankr. E.D. Wis. Case
No. 24-21300) on March 19, 2024. The petitioning creditors are
Wisconsin Laborers Health Fund, Building & Public Works Laborers
Vacation Fund, and Building Trades United Pension Trust Fund.
On July 12, 2024, the case was converted to one under Subchapter V
of Chapter 11. Judge Rachel M. Blise oversees the case.
Krekeler Law, S.C. is the Debtor's bankruptcy counsel.
AQUA POOL: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Aqua Pool Care, Inc.
About Aqua Pool Care
Aqua Pool Care, Inc. specializes in building custom inground
swimming pools, swimming pool repair, vinyl liner replacement,
swimming pool renovation, including deck and tile work, and weekly
and bi-weekly swimming pool cleaning service. The company is based
in Easley, S.C.
Aqua Pool Care filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. S.C. Case No. 24-02858) on August 5,
2024, with $796,612 in assets and $1,215,376 in liabilities.
Richard K. Bishop, president, signed the petition.
Judge Helen E. Burris presides over the case.
W. Harrison Penn, Esq., at Penn Law Firm, LLC represents the Debtor
as bankruptcy counsel.
ASSETS HOLDING: Updates Several Secured Claims Pay; Amends Plan
---------------------------------------------------------------
Assets Holding Partnership, Ltd., submitted a Fifth Amended Plan of
Reorganization for Small Business dated October 15, 2024.
The Debtor has received an offer from Limo Palace, LLC
("Purchaser") to buy three Buses for $425,000. The Debtor has an
offer to purchase the Buses slightly in excess of the value
estimated by the Debtor.
The sale of the Buses shall be a part of this Plan. The proceeds
from the sale will be sufficient to pay off the liens and
encumbrances of lenders, the ad valorem taxes, and the
administrative expenses in full. The remaining proceeds will be
distributed to the general unsecured creditors. C&H is currently
managing vehicles for the Purchaser. C&H may operate the Buses
after the sale but the Debtor will have no involvement and will not
receive any benefit for operations by C&H.
The Debtor values its assets to be sold at approximately $400,000.
The liquidation value is significantly less. Each of the buses is
subject to the liens and encumbrances of IMT Commercial and
Flagstar Financial.
The Debtor has debts of approximately $1,105,528, for secured and
unsecured claims plus administrative fees and expenses.
The plan provides for the sale of the Buses and distribution of
proceeds or the dismissal of this case. The projections are based
on terms of the sale and the proceeds to be obtained from the sale
of the Buses. The projections of the Debtor are reasonable and
feasible and in line with the terms of the sale.
The Debtor intends to close on the sale of the Buses and for the
Subchapter V Trustee to make distributions upon approval of this
Plan. The proceeds from the sale will be sufficient to pay off the
liens and encumbrances of lenders, the ad valorem taxes, and the
administrative expenses in full. The remaining proceeds will be
paid to the general unsecured creditors. Distributions will be made
to each payee pursuant to the terms of this Plan.
This Plan of Reorganization proposes to pay Debtor's creditors from
the sale of the Buses.
Class 5 consists of the allowed claim of Frost Bank for a guaranty
of the debt of SLL Transportation, LLC. The claim was filed in the
amount of $172,742.14. This claim is unsecured and will be paid as
an unsecured claim in class 9.
Class 6 consists of the allowed claim of Frost Bank. The claim is
for a Master Lease of vehicles and secured by certain vehicles. The
Debtor is surrendering all vehicles to Frost Bank. No vehicles will
be retained by the Debtor. The claim was filed in the amount of
$718,697.33. The Debtor is surrendering all vehicles to Frost Bank.
No vehicles will be retained by the Debtor. The claim will be
treated as an unsecured claim and will be paid as an unsecured
claim in class 9.
Class 7 consists of the allowed claim of Flagstar Financial &
Leasing, LLC. The claim is secured by two vehicles, a 2014 Van Hool
valued at $125,000 and a 2019 Freightliner valued at $75,000. The
claim was filed in the amount of $199,567.58. The Subchapter V
Trustee will pay the amount of $199,567.58 to Class 7 after
completion of the sale of the Buses and receipt of good funds. Such
amount is based on the claim of Flagstar Financial.
Until paid, Flagstar Financing & Leasing, LLC shall retain its
perfected first priority secured interests in and liens on (i) that
certain 2014 Van Hool CX-45 Motor Coach assigned VIN No.
YE2XC21BXE3048361, (ii) that certain 2019 Freightliner M2 Tiffany
Shuttle Bus assigned VIN No. 3ALACWFC3KDKL6544 and (iii) all
related attachments, accessories, additions, accessions, parts and
supplies, replacements and proceeds (collectively, the
"Collateral") as security for the payment of its Class 7 Claim
pursuant to the terms and conditions set forth in this Plan. Upon
payment to Class 7, Flagstar Financial will be required to execute
documents to release its liens on the Collateral when the funds are
paid.
Class 8 consists of the allowed claim of IMT Commercial LLC. No
claim has been filed. The Debtor has valued the collateral at
$150,000. The Subchapter V Trustee will pay the amount of $144,460
to Class 8 after completion of the sale of the Buses and receipt of
good funds. The payment of the $144,460 (the amount in the
schedules of the Debtor) shall be deemed full payment of the claim.
Until paid, IMT Commercial, LLC shall retain its perfected first
priority secured interests in and liens on (i) that certain 2017
Van Hool Motor Coach and (ii) all related attachments, accessories,
additions, accessions, parts and supplies, replacements and
proceeds (collectively, the "Collateral") as security for the
payment of its Class 8 Claim pursuant to the terms and conditions
set forth in this Plan. Upon payment to Class 8, IMT will be
required to execute documents to release its liens on the
Collateral when the funds are paid.
Class 9 consists of the non-priority unsecured claims allowed under
Section 502 of the Code. The Debtor believes the aggregate amount
of Class 9 claims that may be allowed are approximately $846,439.
This class includes the creditors that have filed unsecured claims
or are listed in the schedules as unsecured creditors whose claims
are not disputed, not contingent and are liquidated.
After the sale and after issues have been resolved in this case and
the plan, the Subchapter V Trustee will pay to Class 9 the
remaining sale proceeds that are remaining after payment in full of
the liens and encumbrances of IMT Commercial and Flagstar
Financial, the ad valorem taxes, and the administrative expenses.
The Debtor intends to complete the sale of the Buses. The
Subchapter V Trustee will make distributions provided in this Plan.
The proceeds from the sale will be sufficient to pay off the liens
and encumbrances of IMT Commercial and Flagstar Financial, the ad
valorem taxes, and the administrative expenses in full. The
remaining proceeds will be paid to the general unsecured creditors.
Distributions will be made by the Subchapter V Trustee pursuant to
the terms of this Plan.
A full-text copy of the Fifth Amended Subchapter V Plan dated
October 15, 2024 is available at https://urlcurt.com/u?l=2GbEOD
from PacerMonitor.com at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
About Assets Holding Partnership
Assets Holding Partnership, Ltd., is a Texas partnership that owns
transportation vehicles and leases the vehicles.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Tex. Case No. 24-31741) on April 18, 2024, with
$100,001 to $500,000 in assets and liabilities.
Judge Eduardo V. Rodriguez presides over the case.
Reese W. Baker, Esq., at Baker & Associates, is the Debtor's legal
counsel.
ATLAS PURCHASER: $134.6MM Bank Debt Trades at 98% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 2.4
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $134.6 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.
AZTEC FUND: Gets Court Okay to Sell Property for $4.5-Mil.
----------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that on November
25, 2024, a Texas bankruptcy judge authorized the sale of a real
estate property owned by Aztec Fund Holding Inc., a bankrupt
private equity investor, to Valley Equity Group LLC for just over
$4.5 million.
About The Aztec Fund Holding, Inc.
The Aztec Fund Holding Inc. invests in office buildings in the
United States and thus create real estate portfolios that generate
regular cash flows and sustainable value over time.
The Aztec Fund Holding Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90436) on August 5, 2024. In the petition filed by Charles
Haddad, as president, the Debtor reports estimated assets between
$10 million and $50 million and estimated liabilities between $100
million and $500 million.
The Honorable Bankruptcy Judge Christopher M. Lopez oversees the
cases.
The Debtors tapped Munsch Hardt Kopf & Harr, P.C., as counsel; and
Getzler Henrich & Associates LLC as financial advisor. Hilco Real
Estate Appraisals, LLC is the real estate appraiser. Stretto, Inc.,
is the claims agent.
BARRACUDA NETWORKS: $455MM Bank Debt Trades at 17% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Barracuda Networks
Inc is a borrower were trading in the secondary market around 82.6
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $455 million Term loan facility is scheduled to mature on
August 15, 2030. The amount is fully drawn and outstanding.
Barracuda Networks, Inc. (NYSE: CUDA), designs and delivers
security and data protection solutions. The Company maintains its
headquarters in Campbell, California.
BARTLEY INVESTMENTS: Taps Accounting & Business as Accountant
-------------------------------------------------------------
Bartley Investments, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Accounting &
Business Partners, LLC as accountant.
The firm will provide accounting services for the Debtor.
The firm will be compensated:
(a) A retainer of $2,500;
(b) Monthly Operating Reports at $130 per hour;
(c) Bookkeeping & QBO file management at $130 per hour;
(d) Plan projections and all other work billed at $230 per
hour.
Andrea Bone, a certified public accountant at Accounting & Business
Partners, 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:
Andrea Bone, CPA
Accounting & Business Partners LLC
10730 10nd Ave.
Seminole, FL 33778
Telephone: (727) 828-9945
Facsimile: (727) 255-7788
About Bartley Investments
Bartley Investments Ltd owns 12 rental properties in Tampa Villa
South, Tampa, Florida valued at $8.68 million.
Bartley Investments Ltd sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02952)
on May 23, 2024. In the petition signed by Allan N. Bartley,
general partner, the Debtor disclosed total assets of $8,764,925
and total liabilities of $3,703,633.
Honorable Bankruptcy Judge Catherine Peek McEwen oversees the
case.
The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as
counsel and Accounting & Business Partners LLC as accountant.
BAYER & SONZ: Sec. 341(a) Meeting of Creditors on Dec. 17
---------------------------------------------------------
On November 6, 2024, Bayer & Sonz LLC filed Chapter 11 protection
in the Eastern District of Wisconsin. According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states that funds will be
available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 17,
2024 at 1:00 PM.
About Bayer & Sonz LLC
Bayer & Sonz LLC is a limited liability company.
Bayer & Sonz LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wis. Case No. 24-25976) on November 6,
2024. In the petition filed by Matthew L. Bayer, as owner, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Rachel M. Blise handles the case.
The Debtor is represented by:
Emily K. Ott, Esq.
KREKELER LAW, S.C.
26 Schroeder Court, Suite 300
Madison, WI 53711
Tel: (608) 258-8555
Fax: (608) 258-8299
Email: eott@ks-lawfirm.com
BC AVENTURA: Seeks Chapter 11 Bankruptcy to Reorganize Business
---------------------------------------------------------------
Kirk O'Neil of The Street reports that the operator of BoConcept
furniture retail stores, BC in South Florida filed for Chapter 11
protection on November 15, 2024 in the U.S. Bankruptcy Court for
the Southern District of Florida in Fort Lauderdale, aiming to
reorganize its operations.
According to the report, the Hallandale, Fla.-based franchisee,
which operates five BoConcept locations, reported $500,000 in
assets and $1.5 million in liabilities in its Subchapter V filing.
The company cited financial challenges stemming from the COVID-19
pandemic, rising rent costs, supply chain disruptions, and
inflation as key factors leading to its bankruptcy, the report
related.
According to the report, BC Aventura Contemporary Furniture, a
franchisee and retailer of the Danish modern furniture brand
BoConcept, initially planned to expand its Florida operations with
a sixth store in 2023. However, due to falling sales and rising
debt, the company was forced to close three of its locations,
leaving only two in Fort Lauderdale and Hallandale Beach.
The franchisee owes BoConcept $800,000 for inventory and $150,000
in unpaid rent for both its open and closed stores. While it
reported $5.1 million in sales in 2022, revenue has dropped
significantly in 2024, with only $3.3 million in sales so far.
Despite BC Aventura's financial troubles, the brand continues to
perform well in other markets, the report states.
About BC Aventura Contemporary Furniture LLC
BC Aventura Contemporary Furniture LLC and affiliates sell
BoConcept-brand furniture merchandise in the State of Florida.
BC Aventura Contemporary Furniture LLC and affiliates sought relief
under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Lead Case No. 24-22028) on November 15, 2024. In
the petition filed by Carlos Salamonovitz, as manager, the Debtor
reports total assets as of September 30, 2024 amounting to $589,996
and total liabilities as of September 30, 2024 of $741,692.
Honorable Bankruptcy Judge Peter D. Russin oversees the case.
The Debtor is represented by:
Joseph A. Pack, Esq.
Jessey J. Krehl, Esq.
PACK LAW
51 Northeast 24th Street, Suite 108
Miami, Florida 33137
Tel: (305) 916-4500
Email: joe@packlaw.com
Email: jessey@packlaw.com
BODY OASIS: Kristofor Sodergren Named Subchapter V Trustee
----------------------------------------------------------
J. Thomas Corbett, the U.S. Bankruptcy Administrator for the
Northern District of Alabama, appointed Kristofor Sodergren of
Rosen Hardwood, P.A. as Subchapter V Trustee for Body Oasis, LLC.
Mr. Sodergren will be paid an hourly fee of $350 and will receive
reimbursement for work-related expenses.
Mr. Sodergren declared in a verified statement that he is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kristofor D. Sodergren
Rosen Hardwood, P.A.
2200 Jack Warner Parkway, Suite 200
Post Office Box 2727
Tuscaloosa, Alabama 35401
Telephone: (205) 344-5000
Email: ksodergren@rosenharwood.com
About Body Oasis
Body Oasis, LLC operates a body and facial improvements facility
using advanced non-surgical technologies to make those improvements
on individuals.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-71556) on November 6,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities. Jacquelyn Martin, managing member and sole member,
signed the petition.
Judge Jennifer H. Henderson oversees the case.
Robert C. Keller, Esq., at Russo, White & Keller, P.C., represents
the Debtor as legal counsel.
BROUDY GROUP: Seeks to Hire Spector & Cox as Bankruptcy Counsel
---------------------------------------------------------------
Broudy Group, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to employ Spector & Cox, PLLC as
counsel.
The firm will render these services:
(a) provide legal advice with respect to the Debtor's powers
and duties;
(b) prepare and pursue confirmation of plan and approval of a
disclosure statement;
(c) prepare on behalf of the Debtor necessary legal papers;
(d) appear in court and protect the interests of the Debtor
before the court; and
(e) perform all other legal services for the Debtor which may
be necessary and proper in these proceedings.
The firm will be paid at these hourly rates:
Howard Marc Spector, Attorney $435
Sarah Cox, Member $395
Paralegals $145
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $75,000
inclusive of filing fees from the Debtor.
Mr. Spector 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:
Howard Marc Spector, Esq.
Spector & Cox, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (214) 365-5377
Facsimile: (214) 237-3380
Email: hspector@spectorcox.com
About Broudy Group
Broudy Group Inc. is an automobile dealer in Celina, Texas.
Broudy Group sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Tex. Case No. 24-42463) on Oct. 18, 2024, with $1
million to $10 million in both assets and liabilities. Carey E.
Broudy, president and director, signed the petition.
Judge Brenda T. Rhoades oversees the case.
The Debtor is represented by Howard Marc Spector, Esq., at Specter
& Cox, PLLC.
CADUCEUS PHYSICIANS: Seeks to Extend Exclusivity to Jan. 24, 2025
-----------------------------------------------------------------
Caduceus Physicians Medical Group, a Professional Medical
Corporation d/b/a Caduceus Medical Group, and Caduceus Medical
Services, LLC, asked the U.S. Bankruptcy Court for the Central
District of California to extend their exclusivity periods to file
a plan of reorganization and obtain acceptance thereof to January
24, 2025 and March 30, 2025, respectively.
The Debtors claim that their request for an extension of the
exclusivity periods for the filing of a plan and the solicitation
of acceptances to such plan satisfies the general principles
established by courts as guideposts for demonstrating "cause"
within the meaning of Section 1121(d).
First, Debtors have made good faith progress in moving toward
reorganization. The Debtors have been actively negotiating with
creditors, such as BMO regarding the Cash Collateral Motion and ADP
Totalsource, Inc., regarding adequate protection and modification
to the automatic stay. Although Debtors cannot yet claim that it
will propose a consensual plan, Debtors will continue to negotiate
with creditors in the hopes of reaching an accord.
Second, and more importantly, the Claims Bar Date has been set for
November 25, 2024, which is four days before the current
exclusivity period expires. If Debtors were to propose a plan after
the Claims Bar Date, it would give Debtors a few days to analyze
timely-filed claims and modify a drafted plan as necessary. Simply
put, Debtors need to understand the full extent of the claims filed
against it in order to properly analyze and formulate a Chapter 11
Plan.
Moreover, Debtors have made significant progress towards
reorganization since the Petition Date. The Debtors have obtained
this Court's approval the Joint Administration Motion, the
Utilities Motion, the Cash Management Motion, and the Wage Motion,
as well as interim relief regarding the Cash Collateral Motion. The
Debtors simply need the Claims Bar Date to pass in order to fully
analyze and propose a Chapter 11 Plan that can be confirmed by this
Court.
Third, Debtors have continued to pay its bills as they have come
due. If the Rejection Motion is granted, Debtors will save
additional funds by rejection of the Lease.
Fourth, this is Debtors' first request for an extension. Debtors
filed its Petition approximately two months ago. In that time,
Debtors have made significant progress towards reorganization by
filing and obtaining orders granting the first-day motions,
entering into the AP Stipulation, seeking to reject the Lease, and
setting the Claims Bar Date.
Finally, pursuant to the plain language of Section 1121(d)(1) of
the Bankruptcy Code, the request contained in this instant Motion
must be "made" within the relevant exclusivity period. Here, the
exclusivity period expires on November 29, 2024. As this instant
Motion was filed before November 29, 2024, the Court can rule on
the matter and find "cause" to extend the exclusivity period. For
these reasons, Debtors are entitled to extension of the exclusivity
periods with respect to the filing of a chapter 11 plan and the
solicitation of acceptances of the same.
Counsel to the Debtors:
David A. Wood, Esq.
Matthew W. Grimshaw, Esq.
Sarah R. Hasselberger, Esq.
MARSHACK HAYS WOOD LLP
870 Roosevelt
Irvine, CA 92620-3663
Tel: (949) 333-7777
Fax: (949) 333-7778
Email: dwood@marshackhays.com
About Caduceus Physicians Medical Group,
a Professional Medical Corporation
dba Caduceus Medical Group
Caduceus Physicians Medical Group is a physician owned and
managedmulti-specialty medical group with locations in Yorba Linda,
Anaheim, Orange, Irvine, and Laguna Beach. It specializes in
primary care, pediatrics, and urgent care.
Caduceus Physicians Medical Group and Caduceus Medical Services,
LLC filed Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No.
24-11946) on August 1, 2024. The petitions were signed by Howard
Grobstein as chief restructuring officer.
At the time of the filing, Caduceus Physicians reported $1 million
to $10 million in both assets and liabilities while Caduceus
Medical reported up to $50,000 in both assets and liabilities.
Judge Theodor Albert presides over the cases.
David A. Wood, Esq., at Marshack Hays Wood, LLP, is the Debtors'
legal counsel.
CADUCEUS PHYSICIANS: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The U.S. Trustee for Region 16 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Caduceus Physicians Medical Group.
About Caduceus
Caduceus Physicians Medical Group is a physician owned and managed
multi-specialty medical group with locations in Yorba Linda,
Anaheim, Orange, Irvine, and Laguna Beach. It specializes in
primary care, pediatrics, and urgent care.
Caduceus Physicians Medical Group and Caduceus Medical Services,
LLC filed Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No.
24-11946) on August 1, 2024. The petitions were signed by Howard
Grobstein as chief restructuring officer.
At the time of the filing, Caduceus Physicians reported $1 million
to $10 million in both assets and liabilities while Caduceus
Medical reported up to $50,000 in both assets and liabilities.
Judge Theodor Albert presides over the cases.
David A. Wood, Esq., at Marshack Hays Wood, LLP represents the
Debtors as legal counsel.
CAPITAL COMMERCIAL: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Capital Commercial Holdings LLC.
About Capital Commercial Holdings
Capital Commercial Holdings, LLC is the fee simple owner of a
vacant land located in San Juan Capistrano, having a current value
of $1.6 million.
Capital Commercial Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09234) on October
30, 2024, with total assets of $1,600,000 and total liabilities of
$773,885. John Wright, manager, signed the petition.
Judge Eddward P. Ballinger Jr. handles the case.
The Debtor is represented by Joseph G. Urtuzuastegui, III, Esq., at
REI Law Firm.
CAREMAX INC: Reaches $100-Mil. Sale Deal with ClareMedica
---------------------------------------------------------
Alex Wolf of Bloomberg Law reports that CareMax Inc., a health-care
provider in bankruptcy, has secured a $100 million sale agreement
with ClareMedica Health Partners.
The deal establishes a $100 million floor price for the sale of
CareMax's operating clinics, which includes 46 business locations,
according to the report. ClareMedica, a Florida-based primary care
provider, has been designated as the "stalking horse" bidder under
the Chapter 11 proceedings, meaning their offer will serve as the
minimum starting point for an auction, the report says.
According to the report, the proposed deal, which is subject to
court approval, includes a bid of $35 million in cash and $65
million in equity from CareMax's parent company. If the bid is
approved by the court, it will be the baseline offer for any
potential competitive bids in the ongoing bankruptcy process, the
report relates.
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.
CAREMAX INC: Ropes & Kelly Hart Represent Ad Hoc Group
------------------------------------------------------
The law firms of Ropes & Gray LLP and Kelly Hart & Hallman LLP
filed a verified statement pursuant to Rule 2019 of the Federal
Rules of Bankruptcy Procedure to disclose that in the Chapter 11
cases of Caremax, Inc. and affiliates, the firms represent holders
of term loans (the "Ad Hoc Group").
Starting in February 2024, members of the Ad Hoc Group retained
attorneys with the firm of Ropes & Gray to represent them as
counsel in connection with their holdings of the outstanding
indebtedness of the Debtors. In October 2024, the Ad Hoc Group
retained attorneys with the firm of Kelly Hart to serve as its
Texas co-counsel with respect to such matters.
The members of the Ad Hoc Group, collectively, beneficially own or
manage approximately $414,514,005.16 in loans under that certain
Credit Agreement, dated as of May 10, 2022 (as may be amended,
restated, amended and restated, supplemented or otherwise modified
from time to time in accordance with its terms, the "Credit
Agreement").
Counsel does not represent the Ad Hoc Group as a "committee" (as
such term is used in the Bankruptcy Code and the Bankruptcy Rules)
and does not undertake to represent the interests of, and is not a
fiduciary for, any creditor, party in interest, or other entity
that has not signed a retention agreement with Counsel. No member
of the Ad Hoc Group represents or purports to represent any other
person or entity in connection with the Debtors' Chapter 11 Cases.
Ropes & Gray also represents Acquiom Agency Services LLC in its
capacity as proposed administrative agent and collateral agent
under the Debtors' proposed term loan debtor-in-possession
financing facility in the Debtors' chapter 11 cases.
The Ad Hoc Group Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors
are:
1. BlackRock, Inc., on behalf of funds and accounts managed or
advised by it or its affiliates
50 Hudson Yards
New York, NY 10001
* $303,976,937.14
2. Crestline Management, L.P., on behalf of funds and accounts
managed or advised by it
201 Main Street Suite 2100
Fort Worth, TX 76102
* $110,537,068.02
Co-Counsel to the Ad Hoc Group:
KELLY HART & HALLMAN LLP
Katherine T. Hopkins, Esq.
201 Main Street, Suite 2500
Fort Worth, Texas 76102
Telephone: (817) 878-9377
Facsimile: (817) 878-9280
Email: katherine.hopkins@kellyhart.com
-and-
ROPES & GRAY LLP
Matthew M. Roose, Esq.
Tessa M. Ptucha, Esq.
1211 Avenue of the Americas
New York, New York 10036-8704
Telephone: 212-596-9000
Facsimile: 212-596-9090
Email: matthew.roose@ropesgray.com
tessa.ptucha@ropesgray.com
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.
CAREPOINT HEALTH: Seeks to Hire Epiq as Administrative Advisor
--------------------------------------------------------------
CarePoint Health Systems Inc., doing business as Just Health
Foundation, and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Epiq
Corporate Restructuring, LLC as administrative advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith, but only to the extent that
Ankura Consulting Group, LLC is not doing do;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
chapter 11 plan; and
(f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement.
The hourly rates of the firm's professionals are as follows:
Executive Vice President, Solicitation $190
Solicitation Consultant $185
Project Managers/Consultants/Directors $165 - $185
Case Managers $75 - $165
IT/Programming $55 - $85
In addition, the firm will seek reimbursement for expenses
incurred.
Epiq received a retainer of $25,000 from the Debtor.
Kate Mailloux, a senior director at Epiq, 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:
Kate Mailloux
Epiq Corporate Restructuring LLC
777 3rd Ave Fl 12
New York, NY 10017
Telephone: (646) 282-2532
Email: kmailloux@epiqglobal.com
About CarePoint Health
CarePoint Health brings quality, patient-focused health care to
Hudson County. Combining the resources of three area hospitals,
Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken
University Medical Center, CarePoint Health provides a new approach
to deliver health care that puts the patient front and center.
CarePoint Health leverages a network of top doctors, nurses, and
other medical professionals whose expertise and attentiveness work
together to provide complete coordination of care, from the
doctor's office to the hospital to the home. Patients benefit from
the expertise and capabilities of a broad network of leading
specialists and specialized technology. At CarePoint Health, all
medical professionals emphasize preventive medicine and focus on
educating patients to make healthy life choices. For more
information on its facilities, partners and services, visit
www.carepointhealth.org.
CarePoint Health Systems Inc., doing business as Just Health
Foundation, and its affiliates filed voluntary petitions for relief
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million
in assets and up to $50,000 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura
Consulting as financial advisor, and Epiq Corporate Restructuring,
LLC as claims and noticing agent and administrative advisor.
CAREPOINT HEALTH: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of CarePoint
Health Systems Inc. and its affiliates.
The committee members are:
1. Public Service Electric and Gas Company
Attn: Alexandra Grant
80 Park Plaza
Newark, NJ 07102
Phone: 862-867-6702
Email: alexandra.grant@pseg.com
2. Medely, Inc.
Attn: Thomas J. Bierman
2355 Westwood Blvd., #412
Los Angeles, CA 90064
Phone: 424-200-6272
Email: bankruptcy@medely.com
3. Nurse Staffing, LLC
d/b/a Nurses 24/7
Attn: Kevin Malecki and Aaron Lazar
1700 NJ 23 #170
Wayne, NJ 07470
Phone: 610-529-1559
Email: kmaleck@exchange.nurses247.com
alazar@siercapital.com
4. Sodexo, Inc. & Affiliates
Attn: Amelia Pandolfi
400 Airborne Parkway
Cheektowaga, NY 14225
Phone: 716-343-4065
Email: amelia.davis@sodexo.com
5. Sierra Health Group LLC
Attn: Rosann Dovgala
440 Franklin Street
Bloomfield, NJ 07003
Phone: 973-517-5016
Email: rdovgala@sierrahealth.net
6. Health Professionals & Allied Employees AFT-AFL/CIO
Attn: Debbie White
110 Kinderkamack Road
Emerson, NJ 07630
Phone: 609-828-4105
Email: dwhite@hpae.org
7. Committee of Interns and Residents, SEIU
Attn: Christopher Hull
10-27 46th Avenue, Suite 300-2
Long Island City, NY 11101
Phone: 917-687-1717
Email: chull@cirseiu.or
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 CarePoint Health
CarePoint Health brings quality, patient-focused health care to
Hudson County. Combining the resources of three area hospitals,
Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken
University Medical Center, CarePoint Health provides a new approach
to deliver health care that puts the patient front and center.
CarePoint Health leverages a network of top doctors, nurses, and
other medical professionals whose expertise and attentiveness work
together to provide complete coordination of care, from the
doctor's office to the hospital to the home. Patients benefit from
the expertise and capabilities of a broad network of leading
specialists and specialized technology. At CarePoint Health, all
medical professionals emphasize preventive medicine and focus on
educating patients to make healthy life choices. For more
information on its facilities, partners and services, visit
www.carepointhealth.org.
CarePoint Health Systems Inc., doing business as Just Health
Foundation, and its affiliates filed voluntary petitions for relief
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 24-12534) on Nov. 3, 2024. At the time of the
filing, CarePoint Health Systems reported up to $1 million in
assets and up to $50,000 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Dilworth Paxson LLP as legal counsel; Ankura
Consulting as financial advisor; and Epiq Corporate Restructuring,
LLC as claims and noticing agent.
CASABLANCA THE RESTAURANT: Robert Goe Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 16 appointed Robert Goe, Esq., a
practicing attorney in Irvine, Calif., as Subchapter V trustee for
Casablanca The Restaurant Corp.
Mr. Goe will be paid an hourly fee of $545 for his services as
Subchapter V trustee while his case administrator, Arthur Johnston,
will be paid an hourly fee of $195. In addition, the Subchapter V
trustee will receive reimbursement for work-related expenses
incurred.
Mr. Goe declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Goe, Esq.
17701 Cowan
Building D, Suite 210
Irvine, CA 92614
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Email: bktrustee@goeforlaw.com
About Casablanca The Restaurant
Casablanca The Restaurant Corp. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12853)
on November 6, 2024, with $50,001 to $100,000 in assets and
liabilities.
Judge Scott C. Clarkson presides over the case.
Andrew S. Bisom, Esq. at Bisom Law Group represents the Debtor as
bankruptcy counsel.
CASTLE US: $295MM Bank Debt Trades at 43% Discount
--------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 56.9
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $295 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.
CASTLE US: EUR500MM Bank Debt Trades at 43% Discount
----------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 56.8
cents-on-the-dollar during the week ended Friday, November 22,
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.
CLASS ACT: Seeks to Extend Plan Exclusivity to Feb. 26, 2025
------------------------------------------------------------
Class Act Restaurant, LLC is asking the U.S. Bankruptcy Court for
the Southern District of Florida to extend its exclusivity periods
to file a plan of reorganization and obtain acceptance thereof to
February 26, 2025 and April 26, 2025, respectively.
The Debtor explains that an extension of the Exclusive Period is
customary, as well as essential, in the context of its Chapter 11
case. Ample cause exists to grant the Debtor such relief because,
inter alia, (i) the Debtor continues to make good faith progress
towards reorganization, (ii) the Debtor is not seeking to use
exclusivity to pressure creditors into accepting a plan they find
unacceptable, and (iii) no viable plan can be proposed absent a
decision on the pending Appeal.
The Debtor submits that an extension of the Exclusive Period is
warranted and appropriate for this case. The relief requested will
afford the Debtor a full and fair opportunity to negotiate,
propose, and seek acceptances of a confirmable Chapter 11 plan.
Class Act Restaurant Group, LLC is represented by:
David A. Ray, Esq.
David A. Ray, PA
303 Southwest 6th Street
Fort Lauderdale, FL 33315
Telephone: (954) 399-0105
Email: dray@draypa.com
About Class Act Restaurant Group
Class Act Restaurant Group, LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-16626) on July 1, 2024, listing up to $50,000 in assets and up
to $10 million in liabilities. The petition was signed by Panagiota
Lazarou-Amanna, authorized representative of the Debtor.
Judge Peter D Russin presides over the case.
David A. Ray, Esq., at David A. Ray, P.A., is the Debtor's legal
counsel.
COBRA HOLDINGS: $560MM Bank Debt Trades at 15% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Cobra Holdings Inc
is a borrower were trading in the secondary market around 84.6
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $560 million Term loan facility is scheduled to mature on July
31, 2028. The amount is fully drawn and outstanding.
Cobra Holdings PLC is retail and wholesale insurance broking
group.
COMMSCOPE HOLDING: Reaches New Debt Negotiations w/ Creditor Group
------------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that the creditors of
CommScope Holding Co. have begun private talks with the company
regarding the potential extension of its debt maturities, according
to sources familiar with the discussions.
The talks involve fund managers, including Apollo Global Management
and Monarch Alternative Capital, who have signed nondisclosure
agreements to facilitate the sharing of sensitive information, the
sources added, speaking anonymously due to the confidential nature
of the negotiations, according to the report.
In response to Bloomberg News' request for comment, CommScope did
not directly address the ongoing discussions with these fund
managers but confirmed that it is engaging with creditors to
identify possible solutions.
About CommScope Holding
Headquartered in Hickory, North Carolina, CommScope Holding
Company, Inc. -- https://www.commscope.com/ -- is a global provider
of infrastructure solutions for communication, data center, and
entertainment networks. The Company's solutions for wired and
wireless networks enable service providers, including cable,
telephone, and digital broadcast satellite operators, as well as
media programmers, to deliver media, voice, Internet Protocol (IP)
data services, and Wi-Fi to their subscribers. This allows
enterprises to experience constant wireless and wired connectivity
across complex and varied networking environments.
CommScope reported a net loss of $1.45 billion in 2023, a net loss
of $1.28 billion in 2022, a net loss of $462.6 million in 2021, and
a net loss of $573.4 million in 2020.
* * *
As reported by the TCR on Nov. 22, 2023, S&P Global Ratings lowered
its Company credit rating on CommScope to 'CCC' from 'B-' and
removed the ratings from CreditWatch with negative implications,
where they were placed on Oct. 31, 2023. S&P revised the outlook to
negative. The negative outlook reflects S&P's view that CommScope's
expected weak financial performance, with leverage above the 10x
area and low FOCF generation in 2023 and 2024, will increase the
risk of a distressed exchange or buyback within the next 12 months
to address upcoming maturities.
As reported by the TCR on March 15, 2024, Moody's Ratings
downgraded CommScope's ratings, including the corporate family
rating to Caa2 from B3. The ratings downgrade primarily reflects
the increasing risk of a capital restructuring, including a
distressed exchange of some or all of the company's debt, with
maturities approaching, including the company's senior notes in
June 2025 and secured debt in March and April of 2026.
CONCORDIA ANESTHESIOLOGY: Gets OK to Tap Forbes & Co. as Accountant
-------------------------------------------------------------------
Concordia Anesthesiology, Inc. received approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Forbes & Company as accountant.
The firm will provide these services:
(a) provide ordinary course bookkeeping services;
(b) assist the Debtor in preparing and filing its tax
returns;
(c) analyze financial data and prepare financial reports as
necessary to comply with orders of the court and requests from the
U.S. Trustee and other parties-in-interest; and
(d) perform other essential accounting duties necessary to
ensure the accuracy of information presented to the court and
parties-in-interest in this case.
The firm's hourly rates are:
Steve Forbes, CPA $500
Nonprofessional Staff $95
Forbes requires a retainer payment of a $10,000 for its
post-petition services.
Mr. Forbes 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:
Steve Forbes, CPA
Forbes & Company
8000 Avalon Blvd., Suite 100
Alpharetta, GA 30009
Telephone: (770) 392-7117
Facsimile: (770) 217-3173
About Concordia Anesthesiology
Gainesville-based Concordia Anesthesiology, Inc. filed its
voluntary Chapter 11 petition (Bankr. N.D. Ga. Case No. 24-21106)
on September 10, 2024, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
Jarrod D. Huey, M.D. as chief executive officer and president.
Judge James R. Sacca oversees the case.
The Debtor tapped Angelyn M. Wright, Esq., at The Wright Law
Alliance, PC as bankruptcy counsel and Forbes & Company as
accountant.
COOKQUEEN LLC: Sec. 341(a) Meeting of Creditors on Dec. 18
----------------------------------------------------------
On November 4, 2024, The CookQueen LLC filed Chapter 11 protection
in the Central District of California. According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 18,
2024 at 10:00 AM.
About The CookQueen LLC
The CookQueen LLC is a limited liability company.
The CookQueen LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12827) on
November 4, 2024. In the petition filed by Donna Williams, as
owner/CEO, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The case is overseen by Honorable Bankruptcy Judge Theodor Albert.
The Debtor is represented by:
Damian Nassiri, Esq.
CANNABIS LAW GROUP NASSIRI LAW, INC.
4695 MacArthur Ct 11th Floor
Newport Beach CA 92660
Tel: 949-375-4734
Email: dnassiri75@hotmail.com
CPC ACQUISITION: $225MM Bank Debt Trades at 38% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Cpc Acquisition
Corp is a borrower were trading in the secondary market around 62.2
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $225 million Term loan facility is scheduled to mature on
December 29, 2028. The amount is fully drawn and outstanding.
CPC Acquisition Corp is in the chemicals industry.
CRITICAL REHAB: Kathleen DiSanto Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Kathleen DiSanto, Esq., at
Bush Ross, P.A., as Subchapter V trustee for Critical Rehab
Corporation.
Ms. DiSanto will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. DiSanto declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kathleen L. DiSanto, Esq.
Bush Ross, P.A.
P.O. Box 3913
Tampa, FL 33601-3913
Phone: (813) 224-9255
Fax: (813) 223-9620
Email: disanto.trustee@bushross.com
About Critical Rehab Corporation
Critical Rehab Corporation filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Fla. Case No.
24-40444) on November 4, 2024, with up to $50,000 in assets and up
to $500,000 in liabilities. Meagan Peluso, president of Critical
Rehab, signed the petition.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine LLP,
represents the Debtor as legal counsel.
CUBIC CORP: $1.48BB Bank Debt Trades at 34% Discount
----------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 66.3
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.48 billion Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance
Solutions.
CUBIC CORP: $300MM Bank Debt Trades at 32% Discount
---------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 68.1
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance Solutions.
CUT & FILL: Court Approves Interim Use of Cash Collateral
---------------------------------------------------------
Cut & Fill, LLC received interim approval from the U.S. Bankruptcy
Court for the Northern District of Illinois, Eastern Division to
use cash collateral and provide adequate protection to Pension Fund
of Cement Masons' Union Local No. 502.
The interim order authorized the company to use cash collateral to
pay ordinary business expenses consistent with its budget, which
shows total projected expenses of $228,014.37.
Total cash disbursements must not exceed 110% of the budgeted
amount without CM Funds' consent.
CM Funds will be granted replacement liens on all post-petition
property of the company, including cash collateral, with the same
priority and validity as its pre-bankruptcy liens.
Additionally, the court ordered certain payments to be made by the
company, including a $500 payment to CM Funds by Nov. 30. and
timely contributions to labor funds by specified deadlines.
The next hearing is scheduled for Dec. 4.
About Cut & Fill
The Cut & Fill, LLC has operated a concrete business since 2019.
Rachel McCuen, who serves as the company's managing and sole
member, supervises the company's day-to-day operations in Volvo,
Ill.
Cut & Fill filed a Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-13457) on Sept. 12, 2024, listing $183,243 in total assets and
$1,492,053 in total liabilities. Rachel McCuen, president, signed
the petition.
Judge Timothy A. Barnes oversees the case.
The Debtor tapped the Law Office of David R. Herzog, LLC as
bankruptcy counsel.
D&R MACHINERY: Continued Operations to Fund Plan Payments
---------------------------------------------------------
D&R Machinery, LLC filed with the U.S. Bankruptcy Court for the
Western District of Washington a Plan of Reorganization dated
October 9, 2024.
The Debtor began operation in January, 2020 and provided services
in the sheet metal industry including installation, service, shop
design management, repair and reselling of sheet metal equipment,
and logistics to customers in Washington, Oregon, Montana,
California, Alaska and Idaho.
In January, 2023, the managing member of the Debtor, Shawn
Kingsmore, suffered a personal setback and relapsed after 13 years
of sobriety. This relapse led to the reckless spending of company
funds and lack of oversight of the Debtor's operation, including
damage to the Debtor's reputation in the industry.
In August, 2023, in an effort to turn things around, the Debtor
changed directions and began operating as D&R Design, providing
custom printed apparel and other custom items to schools and other
customers. The majority of the Debtor's income is derived from the
new operation.
With the operational change, the Debtor was unable to service the
debt that was incurred and the Debtor sought bankruptcy protection
to provide a reset in addressing its debt and on July 11, 2024,
filed a petition under Chapter 11, Subchapter V.
Class 5 consists of General Unsecured Claims. Payment will begin on
January 5, 2025. Any Class 5 claim whose monthly pro rata share of
the Class 5 disbursement amount equals less than $5.00 per month
will be paid its full pro rata share on January 5, 2025. This Class
is impaired.
The Plan will be funded with revenue from the Debtor's operation.
It is anticipated the Debtor's fixed expenses will remain
relatively constant moving forward with variable expenses
increasing proportionately with revenue. Debtor expects the income
and expenses to remain consistent through the life of the Plan.
A full-text copy of the Plan of Reorganization dated October 9,
2024 is available at https://urlcurt.com/u?l=mN7b6G from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Jennifer L. Neeleman
Neeleman Law Group
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
About D&R Machinery, LLC
D&R Machinery, LLC, began operation in January, 2020 and provided
services in the sheet metal industry.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. W.D.
Wash. Case No. 24-11717) on July 11, 2024. The Debtor hires
Neeleman Law Group as legal counsel.
DEL MONTE FOODS: $472.4MM Bank Debt Trades at 40% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Del Monte Foods
Corp II Inc is a borrower were trading in the secondary market
around 60.1 cents-on-the-dollar during the week ended Friday,
November 22, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $472.4 million Term loan facility is scheduled to mature on
August 2, 2028. About $471.3 million of the loan has been drawn and
outstanding.
DEL MONTE FOODS, INC. manufactures and distributes packaged food
products. The Company provides canned fruits and vegetables, as
well as a wide range of snacks. Del Monte Foods serves customers
worldwide.
DIOCESE OF ROCKVILLE: Settlement Agreements with Insurers Okayed
----------------------------------------------------------------
Judge Martin Glenn of the United States Bankruptcy Court for the
Southern District of New York granted the motion of the Roman
Catholic Diocese of Rockville Centre, New York that seeks entry of
an order:
(i) approving four separate Settlement, Release and Buyback
Agreements by and among the Debtor, certain additional assureds,
including the Debtor's parishes, and (A) Certain Underwriters at
Lloyds and London Market Companies; (B) Interstate Fire & Casualty
Company, National Surety Corporation, and Fireman's Fund Insurance
Company; (C) Evanston Insurance Company, as successor to Associated
International Insurance Company; and (D) Lexington Insurance
Company and AIU Insurance Company; and
(ii) granting related relief, pursuant to sections 363 and 105(a)
of the Bankruptcy Code and Rule 9019 of the Federal Rules of
Bankruptcy Procedure.
The Debtor indicates that it is also contemporaneously seeking
authority to enter into the Settlement Agreements through which it
seeks to settle and sell its historical insurance policies with all
its insurers other than Arrowood Indemnity Company in liquidation.
The Debtor's entry into the Settlement Agreements and related
relief is approved.
The Debtor asserts that the proposed sale of its insurance policies
to the Settling Insurers free and clear is an exercise of the
Debtor's business judgment and should be approved. In support, the
Debtor states that the Settling Insurers will pay "significant
consideration" in exchange for the policies, an amount arrived at
through court-ordered mediation that was conducted in good faith
and at arm's-length. The sale, which has the support of the
Committee, will resolve the insurance coverage actions while
providing funds to immediately pay creditors. Additionally, the
Debtor submits that it satisfies the requirements to sell the
insurance policies free and clear of the interests of additional
insureds, any claims of claimholders, or any other interests any
party may assert.
Aside from satisfying the applicable and relevant provisions of
section 363, the Debtor argues that the Settlement Agreements,
including the releases and other terms set forth therein, are well
within the range of reasonableness and are the product of good
faith and arm's-length negotiations.
The Second Circuit has set forth seven interrelated factors to be
considered by a court in deciding whether to approve a compromise
or settlement:
(1) [T]he balance between the litigation's possibility of
success and the settlement's future benefits;
(2) the likelihood of complex and protracted litigation, "with
its attendant expense, inconvenience, and delay," including the
difficulty in collecting on the judgment;
(3) "the paramount interests of the creditors," including each
affected class's relative benefits "and the degree to which
creditors either do not object to or affirmatively support the
proposed settlement;"
(4) whether other parties in interest support the settlement;
(5) the "competency and experience of counsel" supporting, and
"[t]he experience and knowledge of the bankruptcy court judge"
reviewing, the settlement;
(6) "the nature and breadth of releases to be obtained by
officers and directors;" and
(7) "the extent to which the settlement is the product of arm's
length bargaining."
The Debtor believes that the relevant Iridium Factors all weigh in
favor of a determination that the Settlement is fair and equitable.
On November 8, 2024, the U.S. Trustee filed an objection to the
Motion, arguing that the Court deny the Motion or, at a minimum,
adjourn the Motion to the hearing on confirmation.
The UST opposes the Motion primarily on four grounds:
1. The UST asserts that the proposed Sale Order predetermines
issues that should more appropriately be addressed at plan
confirmation and is, therefore, a sub rosa plan.
2. The Debtor, the UST contends, is seeking to sell property
that is not property of the estate, without the authorization of
those holding an interest in such assets and, in certain instances,
in direct contravention of the Court's order concerning the
Disclosure Statement.
3. The UST contends that the Plan and Sale Order contain
impermissible nonconsensual release and injunction provisions in
violation of the Supreme Court's ruling in Harrington v. Purdue
Pharma, L.P., 144 S. Ct. 2071 (2024), and applicable state law and
fall outside the scope of section 363(f) of the Bankruptcy Code.
4. The Sale Order, the UST argues, contains a bar order that
extends beyond the authority granted to this Court pursuant to
section 363(f) to sell assets free and clear of claims and
interests.
The Debtor requests that the Court overrule the UST Objection. At
the outset, the Debtor rejects the UST's contention that the Sale
Order is a sub rosa plan as it does not seek to dispose of all the
Debtor's assets, dictate the terms of the reorganization, or
circumvent creditor's plan rights. Moreover, the effectiveness of
the Settlement Agreements is conditioned on the Court's
confirmation of the Plan.
A hearing on the Motion was held on November 18, 2024.
The Court finds Debtor has sufficiently established that the
requirements of section 363(b) of the Bankruptcy Code have been
satisfied. Judge Glenn explains, "The proposed sale of insurance
policies to the Settling Insurers pursuant to the Settlement
Agreements will result in the payment of $85.525 million towards
the funding of the Trust. This settlement amount, as noted, was the
product of a court-ordered mediation that the Debtor submits was
conducted in good faith and at arm's length. Notably, funds from
the settlement amount will be immediately available to pay
creditors who have waited far too long for compensation. At the
same time, the Settlement will also resolve the highly contentious
and costly insurance coverage actions pending in District Court,
which the Debtor has indicated involve fact-intensive issues that
will likely require resolution on a claim-by-claim basis."
According to the Court, the contemplated sale of insurance policies
is entitled to "free and clear" protections under section 363(f) of
the Bankruptcy Code.
The Debtor submits that its entry into the Settlement Agreements,
as products of good faith and arm's-length negotiations, are well
within the range of reasonableness. The Court agrees and finds that
each of the relevant Iridium Factors weigh in favor of approval.
The Court concludes that the Sale Order is not a sub rosa plan and
overrules the UST Objection in this respect.
A copy of the Court's decision dated November 18, 2024, is
available at https://urlcurt.com/u?l=D4KS2O
Attorneys for the Debtor and Debtor-in-Possession:
Corinne Ball, Esq.
Todd Geremia, Esq.
Benjamin Rosenblum, Esq.
Andrew Butler, Esq.
JONES DAY
250 Vesey Street
New York, NY 10281
E-mail: cball@jonesday.com
trgeremia@jonesday.com
brosenblum@jonesday.com
abutler@jonesday.com
Attorneys the Official Committee of Unsecured Creditors:
James I. Stang, Esq.
Brittany M. Michael, Esq.
Karen B. Dine, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, NY 10017
E-mail: jstang@pszjlaw.com
bmichael@pszjlaw.com
kdine@pszjlaw.com
Attorneys for Interstate Fire and Casualty Company, National Surety
Corporation, and Fireman’s Fund Insurance Company:
Harris B. Winsberg, Esq.
Matthew M. Weiss, Esq,
Matthew G. Roberts, Esq.
PARKER, HUDSON, RAINER & DOBBS LLP
303 Peachtree Street, Suite 3600
Atlanta, GA 30308
E-mail: hwinsberg@phrd.com
mweiss@phrd.com
mroberts@phrd.com
- and -
Todd C. Jacobs, Esq.
John E. Bucheit, Esq.
PARKER, HUDSON, RAINER & DOBBS LLP
Two N. Riverside Plaza, Suite 1850
Chicago, IL 60606
E-mail: tjacobs@phrd.com
jbucheit@phrd.com
Attorneys for Interstate Fire and Casualty Company, National Surety
Corporation and Fireman’s Fund Insurance Company:
Siobhain P. Minarovich, Esq.
WHITE AND WILLIAMS LLP
810 Seventh Avenue, Suite 500
New York, NY 10019
E-mail: minarovichs@whiteandwilliams.com
Attorneys for London Market Insurers:
Russell W. Roten, Esq.
Jeff D. Kahane, Esq.
Andrew Mina, Esq.
Betty Luu, Esq.
DUANE MORRIS LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017
E-mail: RWRoten@duanemorris.com
JKahane@duanemorris.com
AMina@duanemorris.com
BLuu@duanemorris.com
Attorneys for London Market Insurers:
Catalina J. Sugayan, Esq.
James J. Moffitt, Esq
CLYDE & CO US LLP
30 S. Wacker Drive, Suite 2600
Chicago, IL 60606
E-mail: catalina.sugayan@clydeco.us
james.moffitt@clydeco.us
Attorney for the United States Trustee for Region 2
Greg M. Zipes, Esq.
UNITED STATES TRUSTEE
One Bowling Green
New York, NY 10004
E-mail: Greg.Zipes@usdoj.gov
About The Roman Catholic Diocese
of Rockville Centre, New York
The Roman Catholic Diocese of Rockville Centre, New York, is the
seat of the Roman Catholic Church on Long Island. The Diocese has
been under the leadership of Bishop John O. Barres since February
2017. The State of New York established the Diocese as a religious
corporation in 1958. The Diocese is one of eight Catholic dioceses
in New York, including the Archdiocese of New York. The Diocese's
total Catholic population is approximately 1.4 million, roughly
half of Long Island's total population of 3.0 million. The Diocese
is the eighth largest diocese in the United States when measured by
the number of baptized Catholics.
To deal with sexual abuse claims, the Roman Catholic Diocese of
Rockville Centre, New York, filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as
$500 million in both assets and liabilities. Judge Martin Glenn
oversees the case.
The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal
North America, LLC, as restructuring advisor, and Sitrick and
Company, Inc., as communications consultant. Epiq Corporate
Restructuring, LLC is the claims agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Diocese's Chapter 11 case. The committee
tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin Moscou
Faltischek, PC as its bankruptcy counsel and special real estate
counsel, respectively.
Robert E. Gerber, the legal representative for future claimants of
the Diocese, is represented by the law firm of Joseph Hage
Aaronson, LLC.
DOTLESS LLC: Plan Exclusivity Period Extended to December 6
-----------------------------------------------------------
Judge Mindy A. Mora of the U.S. Bankruptcy Court for the Southern
District of Florida extended Dotless, LLC's exclusive period to
file its Amended Chapter 11 Plan and Disclosure Statement and
obtain acceptance thereof to December 6, 2024 and February 6, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtor claims that it
is in the process of attempting to negotiate a consensual plan. The
plan will propose funding of the plan by payment through the
Debtor's principal providing new value. This will provide for the
secured creditors' payments under the plan and provide a return for
the general unsecured creditors which they would not receive upon
liquidation.
The Debtor asserts that it has consistently proceeded toward
reorganization in good faith during the pendency of this matter.
The Debtor is in the process of negotiating plan treatments with
creditors.
Additionally, the requested extension will not harm any party in
interest to this matter, and the Debtor has good prospects to
confirm a plan that will be best achieved without the burden and
expense of having potentially competing plans being pursued by
multiple parties. Therefore, the Debtor requests an extension of
the Exclusivity Period through and including December 6, 2024, in
order to continue the progress towards reorganization.
Dotless, LLC is represented by:
Nicholas G. Rossoletti, Esq.
Bilu Law, PA
2760 W. Atlantic Blvd.
Pompano Beach, FL 33069
Telephone: (954) 596-0669
Facsimile: (954) 427-1518
Email: nrossoletti@bilulaw.com
About Dotless LLC
Dotless, LLC was organized in the State of Utah in 2021 to serve as
a holding company for the purchasing and sale of real property
throughout the United States.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-19341) on Nov. 13,
2023. In the petition signed by Aaron Pace, manager, the Debtor
disclosed under $1 million in both assets and liabilities.
Judge Mindy A. Mora oversees the case.
Nicholas G. Rossoletti, Esq., at Bilu Law, PA, serves as the
Debtor's counsel.
DR. POWER: Seeks to Hire Gordon Mosley as Legal Counsel
-------------------------------------------------------
Dr. Power Washers, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ Gordon Mosley, an
attorney practicing in Tyler, Tex., as legal counsel.
The attorney will render these services:
(a) give legal advice with respect to the Debtor's
responsibilities;
(b) prepare and file the petition, schedules, statements, and
Chapter 11 plan;
(c) prepare all necessary reports, applications, answers, and
orders;
(d) attend the 341(a) hearing and all other hearing related to
the Debtor's case; and
(e) perform any legal services on behalf of the Debtor that
may become necessary.
Mr. Mosley will be compensated at his hourly rate of $295 and $145
per hour for legal assistants.
The attorney received a pre-petition retainer of $5,762 plus filing
fee from the Debtor.
Mr. Mosley disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The attorney can be reached at:
Gordon Mosley, Esq.
4411 Old Bullard Road, Suite 602
Tyler, TX 75703
Telephone: (903) 534-5396
Facsimile: (903) 581-4038
Email: gmosley@suddenlinkmail.com
About Dr. Power Washers
Dr. Power Washers, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-60627) on
October 14, 2024, listing under $1 million in both assets and
liabilities.
Judge Joshua P. Searcy oversees the case.
Gordon Mosley, Esq. represents the Debtor as legal counsel.
DRF LOGISTICS: Gets Court Okay for Chapter 11 Wind-Down
-------------------------------------------------------
Clara Geoghegan of Law360 reports that on November 25, 2024, a
Texas bankruptcy judge authorized DRF Logistics, the former online
delivery division of shipping giant Pitney Bowes, to proceed with
its Chapter 11 wind-down plans.
This decision follows a newly finalized global settlement reached
with the committee of unsecured creditors, the report states.
About DRF Logistics
Headquartered in Austin, Texas, DRF Logistics, LLC and DRF, LLC are
providers of domestic ecommerce parcel services, as well as
cross-border logistics services, operating approximately $35
billion in total addressable market and working with over 350
customer brands, including leading retailers and marketplaces. The
Debtors' domestic parcel services include delivery, returns,
underlying client and consumer-facing software. The Debtors'
cross-border services include modular delivery solutions to over
200 destinations.
DRF Logistics and DRF filed their voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 24-90447) in August 8, 2024, listing $100 million to $500
million in both assets and liabilities. The petitions were signed
by Eric Kaup as chief restructuring officer.
Judge Christopher M Lopez presides over the case.
Gabriel Adam Morgan, Esq., at Weil, Gotshal & Manges LLP, is the
Debtors' counsel.
DT BUILDERS: Case Summary & 11 Unsecured Creditors
--------------------------------------------------
Debtor: DT Builders LLC
1121 Campostella Road
Norfolk, VA 23523
Chapter 11 Petition Date: November 25, 2024
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 24-72517
Debtor's Counsel: Jonathan A. Grasso, Esq.
YVS LAW, LLC
185 Admiral Cochrane Drive, Suite 130
Annapolis, MD 21401
Tel: (443) 569-0758
Fax: (410) 571-2798
Email: jgrasso@yvslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Laushaun Robinson as co-managing
member.
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/S56KX6I/DT_Builders_LLC__vaebke-24-72517__0001.0.pdf?mcid=tGE4TAMA
E & H ENTERPRISES: Matthew Brash Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for E & H Enterprises,
Inc.
Mr. Brash will be paid an hourly fee of $410 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
About E & H Enterprises
E & H Enterprises, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-16549) on November 3, 2024, with up to $50,000 in assets and up
to $1 million in liabilities.
Judge Jacqueline P. Cox presides over the case.
David Freydin, Esq., at the Law Offices of David Freydin Ltd.
represents the Debtor as bankruptcy counsel.
ECO ROOF: Committee Seeks to Hire Steptoe & Johnson as Counsel
--------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 case of ECO Roof and Solar, Inc. seeks approval from the
U.S. Bankruptcy Court for the District of Colorado to employ
Steptoe & Johnson PLLC as its counsel.
The firm will render these services:
(a) advise the committee regarding its rights, powers and
duties;
(b) advise and consult with the committee on the conduct of
the cases;
(c) attend meetings and negotiate with representatives of the
Debtors, secured and unsecured creditors, lessors, governmental
agencies, equity holders, employees and other parties-in-interest;
(d) advise the committee regarding any contemplated sale of
assets or business combinations;
(e) advise the committee regarding prepetition and
post-petition financing and cash collateral arrangements and
negotiate documents relating thereto;
(f) advise the committee on matters relating to the Debtors'
assumption, assumption and assignment and rejection of executory
contracts and unexpired leases;
(g) advise the committee on matters relating to the ordinary
course of business;
(h) provide advice and counseling on actions to protect and
preserve the Debtors' estates;
(i) prepare and file necessary motions, applications, answers,
orders, reports and papers;
(j) review all pleadings, financial and other reports filed by
the Debtors in these Chapter 11 cases and advise the committee
about the implications;
(k) review the nature and validity of any liens asserted
against the Debtors' property and advise the committee concerning
the enforceability of such liens;
(l) investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtors, the operation of their
businesses and the desirability of the continuance of such
business, and any other matter relevant to the case or to the
formulation of a plan;
(m) commence and conduct any and all ligation necessary or
appropriate to assert rights held by the Committee and/or protect
assets of the Chapter 11 estates;
(n) negotiate and participate in the preparation of the
Debtors' plan(s) of reorganization, related disclosure statement(s)
and other related documents and agreements and advise and
participate in the confirmation of such plan(s);
(o) attend meetings with third parties and participate in
negotiations with respect to the above matters;
(p) appear before this court, other courts, and the United
States Trustee to protect and represent the interests of the
committee and its constituents;
(q) meet and coordinate with other counsel and other
professionals representing the Debtors and other parties in
interest;
(r) perform all other necessary legal services and provide all
necessary legal advice to the committee in connection with these
Chapter 11 cases; and
(s) handle such other matters as may be requested by the
committee and to which the firm agrees.
The firm will be paid at these hourly rates:
Diana Prulhiere, Member $590
J. Zachary Balasko, Member $550
Sarah Ellis, Member $510
William Ballard, Associate $460
Devon Stewart, Member $430
Shelby Turley, Associate $280
Susan Oxley, Paralegal $230
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Balasko 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:
J. Zachary Balasko, Esq.
Steptoe & Johnson PLLC
1250 Edwin Miller Blvd.
Martinsburg, WV 25404
Telephone: (304) 262-2519
Email: Zak.Balasko@Steptoe-Johnson.com
About ECO Roof and Solar
Eco Roof and Solar Inc. specializes in renewable energy solutions,
particularly focused on solar energy systems and sustainable
roofing options. The Company aims to provide environmentally
friendly alternatives for residential and commercial properties,
emphasizing energy efficiency and reduced carbon footprints.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-15628), listing
between $1 million and $10 million in estimated assets and between
$10 million and $50 million in estimated liabilities. The petition
was signed by Dylan Lucas as president.
The Hon. Joseph G. Rosania Jr. presides over the case.
David V. Wadsworth, Esq., at Wadsworth Garber Warner Conrardy, P.C.
represents the Debtor as legal counsel.
On November 5, 2024, the Office of the United States Trustee
appointed an official committee of unsecured creditors in this
Chapter 11 case. The committee tapped Steptoe & Johnson PLLC as
counsel.
EDGEWATER CONSTRUCTION: Fee Requests in Balfour Dispute Tossed
--------------------------------------------------------------
Judge Laurel M. Iscoff of the United States Bankruptcy Court for
the Southern District of Florida denied the additional fee requests
submitted by Edgewater Construction Group, Inc.'s in connection
with the damages phase of violations of the automatic stay by
Balfour Beatty Construction, LLC.
This matter came before the Court upon Reorganized Debtor's Motion
for Attorneys' Fees and Costs as a Sanction and Reorganized
Debtor's Supplemental Motion for Attorneys' Fees and Costs as a
Sanction. Edgewater argues the Stay Violations were part of a
pattern of litigious, unreasonable, unfounded in law or fact,
actions taken by Balfour Beatty. This continued pattern of
sanctionable acts, Edgewater asserts, were "abusive litigation
tactics", warranting sanctions under 11 U.S.C. Sec. 105 equal to
almost all the attorneys' fees incurred by Edgewater in connection
with the main bankruptcy case.
Edgewater points to a variety of pleadings and other actions that
demonstrate Balfour Beatty's abusive litigation tactics and bad
faith.
In Edgewater's view, everything Balfour Beatty did was motivated by
ill will and designed to force Edgewater to litigate unnecessarily.
According to the Court, the Debtor has failed to identify any
instance where Balfour Beatty's litigation positions, albeit
unrelenting, rose to the level of bad faith to support the drastic
sanctions requested by Edgewater. The Court finds that the only
attorneys' fees to which Edgewater is entitled for sanctions are
those awarded, both as actual and punitive damages, in the Damages
Order.
A copy of the Court's decision dated November 18, 2024, is
available at https://urlcurt.com/u?l=8wQieN
About Edgewater Construction Group, Inc.
Edgewater Construction Group, Inc. is a Miami-based company that
provides general contractor services. The company has been in
business since February 1999.
Edgewater filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-12217) on March 22, 2023, with up to $50,000 in assets and $1
million to $10 million in liabilities. Ulysses Vazquez, II,
president of Edgewater, signed the petition.
Judge Laurel M. Isicoff presides over the case.
The Debtor tapped Jacqueline Calderin, Esq., at Agentis, PLLC as
bankruptcy counsel and Touron Law as special construction counsel.
EDGEWATER CONSTRUCTION: May Offset Against Balfour Beatty Claim
----------------------------------------------------------------
Judge Laurel M. Isicoff of the United States Bankruptcy Court for
the Southern District of Florida ruled on the stay violation order
and the objection of Edgewater Construction Group, Inc. to Balfour
Beatty's claim.
This matter came before the Court on May 21 and 22, 2024, for trial
on:
(1) the damages phase of the Order on the Debtor's Emergency
Motion for an Order Enforcing the Automatic Stay; Setting Further
Hearing on Request for Sanctions for Intentional and Willful
Violation of the Automatic Stay; and Setting Further Hearing on
Request for Turnover; and
(2) Reorganized Debtor's Objection to Balfour's Proof of Claim
27-3.
In October 2021, Balfour Beatty Construction, LLC and Edgewater
Construction Group, Inc. executed a Long Form Subcontract under
which Edgewater was to perform stucco services on what has been
called the RD East Las Olas Project. In January of 2022 Balfour
Beatty and Edgewater entered into an almost identical Long Form
Subcontract to perform stucco services on what has been called the
2000 Biscayne Project.
At some point after Edgewater executed the Contracts, Edgewater
began to experience financial difficulties at the many projects in
which it was performing stucco subcontracting work, including the
Projects. On March 20, 2023, Edgewater's field crew assigned to the
RD Project stopped working and left the jobsite altogether based on
Edgewater's failure to pay their wages.
On March 22, 2023, Edgewater filed for protection under Subchapter
V of Chapter 11 of the Bankruptcy Code. At the time Edgewater filed
bankruptcy, the RD Project was well underway, but the only work
Edgewater had done on the 2000 Project was the preparation of
mockups of different stucco applications for the owner's review.
The Stay Violation Order held that Balfour Beatty had willfully
violated the automatic stay by issuing the Default Letters and by
wrongfully retaining Edgewater's scaffolding and stucco materials
left at the Projects. The Stay Violation Order directed the parties
to confer regarding establishing trial procedures to adjudicate
Edgewater's request for damages arising from the Stay Violations,
which requests included:
(1) loss of profits;
(2) the inability to monetize its scaffolding as a result of
Balfour Beatty's wrongful retention;
(3) the additional cost of Edgewater retaining personnel on the
belief it would continue to work under the Contracts;
(4) the inability to contain and resolve claims against the
estate due to Balfour Beatty's unilateral decision to pay certain
suppliers and subcontractors;
(5) legal fees and costs;
(6) lost opportunity costs related to the distractions of
Edgewater's personnel dealing with the Stay Violations; and
(7) punitive damages.
The Court orders as follows:
1. With respect to the damages owed by Balfour Beatty to
Edgewater for the Stay Violations, Balfour Beatty must pay
Edgewater $1,190,941.80 calculated as follows:
a. Actual damages for the scaffolding $40,000;
b. Actual damages for attorneys' fees $375,470;
c. Punitive damages relating to the scaffolding
$400,000; and
d. Punitive damages for attorneys' fees $375,470.
2. Balfour Beatty is entitled to a rejection claim in the
amount of $1,557,480.92 calculated as follows:
a. $1,771,032.92 amount of claim filed minus $198,000
for the use of scaffolding minus $15,552.00 for the
use of stucco.
3. Balfour Beatty is indebted to Edgewater for the Unpaid Draws
in the amount of $114,318.32
4. Balfour Beatty may apply the $114,318.32 to its allowed
rejection damages claim, leaving an allowed total unsecured claim
of $1,443,162.60.
A copy of the Court's decision dated November 15, 2024, is
available at https://urlcurt.com/u?l=i7aNeq
About Edgewater Construction Group, Inc.
Edgewater Construction Group, Inc. is a Miami-based company that
provides general contractor services. The company has been in
business since February 1999.
Edgewater filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12217) on
March 22, 2023, with up to $50,000 in assets and $1 million to $10
million in liabilities. Ulysses Vazquez, II, president of
Edgewater, signed the petition.
Judge Laurel M. Isicoff presides over the case.
The Debtor tapped Jacqueline Calderin, Esq., at Agentis, PLLC, as
bankruptcy counsel and Touron Law as special construction counsel.
EDGIO INC: Secures Court Approval for $180-Mil. Asset Sale
----------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that Edgio Inc., a media
content delivery company backed by private equity firm Apollo
Global Management Inc., obtained court approval for significant
asset sales during a hearing on Monday, November 25, 2024.
The transactions are expected to raise over $180 million for the
bankrupt company, according to Edgio's attorney, Tyson Lomazow, the
report related.
U.S. Bankruptcy Judge Karen B. Owens indicated she would authorize
the sales once revised orders are submitted to address vendor
concerns, the report says. She also mentioned that any further
issues could be revisited in court if necessary, the report
states.
About Edgio Inc.
Edgio Inc. (NASDAQ: EGIO) helps companies deliver online
experiences and content faster, safer, and with more control. Its
developer-friendly, globally scaled edge network, combined with our
fully integrated application and media solutions, provide a single
platform for the delivery of high-performing, secure web properties
and streaming content. Through this fully integrated platform and
end-to-end edge services, companies can deliver content quicker and
more securely, thus boosting overall revenue and business value.
Edgio Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 24-11985) on Sept. 9, 2024 with a deal to
sell its assets to lender Lynrock Lake Master Fund LP for a credit
bid of $110 million, absent higher and better offers.
The Hon. Karen B. Owens presides over the cases.
Edgio disclosed $379,013,042 in total assets against $368,613,842
in total liabilities as of June 30, 2024.
The Debtors tapped MILBANK LLP as general bankruptcy counsel;
RICHARDS, LAYTON & FINGER, P.A., as local counsel; TD SECURITIES
(USA) LLC (d/b/a TD COWEN) as financial restructuring advisor; and
RIVERON CONSULTING LLC as business advisor. C STREET ADVISORY GROUP
is serving as strategic communications advisor to the Debtors. OMNI
AGENT SOLUTIONS, INC., is the claims agent.
ELETSON HOLDINGS: Creditors Want Reed Smith Sanctioned in Ch. 11
----------------------------------------------------------------
Rick Archer of Law360 reports that the creditors of bankrupt gas
tanker operator Eletson Holdings have demanded "severe sanctions"
against the company's directors, officers, and their legal
representatives at Reed Smith.
They allege that these parties are advancing unfounded legal
arguments to delay the company's reorganization process, the report
says.
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,
L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter
11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors. The committee tapped Dechert, LLP as its legal
counsel.
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 30% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Employbridge LLC is
a borrower were trading in the secondary market around 70.3
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on July
19, 2028. The amount is fully drawn and outstanding.
Employbridge, LLC operates as an industrial staffing company. The
Company offers temporary associates in manufacturing, logistics,
warehousing, and contact centers.
ENERFLEX LTD: Fitch Alters Outlook on BB- LongTerm IDR to Positive
------------------------------------------------------------------
Fitch Ratings has affirmed Enerflex Ltd.'s Long-Term Issuer Default
Rating (IDR) at 'BB-' and has upgraded the senior secured notes to
'BB' with a Recovery Rating of 'RR3' from 'BB-'/'RR4'. The Rating
Outlook has been revised to Positive from Stable.
Enerflex's IDR reflects the company's stable, recurring revenue
from its energy infrastructure and aftermarket services segments, a
strong engineered systems backlog, and supportive customer and
geographic diversification. The rating also considers uncertainty
surrounding the evolving financial policy for the combined
company.
The Positive Outlook reflects Enerflex's recent deleveraging
progress, which Fitch expects to continue through reductions in
borrowings on the revolving credit facility. It also reflects the
successful integration of the Exterran transaction, continued high
utilization rates, and a stable backlog.
The upgrade of the senior secured notes reflects improved recovery
prospects following Enerflex's repayment of its senior secured term
loan.
Key Rating Drivers
Stable, Predictable Cash Flow: Approximately 65% of Enerflex's
gross margin is generated through stable, recurring revenue streams
that help reduce commodity price linked fluctuations. Its
contracted asset cash flows are secured by take-or-pay contracts,
with an average of 1-3 years in North America and 3-10 years or
more in Latin America and the Eastern Hemisphere. The company also
has a good track record of successfully extending its contracts.
Enerflex's energy infrastructure and aftermarket services segments
have historically maintained stable revenue and margins through
commodity price downturns. This helps stabilize financial
performance against the more cyclical manufacturing segment.
Strong Engineered Systems Backlog: The company's engineered systems
segment is exposed to new global natural gas infrastructure
projects and has experienced volatility during recent commodity
price downturns. Despite this exposure to volatility, Enerflex had
a strong backlog of $1.3 billion as of 3Q24, indicating strong
future revenue generation for this segment. Fitch expects that the
company will maintain a stable backlog, driven by supportive
natural gas prices and investments in energy transition solutions.
Debt Reduction; Improving Leverage Metrics: Enerflex has
proactively improved its debt profile by simplifying its capital
structure and paying down the $120 million term loan A. It also
completed a partial redemption of $62.5 million of secured notes
due 2027 through a combination of cash on hand and revolver
borrowings. Fitch forecasts leverage of 2.3x for 2024, compared to
2.9x in 2023, with further deleveraging through reduction of
revolver borrowings in the forecast period.
Evolving Financial Policy: Enerflex's financial policy following
the integration of Exterran is still evolving. The company set a
net leverage target of between 1.5x-2.0x, which they achieved in
3Q24. They had postponed any commitments to increase shareholder
returns until meeting the leverage target.
Fitch expects the company to adopt a conservative approach with a
new shareholder return policy. Fitch forecasts that FCF will be
allocated through a combination of increased dividends, share
repurchases, and growth capex. The company has not indicated a
desire for further M&A activity at this time and has been proactive
in repaying debt in 2024.
Strong Geographic Diversification: The Exterran transaction
bolstered customer and geographic diversification, enabling a
larger, more diverse set of expansion projects. The company
operates in over 20 countries, with a balanced presence in North
America, the Eastern Hemisphere, and Latin America. However, it
still has exposure to countries like Argentina with significant
transfer and convertibility risks. Fitch expects future EBITDA
growth will largely come from North America, as the company has
scaled back operations in higher-risk countries, including
discontinuing activities in Kurdistan.
Supportive Customer Diversification: The company's top 10 customers
are primarily national oil companies and large, publicly traded
E&Ps with high credit quality. These customers contribute less than
30% of total revenue and have longstanding relationships with the
company, averaging over 15 years. Additionally, the fixed asset
nature of Enerflex's products also helps prevent customers from
switching providers. This stabilizes cash flows due to the high
switching costs and costly downtime associated with interrupting
the natural gas stream.
Derivation Summary
Enerflex is uniquely positioned within Fitch's peer group, and
Fitch compares the company to both midstream and oilfield services
issuers.
Enerflex's operating profile is similar to pure-play compression
service companies USA Compression Partners, LP (USAC; BB/Stable)
and Archrock, Inc. (BB/Stable). Cash flow streams for all three
companies are largely protected by long-term, take-or-pay contracts
that help eliminate volumetric and commodity-linked risks. Enerflex
has larger scale than USAC and Archrock in terms of gross revenue.
However, USAC and Archrock have much higher EBITDA margins of
40%-60% compared to Enerflex, which is in the low-teens. Enerflex
is much more diversified in terms of geography and services.
Enerflex's operating profile compares favorably to Precision
Drilling Corporation (BB-/Stable) and Nabors Industries, Ltd.
(B-/Stable), which own and operate fleets of drilling rigs and are
more exposed to commodity price fluctuations. Enerflex is similar
to oilfield servicer Weatherford International Ltd. (BB-/Stable),
which benefits from long-term contracts on a substantial portion of
revenues, but has higher exposure to the highly cyclical oilfield
services industry. Enerflex is also similar to Helix Energy
Solutions Group, Inc (BB-/Stable), which derives around half of its
revenue from global offshore decommissioning. Both companies
exhibit lower volatility through their product lines compared to
other oilfield services peers.
Enerflex has larger scale in terms of gross revenue than Precision
and Helix, but it is smaller than Weatherford and Nabors. Enerflex
has the lowest EBITDA margins in the oilfield services peer group
with margins in the mid-teens, while its peers range from 20%-30%.
Enerflex's leverage metrics fall in the middle-range of the peer
group. Fitch forecasts 2024 EBITDA leverage of 2.3x. This compares
favorably to USAC (4.5x), Archrock (3.2x), and Nabors (2.8x) but is
higher than Precision (1.4x), Weatherford (1.3x), and Helix
(1.1x).
Key Assumptions
- WTI oil price of $75/bbl in 2024, $65/bbl in 2025, $60/bbl in
2026 and 2027, and $57/bbl thereafter;
- Henry Hub natural gas price of $2.25/mcf in 2024, $3.00/mcf in
2025 and 2026, and $2.75/mcf thereafter;
- Capex of $90 million in 2024, increasing through the forecast as
the company invests in growth capex;
- Modest dividends of $9 million annually in 2024 with moderate
increases beginning in 2025;
- Base interest rates applicable to the company's outstanding
variable rate debt obligations reflect the current SOFR forward
curve.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated commitment to conservative financial policy and
repayment of the revolving credit facility leading to a stronger
liquidity profile;
- Successful execution on growth projects while maintaining margins
and utilization rates;
- EBITDA leverage sustained below 3.5x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to repay revolver borrowings and proactively manage the
maturity that leads to a weakened liquidity profile;
- Failure to execute on growth projects that leads to sustained
margin and/or utilization rate erosion;
- EBITDA leverage sustained above 4.5x.
Liquidity and Debt Structure
Adequate Liquidity: Enerflex had $95 million of cash on the balance
sheet and $493 million available on the revolver, after letters of
credit, as of 3Q24. Fitch expects the company will continue to
generate positive FCF and forecasts borrowings on the revolver will
decrease in 2025 and 2026.
Reduced Refinancing Risk: Refinancing risk has declined through the
repayment of a term loan due in October 2025 and the extension of
the revolving credit facility to October 2026. The secured notes
mature in 2027. Fitch believes the company has ample time to repay
or refinance all maturities before they come due.
Issuer Profile
Enerflex is a global supplier of natural gas infrastructure and
energy transitions solutions with expanded product lines and
technical expertise.
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
----------- ------ -------- -----
Enerflex Ltd. LT IDR BB- Affirmed BB-
senior secured LT BB Upgrade RR3 BB-
EPIC SWEETS: Amy Denton Mayer Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Amy Denton Mayer of
Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee for
Epic Sweets Group, LLC.
Ms. Mayer will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mayer declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Amy Denton Mayer
Stichter Riedel Blain & Postler P.A.
110 East Madison Street, Suite 200
Tampa, FL 33602
Phone: (813)229-0144
Email: amayer@subvtrustee.com
About Epic Sweets Group
Epic Sweets Group, LLC is a confectionery company based in
Sarasota, Fla., specializing in creating a variety of sweet
treats.
Epic Sweets Group sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06577) on
November 6, 2024, with total assets of $207,887 and total
liabilities of $1,259,563. Christine Nordstrom, managing member,
signed the petition.
Judge Roberta A. Colton handles the case.
The Debtor is represented by Jonathan Bierfeld, Esq., at Martin Law
Firm.
ERIS HARMONIA: Michael Markham Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for Eris Harmonia, LLC.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About Eris Harmonia
Eris Harmonia, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06544) on November 5,
2024, with $500,001 to $1 million in both assets and liabilities.
Judge Roberta A. Colton presides over the case.
David W. Steen, Esq., at David W Steen, P.A. represents the Debtor
as legal counsel.
EXACTECH INC: Milbank & Richards Represent Ad Hoc Group
-------------------------------------------------------
The law firms of Milbank LLP and Richards, Layton & Finger, P.A.
("RLF") filed a verified statement pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure to disclose that in the
Chapter 11 cases of Exactech, Inc. and affiliates, the firms
represent the ad hoc committee of certain lenders (the "Ad Hoc
Group").
In January 2023, the Ad Hoc Group retained Milbank as counsel with
respect to the Prepetition First Lien Loans. From time to time
thereafter, certain holders of Prepetition First Lien Loans have
joined and exited the Ad Hoc Group. In September 2024, the Ad Hoc
Group retained RLF to act as Delaware counsel.
Counsel represents the Ad Hoc Group and does not represent or
purport to represent any entities other than the Ad Hoc Group in
connection with the Debtors' chapter 11 cases. In addition, neither
the Ad Hoc Group nor any member of the Ad Hoc Group represents or
purports to represent any other entities in connection with these
cases.
The members of the Ad Hoc Group have indicated to Counsel that they
hold disclosable economic interests or act as investment managers
or advisors to funds and/or accounts that hold disclosable economic
interests in relation to the Debtors.
The Ad Hoc Group Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors are:
1. Greywolf Capital Management LP
4 Manhattanville Road, Suite
201, Purchase, NY 10577
* Interim DIP Obligations ($3,466,375.64)
* Final DIP Obligations ($4,356,054.58)
* Term Loans ($27,219,218.21)
2. Post Advisory Group, LLC
2049 Century Park E., Suite
3050, Los Angeles, CA 90067
* Interim DIP Obligations ($950,804.91)
* Final DIP Obligations ($1,194,838.23)
* Term Loans ($7,466,059.44)
3. Stellex Capital Management LLC
900 Third Avenue, 25th Floor,
New York, NY 10022
* Interim DIP Obligations ($7,851,626.37)
* Final DIP Obligations ($9,866,822.45)
* Term Loans ($61,653,771.52)
4. Strategic Value Partners, LLC
100 West Putnam Avenue,
Greenwich, CT 06830
* Interim DIP Obligations ($24,481,193.08)
* Final DIP Obligations ($34,582,284.74)
* Term Loans ($157,158,730.02)
* Revolving Loans ($50,000,000.00)
Counsel for the Ad Hoc Group:
Mark D. Collins, Esq.
Zachary I. Shapiro, Esq.
David T. Queroli, Esq.
Zachary J. Javorsky, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square
920 North King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
Facsimile: (302) 651-7701
Email: collins@rlf.com
shapiro@rlf.com
queroli@rlf.com
javorsky@rlf.com
-and-
Evan R. Fleck, Esq.
Nelly Almeida, Esq.
C. Thomas St. Henry, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001-2163
Telephone: (212) 530-5000
Facsimile: (212) 530-5219
Email: efleck@milbank.com
nalmeida@milbank.com
csthenry@milbank.com
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 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
EXACTECH INC: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Exactech
Inc. and its affiliates.
The committee members are:
1. Advanta, Inc.
Attn: Lauren Loeb
R1 RCM Inc.
800 W Fulton Market, 9th Floor
Chicago, IL 60607
Email: ljulian1@r1rcm.com
2. Hospital for Special Surgery
Attn: Michael Coulston
535 East 70th Street
New York, NY 10021
Phone: 212-606-1295
Email: coulstonm@hss.edu
3. Ronald Irby
c/o Joseph H. Saunders, Esq.
Saunders & Walker, P.A.
3491 Gandy Blvd. North, Suite 200
Pinellas Park, FL 33781
Phone: 727-579-4500
Email: joe@saunderslawyers.com
4. Vernesa Jones-Allen
c/o Kevin M. Fitzgerald, Esq.
Fitzgerald Law Group, LLC
120 Exchange Street, Suite 200
Portland, ME 04101
Phone: 207-874-7407
Email: kfitzgerald@fitz-lawgroup.com
5. Kathryn Kramer
c/o Rayna Kessler, Esq.
Robins Kaplan LLP
1325 Avenue of Americas, Suite 2601
New York, NY 10019
Phone: 212-980-7431
Email: rkessler@robinskaplan.com
6. General Harvey Schiller
c/o N. Kirkland Pope, Esq.
Pope McGlamry, P.C.
3391 Peachtree Road NE, Suite 300
Atlanta, GA 30326
Phone: 404-523-7706
Email: kirkpope@pmkm.com
7. Gayle Tarloff
c/o Ellen Relkin, Esq.
Weitz & Luxenberg, P.C.
700 Broadway
New York, NY 10003
Phone: 212-558-5500
Email: erelkin@weitzlux.com
8. Karen Turner
c/o C. Calvin Warriner, III, Esq.
Searcy Denney Scarola Barnhart & Shipley PA
2139 Palm Beach Lakes Blvd.
West Palm Beach, FL 33409
Phone: 561-686-6300
Email: ccw@searcylaw.com
9. Dennis Ricci
c/o Jason Goldstein, Esq.
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Phone: 516-723-4630
Email: jgoldstein@yourlawyer.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 Exactech Inc.
Exactech Inc. -- https://www.exac.com/ -- is a joint-replacement
implant manufacturer owned by TPG Capital.
Exactech filed Chapter 11 petition (Bankr. D. Del. Case No.
24-12441) on October 29, 2024, with $100 million to $500 million in
both assets and liabilities. Donna H. Edwards, general counsel and
senior vice president, signed the petition.
Judge Laurie Selber Silverstein oversees the case.
The Debtor is represented by Ryan M. Bartley, Esq., at Young
Conaway Stargatt & Taylor, LLP.
FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 42% Discount
------------------------------------------------------------
Participations in a syndicated loan under which FinThrive Software
Intermediate Holdings Inc is a borrower were trading in the
secondary market around 58.3 cents-on-the-dollar during the week
ended Friday, November 22, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $1.44 billion Term loan facility is scheduled to mature on
December 18, 2028. About $1.40 billion of the loan has been drawn
and outstanding.
FinThrive is a provider of revenue cycle management software
solutions to the healthcare sector.
FINTHRIVE SOFTWARE: $460MM Bank Debt Trades at 59% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which FinThrive Software
Intermediate Holdings Inc is a borrower were trading in the
secondary market around 41.1 cents-on-the-dollar during the week
ended Friday, November 22, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $460 million Term loan facility is scheduled to mature on
December 17, 2029. About $396.0 million of the loan has been drawn
and outstanding.
FinThrive is a provider of revenue cycle management software
solutions to the healthcare sector.
FIREPAK INC: Seeks to Hire Lydcker LLP as Bankruptcy Counsel
------------------------------------------------------------
Firepak, Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of Florida to employ Lydcker LLP as counsel.
The firm will render these services:
(a) advise with respect to responsibilities in complying with
the U.S. Trustee's Operating Guidelines and Reporting Requirements
and with the rules of the court;
(b) prepare legal documents necessary in the administration of
this case;
(c) protect the interests of the estate in all matters pending
before the court; and
(d) represent the estate in negotiations with its creditors
and other parties in interest, and in the preparation of a plan of
reorganization.
The Debtor agreed to pay the firm an initial retainer of $52,000.
The firm's hourly rates are as follows:
Partners $350
Associates $250
Paralegals and Law Clerks $90
In addition, the firm will seek reimbursement for expenses
incurred.
Carlos de Zayas, Esq., a shareholder at Lydcker, 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:
Carlos L. de Zayas, Esq.
Lydcker LLP
1221 Brickell Avenue, 19th Floor
Miami, FL 33131
Telephone: (305) 416-3180
Facsimile: (3050 416-3190
Email: cdz@lydecker.com
About Firepak Inc.
Firepak Inc. specializes in the design and layout of fire sprinkler
systems, modifications to existing fire sprinkler systems, new
installations, tenant build outs, retrofit of existing buildings,
and inspections and repairs of all types of fire sprinkler
systems.
Firepak Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-21725) on November 7, 2024. In
the petition filed by Tatiana Marina, chief financial officer, the
Debtor disclosed total assets of $1,454,421 and total liabilities
of $2,424,737.
Honorable Bankruptcy Judge Robert A. Mark handles the case.
Carlos L. de Zayas, Esq., at Lydcker LLP serves as the Debtor's
counsel.
FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 18% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Flexsys Holdings
Inc is a borrower were trading in the secondary market around 82.0
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $475 million Term loan facility is scheduled to mature on
November 1, 2028. The amount is fully drawn and outstanding.
Flexsys, Inc. was founded in 2000. The company's line of business
includes developing or modifying computer software and packaging.
FLORES PEDIATRICS: Stephen Moriarty Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Stephen Moriarty, Esq., at
Fellers, Snider, Blankenship, Bailey & Tippens, P.C., as Subchapter
V trustee for Flores Pediatrics, LLC.
Mr. Moriarty will be paid an hourly fee of $550 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Moriarty declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen J. Moriarty, Esq.
Fellers, Snider, Blankenship, Bailey & Tippens, P.C.
100 N. Broadway, Suite 1700
Oklahoma City, OK 73102
Telephone: (405) 232-0621
Facsimile: (405) 232-9659
Email: smoriarty@fellerssnider.com
About Flores Pediatrics
Flores Pediatrics, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-13144) on Nov. 1,
2024, listing under $1 million in both assets and liabilities.
Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC serves as
the Debtor's counsel.
FOUNDEVER WORLDWIDE: $1.40BB Bank Debt Trades at 36% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Foundever Worldwide
Corp is a borrower were trading in the secondary market around 64.5
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.40 billion Term loan facility is scheduled to mature on
August 28, 2028. About $1.36 billion of the loan has been drawn and
outstanding.
Foundever Worldwide Corp provides business process outsourcing
services. The Company offers digital, technology, training,
analytics, technical support, and consulting services. Foundever
Worldwide serves telecoms, utilities, and healthcare industries
worldwide.
FRANCHISE GROUP: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Franchise
Group, Inc. and its affiliates.
The committee members are:
1. Nestle and Subsidiaries
Attn: Craig Lydigsen
30500 Bainbridge RD
Solon, OH 44139
Phone: 517-410-2923
Email: craig.lydigsen@us.nestle.com
2. Solstice Sleep Company
Attn: Dennis Straily
3720 West Broad Street
Columbus, OH 43228
Phone: 614-279-8850
Email: dstraily@solsticesleep.com
3. Federal Warranty Service Corporation
Attn: Court Levy
260 Interstate North Circle, SE
Atlanta, GA 30339
Phone: 770-763-1000
Email: court.levy@assurant.com
4. NNN REIT, LP (fka National Retail Properties)
Attn: David G. Byrnes, Jr.
450 South Orange Ave., Suite 900
Orlando, FL 32801
Phone: 407-650-1103
Email: David.Byrnes@NNNReit.com
5. Jennifer Walker
Individually and as Putative Class Representative
c/o: Ryan F. Stephan
Stephan Zouras, LLC
222 W Adams St., Suite 2020
Chicago, IL 60606
Phone: 312-233-1550
Email: rstephan@stephanzouras.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 Franchise Group
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Franchise Group and its affiliates filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-12480) on November 3, 2024. David
Orlofsky, chief restructuring officer, signed the petitions.
At the time of the filing, the Debtors reported $1 billion to $10
billion in both assets and liabilities.
Judge Frederick P. Corbit oversees the cases.
The Debtors tapped Willkie Farr & Gallagher, LLP as general
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware counsel; AlixPartners, LLP as financial advisor; Ducera
Partners, LLC as investment banker; and Hilco Real Estate, LLC as
real estate advisor.
Kroll Restructuring Administration, LLC is the Debtors' notices,
claims, solicitation and balloting agent. It also serves as
administrative advisor.
FREE SPEECH: The Onion's Infowars Takeover Stalled Pending Hearing
------------------------------------------------------------------
James Nani of Bloomberg Law reports that The Onion's proposal to
purchase Alex Jones' Infowars platform, part of a liquidation plan
to settle his debts with the Sandy Hook shooting victims' families,
has been delayed until it receives court approval.
During a hearing on November 25, 2024, Houston Bankruptcy Judge
Christopher M. Lopez denied Jones' request for an emergency
restraining order that would prevent the bankruptcy trustee or The
Onion from assuming control of Infowars' assets, according to the
report. The judge noted that no decision had yet been made
regarding such an order, the report relates. Judge Lopez expressed
his willingness to hear objections from Jones, other potential
bidders, or any parties concerned with the transparency of the
auction or the structure of the winning bid, the report adds. This
ruling will impact whether Jones can continue broadcasting on the
platform he's been using for nearly 25 years, the report states.
According to Bloomberg Law, the Sandy Hook families, who have
secured $1.5 billion in judgments against Jones for spreading false
claims about the 2012 massacre, have joined forces with Global
Tetrahedron LLC, The Onion's parent company, to strengthen their
bid for Infowars, according to the report.
Additionally, Judge Lopez declined to revisit his previous ruling
on a $324 million judgment against Jones, mainly for attorney's
fees, which will require a new trial to determine if they are
dischargeable, according to report.
Bankruptcy trustee Christopher Murray chose The Onion's $7 million
bid over that of First United American Cos., which offered $3.5
million but with a larger cash component. First United, linked to
Jones' associate Charles Cicack, intends to continue Infowars'
broadcast using the contested assets.
Meanwhile, X Inc. (formerly Twitter) raised concerns about
transferring Infowars-related accounts under its terms and
conditions, though this issue was not addressed during the hearing
but may be revisited during the sale process.
The case is Jones, Bankr. S.D. Tex., No. 22-33553, hearing
11/25/24.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FREIRICH FOODS: Plan Exclusivity Period Extended to Feb. 1, 2025
----------------------------------------------------------------
Judge Benjamin A. Kahn of the U.S. Bankruptcy Court for the Middle
District of North Carolina extended Freirich Foods, Inc.'s
exclusive periods to file a plan and disclosure statement and
obtain confirmation thereof to February 1, 2025 and April 1, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtor explains that it
has continued operations, obtained authority to use cash
collateral, filed all necessary reports, and generally complied
with all requirements imposed by the Bankruptcy Rules, the Local
Rules, and Orders of this Court. The Debtor has continued plan
negotiations with First National Bank of Pennsylvania ("FNB"), the
single largest creditor in this case and whose claim is secured by
a properly perfected blanket lien on substantially all property of
the estate.
The Debtor claims that it has commenced an adversary proceeding
against Americold Logistics, LLC (AP No. 24-06005, the "Americold
Litigation"), in which the Debtor seeks to recover the damages
suffered by the Debtor in an amount to be determined. This
adversary proceeding is in the early stages, the matter has been
referred to arbitration, and the arbitration hearing is presently
scheduled to commence on September 8, 2025.
In light of the expected delay in resolving the disputed claims in
the arbitration process, the Debtor filed a motion seeking approval
of a process to solicit bids for the purchase of the Debtor's
business as a going concern, subject to bidding procedures and
approval by the Court after notice and hearing.
The Debtor asserts that the outcome of the sale process will
directly and materially affect the proposed plan of reorganization
and the information to be contained in the disclosure statement. If
one or more asset sales are approved by the Court, closings would
likely occur in December 2024 or January 2025.
Freirich Foods, Inc. is represented by:
John A. Northen, Esq.
Northen Blue, LLP
PO Box 2208
Chapel Hill, NC 27515
Tel: (919) 968-4441
E-mail: jan@nbfirm.com
About Freirich Foods
Freirich Foods, Inc. is a deli meat processor that produces dry
open-oven roasted products. Freirich Foods has been supplying
specialty meats to select grocers and delis since 1921. Although
initially opened in New York, the business is headquartered in
Salisbury, North Carolina today and has been managed by four
generations of the Freirich family.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50204) on March 20,
2024. In the petition signed by Paul Bardinas, president, the
Debtor disclosed $13,015,005 in assets and $14,524,627 in
liabilities.
Judge Benjamin A. Kahn oversees the case.
John A Northen, Esq., at NORTHEN BLUE LLP, is the Debtor's legal
counsel.
FUNMILAYO OJUOLAPE: Chapter 15 Case Summary
-------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Funmilayo Ojuolape Adegbuyi-Jackson (Lead Case) 24-06355
Abayomi Adegbuyi-Jackson 24-06356
Ojuolape Arcade Ltd. (In Liquidation) 24-06357
Hollyrise, Conyer Road
Teynham, Sittingbourne
Kent ME9 9ES
England
Chapter 15 Petition Date: November 21, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Judge: Hon. Tiffany P Geyer
Foreign Representatives: Jason Ainge, Paul Stanley, and Gareth
Howarth
Begbies Traynor Floor 2, 10 Wellington
Pl
Leeds, LS1 4AP
England
Foreign
Proceeding: High Court of Justice of England and
Wales, Case Number CR-2024-000973
Foreign
Representatives'
Counsel: Leyza B. Florin, Esq.
Juan J. Mendoza, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, Florida 33131
Tel: (305) 372-8282
Fax: (305) 372-8202
Email: lflorin@sequorlaw.com
jmendoza@sequorlaw.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of Ojuolape Arcade Ltd.'s Chapter 15 petition is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BXSBCEI/Ojuolape_Arcade_Ltd__flmbke-24-06357__0001.0.pdf?mcid=tGE4TAMA
G-FORCE POWERSPORTS: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of G-Force Powersports, Inc.
About G-Force Powersports
G-Force Powersports Inc. is a merchant wholesaler of motor vehicle
and motor vehicle parts and supplies in Taylors, S.C.
G-Force Powersports sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.S.C. Case No. 24-03718) on
October 14, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Gary Fallon, president of G-Force
Powersports, signed the petition.
Judge Elisabetta Gm Gasparini oversees the case.
The Debtor is represented by Robert Pohl, Esq., at Pohl Bankruptcy,
LLC.
GILL RANCH: Case Summary & 11 Unsecured Creditors
-------------------------------------------------
Debtor: Gill Ranch, LLC
100 Pine Street
29th Floor
San Francisco, CA 94111
Chapter 11 Petition Date: November 25, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-30886
Debtor's Counsel: Ori Katz, Esq.
SHEPPARD MULLIN RICHTER & HAMPTON, LLP
Four Embarcadero Center, 17th Floor
San Francisco, CA 94111-4109
Tel: (415) 434-9100
Email: okatz@sheppardmullin.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Andrew De Camara as chief restructuring
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/BELW33Y/Gill_Ranch_LLC__canbke-24-30886__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 11 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Winters Farming, Inc. Farm $123,267
18499 S. Jack Tone Road Management
Manteca, CA 95336 Services
2. Reed Smith LLP Professional $110,000
101 2nd St, Ste 1800 Services
San Francisco, CA 94105
3. MPM Farming Company, Inc. Trade Debt $38,950
PO Box 899
Madera, CA 93639
4. Mid Valley Labor Services, Inc. Trade Debt $23,229
P.O. Box 899
Madera, CA 93639
5. Valley Growers Trade Debt $22,810
21123 South Jack Tone Road
Ripon, CA 95366-9603
6. Reynolds Tilbury Woodward LLP Professional $18,295
11601 Bocker Dr, Ste 105 Services
Auburn, CA 95603
7. SMUD {6743706} Utility $17,885
PO Box 15555
Sacramento, CA 95852
8. SMUD {6744628} Utility $13,129
PO Box 15830
Sacramento, CA 95852
9. SVT Logistics Inc Trade Debt $9,756
420 West Pine Street
Suite 9
Lodi, CA 95240
10. Hefner, Stark and Marois, LLP Professional $4,646
2150 River Plaza Drive, Services
Suite 450
Sacramento, CA
9583303883
11. California Waste Recovery, Inc. Utility $104
175 Enterprise Court,
Suite A
Galt, CA 95632
GLOBAL CLEAN: Four Proposals Passed at Annual Meeting
-----------------------------------------------------
Global Clean Energy Holdings, Inc., disclosed in a Form 8-K filed
with the Securities and Exchange Commission that on Nov. 20, 2024,
it held its 2024 Annual Meeting of Stockholders at which the
stockholders:
(1) elected Susan Anhalt, Phyllis E. Currie, Richard Palmer,
Noah Verleun, and David R. Walker to serve on the Board of
Directors of the Company until the 2025 Annual Meeting;
(2) did not approve a proposal to amend the Company's
Certificate of Incorporation to eliminate personal liability of
officers for monetary damages for breach of fiduciary duty as an
officer;
(3) approved amendments to outstanding non-plan option grants;
(4) approved, on a non-binding advisory basis, the compensation
of the Company's named executive officers; and
(5) ratified the appointment of Grant Thornton LLP as the
Company's independent registered public accounting firm for the
Company's fiscal year ending Dec. 31, 2024.
About Global Clean
Global Clean Energy Holdings, Inc. is a vertically integrated
renewable fuels innovator producing ultra-low carbon renewable
fuels from patented nonfood Camelina varieties. The Company's
farm-to-fuel business model is designed to allow greater
efficiencies throughout the value chain, lowering its finished
fuels' carbon intensity and streamlining its operations at every
step, with one end of its business anchored in plant science and
the other in renewable fuels production. The Company's patented
Camelina varieties are purposefully bred to increase yield, quicken
maturity, and increase tolerance to drought and pests. Today, the
Company owns the world's largest portfolio of patented Camelina
genetics, and it contracts directly with farmers around the globe
to grow its proprietary Camelina crop on fallow land to process at
its Renewable Fuels Facility in Bakersfield, California. Once it
has commenced operations, the 15,000 barrels per day ("BPD") of
nameplate capacity facility will sell up to its full production
capacity of renewable diesel ("RD") and co-products of naphtha,
propane and butane. The Company expects production capacity will
initially be over 9,000 BPD of RD.
Kansas City, Missouri-based Grant Thornton LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the Company incurred a net
loss of $89.9 million during the year ended Dec. 31, 2023, and as
of that date, the Company's current liabilities exceeded its
current assets by $217.5 million. Further, the Company believes it
will need additional capital to meet its obligations and fund
certain liquidity requirements, including repayment of debt,
completion of the refinery, and other operational requirements such
as camelina activities, general and administrative costs, and
initial feedstock required for operations. These conditions, along
with other matters, raise substantial doubt about the Company's
ability to continue as a going concern.
GLOBAL CLEAN: Incurs $76.04 Million Net Loss in Third Quarter
-------------------------------------------------------------
Global Clean Energy Holdings, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $76.04 million on $535,000 of revenue for the three
months ended Sept. 30, 2024, compared to a net loss of $14.87
million on $1.88 million of revenue for the three months ended
Sept. 30, 2023.
For the nine months ended Sept. 30, 2024, the Company reported net
income of $30.36 million on $3.10 million of revenue, compared to a
net loss of $59.96 million on $3.44 million of revenue for the same
period during the prior year.
As of Sept. 30, 2024, the Company had $1.60 billion in total
assets, $1.58 billion in total liabilities, and $13.25 million in
total stockholders' equity.
Global Clean stated, "The uncertainty of the timing of the
completion and costs of the Facility, the lack of significant
operating cash flows until the initial revenues from the Facility
begin, no current committed equity or debt financing and the
significant cash shortfall to meet the Company's financial
obligations, represent events and conditions that raise a
substantial doubt about the Company's ability to continue as a
going concern for a period of at least one year from the time the
financial statements are issued."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/748790/000162828024047960/gceh-20240930.htm
About Global Clean
Global Clean Energy Holdings, Inc. is a vertically integrated
renewable fuels innovator producing ultra-low carbon renewable
fuels from patented nonfood Camelina varieties. The Company's
farm-to-fuel business model is designed to allow greater
efficiencies throughout the value chain, lowering its finished
fuels' carbon intensity and streamlining its operations at every
step, with one end of its business anchored in plant science and
the other in renewable fuels production. The Company's patented
Camelina varieties are purposefully bred to increase yield, quicken
maturity, and increase tolerance to drought and pests. Today, the
Company owns the world's largest portfolio of patented Camelina
genetics, and it contracts directly with farmers around the globe
to grow its proprietary Camelina crop on fallow land to process at
its Renewable Fuels Facility in Bakersfield, California. Once it
has commenced operations, the 15,000 barrels per day ("BPD") of
nameplate capacity facility will sell up to its full production
capacity of renewable diesel ("RD") and co-products of naphtha,
propane and butane. The Company expects production capacity will
initially be over 9,000 BPD of RD.
Kansas City, Missouri-based Grant Thornton LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the Company incurred a net
loss of $89.9 million during the year ended Dec. 31, 2023, and as
of that date, the Company's current liabilities exceeded its
current assets by $217.5 million. Further, the Company believes it
will need additional capital to meet its obligations and fund
certain liquidity requirements, including repayment of debt,
completion of the refinery, and other operational requirements such
as camelina activities, general and administrative costs, and
initial feedstock required for operations. These conditions, along
with other matters, raise substantial doubt about the Company's
ability to continue as a going concern.
GOTO GROUP: $958.9MM Bank Debt Trades at 57% Discount
-----------------------------------------------------
Participations in a syndicated loan under which GoTo Group Inc is a
borrower were trading in the secondary market around 43.4
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $958.9 million Term loan facility is scheduled to mature on
April 28, 2028. About $954.1 million of the loan has been drawn and
outstanding.
GoTo, formerly LogMeIn Inc., is a flexible-work provider of
software as a service and cloud-based remote work tools for
collaboration and IT management.
GRADE A HOME: Melissa Haselden Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 7 appointed Melissa Haselden, Esq., at
Haselden Farrow, PLLC as Subchapter V trustee for Grade A Home,
LLC.
Ms. Haselden will be paid an hourly fee of $550 for her services as
Subchapter V trustee and will be reimbursed for work-related
incurred.
Ms. Haselden declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Melissa A. Haselden, Esq.
Haselden Farrow, PLLC
700 Milam, Suite 1300
Pennzoil Place
Houston, TX 77002
Telephone: (832) 819-1149
Facsimile: (866) 405-6038
Email: mhaselden@haseldenfarrow.com
About Grade A Home
Grade A Home, LLC, a Houston-based company, filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas
Case No. 24-35197) on November 4, 2024, with $1 million to $10
million in assets and $500,000 to $1 million in liabilities. Sharif
Muhammad, authorized representative of the Debtor, signed the
petition.
Judge Eduardo V. Rodriguez presides over the case.
Reese Baker, Esq., at Baker & Associates represents the Debtor as
legal counsel.
GRANDE PROMOTION: Christopher Simpson Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Christopher Simpson, Esq.,
at Osborn Maledon P.A. as Subchapter V trustee for Grande Promotion
Company, LLC.
Mr. Simpson will be paid an hourly fee of $495 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Simpson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher C. Simpson
Osborn Maledon, P.A.
2929 N. Central Avenue, 21st Fl.
Phoenix, AZ 85012
Phone: (602) 640-9349
Fax: (602) 640-9050
Email: csimpson@omlaw.com
About Grande Promotion Company
A Grande Promotion Company, LLC, a company in in Phoenix, Ariz.,
owns a marble and granite fabrication business specializing in
detailed craftsmanship and custom projects.
A Grande filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09458) on Nov. 5,
2024, listing $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Eugene Medrano, member and manager, signed
the petition.
Judge Scott H Gan oversees the case.
Allan D. Newdelman, P.C. serves as the Debtor's legal counsel.
GREG TAHMISIAN: Can't Add Punitive Damages Claim Against Netacent
-----------------------------------------------------------------
The Honorable Benjamin P. Hursh of the United States Bankruptcy
Court for the District of Idaho will deny Greggory J. Tahmisian's
motion to conform the pleadings to add a punitive damage claim in
the case captioned as GREGG TAHMISIAN, an individual, and SOLID
STATE OPERATIONS, INC., an Idaho corporation, Plaintiffs, v.
NETACENT, INC., an Idaho corporation; ISAAC BARRETT, an individual;
QUINN WATT, an individual; JORDAN BARRETT, an individual; and JOHN
MCALLISTER, an individual, Defendants, NETACENT, INC.,
Counterclaimant, v. GREGG TAHMISIAN and SOLID STATE OPERATIONS,
INC., Counter-defendants, Adversary No. 23-06018-BPH (Bankr. D.
Idaho).
On October 4, 2023, Debtor and Counter-Defendant Gregg Tahmisian
filed an amended complaint in this adversary proceeding. In all, he
asserted 19 separate claims, none of which alleged shareholder
oppression or sought punitive damages. However, paragraph 278 of
the amended complaint states, "Tahmisian specifically reserves the
right to seek leave of the Court to amend his prayer to include a
count for punitive damages against Defendants pursuant to LC. [sic]
Sec. 6-1604(2)."
The Court conducted a nearly 16-day trial spanning two-and-a-half
months, concluding on September 27, 2024. On October 15, 2024,
after the close of trial, Tahmisian filed a motion to conform the
pleadings to the evidence pursuant to Rule 70151 and Idaho Code
Sec. 6-1604 along with a brief in support of the motion. The Court
thereafter issued an order establishing deadlines for filing
objections to the motion as well as Tahmisian's reply brief, if
any. On November 5, 2024, individual defendants Isaac Barrett,
Jordan Barrett and Quinn Watt filed a brief opposing the motion.
By this motion, Tahmisian seeks to amend Claim 14 to include the
issue of shareholder oppression against the Individual Netacent
Defendants pursuant to Idaho Code Sec. 30-29-1430(a)(2)(ii), and
secondly, to include a claim for punitive damages pursuant to Idaho
Code Sec. 6-1604.
During trial, Tahmisian contends the facts surrounding the
Individual Netacent Defendants' attempts to "squeeze" him out,
which he now recharacterizes as "shareholder suppression," were
fully tried by the express or implied consent of the parties.
Moreover, Tahmisian contends the Individual Netacent Defendants
cannot argue they would be prejudiced by the inclusion of this
claim because they withheld information about the increase in the
number of shares until three weeks before trial. The Court
disagrees.
The Court finds Tahmisian cannot demonstrate that the Individual
Netacent Defendants understood shareholder suppression was at
issue, thus the Court finds the issue was not tried by implied
consent.
Furthermore, the Court concludes the Individual Netacent Defendants
have demonstrated prejudice sufficient for denial of Tahmisian's
motion. They correctly point out that while the term "squeeze out"
was used during trial, it had never been equated or associated with
shareholder oppression or the rights to an appraisal and notice of
those rights if certain corporate actions are taken. Adding this
claim to the existing Claim 14 would wholly prejudice all Netacent
Defendants, who had no notice of such a claim nor ability to defend
against it prior to the closure of the evidentiary record at trial.
It is apparent Tahmisian relies on the reservation of the right to
add a claim for punitive damages in his amended complaint, and the
fact that such damages are intended to deter damaging conduct, as
the basis for his motion. The Court says this is insufficient.
The Court finds no grounds to grant Tahmisian's motion to conform
the pleadings to the evidence presented at trial, and therefore the
shareholder suppression and punitive damage claims will not be
added.
A copy of the Court's decision dated November 19, 2024, is
available at https://urlcurt.com/u?l=4zpBcR
Greggory J. Tahmisian filed for Chapter 11 bankruptcy protection
(Bankr. D. Idaho Case No. 23-00002) on January 4, 2023, listing
under $1 million in both assets and liabilities. The Debtor is
represented by Matthew Christensen, Esq., at JOHNSON MAY.
GUARDIAN ELDER: Cuarzo Landlords Not Entitled to Seek Rent Payment
------------------------------------------------------------------
The Honorable Jeffery A. Deller of the United States Bankruptcy
Court for the Western District of Pennsylvania denied the Cuarzo
Landlords' Expedited Motion for Payment of Master Lease Obligations
in the case captioned as ERIE ACQUISITION, LLC, et al., Movants,
-v- GUARDIAN ELDER CARE AT JOHNSTOWN, LLC, d/b/a RICHLAND
HEALTHCARE AND REHABILITATION CENTER, et al., Respondents (Bankr.
W.D. Pa.).
The Cuarzo Landlords, a consortium of property-owning entities
under a real estate investment trust, entered into a Master Lease
agreement with the Debtors. Pursuant to the Master Lease, the
Debtors operate several personal care homes and skilled nursing
facilities located in Pennsylvania. A fair reading of the Master
Lease is that the parties have agreed the primary intended use of
the leased premises is that they are facilities where patients
(i.e., the Debtors' customers) reside and receive care.
Specifically, through its facilities, the Debtors provide skilled
nursing, long-term care, and rehabilitation services. As of the
filing of the Motion to Compel, the facilities relevant to the
interests of the Cuarzo Landlords had 1,143 resident beds, and had
approximately 950 patients who actually resided at the facilities.
In connection with the Debtors' first-day motions, which sought
authorization to use cash collateral and/or obtain
debtor-in-possession financing to serve as working capital during
the course of the anticipated transactions, the Cuarzo Landlords
expressed support for the transition of the properties and
indicated that they had entered into new go-forward leases with the
buyers.
The Cuarzo Landlords, however, previously asserted a concern
regarding the Bridge Financing. Specifically, they noted that the
Debtors' proposed budgets, as well as the financing terms offered
by the lenders, did not account for the immediate payment of
post-petition rent or other charges that would accrue under the
Master Lease during the period between the petition date and the
eventual sale of the facilities. The Cuarzo Landlords argued that
such payments should have been provided for in the Bridge Financing
budgets pursuant to 11 U.S.C. Sec. 365(d)(3).
In response, the Debtors contended that because the Master Lease
did not involve "nonresidential property," the Cuarzo Landlords
were not entitled to seek immediate payment of rent under 11 U.S.C.
Sec. 365(d)(3). The Debtors further argued that any entitlement the
Cuarzo Landlords might have to payment should be limited to a right
to seek reasonable occupancy charges as an administrative expense
under 11 U.S.C. Sec. 503(b), which the Debtors could defer until
confirmation of a to-be-filed plan of reorganization under 11
U.S.C. Sec. 1129(a)(9)(B) -- presumably to be paid from net
proceeds, if any, obtained from a sale of assets or other forms of
recovery in these cases.
During the hearing on the Bridge Financing, the Court observed
that, despite the limited objection filed by the Cuarzo Landlords,
they had not filed a motion seeking immediate payment under any
legal theory. The Court also inquired of the Cuarzo Landlords'
counsel whether they were objecting to the Bridge Financing on the
grounds of lack of "adequate protection" as that term is used in 11
U.S.C. Sec. 361-364. In response, the Cuarzo Landlords clarified
that they were not objecting to the Bridge Financing on that basis.
The Court then informed the parties that, in the absence of a claim
of inadequate protection, the Court would approve the Bridge
Financing and that it would be more appropriate to address the Sec.
365(d)(3) issue through a formal contested matter, with motions and
responses filed by the interested parties, rather than indirectly
in connection with the Bridge Financing.
Subsequently, the Cuarzo Landlords filed the Motion to Compel,
which was opposed by the Debtors. An objection was also filed by
the Official Committee of Unsecured Creditors. One of the Debtors'
lenders, S&T Bank, filed a response.
This matter concerns whether the Master Lease, under which Guardian
Elder Care at Johnstown, LLC d/b/a Richland Healthcare and
Rehabilitation Center and certain of its affiliates operate
healthcare facilities for patient occupancy, ought to be classified
as a lease for "residential" or "nonresidential" real property
under Sec. 365(d)(3) of the Bankruptcy Code. Although the
distinction may appear straightforward, it carries important
implications for the parties' respective rights and obligations in
this case.
After due consideration, the Court finds that the Master Lease does
not constitute a "nonresidential" lease within the meaning of Sec.
365(d) of the Bankruptcy Code. Accordingly, the Motion to Compel
filed by the Cuarzo Landlords for immediate payment of
post-petition rent obligations is denied.
The Court says this determination seeks to balance the economic
concerns of the Cuarzo Landlords with the legitimate expectations
and needs of the Debtors' patients, who, though not conventional
tenants, inhabit these facilities in every meaningful sense of the
term. This ruling therefore respects both statutory boundaries and
the broader humanitarian implications that such cases invariably
invoke.
The denial of the Motion to Compel, however, shall be without
prejudice to the Cuarzo Landlords' ability to seek allowance and
payment of reasonable occupancy charges or administrative rent
pursuant to 11 U.S.C. Sec. 503(b). The Court reserves judgment as
to the amount, allowability, and timing of payment of any
administrative expense claim that may be due and owing to the
Cuarzo Landlords under Sec. 503(b).
A copy of the Court's decision dated November 14, 2024, is
available at https://urlcurt.com/u?l=R3YWCK
About Guardian Elder Care at Johnstown
Guardian Elder Care at Johnstown, LLC (doing business as Richland
Healthcare and Rehabilitation Center), its affiliates, and their
non-debtor affiliates are a private, family-owned organization that
has provided inpatient and outpatient services to predominately
small and/or rural communities through a network of skilled nursing
facilities and personal care homes since 1995. Guardian Healthcare
maintains 19 skilled nursing facilities, with one facility in West
Virginia and the remaining facilities located in Pennsylvania.
Through its facilities, Guardian Healthcare maintains more than
1,700 skilled nursing, personal care, and independent living beds,
providing long-term care and rehabilitation services.
Guardian Elder Care at Johnstown and its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70299) on July 29, 2024. In the petitions
signed by Allen Wilen, chief restructuring officer, Guardian Elder
Care at Johnstown disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge Jeffery A. Deller oversees the cases.
The Debtors tapped Saul Ewing LLP as legal counsel, Eisner Advisory
Group LLC as financial advisor, and Omni Agent Solutions, Inc. as
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.
H-FOOD HOLDINGS: $515MM Bank Debt Trades at 30% Discount
--------------------------------------------------------
Participations in a syndicated loan under which H-Food Holdings LLC
is a borrower were trading in the secondary market around 69.7
cents-on-the-dollar during the week ended Friday, November 22,
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.
HEARTHSIDE FOOD: Plans to Exit Chapter 11 by March 2025
-------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that Hearthside Food Solutions
plans to exit Chapter 11 bankruptcy by March 2025, according to an
attorney representing the company during a recent court hearing.
According to Bloomberg Law, the company's restructuring plan has
garnered significant support from creditors across multiple
classes. Natasha Hwangpo, the company's attorney, stated that
first-lien secured lenders are set to receive 100% of the
reorganized equity in Hearthside and will release their claims.
Meanwhile, second-lien lenders, senior unsecured noteholders, and
general unsecured creditors are projected to recover up to 6% of
their claims, the report relays.
About Hearthside Food Solutions
Hearthside Food Solutions -- https://www.hearthsidefoods.com/-- is
a leader in modern manufacturing and produces some of the world's
most iconic foods from leading brands.
Heartside Food Solutions sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex.) on November 22, 2024. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
HOW TO BUILD: Unsecureds to Get 100 Cents on Dollar in Plan
-----------------------------------------------------------
How to Build a Tent, LLC filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Plan of Reorganization for Small
Business dated October 9, 2024.
The Debtor is a Florida LLC, established in October of 2019,
currently doing business as A-Rite Glass providing instillation
services for all glass related material including windows, shower
enclosures and mirrors and has been in operation since 2021.
An unforeseen slowdown in sales created a temporary cash flow
interruption which was exacerbated by MCM funding and onerous
repayment terms after unsuccessfully attempting to refinance the
obligations. The subsequent cash flow crisis led to the filing of
this Chapter 11.
The Debtor financial projections show that the Debtor will have
projected net disposible income of $667,046.55. The final Plan
payment is expected to be paid in November of 2029.
This Plan of Reorganization under Chapter 11 of the Bankruptcy Code
proposes to pay creditors of the Debtor from existing cash reserves
and the cash flow generated from current and future operation of
the business. The plan provides for one class of priority claims,
two classes of secured claims, one class of non-priority claims;
and one class of equity security holders.
Non-priority unsecured creditors holding allowed claims with
receive distributions, which the proponent of the Plan has valued
at approximately 100 cents on the dollar. The Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non Priority Claims. This class is impaired.
Holders of allowed unsecured claims against the Debtor shall
receive pro-rata distribution from a payment amount estimated to be
$11,657.00 commencing in month 13 after the effective date of the
Plan and continuing for 48 months. Estimated total distribution to
this class $559,536.00.
Class 4 consists of Equity Interests. All Class 4 interests, upon
the effective date, shall be modified so as to deprive the holders
thereof of any rights in respect of the Debtor to any distribution
upon liquidation of the corporation, or upon sale of all or
substantially all the Debtor's assets, and shall be further
modified to provide that no dividends shall be paid by reason of
such equity interests. Such modification or limitation of equity
interests shall remain effective until such time as all the
payments contemplated to be made by the terms of the Plan have been
made, at which time such modification or limitations shall be
removed, and the holders of Class 4 interests shall retain in full
such interests without further limitation or restriction.
The Debtor shall retain all of its property and operate its
business and the funds necessary for the satisfaction of creditors'
claims shall be generated from the future income of the Debtor, or
from the sale of the Debtor's assets as may be from time to time
practical and necessary in order to make the payments required by
the Plan.
A full-text copy of the Plan of Reorganization dated October 9,
2024 is available at https://urlcurt.com/u?l=kJghBD from
PacerMonitor.com at no charge.
The Debtor's Counsel:
David Lampley, Esq.
F&L LAW GROUP, P.A.
5237 Summerlin Commons Blvd.
Suite 229
Fort Myers, FL 33907
Tel: 239-323-0960
E-mail: DLampley@FLLawGroup.com
About How to Build a Tent
How to Build a Tent, LLC specializes in residential glass
solutions, offering a wide range of services including showers,
mirrors, tabletops, sliding doors, windows, glass bathtubs,
Digitally Infused Glass, shelves, and frameless glass dry erase
boards. The company conducts business under the name A-Rite Glass.
How to Build a Tent sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Nev. Case No. 24-01003) on July 11,
2024, with total assets of $500,000 to $1 million and total
liabilities of $1 million to $10 million. Ruediger Mueller of
mTCMI, Inc. serves as Subchapter V trustee.
Judge Caryl E. Delano oversees the case.
The Debtor is represented by David Lampley, Esq., at F&L Law Group,
P.A.
HUBBARD RADIO: $206.9MM Bank Debt Trades at 25% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Hubbard Radio LLC
is a borrower were trading in the secondary market around 75.1
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $206.9 million Term loan facility is scheduled to mature on
September 30, 2027. The amount is fully drawn and outstanding.
Formed in 2011, Hubbard Radio, LLC is a family controlled and
privately held media company that owns and operates radio stations
in seven of top 30 markets, including Chicago, Washington, D.C.,
Minneapolis/St. Paul, St. Louis, Cincinnati, Seattle, and Phoenix.
Hubbard also operates 2060 Digital, LLC, a national digital
marketing agency based in Cincinnati, OH. Headquartered in St.
Paul, MN, the company is affiliated with Hubbard Broadcasting Inc.,
a television and radio broadcasting company that was started in
1923.
ICEY-TEK USA: Michael Coury Named Subchapter V Trustee
------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Michael Coury of
Glankler Brown, PLLC as Subchapter V trustee for Icey-Tek USA,
LLC.
Mr. Coury will be paid an hourly fee of $475 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Coury declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael P. Coury
Glankler Brown, PLLC
6000 Poplar Ave., Suite 499
Memphis, TN 38119
Phone: (901) 525-1322
Fax: (901) 525-2386
Email; mcoury@glankler.com
About Icey-Tek USA
Icey-Tek USA, LLC, a company in Dresden, Tenn., sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.
Tenn. Case No. 24-11470) on November 2, 2024, with $500,000 to $1
million in assets and $1 million to $10 million in liabilities.
Patrick Mudge, president of Icey-Tek USA, signed the petition.
Judge Jimmy L. Croom handles the case.
The Debtor is represented by Steven N. Douglass, Esq., at Harris
Shelton, PLLC.
ID ELECTRIC: Joseph Cotterman Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 14 appointed Joseph Cotterman as
Subchapter V trustee for ID Electric, LLC.
Mr. Cotterman 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. Cotterman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph E. Cotterman
5232 W. Oraibi Drive
Glendale, AZ 85308
Telephone: 480-353-0540
Email: cottermail@cox.net
About ID Electric
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 up 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 legal counsel.
IDEAL PROPERTY: Six New Committee Members Appointed
---------------------------------------------------
Jonas Anderson, Acting U.S. Trustee for Region 18, appointed six
more creditors to serve on the official committee of unsecured
creditors in the Chapter 11 case of Ideal Property Investments,
LLC.
The new members are Jeff Greco, David Grillo, Simon Fry, Donald
Gray, Kwansoo Lee and Ash Sheanh.
The committee is now composed of:
1. Sterling A. Davis
Big Boy Tools LLC
12625 Hideout Dr.
Noblesville, IN 46060
(419) 352-2239
2. Ronald N. Cole
COLEWSTECH LLC & RCWSTECH1157 LLC
2960 Lewallen Place
Decatur, IL 62521
(217) 848-0830
3. David Schroeder
6404 Myrtle Lane
Indianapolis, IN 46220
(317) 432-6225
4. 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
5. David Grillo
Stillwater Ventures, Rosewater Ventures, Coldwater Vending
8272 Sunset Blvd., Ste B
West Hollywood, CA 90046
davidrgrillo@gmail.com
6. Simon Fry
5161 LLC
23 Watercress
Irvine, CA 92603
sfry@6161llc.com
7. Donald E Gray
Gray Family Enterprises;
Donald and Bonnie Gray Trust
23233 N. Pima Rd., Ste., 113-367
Scottsdale, AZ 85255
don@grayandassoc.com
8. Kwansoo Lee
2305 43rd Street SE
Puyallup, WA 98374
oosnawk@gmail.com
9. Ash Sheanh
3509 Nodding Pine Ct.
Fairfax, VA 22033
(303) 880-8006
About Ideal Property Investments
Ideal Property Investments, LLC is primarily engaged in renting and
leasing real estate properties. The company is based in Everett,
Wash.
Ideal Property Investments filed Chapter 11 petition (Bankr. E.D.
Wash. Case No. 24-01421) on September 5, 2024, with $50 million to
$100 million in assets and $100 million to $500 million in
liabilities. Judge Frederick P. Corbit oversees the case.
The case is related to the jointly administered Chapter 11 cases
filed by Refreshing USA, LLC, Water Station Management, LLC and
Creative Technologies, LLC (Bankr. E.D. Wash. Lead Case No.
24-01863).
Laurie Thornton, Esq., at DBS Law is the Debtor's bankruptcy
counsel.
Jonas Anderson, Acting U.S. Trustee for Region 18, appointed an
official committee to represent unsecured creditors in the Debtor's
Chapter 11 case. The committee is represented by K&L Gates, LLP.
IMS GROUP: Andrew Layden Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Region 21 appointed Andrew Layden as
Subchapter V trustee for IMS Group, LLC.
Mr. Layden will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Layden declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Andrew Layden
200 S. Orange Avenue, Suite 2300
Orlando, Florida 32801
Telephone: 407-649-4000
Email: alayden@bakerlaw.com
About IMS Group
IMS Group, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05994) on November 4,
2024, with $1 million to $10 million in both assets and
liabilities.
Judge Grace E. Robson presides over the case.
INDRA HOLDINGS: $50MM Bank Debt Trades at 43% Discount
------------------------------------------------------
Participations in a syndicated loan under which Indra Holdings Corp
is a borrower were trading in the secondary market around 57.4
cents-on-the-dollar during the week ended Friday, November 22,
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 operates as a holding company. The company
through its subsidiaries, provides designing, distributing and
selling branded umbrellas, gloves, hats, scarves, rubber footwear,
slippers, flip flops, sandals, outerwear, sunglasses and other
miscellaneous accessory product.
INGENOVIS HEALTH: $85MM 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 69.7
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $85 million Term loan facility is scheduled to mature on March
6, 2028. The amount is fully 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).
INGEVITY CORP: Fitch Affirms BB LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Ingevity Corporation's Long-Term Issuer
Default Rating (IDR) at 'BB'. Fitch has also affirmed the company's
senior secured long-term issue ratings at 'BB+' with a Recovery
Rating of 'RR2' and the senior unsecured long-term issue ratings at
'BB'/'RR4'. The Rating Outlook remains Stable.
The ratings reflect the company's relatively modest size, strong
margins owing to technological and market leadership in activated
carbon for auto emissions control, elevated exposure to cyclical
end markets and its generally modest leverage.
The Stable Outlook reflects Fitch's expectations for EBITDA
leverage to improve to below 3.5x by 2025, as Fitch expects the
company to focus on deleveraging over the near term.
Key Rating Drivers
Performance Chemicals Restructuring: Fitch believes the
restructuring of Ingevity's Performance Chemicals (PC) segment
reduces its reliance on high-cost crude tall oil (CTO) feedstocks,
improves product mix toward higher-margin products, and eliminates
exposure to certain cyclical markets. The restructuring resulted in
one-time headwinds, including reduced revenue after exiting
lower-margin markets, restructuring charges, losses on sales of
excess CTO inventories, and payments related to terminating a
long-term CTO contract. These items were partially offset by
stability from Performance Materials (PM), supporting Ingevity's
solid YTD 3Q24 Fitch-calculated EBITDA margin of 26%.
Ingevity faces execution risk surrounding customer adoption of its
alternative fatty acid (AFA)-based products and associated
reformulations to ensure adequate product performance. This risk is
mitigated by the company's existing market presence in AFAs, having
made its first sales of AFA and derivatives in 2021, coupled with
the global shift toward sustainability and the renewable sources of
Ingevity's products versus petroleum-based ones, which could help
deliver the sustainability initiatives of customers.
Expected Deleveraging: With an elevated revolver balance of $753
million as of 3Q24, Fitch expects Ingevity's primary near-term
capital allocation priority to be deleveraging back toward its
targeted 2.0x-2.5x net leverage range. Fitch forecasts gross debt
reduction totaling $100 million in 2025, leading to EBITDA leverage
of below 3.5x. This is supported by expectations for stable,
positive FCF generation through the forecast period, aided by the
continued strong profitability in PM and manageable capex
requirements.
The company expects its reported net leverage ratio to reach 3.0x
by the end of 2025. Once within its targeted leverage range, Fitch
expects Ingevity to pivot capital allocation priorities back to a
balance between organic and inorganic growth investments and
measured share repurchases.
Solid FCF Forecast: With the bulk of its one-time outflows related
to the PC restructuring behind the company, Ingevity's annual FCF
is forecast to return to historical trends of above $100 million by
2025. This is largely driven by strength in the PM segment, which
generated reported segment EBITDA margins of 53% in 3Q24, solid
expected demand within the road technologies product line, and some
penetration into new target markets - including agriculture,
lubricants and others - for industrial specialties products. Fitch
also expects capex spending to remain in the low $100 million
range, with limited incremental spending needed to transition to
oleochemical refining.
Emissions Standards Benefit Materials: Gasoline vapor emissions
regulation drives volume in the PM segment. Ingevity's large market
share and technological leadership should enable the segment to
sustain EBITDA margins over 40%. Recent U.S. and Canadian
regulations phased in control systems that better utilize higher
margin activated carbon, and other regions are implementing
increasingly stringent emission regulations. Fitch believes the
increase in global emission regulations more than offsets reduced
auto sales and the long-term threat of continued electric vehicle
use. The 2022 investment in Nexeon also diversifies the end market
exposure for Ingevity's activated carbon products toward EVs.
Derivation Summary
Ingevity is smaller than specialty chemical peers and H.B. Fuller
Company (BB/Stable), Koppers Holdings Inc. (BB-/Stable) and Axalta
Coatings Systems Ltd. (not rated). Ingevity generally maintains a
conservative capital structure with EBITDA leverage generally
around 2.5x-3.5x compared with around 3.5x-4.5x for H.B. Fuller,
Koppers and Axalta. Fitch expects Ingevity's EBITDA leverage to
trend below 3.0x, consistent with management's pre-acquisition
leverage target.
Ingevity's EBITDA margins are projected to be close to 30%
throughout the forecast, which compares with margins for Fuller,
Koppers and Axalta in the low mid-teens range. This is primarily
due to Ingevity's market position in its PM segment, which
consistently sees margins above 40%.
However, Fitch believes the company's PM segment has a higher
degree of exposure to the moderately cyclical automotive end market
when compared with peers. The company is strategically shifting
toward higher value product offerings within its PC segment to
reduce earnings volatility, as exemplified by recent acquisitions
and product developments.
Key Assumptions
- Revenue recovers moderately by about 4% in 2025 driven by
stability in PM and road technologies, coupled with modest
penetration into new PC target markets, followed by slowly
increasing growth rates thereafter;
- EBITDA margins recover to above 25% by 2025 due to exits from
lower-margin PC markets, mix shift in volumes toward PM and road
technologies, and some realized cost savings;
- FCF is primarily allocated to debt repayment in 2025, resulting
in EBITDA leverage returning to below 3.5x by 2025;
- Capex remains in the low $100 million range;
- Excess cash flow applied to share repurchases, and bolt-on
acquisitions beginning in 2026.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Although an upgrade is unlikely, one may be considered upon
increases in size, scale and/or diversification that further
enhance the business profile;
- Adherence to a financial policy demonstrating a clear commitment
to deleveraging to EBITDA leverage sustained below 2.5x.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deviation from financial policy resulting in EBITDA leverage
sustained above 3.5x;
- Capital allocation prioritization toward additional acquisitions
or stock repurchases in favor of debt repayments;
- Substantial sustained EBITDA margin deterioration signaling
unsuccessful repositioning in Performance Chemicals, or increased
integration risk associated with future investments.
Liquidity and Debt Structure
Adequate Liquidity: As of Sept. 30, 2024, Ingevity had
approximately $135 million of cash and equivalents and $244.5
million in availability under its $1 billion revolver, while its
$100 million A/R securitization facility is nearly fully utilized
with $2 million in availability. Fitch projects solid annual FCF
generation throughout the forecast, which should provide the
company with adequate liquidity over the ratings horizon.
Issuer Profile
Ingevity Corporation is a leading global manufacturer of specialty
chemicals and high-performance activated carbon materials. It
produces chemicals through refining crude tall oil and AFAs, and
carbon materials from burning sawdust necessary to control gasoline
emissions in automobiles.
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
Ingevity Corporation has an ESG Relevance Score of '4' [+] for GHG
Emissions & Air Quality due to the positive impact of the company's
activated carbon materials toward global efforts to reduce harmful
gasoline vapor emissions, which has a positive impact on the credit
profile and is relevant to the ratings in conjunction with other
factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ingevity Corporation LT IDR BB Affirmed BB
senior unsecured LT BB Affirmed RR4 BB
senior secured LT BB+ Affirmed RR2 BB+
INGRAM MICRO: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded Ingram Micro Holding Corporation's
(IMHC) and its subsidiary, Ingram Micro, Inc.'s (IMI; collectively
referred to as Ingram) Long-Term Issuer Default Ratings (IDRs) to
'BB' from 'BB-' and removed the ratings from Rating Watch Positive.
The Rating Outlook is Stable.
Fitch has also upgraded Ingram's asset-based lending (ABL)
revolving credit facility to 'BBB-' with a Recovery Rating of 'RR1'
from 'BB+'/'RR1', and has affirmed the first-lien term loan and
senior secured notes ratings at 'BB+'/'RR2'.
The upgrade is based on Fitch's expectation that continued debt
repayment and improved EBITDA generation in 2025 will support
leverage below 4.0x on a sustained basis. The ratings also reflect
Ingram's position as a leading global IT distributor, large scale,
diversified customer base, and counter-cyclical free cash flow
(FCF) profile.
The Stable Outlook reflects Fitch's expectation that credit metrics
will generally be consistent with the existing rating over the next
12 to 18 months.
Key Rating Drivers
Accelerated Debt Reduction: Ingram sold 11.6 million shares in its
recent IPO, netting $233 million to pay down part of its term loan
facility. This follows $250 million in voluntary term loan
repayments YTD through September ($150 million net debt reduction
after accounting for revolver draw) and a $550 million repayment in
2023. However, this debt reduction has been partly offset by Fitch
adjusting its forecast to include a $400 million debt adjustment
for reverse factoring.
Fitch forecasts EBITDA leverage will be 4.2x at the end of 2024
(4.2x pro forma at Sept. 28, 2024), but will improve to 3.7x by the
end of 2025, driven by additional voluntary debt repayments and
EBITDA growth. Fitch will continue to monitor Ingram's financial
policies, which remain influenced by its financial sponsor,
Platinum Equity, post-IPO.
Market Leadership and Scale: Ingram is a leading global technology
distributor, offering customers and suppliers a global footprint
that optimizes logistics and enables suppliers to reach fragmented
demand. With revenues of approximately $48 billion and operations
in 57 countries, Ingram leverages its global footprint to optimize
logistics and meet demand where it exists for over 161 thousand
customers. Ingram's market position is underpinned by its scale,
broad product portfolio with over 1,500 vendor partners, and
extensive distribution footprint.
Fitch believes Ingram is well positioned to adapt to the evolving
technology environment. This is due to its robust digital platform
that facilitates the delivery of its products and solutions, as
well as its capability to support customers' technical and
pre/post-sales needs through its team of over 1,000 engineers.
Additionally, Ingram has invested to create an integrated
marketplace that includes digital distribution, which strengthens
its ability to adapt as technology continues to move towards "as a
service" offerings.
Financial Flexibility: Ingram's counter-cyclical FCF profile
supports good financial flexibility. During periods of expansion,
Ingram invests in working capital, resulting in cash outflows.
However, this dynamic reverses during contractionary periods,
meaning that sales declines typically lead to cash inflows. As a
result, Ingram generally deleverages during periods of revenue
declines, although there can be a lag due to inventory building on
the balance sheet and accounts receivables extending. In addition,
the company has strong liquidity.
Industry Dynamics Impact Profitability: The IT distribution
business is relatively consolidated, with Ingram and TD SYNNEX
representing a meaningful share of the total market. Despite this,
the industry is both competitive and low-margin due to vibrant
competition between IT distributors and the significant leverage
that IT vendors have over distributors. Ingram's EBITDA margins
have historically been below 2.5%, and margins can deteriorate
quickly during economic downturns. In addition, FCF tends to be
weak or negative during periods of growth due to substantial
working capital investments.
Rating Linkage: There is a parent subsidiary relationship between
IMHC and IMI. Fitch determines IMHC's standalone credit profile
(SCP) based on consolidated metrics and considers IMI's SCP
stronger than that of IMHC. As such, Fitch has followed the
stronger subsidiary path. Legal ring fencing is open given modest
practical legal limitations on flows between the entities. Access
and control are also open given IMHC's 100% ownership interest in
IMI. Due to the aforementioned rating linkages, Fitch rates both
entities on a consolidated credit profile with the same Issuer
Default Ratings (IDRs).
Derivation Summary
Ingram's ratings reflect its strong market position, balanced
against weaker credit metrics compared to investment-grade peers.
Ingram competes directly with TD SYNNEX Corporation (BBB-/Stable),
Arrow Electronics, Inc. (BBB-/Stable), and other distributors in
North American and internationally. Other Fitch-rated peers include
Avnet, Inc. (BBB-/Stable) and CDW Corporation (BBB-/Stable).
Ingram is the second-largest IT wholesale distributor, moderately
smaller than TD SYNNEX, which has lower leverage. TD SYNNEX has a
defined financial policy targeting leverage in the 2.0x-3.0x range,
while Ingram lacks a stated leverage target and is owned by a
private equity sponsor, making its leverage tolerance over time
difficult to assess. The rating difference between TD SYNNEX and
Ingram mainly reflects Ingram's higher leverage and uncommitted
financial policies. TD SYNNEX's EBITDA margin is typically around
50 basis points higher than Ingram's.
Arrow and Avnet are primarily semiconductor distributors, which
allows them to capture higher operating margins compared with IT
distributors. While Avnet generally does not compete with Ingram,
Arrow does through its Enterprise Computing Solutions business.
These peers have leverage targets that generally correspond to 3.0x
or below. Additionally, their EBITDA margins are significantly
higher than Ingram's.
CDW acts as a multi-brand provider of IT solutions to end-market
customers, rather than as an IT distributor. Therefore, it has
better profitability and a somewhat higher tolerance for leverage,
with a stated leverage target range of 2.5x-3.0x on a net debt
basis.
Key Assumptions
- Slight revenue decline in 2024 followed by low single digit
revenue growth through 2026;
- EBITDA margin of 2.4% to 2.5%;
- SOFR rate of 5.00% in 2024, 4.25% in 2025, and 4.00% thereafter;
- Assumed cash taxes of 30%-34% as a percent of pre-tax income;
- No acquisitions;
- Voluntary term loan repayment of $483 million in 2024, and $275
million annually in 2025 and 2026, partly offset by an assumed $300
million net factoring/reverse factoring adjustment and $100 million
ABL draw in 2024;
- $70 million annual dividend commencing in 2025, and increasing by
7.5% annually;
- $10 million in annual minority interest distributions;
- Factoring, receivables and uncommitted lines forecasted to be
constantly renewed.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage sustained below 3.5x;
- Expectation that mid-cycle (CFO-capex)/debt will be above 10%;
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.0x;
- (CFO-capex)/debt sustained below 7.5% on a mid-cycle basis.
Liquidity and Debt Structure
Strong Liquidity and Financial Flexibility: As of Sept. 28, 2024,
Ingram's liquidity consisted of $849 million of cash and
approximately $3.4 billion of availability on its $3.5 billion
multi-currency ABL revolving credit facility. Fitch considers all
of Ingram's cash readily available, but a significant proportion is
located outside the U.S., resulting in potential friction if Ingram
wished to repatriate it. The company has no material near-term debt
maturities; Ingram's senior secured notes and ABL mature in 2029,
and its term loan matures in 2031.
Ingram may also access additional sources of liquidity, not counted
in Fitch's calculation of liquidity, including accounts receivables
factoring programs and $955 million of other liquidity sources
including lines of credit and short-term overdraft facilities, most
of which are on an uncommitted basis. Ingram's diversified sources
of liquidity provide significant operating flexibility, with no
need to access capital markets in the next 24 months.
Ingram typically maintains above $10 billion in aggregate accounts
receivables and inventory balances, suggesting that the borrowing
base provides for significant overcollateralization and full
availability on the ABL facility. Fitch believes liquidity is
further enhanced by Ingram's counter-cyclical working capital
profile, which typically results in improved FCF during a downturn,
providing elevated liquidity support during adverse macro
environments.
Issuer Profile
Ingram is a leading global wholesale distributor of Information
Technology (IT) products. The company primarily distributes IT
hardware (servers, storage, PCs) as well as software and services
to value-added resellers (VARs) who in-turn sell these offerings to
end-customers.
Summary of Financial Adjustments
Fitch has adjusted EBITDA to remove the effects of restructuring
costs; integration, transition and other costs; and the gain on the
divestiture of the Commerce & Lifecycle Services business. Fitch
also deducts minority interest dividends from its EBITDA
calculation.
In addition, Fitch reverses the accounting treatment of factored
receivables by adding them to debt, and adjusting balance sheet
working capital and the relevant cash flow items to reflect the
annual changes related to such balances. This includes
reclassifying proceeds from deferred purchase price of factored
receivables from cash flow from investing to cash flow from
operations. Fitch's financial model includes a reverse factoring
adjustment for a portion of outstanding obligations under supplier
finance obligations based on Fitch's estimate of days payable
extension.
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
Ingram Micro Holding Corporation has an ESG Relevance Score of '4'
for Governance Structure due to financial sponsor ownership, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ingram Micro Holding
Corporation LT IDR BB Upgrade BB-
Ingram Micro Inc. LT IDR BB Upgrade BB-
senior secured LT BBB- Upgrade RR1 BB+
senior secured LT BB+ Affirmed RR2 BB+
INK! COFFEE: Updates Newtek Secured Claims Pay; Amends Plan
-----------------------------------------------------------
Ink! Coffee Company submitted an Amended Subchapter V Plan dated
October 9, 2024.
This Plan contemplates that Debtor will sell all or substantially
all of its assets. This Plan further provides the mechanism for
distributing Available Cash to holders of Allowed Administrative
Claims, Priority Claims, Secured Claims, and Unsecured Claims,
following the consummation of a sale of all or substantially all of
Debtor's assets.
Class 3 consists of the Secured Claim of Newtek Small Business
Finance LLC, which shall be Allowed in the amount of all principal,
accrued interest, and attorneys' fees and costs as of the Effective
Date, less adequate protection payments made during the case, but
only to the extent Cash Proceeds exist after the satisfaction of
Allowed Claims in Class 2. The Lien of the Newtek shall attach to
the Cash Sale Proceeds from the Sale, with the same validity,
extent, and priority as it existed prior to the Petition Date, but
only to the extent of the Cash Sale Proceeds. Newtek shall be paid
no less than $75,000 This Class is impaired under the Plan, and
holders of Claims in this Class will be entitled to vote to accept
or reject the Plan. Any Deficiency shall become a General Unsecured
Claim under Class 8. The amount of claim in this Class total
$1,633,171.10.
Like in the prior iteration of the Plan, holders of Allowed General
Unsecured Claims in this Class shall receive pro rata payment from
remaining Available Cash, if any, after payment of holders of
allowed Administrative Claims, Priority Tax Claims, and Priority
Non-Tax Claims in prior classes. This Class is impaired under the
Plan, and holders of Claims in this Class will be entitled to vote
to accept or reject the Plan. Claims in this Class are estimated to
total $237,965.37.
Class 6 consists of Allowed Equity Interests in Debtor. On the
Effective Date, holders of Equity Interests in Debtor shall retain
such interests in accordance with the Debtor's governing documents.
This Class is unimpaired under the Plan, and holders of Claims in
this Class will not be entitled to vote to accept or reject the
Plan.
The Debtor proposes to pay creditors from a sale of substantially
all of Debtor's assets and Available Cash. Debtor believes the
confirmation of the Plan is not likely to be followed by the need
for further financial reorganization.
Following the Closing of the Sale, Debtor's management shall
promptly take such steps necessary to wind-down Ink! Coffee
Company, including making arrangements for final tax returns.
A full-text copy of the Amended Subchapter V Plan dated October 9,
2024 is available at https://urlcurt.com/u?l=eiDksQ from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Andrew D. Johnson, Esq.
Gabrielle G. Palmer, Esq.
Onsager Fletcher Johnson Palmer, LLC
600 17th Street, Suite 425 North
Denver, CO 80202
Tel: (720) 457-7059
Email: ajohnson@OFJlaw.com
gpalmer@OFJlaw.com
About Ink! Coffee Company
Ink! Coffee Company in Aurora, CO, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Colo. Case No. 24-13445) on June
20, 2024, listing $0 to $50,000 in assets and $1 million to $10
million in liabilities. Keith Herbert as president, signed the
petition.
ONSAGER | FLETCHER | JOHNSON | PALMER LLC serve as the Debtor's
legal counsel. R2 ADVISORS LLC as financial advisor.
INSTANT BRANDS: Founder Disputes Role in Bankruptcy Filing
----------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Cornell Capital LLC
is contesting a lawsuit that claims the private equity firm played
a role in driving its former portfolio company, Instant Brands,
into bankruptcy.
In a letter to employees, firm founder Henry Cornell stated that
the $345 million dividend and other transactions referenced in the
lawsuit were independently reviewed and approved by lenders, the
report relates. He argued that the allegations forming the basis
of the civil lawsuit, filed earlier this month in Texas bankruptcy
court, are unfounded and will be disproven in court, the report
states.
According to Bloomberg News, the letter marks Cornell Capital's
first comprehensive response to the legal claims, signaling their
intention to vigorously defend against the accusations.
About Instant Brands
Instant Brands designs, manufactures and markets a global portfolio
of innovative and iconic consumer lifestyle brands: Instant, Pyrex,
Corelle, Corningware, Snapware, Chicago Cutlery, ZOID and Visions.
Instant Brands Holdings Inc. and Instant Brands Inc., and their
affiliates sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90716) on June
12, 2023. In the petition signed by Adam Hollerbach, chief
restructuring officer, the Debtors disclosed up to $1 billion in
both assets and liabilities. Judge David R. Jones oversees the
case.
Davis Polk & Wardwell LLP's Brian M. Resnick, Steven Z. Szanzer and
Joanna McDonald serve as counsel to the Debtors. The Debtors also
tapped Haynes and Boone, LLP as Texas counsel, Stikeman Elliott LLP
as Canadian counsel, AlixPartners, LLP as financial advisor,
Guggenheim Securities LLC as investment banker, and Epiq Corporate
Restructuring, LLC as claims, noticing, agent, solicitation and
administrative advisor.
DLA Piper LLP (US) serves as counsel to the Official Committee of
Unsecured Creditors.
Ropes & Gray LLP serves as counsel to the DIP Lenders, and Moelis &
Company LLC and Ankura Consulting Group, LLC act as advisors to the
Term DIP Secured Parties.
Skadden, Arps, Slate, Meagher & Flom LLP and Norton Rose Fulbright
and Norton Rose Fulbright Canada LLP serve as counsel and FTI
Consulting as financial advisor to the ABL DIP Secured Parties.
Kramer Levin Naftalis & Frankel LLP serves as counsel to Cornell
Capital.
INTEGRITY REAL ESTATE: Taps Allen Vellone Wolf Helfrich as Counsel
------------------------------------------------------------------
Integrity Real Estate, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ Allen Vellone Wolf
Helfrich & Factor, PC as bankruptcy counsel.
The firm's services include:
(a) provide legal advice and representation in connection with
the general administration of the estate;
(b) confirm any proposed plan of reorganization, all other
contested and adversary matters that arise in this case;
(c) investigate and litigate any avoidance or other action the
estate may have; and
(d) perform other legal services for the Debtor related to or
arising out of contested matters in this bankruptcy case.
The firm will be paid at these hourly rates:
Jeffrey Weinman, Attorney $625
Jordan Factor, Attorney $600
Bailey Pompea, Attorney $395
Paralegals $120 - $225
The firm received a pre-petition retainer of $25,000 from the
Debtor.
Mr. Weinman 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:
Jeffrey A. Weinman, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Telephone: (303) 534-4499
Email: JWeinman@allen-vellone.com
About Integrity Real Estate
Integrity Real Estate, LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-16853) on
November 15, 2024, listing under $1 million in both assets and
liabilities.
Judge Thomas B. McNamara handles the case.
Allen Vellone Wolf Helfrich & Factor PC serves as the Debtor's
counsel.
INTRUM AB: Clifford Chance Represents RCF SteerCo Group
-------------------------------------------------------
The law firm of Clifford Chance US LLP filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 cases of Intrum AB and
affiliates, the firm represents the RCF SteerCo Group.
The RCF SteerCo Group is comprised of the following institutions:
Danske Bank A/S, Danmark, Sverige Filial; DNB Bank ASA; Nordea Bank
Abp, filial i Sverige; Nykredit Bank A/S; Skandinaviska Enskilda
Banken AB (publ); and Swedbank AB (publ).
The RCF SteerCo Group was formally constituted pursuant to that
certain Steering Committee Letter (the "Steering Committee Letter")
dated May 29, 2024, and executed on the same date by each member of
the RCF Steerco Group to Intrum AB.
The Debtor appointed the RCF SteerCo Group for the purposes of
consulting the RCF SteerCo Group in connection with the potential
restructuring and/or recapitalization (the "Restructuring") of the
Debtor. The Steering Committee Letter establishes the terms
governing the RCF SteerCo Group and, subject to the terms of the
Lock-Up Agreement dated July 10, 2024 (as amended and/or amended
and restated from time to time), the relationship between the RCF
SteerCo Group and the Debtor in relation to the Restructuring.
Members of the RCF SteerCo Group first retained Roschier
Advokatbyra AB in mid-March 2024 as Swedish counsel to advise them
in respect of the financing provided under the RCF and the
anticipated Restructuring. In late March 2024, members of the RCF
SteerCo Group then retained Clifford Chance LLP (together with
Clifford Chance US LLP and its affiliated and associated firms,
"Clifford Chance") as international counsel in connection with the
financing provided under the RCF.
Swedbank AB (publ) in its capacity as the Facility Agent under the
RCF and Security Agent under the Intercreditor Agreement dated June
26, 2017 (as amended and/or amended and restated from time to time)
(the "Intercreditor Agreement") separately appointed Roschier and
Clifford Chance to act as counsel in relation to the financing
provided under the RCF and the Intercreditor Agreement.
Clifford Chance is representing the RCF SteerCo Group in their
capacity as members of the RCF SteerCo Group and (separately)
Swedbank AB (publ) in its capacity as the Facility Agent under the
RCF and the Security Agent under the Intercreditor Agreement, in
each case in connection with, amongst other things, these chapter
11 cases. This statement is submitted by Clifford Chance in
connection with its RCF SteerCo Group engagement only.
Clifford Chance represents the interests of the members of the RCF
SteerCo Group and (separately) the Facility Agent under the RCF and
Security Agent under the Intercreditor Agreement in connection with
the chapter 11 cases. Clifford Chance does not represent or purport
to represent any other entities or interests in connection with
these chapter 11 cases. In addition, each member of the RCF SteerCo
Group does not purport to act, represent or speak on behalf of any
entity in connection with the Debtors' chapter 11 cases other than
itself.
The RCF SteerCo Group Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors are:
1. Danske Bank A/S, Danmark, Sverige Filial
Box 7523 Norrmalmstorg 1
SE-103 92 Stockholm Sweden
* RCF Holdings: EUR151,555,555.56
2. DNB Bank ASA
Dronning Eufemias gate 30, POB 1600 Sentrum,
N-0021 Oslo, Norway
* RCF Holdings: EUR151,555,555.56
* Eurobond Holdings: EUR1,500,000.00
3. Nordea Bank Abp, filial i Sverige
Smalandsgatan 17
105 71 Stockholm Sweden
* RCF Holdings: EUR151,555,555.56
4. Nykredit Bank A/S
Sundkrogsgade 25
2150 Nordhavn Denmark
* RCF Holdings: EUR73,333,333.33
5. Skandinaviska Enskilda Banken AB (publ)
Kungstradgardsgatan 8, 106 40,
Stockholm SE | Sweden, AB
* RCF Holdings: EUR151,555,555.56
6. Swedbank AB (publ)
SE 105 34
Stockholm, Sweden
* RCF Holdings: EUR151,555,555.54
* MTN Holdings: SEK10,000,000.00
* Eurobond Holdings: EUR3,798,000.00
Counsel to the RCF SteerCo Group:
CLIFFORD CHANCE US LLP
Brian J. Lohan, Esq.
Maja Zerjal Fink, Esq.
Robert Johnson, Esq.
Madelyn Nicolini, Esq.
Two Manhattan West
375 9th Avenue
New York, NY 10001-1696
Telephone: (212) 878-8000
Email: brian.lohan@cliffordchance.com
maja.zerjalfink@cliffordchance.com
robert.johnson@cliffordchance.com
madelyn.nicolini@cliffordchance.com
About Intrum AB
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").
INTRUM AB: Latham, H&B Represent Notes Ad Hoc Group
---------------------------------------------------
In the Chapter 11 cases of Intrum AB and affiliates, the Notes Ad
Hoc Group filed a verified statement pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure.
On or around March 22, 2024, certain members of the Notes Ad Hoc
Group engaged Latham & Watkins (London) LLP ("Latham") to represent
it as counsel in connection with negotiations and discussions
between the Notes Ad Hoc Group and Debtor Intrum AB and each and
any of its subsidiaries (together with Intrum AB, the "Company"),
holding companies, creditors and/or shareholders (as applicable),
including in connection with any potential or actual waiver,
amendment, financing, recapitalization, extension and/or
restructuring of indebtedness owed by or in connection with a
member of the Company's group.
Further, in November 2024, Haynes and Boone, LLP was engaged to
serve as Texas co-counsel in connection with the Debtors'
restructuring and these Chapter 11 Cases
Latham and Haynes and Boone represent (as that term is defined in
Bankruptcy Rule 2019(a)(2)) the Notes Ad Hoc Group, comprised of
the beneficial holders (or the nominees, investment managers,
investment advisors and/or subadvisors for certain beneficial
holders).
Neither Latham nor Haynes and Boone (a) represents the Notes Ad Hoc
Group as a committee, (b) undertakes to represent the interests of
any creditor, party in interest, or other entity that has not
engaged Latham, or (c) is a fiduciary for any creditor, party in
interest, or other entity that has not engaged Latham. In addition,
the Notes Ad Hoc Group (and any member thereof) (a) does not
represent or purport to represent any other entities in connection
with the Chapter 11 Cases, and (b) does not represent the interests
of, nor act as a fiduciary for, any person or entity other than
itself in connection with the Chapter 11 Cases.
The members of the Notes Ad Hoc Group hold disclosable economic
interests, or hold claims against and/or interests in, or manage or
advise accounts, funds, or investment vehicles holding claims
against and/or interests in, the Debtors.
The the Notes Ad Hoc Group Members' address and the nature and
amount of disclosable economic interests held in relation to the
Debtors are:
1. Certain funds and accounts managed by BlackRock Investment
Management (UK) Limited or its
affiliates
Drapers Gardens 12 Throgmorton Street
London, EC2N 2DL
* 2025 SUNs (EUR26,767,000)
* 2026 SUNs (EUR35,269,000)
* 2027 SUNs (EUR138,220,000)
* 2028 SUNs (EUR30,142,000)
* 2026 MTNs (SEK 12,000,000)
2. Capital Four
Per Henrik Lings Alle 2, 7
2100 Kobenhavn Denmark
* 2026 SUNs (EUR50,057,000)
* 2028 SUNs (EUR3,125,000)
3. Davidson Kempner European Partners, LLP
1 New Burlington Place, 3rd
Floor, London, W1S 2HR
* 2025 SUNs (EUR10,300,000)
* 2026 SUNs (EUR64,840,000)
* 2027 SUNs (EUR191,333,000)
* 2028 SUNs (EUR4,200,000)
4. Intermediate Capital Managers Limited
Procession House, 55 Ludgate
Hill, London, United Kingdom, EC4M 7JW
* 2025 SUNs (EUR2,750,000)
* 2026 SUNs (EUR2,221,000)
* 2027 SUNs (EUR6,700,000)
* 2028 SUNs (EUR3,650,000)
5. Mandatum Asset Management Ltd.
Bulevardi 56
00120 Helsinki Finland
* 2025 SUNs (EUR11,500,000)
* 2026 SUNs (EUR26,800,000)
* 2027 SUNs (EUR28,218,000)
* 2028 SUNs (EUR9,600,000)
6. H.I.G. Capital, LLC
1450 Brickell Avenue, 31st Floor
Miami, Florida 33131
* 2025 SUNs (EUR12,000,000)
* 2026 SUNs (EUR73,249,000)
7. Spiltan Hograntefond; Spiltan Rantefond Sverige; and Spiltan
Aktiefond Stabil (collectively,
"Spiltan Fonder")
Riddargatan 17
114 57 Stockholm, Sweden
* 2026 SUNs (EUR20,000,000)
* 2025 MTNs (SEK180,000,000)
* 2026 MTNs (SEK60,000,000)
Counsel for the Notes Ad Hoc Group:
Charles A. Beckham, Jr., Esq.
Arsalan Muhammad, Esq.
HAYNES AND BOONE, LLP
1221 McKinney Street, Suite 4000
Houston, Texas 77010
Telephone.: (713) 547-2000
Email: charles.beckham@haynesboone.com
Email: arsalan.muhammad@haynesboone.com
- and –
Adam Goldberg, Esq.
Robert J. Malionek, Esq.
Elizabeth Marks, Esq.
Brian Rosen, Esq.
Thomas Fafara, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, New York 10020
Telephone: (212) 906-1200
Facsimile: (212) 751-4864
Email: adam.goldberg@lw.com
Email: robert.malionek@lw.com
Email: betsy.marks@lw.com
Email: brian.rosen@lw.com
Email: thomas.fafara@lw.com
- and –
Ebba Gebisa, Esq.
LATHAM & WATKINS LLP
330 North Wabash Avenue, Suite 2800
Chicago, Illinois 60611
Telephone: (312) 876-7700
Facsimile: (212) 751-4864
Email: ebba.gebisa@lw.com
About Intrum AB
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").
INTRUM AB: Quinn Emanuel Represents Ad Hoc Committee
----------------------------------------------------
The law firm of Quinn Emanuel Urquhart & Sullivan, LLP filed a
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure to disclose that in the Chapter 11 cases of
Intrum AB and affiliates, the firm represents Ad Hoc Committee
("AHC") of holders of 2025 notes.
On or around October 23, 2024, the AHC retained Quinn Emanuel to
represent their interests as holders of 2025 notes issued by Intrum
(the "Notes") in connection with these Chapter 11 Cases, for the
purpose of enforcing their rights and remedies with respect to the
Notes. Each member of the AHC has consented to Quinn Emanuel's
representation.
Quinn Emanuel represents only the AHC and does not represent or
purport to represent any other individuals or entities other than
the AHC with respect to the Chapter 11 Cases. Additionally, neither
the AHC nor any member of the AHC (a) assumes any fiduciary or
other duties to any other creditor, equity holder or person or (b)
purport to act, represent or speak on behalf of any other entities
in connection with the Chapter 11 Cases.
The Ad Hoc Committee Members' address and the nature and amount of
disclosable economic interests held in relation to the Debtors
are:
1. Boundary Creek Master Fund LP
340 Madison Ave, 12th Floor
New York, NY 10173
* Intrum AB 4.875% 08/15/2025 (EUR37,400,000)
* Intrum CDS EUR 06/20/25 (EUR11,000,000) (sold)
* Intrum CDS EUR 12/20/26 (EUR30,000,000)
* Intrum CDS EUR 06/20/27 (EUR10,000,000)
* Intrum CDS EUR 12/20/27 (EUR5,000,000)
* Intrum CDS EUR 6/20/29 (EUR3,000,000)
2. CF INT Holdings Designated Activity Company
1st Floor Cape House, Westend Office Park
Snugborough Rd, Blanchardstown, Dublin 15, Ireland
* Intrum AB 11.875% 07/03/2025 (SEK40,000,000)
* Intrum AB 4.875% 08/15/2025 (EUR72,500,000)
* Intrum AB - Revolving Credit Facility (EUR1,996.86)
* Intrum AB - Revolving Credit Facility (SEK63,952,366.61)
* Intrum AB - Revolving Credit Facility (NOK6,242,140.36)
3. Caius Capital Master Fund
PO Box 309 Ugland House Grand Cayman
Cayman Islands KY1-1104
* Intrum AB 4.875% 08/15/2025 (EUR38,982,000)
* SEK FRN 2025 9/12 (SEK34,000,000)
4. Diameter Master Fund LP
Maples Corporate Services Lmtd.,
Ugland House, South Church St, PO Box 309
Grand Cayman KY1-1104
Intrum AB 11.875% 07/03/2025 (SEK29,700,000)
* Intrum AB 4.875% 08/15/2025 (EUR57,950,000)
* SEK FRN 2025 9/12 (SEK8,900,000)
* SEK FRN 2025 7/03 (SEK5,950,000)
* SEK FRN Sep-26 (SEK8,900,000)
5. Diameter Dislocation Master Fund II LP
Maples Corporate Services Lmtd.,
Ugland House, South Church St, PO Box 309
Grand Cayman KY1-1104
* Intrum AB 11.875% 07/03/2025 (SEK10,300,000)
* Intrum AB 4.875% 08/15/2025 (SEK20,050,000)
* SEK FRN 2025 9/12 (SEK3,100,000)
* SEK FRN 2025 7/03 (SEK2,050,000)
* SEK FRN Sep-26 (SEK3,100,000)
6. Fir Tree Credit Opportunity Master Fund, LP
89 Nexus Way, Camana Bay
Grand Cayman KY1-1205
* Intrum AB STIB3M+4.6 % 09/12/2025 (SEK30,000,000)
* Intrum AB 11.875% 07/03/2025 (SEK24,000,000)
* Intrum CDS EUR SR 12/20/28 (EUR3,000,000)
* Intrum CDS EUR 6/20/29 (EUR13,080,000)
* Intrum CDS EUR 06/20/31 (EUR5,000,000)
7. Star V Partners LLC
2100 West End Ave., Suite 1000
Nashville, TN 37203
* Intrum AB 4.875% 815/25 (EUR3,249,000)
* SEK FRN 2025 9/12 (SEK2,000,000)
Counsel to the Ad Hoc Committee:
QUINN EMANUEL URQUHART & SULLIVAN, LLP
Christopher D. Porter, Esq.
Joanna D. Caytas, Esq.
Melanie A. Guzman, Esq.
700 Louisiana Street, Suite 3900
Houston, TX 77002
Telephone: (713) 221-7000
Facsimile: (713) 221-7100
Email: christopherporter@quinnemanuel.com
joannacaytas@quinnemanuel.com
melanieguzman@quinnemanuel.com
-and-
Benjamin I. Finestone (pending pro hac vice)
Sascha N. Rand (pending pro hac vice)
Katherine A. Scherling (pending pro hac vice)
51 Madison Avenue, 22nd Floor
New York, NY 10010
Telephone: (212) 849-7000
Facsimile: (212) 849-7100
Email: benjaminfinestone@quinnemanuel.com
sascharand@quinnemanuel.com
katescherling@quinnemanuel.com
About Intrum AB
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 76% of the total commitments under the RCF (the "RCF Steerco
Group").
IR4C INC: Gets Interim OK to Use Cash Collateral
------------------------------------------------
IR4C, Inc. received second interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida to use cash
collateral.
The interim order approved the use of cash collateral to pay
ordinary business expenses incurred from Sept. 13 to Nov. 21.
Secured creditors were granted post-petition liens on their cash
collateral, with the same validity and priority as their
pre-bankruptcy liens.
The order will continue in effect until the case is converted to
Chapter 7, a trustee is appointed, a bankruptcy plan is confirmed,
or the order is terminated.
About IR4C Inc.
IR4C, Inc., a company in Lakeland, Fla., is the owner and operator
of a mobile application fitness program using augmented reality to
create virtual "races." It conducts business under the name Yes.Fit
and Make Yes Happen.
IR4C filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case
No. 24-05458) on Sept. 13, 2024, before Judge Roberta A. Colton. In
its petition, IR4C listed total assets of $4,280,839 and total
liabilities of $7,922,422. IR4C President Kevin D. Transue signed
the petition.
Judge Roberta A. Colton oversees the case.
Samantha L. Dammer, Esq., at Bleakley Bavol Denman & Grace, serves
as the Debtor's legal counsel.
IVANTI SOFTWARE: $1.75BB Bank Debt Trades at 22% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 78.1
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.75 billion Term loan facility is scheduled to mature on
December 1, 2027. About $1.70 billion of the loan has been drawn
and outstanding.
Ivanti is an IT Software Company headquartered in South Jordan,
Utah. It produces software for IT Security, IT Service Management,
IT Asset Management, Unified Endpoint Management, Identity
Management and supply chain management.
IVANTI SOFTWARE: $465MM Bank Debt Trades at 19% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 80.6
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $465 million Term loan facility is scheduled to mature on
December 1, 2027. About $449.1 million of the loan has been drawn
and outstanding.
Ivanti is an IT Software Company headquartered in South Jordan,
Utah. It produces software for IT Security, IT Service Management,
IT Asset Management, Unified Endpoint Management, Identity
Management and supply chain management.
J&A TRUCKING: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of J&A Trucking, LLC.
About J&A Trucking
J&A Trucking, LLC is a trucking company operating mostly throughout
the Southeast. It does not have a "brick and mortar" location but
operates from the road and the owner's residence in Anderson, S.C.
J&A Trucking filed for Chapter 11 protection (Bankr. D.S.C. Case
No. 24-03318) on Sept. 11, 2024, before Judge Helen E. Burris. The
Debtor listed $100,001 to $500,000 in both assets and liabilities.
The Debtor tapped Jason Michael Ward, Esq., at Jason Ward Law, LLC
as bankruptcy counsel.
JACKSON GARDENS: Seeks Approval to Hire Ben Szlafrok as Bookkeeper
------------------------------------------------------------------
Jackson Gardens, LLC and Sycamore Gardens, LLC seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Ben Szlafrok, a professional practicing in Brooklyn, New
York, as bookkeeper.
Mr. Szlafrok will assist the Debtors with general bookkeeping and
the preparation of their monthly operating reports.
Mr. Szlafrok will be compensated at $100 per hour, plus
reimbursement of out-of-pocket expenses.
He received payments of $1,400 from Jackson Gardens and $2,000 from
Sycamore Gardens.
Mr. Szlafrok disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The professional can be reached at:
Ben Szlafrok
1143 57th St.
Brooklyn, NY 11219
Telephone: (646) 675-9768
Email: szlafrokben@gmail.com
About Jackson Gardens
Jackson Gardens, LLC and Sycamore Gardens, LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-34106) on September 2, 2024, listing up to $500,000 in
assets and up to $10 million in liabilities. Mitchell Steiman,
manager, signed the petitions.
Judge Eduardo V. Rodriguez oversees the cases.
The Debtors tapped Reese Baker, Esq., at Baker & Associates as
counsel and Ben Szlafrok as bookkeeper.
JETT HOLDINGS: In Chapter 11 Bankruptcy, Dec. 16 Creditors' Meeting
-------------------------------------------------------------------
On November 6, 2024, Jett Holdings LLC filed Chapter 11 protection
in the Northern District of Texas. According to court documents,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 16,
2024 at 11:00 AM.
About Jett Holdings LLC
Jett Holdings LLC is a limited liability company.
Jett Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-33612) on November 6,
2024. In the petition filed by Garrett Johnson, as member, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Scott W. Everett handles the case.
The Debtor is represented by:
Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
1412 Main Street, Suite 500
Dallas TX 75202
Tel: (972) 503-4033
Email: joyce@joycelindauer.com
KAYA HOLDINGS: Incurs $2.50 Million Net Loss in Third Quarter
-------------------------------------------------------------
Kaya Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.50 million on $3,000 of net sales for the three months ended
Sept. 30, 2024, compared to net income of $2.10 million on $59,011
of net sales for the three months ended Sept. 30. 2023.
For the nine months ended Sept. 30, 2024, the Company reported a
net loss of $3.24 million on $31,009 of net sales, compared to net
income of $1.42 million on $162,372 of net sales for the nine
months ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $268,589 in total assets,
$18.43 million in total liabilities, and a total stockholders'
deficit of $18.16 million.
At Sept. 30, 2024 the Company has a working capital deficiency of
$8,982,011 and is totally dependent on its ability to raise
capital.
Kaya Holdings stated, "The Company has a plan of operations and
acknowledges that its plan of operations may not result in
generating positive working capital in the near future. Even
though management believes that it will be able to successfully
execute its business plan, which includes third-party financing and
capital issuance, and meet the Company's future liquidity needs,
there can be no assurances in that regard. These matters raise
substantial doubt about the Company's ability to continue as a
going concern. The consolidated financial statements do not
include any adjustments that might result from the outcome of this
material uncertainty. Management recognizes that the Company must
generate additional funds to successfully develop its operations
and activities.
"Management believes that further proceeds expected to be received
from financing transactions that it is seeking to enter into,
combined with existing and anticipated revenues, will alleviate the
Company's financial difficulties to a significant extent and will
allow the Company to meet its anticipated working capital needs for
a period of between twelve and eighteen months from the date of
this report. However, there can be no assurance that further
funding from the contemplated financings will be achieved, or if
achieved that they will be successful to the level required to meet
the Company's cash needs, or that management's belief will be
correct and that the Company will not sooner require additional
financing to meet its working capital needs prior to achieving
profitability or positive cash flow. Moreover, we may not be
successful in raising additional capital on commercially reasonable
terms, if and when needed, in which case our business, financial
condition, cash flows and results of operations may be materially
and adversely affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1530746/000190359624000689/kays_10q.htm
About Kaya Holdings
Kaya Holdings, Inc. -- http://www.kayaholdings.com-- is a holding
company focusing on wellness and mental health through operations
in psychedelic treatment clinics, medical and recreational
cannabis, and CBD products.
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has an accumulated deficit
and a net capital deficiency, which raises substantial doubt about
its ability to continue as a going concern.
KENDON INDUSTRIES: Unsecureds Will Get 29% over 36 Months
---------------------------------------------------------
Kendon Industries, LLC, filed with the U.S. Bankruptcy Court for
the District of Delaware a Subchapter V Plan of Reorganization
dated October 11, 2024.
Established in 1991, the Debtor is the originator of a full line of
stand-up motorcycle trailers, utility trailers and motorcycle
lifts. The very first trailer that folded and stood up came at a
request of a friend of the Debtor's founder and took up only two
feet of floor space in a garage.
Prior to the Petition Date, the Debtor was involved in litigation
against a TowBlazer, Inc., primarily related to the Debtor's
intellectual property and the agreements between the Debtor and
TowBlazer, Inc. While the Debtor believes that it will be
successful in its litigation against TowBlazer, Inc., it is unclear
at this time whether such litigation will result in a collectible
judgment.
The Debtor has taken a number of steps in the Chapter 11 Case to
implement its restructuring. Prior to the Petition Date, the Debtor
began the process of analyzing its operations and determined, in
its business judgment, that certain operations could be reduced or
outsourced. These reductions have continued through the bankruptcy
proceedings. The Debtor was also able to retain its much needed
workforce.
Also, during the Chapter 11 Case, among other things, the Debtor
obtained permission to use cash collateral, retained certain
Professionals to implement its restructuring, and resolved disputes
with certain of its vendors.
Under the Plan, the Debtor will devote all of its projected
Disposable Income toward the payment of Creditors. The Plan will be
funded with the funds that are not for the payment of expenditures
necessary for the continuation, preservation, or operation of the
business of the Debtor. The Plan provides for payment of
Administrative Expenses and Priority Tax Claims in accordance with
the Bankruptcy Code, and projects payment to Allowed General
Unsecured Claims. Furthermore, Holders of Equity Interests will
retain their Equity Interests as they existed on the Commencement
Date.
Class 2 consists of General Unsecured Claims. Pro rata payment in
quarterly installments from Disposable Income commencing in Q2 2025
and ending on the Last Distribution Date. Based on the Debtor's
projections, it is anticipated that the Debtor's Disposable Income
will allow for payments to Holders of General Unsecured Claims of
approximately 29% over the 36 months following confirmation of this
Plan. This Class is impaired. The allowed unsecured claims total
$2,422,833.14.
Equity Interest Holders in Class 3 shall maintain existing Equity
Interest.
The Plan will be funded by the proceeds realized from the
operations of the Debtor. On Confirmation of the Plan, all property
of the Debtor, tangible and intangible, including, without
limitation, will revert, free and clear of all Claims and Equitable
Interests except as provided in the Plan, to the Debtor.
A full-text copy of the Subchapter V Plan dated October 11, 2024 is
available at https://urlcurt.com/u?l=ZfJZvF from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Kevin S. Mann, Esq.
Cross & Simon, LLC
1105 North Market Street, Suite 901
Wilmington, DE 19801
Tel: (302) 777-4200
Fax: (302) 777-4224
About Kendon Industries
Established in 1991, Kendon Industries, LLC is the originator of a
full line of stand-up motorcycle trailers, utility trailers and
motorcycle lifts. Since that first motorcycle trailer, Kendon has
expanded its product line to include a full range of trailers and
lifts for the powersports market. Kendon motorcycle trailers and
lifts are stocked nationwide in multiple Powersports dealerships as
well as distributed internationally in Canada, Mexico, Europe,
China and Australia. Kendon is based in Anaheim, Calif.
Kendon Industries filed its voluntary petition for Chapter 11
protection (Bankr. D. Del. Case No. 24-11923) on September 4,2024,
listing $3,100,789 in assets and $3,817,530 in liabilities. Randy
Cecola, director, signed the petition.
Judge Laurie Selber Silverstein oversees the case.
Cross & Simon, LLC serves as the Debtor's legal counsel.
KENREG LLC: Christopher Hayes Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 17 appointed Christopher Hayes as
Subchapter V trustee for Kenreg, LLC.
Mr. Hayes will be paid an hourly fee of $455 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hayes declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher Hayes
23 Railroad Avenue, #1238
Danville, CA 94526
Phone: (925) 725-4323
Email: chayestrustee@gmail.com
About Kenreg LLC
Kenreg, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-30827) on November
5, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Dennis Montali oversees the case.
Judge Dennis Montali presides over the case.
KOLOGIK LLC: Proposes Immaterial Modifications to Plan
------------------------------------------------------
Kologik, LLC and its affiliates submitted a First Immaterially
Amended Disclosure Statement for Liquidating Plan dated October 10,
2024.
The Plan provides for the payment of unclassified Allowed
Administrative Claims and Allowed Priority Claims, and ten separate
classifications of Claims and Equity Interests, four of which are
entitled to vote.
On the Petition Date, the Debtors also filed that certain Motion
for Entry of an Order Authorizing and Approving (I) Sale Of
Debtors' Assets Free and Clear of All Claims, Liens, Encumbrances
and Interests Pursuant to Asset Purchase Agreement, (II) Assumption
and Assignment of Certain Executory Contracts and Unexpired Leases,
and (III) Granting Related Relief (the "Sale Motion").
No objection to the Sale Motion was filed. The Sale Hearing
nonetheless went forward and the Debtors put on a full evidentiary
presentation, including testimony from Mr. Kim E. Thayer and Mr.
Paul San Soucie, as well as a proffer from Ms. Heidi Lipton.
On June 7, 2024, the Debtors closed the sale pursuant to the APA
("Sale"). As such, post-closing of the APA and after payment of the
Senior Secured Indebtedness, the Debtors were left with
$11,302,822.70 (the "Sale Proceeds").
In connection with the closing of the APA (which contemplated that
the Purchaser would use the Kologik name), the Debtors filed
certificates of name changes with the Louisiana Secretary of State
and changed their names to ResolveKo, LLC (formerly Kologik, LLC),
ResolveKo Capital, LLC (formerly Kologik Capital, LLC) and
ResolveKo Capital II, LLC (formerly Kologik Capital II, LLC).
Like in the prior iteration of the Plan, the Liquidating Debtors
shall pay Holders of Allowed Class 9 General Unsecured Claims in
cash a Pro Rata share of the Available Cash on the Distribution
Date, and a Pro Rata Share of the Remaining Amount on the Residual
Distribution Date, in full and final satisfaction, settlement,
release, and compromise of and in exchange for each Allowed Class 9
Claim but no Class 9 Claim shall be paid in priority over any
Allowed Claim in a senior Class.
The Holders of Class 10 Membership/Equity Interests shall receive
no value under the Plan. The Membership/Equity Interests shall be
extinguished on the Membership Extinguishment Date. Pending the
Membership Extinguishment Date neither the Holders of Class 10
Interests nor the pre-Effective Date Board of managers shall have
any voting power or control, as the Plan Agent shall hold all
voting power and control over the Liquidating Debtors and shall be
the Entity representative of the Liquidating Debtors with full
corporate authority to act.
The Distributions and Residual Distributions shall be funded with
Available Cash and the proceeds from liquidation of any remaining
Assets of the Liquidating Debtors.
On the Effective Date, all property of the Debtors and of the
Estates including all rights to object to Claims, all Avoidance
Actions, Causes of Action, claims and causes of action identified
in the Schedule of Retained Causes of Action to be filed with the
Plan Supplement, alter-ego rights, derivative claims, breach of
fiduciary duty claims, veil piercing rights, the right to pursue
such claims and all other remaining property of the Estates as
defined in section 541 of the Bankruptcy Code, including all Cash
held and/or controlled by the Debtors on the Effective Date,
equipment and other tangible and intangible property, shall be
fully retained and vest in the Liquidating Debtors, free and clear
of all liens, claims and encumbrances, except as otherwise provided
in the Plan.
The Bankruptcy Court has scheduled a Confirmation Hearing for
December 12, 2024, at 9:00 a.m. Any such objection must be filed
with the Bankruptcy Court on or before December 3, 2024, at 5:00
p.m.
A full-text copy of the First Immaterially Amended Disclosure
Statement dated October 10, 2024 is available at
https://urlcurt.com/u?l=dK2XGC from PacerMonitor.com at no charge.
Counsel to the Debtor:
Louis M. Phillips, Esq.
One American Place
301 Main Street, Suite 1600
Baton Rouge, LA 70801-1916
Telephone: (225) 381-9643
Facsimile: (225) 336-9763
Email: louis.phillips@kellyhart.com
- and -
Erin K. Arnold, Esq.
Amelia L. Hurt, Esq.
400 Poydras Street, Suite 1812
New Orleans, LA 70130
Telephone: (504) 522-1812
Facsimile: (504) 522-1813
Email: erin.arnold@kellyhart.com
Email: amelia.hurt@kellyhart.com
About Kologik LLC
Kologik, LLC, a company in Baton Rouge, La., creates software that
connects small and medium-sized law enforcement departments to the
information they need to keep officers and communities safe.
Kologik and its affiliates filed Chapter 11 petitions (Bankr. M.D.
La. Case No. 24-10311) on April 23, 2024. At the time of the
filing, Kologik reported up to $50,000 in assets and up to $10
million in liabilities.
Judge Michael A. Crawford presides over the cases.
The Debtors tapped Louis M. Phillips, Esq., at Kelley Hart & Pitre
as bankruptcy counsel and Wright, Moore, DeHart, Dupuis &
Hutchinson, LLC as tax accountants.
L.O.F. INC: Seeks to Hire Brian K. McMahon as Bankruptcy Counsel
----------------------------------------------------------------
L.O.F., Inc. and Discount Auto Experts, Inc. seek approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ the law firm of Brian K. McMahon, PA as legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The Debtor agreed to pay the firm $2,000 per month as a
post-petition retainer.
Mr. McMahon 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:
Brian K. McMahon, Esq.
Brian K. McMahon, PA
1401 Forum Way, Suite 730
West Palm Beach, FL 33401
Telephone: (561) 658-1789
Facsimile: (561) 478-3111
Email: brian@bkmbankruptcy.com
About L.O.F. Inc.
L.O.F., Inc. was founded in 1968 in Northwest Indiana as a retail
Recreational Vehicle sales operation. In 2011, the company changed
its focus to replacement automotive and industrial products under
its brands such as Best In Auto, TruckChamp, Red Hound Auto, and
Polar Whale.
L.O.F. and Discount Auto Experts, Inc. filed their voluntary
petitions for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No.
24-13350) on April 8, 2024, listing $1,198,800 in assets and
$8,259,975 in liabilities. Laszlo Kovach, president, signed the
petitions.
Judge Mindy A. Mora oversees the cases.
Brian K. McMahon, PA serves as the Debtors' legal counsel.
LABRUZZO COMMERCIAL: Seeks 30-Day Extension of Plan Filing Deadline
-------------------------------------------------------------------
LaBruzzo Commercial Properties, LLC, asked the U.S. Bankruptcy
Court for the Western District of Pennsylvania to extend its period
to file an Amended Disclosure Statement, Chapter 11 Plan, and Plan
Summary for 30 days.
The Debtor originally commenced this case by filing for emergency
bankruptcy relief under Chapter 11 of the Bankruptcy Code on July
27, 2023.
The Bankruptcy Court entered an order to file Amended Disclosure
Statement, Chapter 11 Plan, and Plan Summary on June 28, 2024.
The Debtor explains that it is believed a resolution of the matter
with United States Small Business Administration has been reached,
but an Amended Claim has yet to be filed by the creditor, which
will impact the creation of a Plan.
Attorney for the Debtor:
Brian C. Thompson, Esq.
THOMPSON LAW GROUP, P.C.
301 Smith Drive, Suite 6
Cranberry Township, PA 16066
Tel: (724) 799-8404
Fax: (724) 799-8409
E-mail: bthompson@thompsonattorney.com
About LaBruzzo Commerical Properties
Labruzzo Commerical Properties, LLC, filed a Chapter 11 petition
(Bankr. W.D. Pa. Case No. 23-10388) on July 27, 2023, with up to
$50,000 in assets and up to $500,000 in liabilities. Joseph
Labruzzo, president, signed the petition.
Judge John C. Melaragno oversees the case.
Brian C. Thompson, Esq., at Thompson Law Group, P.C., is the
Debtor's bankruptcy counsel.
LABRUZZO WOODLANDS: Seeks 30-Day Extension of Plan Filing Deadline
------------------------------------------------------------------
LaBruzzo Woodlands, LLC, asked the U.S. Bankruptcy Court for the
Western District of Pennsylvania to extend its period to file an
Amended Disclosure Statement, Chapter 11 Plan, and Plan Summary for
30 days.
The Debtor originally commenced this case by filing for emergency
bankruptcy relief under Chapter 11 of the Bankruptcy Code on July
27, 2023.
The Bankruptcy Court entered an order to file Amended Disclosure
Statement, Chapter 11 Plan, and Plan Summary on June 28, 2024.
The Debtor explains that progress has been made in resolving the
claim of United States Small Business Administration, but the
Department of Environmental Protection matter remains open and
ongoing, and resolution of that matter significantly impacts the
Plan.
As of the filing of the present Motion it is the Debtor's
understanding that review of the engineer's report provided to the
Department of Environmental Protection remains ongoing.
Counsel to the Debtor:
Brian C. Thompson, Esq.
Thompson Law Group, PC
125 Warrendale Bayne Road, Suite 200
Warrendale, PA 15086
Telephone: (724) 799-8404
Facsimile: (724) 799-8409
Email: bthompson@thompsonattorney.com
About LaBruzzo Woodlands
LaBruzzo Woodlands, LLC, is engaged in activities related to real
estate. The Debtor offers duplexes, tri-plexes apartments, and
houses as well as commercial spaces.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 23-10389) on July 27,
2023. In the petition signed by Joseph LaBruzzo, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge John C. Melaragno oversees the case.
Brian C. Thompson, Esq., at Thompson Law Group, P.C., is the
Debtor's legal counsel.
LAVIE CARE: No Complaints at 11565 Harts Facility, PCO Report Says
------------------------------------------------------------------
Terri Cantrell, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Northern District of Georgia a report
regarding the quality of patient care provided by 11565 Harts Road
Operations, LLC, an affiliate of LaVie Care Centers, LLC.
The managing local ombudsman for the First Coast District visited
the facility on June 19, July 9, August 13, and September 25. A
certified volunteer ombudsman is also assigned to the facility, and
visits the facility once per month, on average. During these
visits, both the ombudsman manager and the volunteer visited with
residents and received no complaints.
The local ombudsman manager and volunteer ombudsman report that the
staff demonstrated professionalism, and the building appeared
clean. The facility appeared during each visit by the ombudsman to
have good participation from the residents in the activities. On
campus activities are offered by a full-time activities director.
In addition, the ombudsman manager spoke with management, and they
are aware of the bankruptcy proceeding. They had not noticed any
decline in care as a result of the filing. The medical director
reports that medical supplies are available and adequate to meet
patient needs. The medical director reports that he/she has timely
received payment for services delivered.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=FZH0Ca from Kurtzman Carson Consultants,
LLC, claims agent.
The ombudsman may be reached at:
Terri Cantrell
State of Florida Ombudsman
4040 Esplanade Way
Tallahassee, Florida
(850) 414-2323
Email: CantrellT@ElderAffairs.org
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.
The U.S. Trustee also appointed Joani Latimer as patient care
ombudsman for patients at the Debtors' Virginia facilities; Victor
Orija for North Carolina facilities; Lisa Smith for the Mississippi
facilities; Margaret Barajas for the Pennsylvania facilities; and
Terri Cantrell for the Florida facility.
LAVIE CARE: No Complaints at N.C. Facilities, 1st PCO Report Says
-----------------------------------------------------------------
Victor Orija, the patient care ombudsman, filed his report
regarding the quality of patient care provided at the North
Carolina nursing facilities operated by LaVie Care Centers, LLC's
affiliates.
Visits were conducted by the regional long-term care ombudsmen who
report programmatically to the State Long-Term Care Ombudsman
(SLTCO) who is housed within the NC Division of Aging. The SLTCO
also visited several of the facilities in an effort to get
acquainted with the facilities.
Regional ombudsmen reported that all their visits to the 16
facilities were good. Patient care did not seem to be adversely
impacted. Staffing was adequate. Information about activities were
posted and patients who desired, seemed to be engaged in
activities.
Regional ombudsmen met with patients, facility administrators,
staff, and when applicable, with family members. Regional ombudsmen
will continue to visit and meet with residents to ensure that they
are receiving the highest quality of care and that the bankruptcy
reorganization does not have any adverse impact on their quality of
care.
The SLTCO personally visited facilities which included Hunter
Woods, Wilora Lake, Forest Oaks, Transitional Health, Willowbrook,
Walcove Health, Gateway Rehab, and Emerald Ridge between September
13 and 17. In all cases, patient care was not an issue. Environment
was clean. Patient daily census in relationship to patient capacity
was not an issue.
The ombudsman noted that the patients, families and staff did not
raise concerns about the quality of care but expressed great
gratitude for the staff.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=uy9ZIL from Kurtzman Carson Consultants,
LLC, claims agent.
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.
The U.S. Trustee also appointed Joani Latimer as patient care
ombudsman for patients at the Debtors' Virginia facilities; Victor
Orija for North Carolina facilities; Lisa Smith for the Mississippi
facilities; Margaret Barajas for the Pennsylvania facilities; and
Terri Cantrell for the Florida facility.
LAVIE CARE: No Complaints at Pa. Facilities, PCO Report Says
------------------------------------------------------------
Margaret Barajas, the patient care ombudsman, filed her second
report regarding the quality of patient care provided at the
Pennsylvania nursing facilities operated by LaVie Care Centers,
LLC's affiliates.
Local ombudsmen have made regular facility visits at Pennknoll
Village facility. Call bells are generally answered promptly.
Snacks and beverages are available to residents. The facility and
resident rooms appear clean and odor free; the temperature is
comfortable. Facility staff reported being happier working at the
facility at this time; they felt they were being treated better.
The local ombudsman visited with an average of three residents per
visit at Locust Grove Retirement Village facility. No outside or
community activities were noted, however. The rooms appear clean
and odor-free. There were no significant concerns reported, and no
cases have been opened on behalf of residents since 2022.
In the facility visit at the Manor at St. Luke Village, the local
ombudsman reported snacks are available to residents; pitchers of
ice water were noted in resident rooms. The facility and resident
rooms are mostly clean and odor-free. Residents report the staff is
sometimes too loud.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=YvdMyb from Kurtzman Carson Consultants,
LLC, claims agent.
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.
The U.S. Trustee also appointed Joani Latimer as patient care
ombudsman for patients at the Debtors' Virginia facilities; Victor
Orija for North Carolina facilities; Lisa Smith for the Mississippi
facilities; Margaret Barajas for the Pennsylvania facilities; and
Terri Cantrell for the Florida facility.
LEGENCE HOLDINGS: Moody's Lowers CFR to B3, Outlook Stable
----------------------------------------------------------
Moody's Ratings downgraded Legence Holdings LLC's corporate family
rating to B3 from B2 and its probability of default rating to B3-PD
from B2-PD. Moody's also downgraded to B3 from B2 the company's
senior secured first lien term loan, including the new add on to
the term loan. Moody's also assigned a B3 rating to the senior
secured first lien revolving credit facility maturing December
2026. The B2 rating on the existing revolver maturing December 2025
will be withdrawn upon closing. The outlook remains stable.
The new incremental term loan will be used for general corporate
purposes, including shareholder distribution and future
acquisitions.
"The downgrade reflects the greater debt load and higher leverage
as a result of the new debt issuance and Moody's expectation that
the company's future strategy will remain focused on growth through
acquisitions given the fragmented industry landscape," says Motoki
Yanase, VP-Senior Credit Officer at Moody's Ratings.
RATINGS RATIONALE
Legence's B3 CFR reflects its high leverage with 6.4x debt/EBITDA
for the 12 months that ended in September 2024. With the proposed
term loan add-on, Moody's expect that leverage will increase to
around 7.0x at the end of 2024, improving slightly towards 6.5x by
year- end 2025. Proceeds of the transaction will be used to fund
tuck-on acquisitions but the remainder could be used for
shareholder distribution. The rating also reflects the fragmented
industry landscape and the company's aggressive financial policy
that supports debt-funded shareholder distribution and growth
through acquisitions. As a result, Moody's view prospects for
material debt reduction as limited.
The rating benefits from the company's broad service offering and
diversified customer base in improving energy efficiency in
existing buildings. Legence's business has transformed through
recent acquisitions and over half of the company's profitability
originates now from its energy advisory and sustainability
business. Legence will continue to benefit from secular trends
toward more energy efficient buildings. Moody's also recognize the
company's significant backlog as of September 2024, exceeding its
annual sales and providing near term revenue visibility. Despite
the high leverage, the company will likely maintain interest
coverage ratio close to around 2x EBITA/interest expense thanks to
existing interest rate swaps.
The stable outlook reflects Moody's expectation that Legence will
grow both organically and through acquisitions. Moody's expect
Legence to reduce financial leverage through EBITDA growth but the
company will likely continue to operate with a high leverage of
between 6-7x adjusted debt/EBITDA.
Legence has good liquidity over the next 12 to 18 months. Excluding
the one-time shareholder distribution to be funded with the
incremental term loan, Moody's expect the company will generate
around breakeven free cash flow for 2024-25. The liquidity is
supported by $79 million of cash as of September 2024 and a $90
million revolving credit facility due December 2026, most of which
Moody's expect will remain undrawn for the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if leverage is sustained below 6x and
EBITA to interest expense is sustained above 2x. In addition, the
company would need to maintain conservative financial policies and
good liquidity.
The ratings could be downgraded if leverage is sustained above 7x,
adjusted EBITA to interest expense falls below 1x, or the company's
liquidity deteriorates. Moody's could also downgrade the ratings if
there is an acceleration of debt-funded acquisition activity or a
significant shareholder return that erodes the company's financial
flexibility.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Headquartered in San Jose, California, Legence Holdings LLC
provides design and build (mechanical, electrical, plumbing) for
facilities, consulting engineering with a focus on energy
efficiency, performance contracting, and ESG advisory services. For
the 12 months to September 2024, the company recorded about $2
billion of revenue.
LEITMOTIF SERVICES: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Leitmotif Services, LLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of Florida to use cash
collateral.
The interim order signed by Judge Laurel Isicoff authorized the
company to use cash collateral to operate its business according to
its projected budget, with a 10% variance.
Secured creditors were granted replacement liens on post-petition
cash collateral to the same extent and with the same validity and
priority as their pre-bankruptcy liens.
About Leitmotif Services
Leitmotif Services, LLC is a retailer of a wide selection of
electric scooters. It 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. Carol Fox of GlassRatner serves as
Subchapter V trustee.
Judge Laurel M. Isicoff handles the case.
The Debtor is represented by Brett Lieberman, Esq., at Edelboim
Lieberman, PLLC.
LEROUX CREEK: Seeks to Sell Red Hat Property for $330,000
---------------------------------------------------------
Leroux Creek Food Corporation LLC seeks permission from the U.S.
Bankruptcy Court for the District of Colorado, to sell its Property
located at 22079 Main Street, Austin, Colorado.
The property also known as Red Hat Property, which is solely owned
by Edward Stuart Tuft, will be sold in the value of $330,000,
subject to liens in the sum of $170,365.40.
The Debtor employs Susan L. Bradley and The Bradley Group, LLC, as
Realtor of the Red Hat Property.
The Red Hat Property is subject to the lien of the Deed of Trust
executed by Edward Tuft to the Public Trustee, to secure an
indebtedness of $200,000.00 in favor Jx4 LLC Individual 401(k) Plan
FBO Jill Sigelbaum.
The Red Hat Property was previously used for cold storage by Leroux
Creek Food Corporation, LLC, the jointly administered debtor in the
case. It is also best use as a warehouse and the market for a
property like the Red Hat is limited.
The Debtor receives an offer from a Buyer about the purchase of the
Property and is willing to pay$350,000 in cash at closing.
The broker is entitled to a commission of 6% or f $21,000 upon the
closing of the sale.
About Leroux Creek Food Corporation LLC
Leroux Creek Food Corporation, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo.
Case No. 24-15015) on August 27, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Edward Tuft as president.
Judge Michael E Romero presides over the case.
Jeffrey A. Weinman, Esq. at ALLEN VELLONE WOLF HELFRICH & FACTOR,
P.C. represents the Debtor as counsel.
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 74% Discount
---------------------------------------------------------
Participations in a syndicated loan under which LifeScan Global
Corp is a borrower were trading in the secondary market around 25.7
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.01 billion Term loan facility is scheduled to mature on
December 31, 2026. About $842.7 million of the loan has been drawn
and outstanding.
LifeScan Global Corporation is a provider of blood glucose
monitoring systems for home and hospital use.
LOGIX HOLDING: $250MM Bank Debt Trades at 22% Discount
------------------------------------------------------
Participations in a syndicated loan under which Logix Holding Co
LLC is a borrower were trading in the secondary market around 77.7
cents-on-the-dollar during the week ended Friday, November 22,
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.
LSR TANGLEWOOD: Brad Odell of Mullin Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for LSR Tanglewood,
LLC.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About LSR Tanglewood
LSR Tanglewood, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
24-52213) on Nov. 1, 2024, listing $100,001 to $500,000 in both
assets and liabilities.
Judge Craig A Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as legal counsel.
LTC TRANSPORTATION: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
LTC Transportation, LLC received interim approval from the U.S.
Bankruptcy Court for the Northern District of Ohio to use cash
collateral from the U.S. Small Business Administration and Channel
Partners Capital to pay its expenses.
The interim order authorized LTC to exceed any budget line item by
up to 20% or by more than 20% so long as the total of the amounts
in excess of all budget line items does not exceed 15% of the total
budget.
The order also granted adequate protection to the secured creditors
in the form of replacement liens on LTC's property to the same
extent and with the same priority as their pre-bankruptcy security
interests. In addition, SBA is entitled to a monthly payment of
$2,521.
The next hearing is scheduled for Jan. 15 next year.
About LTC Transportation
LTC Transportation, LLC operates in the general freight trucking
industry. The company is based in Saint Marys, Ohio.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-31391) on July 29,
2024, with $1,173,337 in assets and $1,381,244 in liabilities. Tod
Chiles, managing member, signed the petition.
Judge Mary Ann Whipple presides over the case.
Eric Neuman, Esq., at Diller and Rice, LLC represents the Debtor as
legal counsel.
LUDLOW HOSPITALITY: Michael Abelow Named Subchapter V Trustee
-------------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Michael Abelow,
Esq., at Sherrard Roe Voigt & Harbison, PLC, as Subchapter V
trustee for Ludlow Hospitality, LLC.
Mr. Abelow will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Abelow declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael G. Abelow, Esq.
Sherrard Roe Voigt & Harbison, PLC
150 3rd Ave. South, Suite 1100
Nashville TN 37201
Phone: (615) 742-4532
Email: mabelow@srvhlaw.com
About Ludlow Hospitality
Ludlow Hospitality, LLC is a new hospitality brand based in
Brentwood, Tenn. It is the parent company of Ludlow & Prime and
Ludlow's Gumbo Bar.
Ludlow Hospitality sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-04309) on November
6, 2024. In its petition, the Debtor reported assets between
$100,000 and $500,000 and liabilities between $1 million and $10
million.
Judge Randal S. Mashburn handles the case.
The Debtor is represented by Keith David Slocum, Esq., at Slocum
Law.
LYNN S. GREEN: Case Summary & Five Unsecured Creditors
------------------------------------------------------
Debtor: Lynn S. Green LLC
47483 Tangier Drive
Palm Desert, CA 92260
Chapter 11 Petition Date: November 25, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-17077
Judge: Hon. Wayne E Johnson
Debtor's Counsel: David A. Wood, Esq.
MARSHACK HAYS WOOD LLP
870 Roosevelt
Irvine, CA 92620-3663
Tel: (949) 333-7777
Fax: (949) 333-7778
Email: dwood@marshackhays.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Lynn Stege as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PL3R3XI/Lynn_S_Green_LLC__cacbke-24-17077__0001.0.pdf?mcid=tGE4TAMA
MACADAMIA BEAUTY: Gets Final Approval to Use Cash Collateral
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas granted
Macadamia Beauty, LLC's motion to use cash collateral on a final
basis.
The order authorized the company to continue using cash collateral
in accordance with its projected budget, with a 10% variance
allowance for post-petition expenses.
Secured creditors, including Rosenthal & Rosenthal of California,
Inc., were granted replacement liens on post-petition cash
collateral. The replacement liens will not attach to Chapter 5
causes of action or the proceeds of the recovery upon such
actions.
About Macadamia Beauty
Macadamia Beauty, LLC -- https://www.macadamiahair.com -- is an
oil-based hair repair company based in Plano, Texas. Its unique
oil-infused hair repair products effectively address the most
common hair dissatisfactions among women: breakage, frizz, damage,
and dryness.
Macadamia Beauty sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Texas Case No. 24-41929) on
August 19, 2024, with $1 million to $10 million in both assets and
liabilities. Henry Stein, chief executive officer of Macadamia
Beauty, signed the petition.
Judge Brenda T. Rhoades oversees the case.
The Debtor is represented by Frances A. Smith, Esq., at Ross, Smith
& Binford, PC.
MAGIPORT GROUP: Gets Interim Approval to Use Cash Collateral
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
granted Magiport Group, Inc.'s amended motion to use cash
collateral on an interim basis.
The court order authorized Miniport to utilize cash collateral in
accordance with its budget, with a 10% variance.
The amended motion aimed to clarify details from the original
filing, including adequate protection payments to secured creditors
and a budget reflecting the company's post-petition operational
needs.
The monthly budget shows an estimated total income of $12,470.57,
derived from various sources such as rental income, promissory note
income, and contributions. It also shows projected total monthly
expenses of $12,470.57, which include payments for property
maintenance, insurance, taxes, and remodeling expenses.
About Magiport Group
Magiport Group, Inc., a for-profit corporation in Boca Raton, Fla.,
is engaged in residential real estate development, including 'fix
and flip' projects. It manages multiple properties in Smith County
and Nacogdoches County, Texas.
Magiport Group filed Chapter 11 petition (Bankr. S.D. Fla. Case No.
24-18977) on August 30, 2024, with $1 million to $10 million in
assets and $100,000 to $500,000 in liabilities. Gineton Alencar,
president and chief executive officer, signed the petition.
The Hon. Mindy A. Mora is the case judge.
Eric Yankwitt, Esq., at the Eric Yankwitt Law Office, serves as the
Debtor's bankruptcy counsel.
MAGLEV ENERGY: Ruediger Mueller Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI,
Inc. as Subchapter V trustee for Maglev Energy, Inc.
Mr. Mueller will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Mueller declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ruediger Mueller
TCMI, Inc.
1112 Watson Court
Reunion, FL 34747
Telephone: (678) 863-0473
Facsimile: (407) 540-9306
Email: truste@tcmius.com
About Maglev Energy
Maglev Energy, Inc., a company in Seminole, Fla., engineers motor
and generator technology including permanent magnet alternator,
vertical wind turbine, and auxiliary power unit.
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 24-06552) on Nov. 5, 2024, with
$241,312 in assets and $2,384,522 in liabilities. Jon Harms,
executive vice president, signed the petition.
Judge Catherine Peek Mcewen oversees the case.
Blanchard Law, P.A. serves as the Debtor's bankruptcy counsel.
MAGLEV ENERGY: Seeks Chapter 11 Bankruptcy Protection in Fla.
-------------------------------------------------------------
On November 5, 2024, Maglev Energy Inc. filed Chapter 11 protection
in the Middle District of Florida. According to court filing, the
Debtor reports $2,384,522 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 2,
2024 at 2:00 PM, The U.S. Trustee (T/FM) will hold the meeting
telephonically. Call in Number: 866-910-0293. Passcode: 7560574.
About Maglev Energy Inc.
Maglev Energy Inc. engineers motor and generator technology
including permanent magnet alternator, vertical wind turbine, and
auxiliary power unit.
Maglev Energy, Inc. in Seminole, FL, sought relief under Subchapter
V of Chapter 11 of the Bankruptcy Code filed its voluntary petition
for Chapter 11 protection (Bankr. M.D. Fla. Case No. 24-06552) on
November 5, 2024. In the petition filed by Jon Harms, as executive
vice president, the Debtor reports $241,312 in assets and
$2,384,522 in liabilities.
Judge Catherine Peek Mcewen oversees the case.
BLANCHARD LAW, P.A. serve as the Debtor's legal counsel.
MARTINS INTERSTATE: Court OKs Saint Matthews Property Sale
----------------------------------------------------------
Martins Interstate Properties, LLC, received the green light from
the U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, to sell its Property subject to liens, claims,
encumbrances, and interests.
The Property is located at the 7605 Columbia Road, Saint Matthews,
SC 29135 being described as all certain piece, parcel, lot or tract
or land, with improvements thereon, situate, lying and being in the
County of Calhoun, State of South Carolina.
The Debtor is granted to sell the property to Charles Emmett
Bozard, III, Licensed SC Salesman in the sum of $40,000, subject to
all existing pre-petition liens, claims, encumbrances, and
interests by private sale.
The Court ordered that the sale is "as-is where with all faults"
and shall be assignment and/or instrument of conveyance as
appropriate, with no warranties of title.
The Court also held that any professionals to be paid from the sale
proceeds shall seek prior approval of any compensation to be paid.
About Martins Interstate Properties, LLC
Martins Interstate Properties owns two properties in Edgewater,
Fla., and Matthews, S.C., with a total current value of $1.30
million.
Martins Interstate Properties filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 24-02516) on May 20, 2024, listing $1,296,406 in assets
and $910,980 in liabilities. Roberto Martins, Sr., manager, signed
the petition.
Judge Tiffany P. Geyer presides over the case.
Bryan K. Mickler, Esq., at the Law Offices of Mickler & Mickler,
LLP represents the Debtor as bankruptcy counsel.
MBMG HOLDING: U.S. Trustee Appoints Suzanne Richards as PCO
-----------------------------------------------------------
Mary Ida Townson, the U.S. Trustee for Region 21, appointed Suzanne
Richards as patient care ombudsman for MBMG Holding, LLC and
affiliates.
In court filings, Ms. Richards declared that she has no connections
with the companies, creditors and other parties involved in the
companies' Chapter 11 cases.
Under Section 333 of the United States Bankruptcy Code, the patient
care ombudsman must:
* Monitor the quality of patient care provided to patients of
the debtor, to the extent necessary under the circumstances,
including interviewing patients and physicians;
* Not later than 60 days after the date of appointment, and
not less frequently than at 60-day intervals thereafter, report to
the court after notice to the parties in interest, at a hearing or
in writing, regarding the quality of patient care provided to
patients of the debtor; and
* If such ombudsman determines that the quality of patient
care provided to patients of the debtor is declining significantly
or is otherwise being materially compromised, file with the court a
motion or a written report, with notice to the parties in interest
immediately upon making such determination.
The ombudsman may be reached at:
Suzanne Richards
4525 Dean Martin Drive, Unit 2308,
Las Vegas, Nevada 89103
Phone: 714-290-6226
Email: suzanne@smrhealth.com
About MBMG Holding
MBMG Holding, LLC and its affiliates are an independent primary
care and integrated physician group focused on value-based,
multi-specialty healthcare services. The Debtors deliver health and
wellness services to approximately 35,000 patients across 26
primary care centers in Florida, with half of those centers being
in Miami-Dade County. In addition to primary care services, the
Debtors provide several in-house and ancillary support services to
patients, including dental, vision, in-home, telehealth, case
management, podiatry, chiropractic, pain management, lab, x-ray,
and transportation services, and operate wellness centers that
provide meal support and social activities.
MBMG Holding and its affiliates commenced voluntary Chapter 11
proceedings (Bankr. S.D. Fla. Lead Case No. 24-20576) on Oct. 13,
2024. Nicholas K. Campbell, chief restructuring officer, signed the
petitions.
At the time of the filing, MBMG Holding disclosed up to $50,000 in
assets and up to $500 million in liabilities.
Judge Corali Lopez-Castro oversees the cases.
The Debtors tapped Berger Singerman LLP as legal counsel; Meru, LLC
as restructuring advisor; and Oppenheimer & Co. Inc. as investment
banker. Epiq Corporate Restructuring, LLC is the claims agent.
MCR HEALTH: Seeks to Hire Shumaker Loop & Kendrick as Counsel
-------------------------------------------------------------
MCR Health, Inc. and AllCare Options, LLC seek approval from the
U.S. Bankruptcy Court for the Middle District of Florida to employ
Shumaker, Loop & Kendrick, LLP as general counsel.
The firm will provide these services:
(a) advise the Debtors with respect to their duties and
powers;
(b) prepare, on behalf of the Debtors, the necessary legal
papers required in these Chapter 11 cases and related proceedings;
(c) assist in the formation, preparation and approval of an
appropriate Disclosure Statement and Chapter 11 Plan, and to
proceed to confirmation of the same; and
(d) provide all other reasonably necessary and appropriate
legal services to the administration of the Debtors' estates.
The Debtors have agreed to compensate the firm on an hourly basis
in this case and to reimburse for its actual and necessary expenses
incurred.
Within the 90 days pre-petition, the Debtors paid the firm
$314,803.51 in the ordinary course for legal services performed
pre-petition along with expenses incurred in the ordinary course.
Steven Berman, Esq., a partner at Shumaker, Loop & Kendrick,
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:
Steven M. Berman, Esq.
Shumaker, Loop & Kendrick LLP
101 E. Kennedy Blvd., Suite 2800
Tampa, FL 33602
Telephone: (813) 229-7600
Email: sbermab@shumaker.com
About MCR Health Inc.
MCR Health, Inc. and AllCare Options, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Lead Case
No. 24-06604) on November 8, 2024, with $10 million to $50 million
in both assets and liabilities. Mary Ruiz, board chair, signed the
petitions.
Judge Roberta A. Colton oversees the cases.
Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP,
represents the Debtors as legal counsel.
MCR HEALTH: Shutts & Bowen Represents Landlords
-----------------------------------------------
The law firm of Shutts & Bowen LLP filed a verified statement
pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure
to disclose that in the Chapter 11 cases of MCR Health, Inc., and
AllCare Options, LLC, the firm represents 101 Riverfront, LLC, and
Health Care for All, LLLP (collectively, the "Landlords").
Shutts has been retained as counsel by the Landlords for
representation relating to the Debtors and this jointly
administered bankruptcy case.
101 Riverfront, LLC is the landlord with respect to the property
located at 101 Riverfront Blvd., Bradenton, FL 34208, as identified
in Debtors' Amended Joint Chapter 11 Case Management Summary as MCR
Corporate Offices. MCR Health Inc. owns a 30% interest in 101
Riverfront, LLC.
Landlords are aware of Shutts' representation of both parties and
have no objection to such multiple representation. This
representation does not present a conflict of interest.
Shutts does not own or have a claim against or interest in the
Debtors. Pursuant to Bankruptcy Rule 2019(d), Shutts reserves the
right to amend, revise and/or supplement this Statement.
The landlords' address and the nature and amount of disclosable
economic interests held in relation to the Debtors are:
1. 101 Riverfront, LLC
c/o Ryan C. Reinert, Esq.
Shutts & Bowen LLP
4301 W. Boy Scout Blvd. Suite 300
Tampa, FL 33607
* Undetermined amount & nature of claim
2. Health Care for All, LLLP
c/o Ryan C. Reinert, Esq.
Shutts & Bowen LLP
4301 W. Boy Scout Blvd. Suite 300
Tampa, FL 33607
* Undetermined amount & nature of claim
Attorneys for the Landlords:
Ryan C. Reinert, Esq.
Bridget M. Dennis, Esq.
Shutts & Bowen LLP
4301 W. Boy Scout Blvd., Suite 300
Tampa, Florida 33607
Telephone: (813) 229-8900
Email: rreinert@shutts.com
bdennis@shutts.com
About MCR Health Inc.
MCR Health, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06604) on November 8,
2024, with $10 million to $50 million in both assets and
liabilities. Mary Ruiz, board chair, signed the petition.
Judge Roberta A. Colton oversees the case.
Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP,
represents the Debtor as legal counsel.
MEGA NEWCO: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtor: Mega Newco Limited
50 Broadway London, Suite 1, Flr. 50
London SW1H 0DB
England
Chapter 15 Petition Date: November 25, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-12031
Judge: Hon. Michael E Wiles
Foreign Representative: Ignacio Javier Gonzalez Delgadillo
Foreign Proceeding: High Court of Justice of England and
Wales (Part 26 of Companies Act 2006)
Counsel to Foreign
Representatives: David H. Botter
Thomas S. Kessler, Esq.
CLEARY GOTTLIEB STEEN & HAMILTON LLP
One Liberty Plaza
New York, New York 10006
Tel: 212-225-2000
+1 212 225 2230
Fax: 212-225-3999
Email: dbotter@cgsh.com
tkessler@cgsh.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/EKINYUI/Mega_Newco_Limited_and_Ignacio__nysbke-24-12031__0001.0.pdf?mcid=tGE4TAMA
MES FASTENERS: Amends Plan to Include Harry Epstein Unsecured Claim
-------------------------------------------------------------------
MES Fasteners Corporation submitted a Second Amended Small Business
Plan of Reorganization dated October 9, 2024.
As of May 2024, just prior to the Debtor's bankruptcy filing, the
Debtor operated at a 2024 year to date loss of -$126,918.
Historically, the Debtor's dire financial situation is intertwined
with that of its parent company Marine Electric Systems, Inc.
Specifically, Harry Epstein, the former CEO of Marine Electric
Systems and the Debtor prior to a settlement agreement reached in
Marine Electric Systems' bankruptcy case (the "Settlement
Agreement") which required him to resign his position in both
companies, engaged in the prolonged practice of taking an excessive
salary and additional compensation totaling approximately
$500,000.00 per year. Mr. Epstein also used both Marine Electric
Systems, Inc. and the Debtor's property for purposes other than
that of either company, including taking unauthorized distributions
either for himself or for his partner/spouse.
MES Financing, LLC ("MESF"), a secured creditor of Marine Electric
Systems, Inc., has also guaranteed the $210,000.00 due to Harry
Epstein pursuant to the above-referenced Settlement Agreement.
Additionally, as part of the Settlement Agreement, the Debtor
assigned to Mr. Epstein its interests in any loan(s) disbursed to
Mr. Epstein, to the extent that the outstanding amount of such
loan(s) totaled $66,625.00 or less; effectively forgiving such
loans.
The claim of Mr. Epstein will be paid in accordance with the
Settlement with all arrears under said Agreement being cured on or
before the Effective Date of the Plan.
The Debtor is seeking to reorganize its operations and debt
obligations in an effort to achieve consistent and prolonged
profitability. The Plan provides for payments from the Debtor's
ongoing business operations and cash on hand.
The Debtor has no pre-petition or post-petition secured creditors.
All Allowed administrative and priority claims shall be paid in
full on or before the Effective Date of the Plan from the Debtor's
cash on hand.
General unsecured creditors will be paid in full over the course of
the 60-month Plan period and will receive semi-annual pro rata
distributions (10 payments at six-month intervals) on their
respective claims beginning on the Effective Date.
The claim of Harry Epstein, the Debtor's former CEO, is separately
classified from other general unsecured creditors and will be paid
in accordance with the settlement agreement entered into between
the Debtor, Marine Electric Systems, Inc., and Mr. Epstein during
the course of Marine Electric Systems, Inc. 's bankruptcy case.
Class 2 consists of the Unsecured Debt of Harry Epstein arising
from Settlement Agreement. $210,000.00 is due to Harry Epstein as a
condition of the Debtor’s and Marine Electric Systems, Inc.’s
Settlement Agreement with Mr. Epstein. MES Financing, LLC, a
secured creditor of Marine Electric Systems, Inc., has also
guaranteed the $210,000.00 due to Harry Epstein pursuant to the
Settlement Agreement.
Specifically, under the Settlement Agreement, the Debtor agreed to
pay Mr. Epstein the additional amount of $210,000.00, in
installment payments of $10,000.00 per month for 21 months, with
the first payment coming due on May 1, 2024. The Debtor is
currently in arrears of these payments for 6 months from May 2024
to October 2024.
MES Financing, LLC, the guarantor of the debt, will cure all
arrears due under the Settlement Agreement on or before the
Effective Date. Thereafter, the Debtor will make monthly $10,000.00
payments on the first day of each month in accordance with the
Settlement Agreement until the full $210,000.00 has been paid on
January 1, 2026.
Class 3 consists of General Unsecured Claims. The Debtor estimates
that the aggregate amount of general unsecured claims, excluding
the Debt to Harry Epstein referenced in Class 2, is approximately
$105,000.00. General unsecured creditors are proposed to receive
100% distribution on their Allowed claims without interest from the
Debtor's ongoing business operations.
This distribution takes into account that all allowed
administrative and priority claims have been paid in full on or
before the Effective Date. General unsecured creditors will receive
semi-annual pro rata distributions (10 payments at six-month
intervals) on their respective claims beginning on the Effective
Date.
The Plan will be funded by the Debtor's cash on hand and the
Reorganized Debtor’s business operations. Based on the Debtor's
current levels of cash on hand as well as its projected disposable
income over the next three months, the Debtor expects to have
sufficient cash flow to make the payments required on the Effective
Date for administrative and priority unsecured creditors.
The Debtor will fund the payments to Class 3 unsecured creditors
semi-annually based on the Reorganized Debtor's performance during
the prior 6 months via the Disbursing Agent for a period of sixty
months, commencing at least 14 days before the Effective Date.
Distribution checks will be forwarded to all creditors not paid by
the Effective Date of the Plan, including general unsecured
creditors, on a semi-annual basis.
The Debtor's distributions over the course of the Plan will be
funded through the disposable income realized from the Reorganized
Debtor's ongoing business operations.
A full-text copy of the Second Amended Plan dated October 9, 2024
is available at https://urlcurt.com/u?l=GKlNJx from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Eric R. Perkins, Esq.
Justin Baumgartner, Esq.
Becker LLC
Eisenhower Plaza Two
354 Eisenhower Parkway, Suite 1500
Livingston, NJ 07039
Telephone: (973) 422-1100
Email: eperkins@becker.legal
About Marine Electric Systems
Marine Electric Systems Inc. -- https://marineelectricsystems.com--
operates as an engineering and vertically integrated manufacturing
firm. The firm offers power supplies and chargers, navigational
aids, proximity sensors, temperature control panels, and salinity
systems. Marine Electric Systems serves its products to military in
the United States.
Alleged creditors filed an involuntary Chapter 11 petition for
Marine Electric Systems (Bankr. D.N.J. Case No. 23-21586) on Dec.
14, 2023. The alleged creditors are MES Financial, LLC,
VentureSpire Group, LLC, and 12R Consulting, LLC. The petitioners
are represented by Brian G. Hannon of Norgaard O'Boyle & Hannon, in
Englewood, New Jersey.
Judge John K. Sherwood oversees the case.
Eric R. Perkins, Esq., at Becker LLC, serves as the Debtor's
counsel.
MILAN SAI: Mark Weisbart Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Region 6 appointed Mark Weisbart of Hayward,
PLLC as Subchapter V trustee for Milan Sai Joint Venture, LLC.
Mr. Weisbart will be paid an hourly fee of $515 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Weisbart 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 A. Weisbart
Hayward, PLLC
10501 N Central Expy, Suite 106
Dallas, TX 75231
Phone: (972) 755-7103
Email: MWeisbart@HaywardFirm.com
About Milan Sai Joint Venture
Milan Sai Joint Venture, LLC, doing business as Super 8, operates
in the traveler accommodation industry. The company is based in
Stanton, Texas.
Milan Sai sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas Case No. 24-33560) on November 4, 2024,
with $1 million to $10 million in assets and liabilities. Sunil
Kumar Patel, managing member, signed the petition.
Judge Michelle V. Larson presides over the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC
represents the Debtor as bankruptcy counsel.
MOMENTUM CONSULTING: 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
Momentum Consulting, 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 Momentum Consulting
Momentum Consulting, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-11236) on
November 5, 2024, with up to $1 million in both assets and
liabilities. Benjamin McLellan, managing member, signed the
petition.
Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as
bankruptcy counsel.
MOSHE GOLD: Martinez Suit Stayed Due to Bankruptcy Filing
---------------------------------------------------------
Magistrate Judge Sarah Netburn of the United States District Court
for the Southern District of New York stayed all claims against
Moshe Gold in his individual capacity in the case captioned as
ISRAEL MARTINEZ, on behalf of himself and all others similarly
situated, Plaintiff, -against- JLM DECORATING, INC., et al.,
Defendants, 20-CV-2969 (RA)(SN) (S.D.N.Y.) in light of his
bankruptcy filing.
On November 14, 2024, the Court was notified that an involuntary
chapter 11 bankruptcy case has been filed against Defendant Moshe
Gold in the United States Bankruptcy Court for the Eastern District
of New York.
The case shall proceed against all other Defendants absent further
Court order.
A copy of the Court's decision dated November 15, 2024, is
available at https://urlcurt.com/u?l=jBuzlH
Brooklyn, New York-based Moshe Gold filed for Chapter 11 bankruptcy
protection (Bankr. E.D.N.Y. Case No. 24-43647) on September 4,
2024.
MUSTANG SHOP: Unsecureds Will Get 25% of Claims over 60 Months
--------------------------------------------------------------
The Mustang Shop of San Diego, Inc., submitted an Amended
Subchapter V Plan dated October 10, 2024.
This is a reorganization plan. In other words, the proponent seeks
to accomplish payments under the Plan by restructuring his
financial affairs and paying his creditors with post-petition
earnings.
Class 3(a) is comprised of the unsecured claim of Scott Crumrine if
all or part of his Class 2(c) claim becomes unsecured. Crumrine
filed a Proof of Claim asserting his claim for $655,842.58 to be
secured. The Debtor maintains that the lien's creation was a
preferential transfer and will file an action to set the lien
aside. For purposes of the Chapter 11 Plan, if the Debtor prevails
on his preference action, the claim will be unsecured, will be
treated as set forth in Class 3(a) and there will not be a Class
2(c) class.
After subtracting payments to administrative and priority tax
claims, the combined Class 3(a) and Class 3(b) classes will receive
a total of $200,045 in 60 monthly installments. Payments will
commence on the Plan's effective date. Each creditor will be paid
on a pro rata basis based upon the combined total of all Class 3(a)
and Class 3(b) allowed claims.
The total amount that members of the class will receive is
contingent on the final determination of the Class 3(a) allowed
claim and thus it is impossible to estimate with particularity the
percentage that members of this class will receive. The Debtor's
best estimate is that members of the class will receive
approximately 25% on their allowed claims. The percentage could
increase if the allowed amount of the Class 3(a) claim is reduced.
Class 3(b) is comprised of unsecured claims not included in Class
3(a) and excluding claims of insiders. This class is estimated to
total $173,406. After subtracting payments to administrative and
priority tax claims, the combined Class 3(a) and Class 3(b) classes
will receive a total of $200,045 in 60 monthly installments.
Payments will commence on the Plan's effective date.
Each creditor will be paid on a pro rata basis based upon the
combined total of all Class 3(a) and Class 3(b) allowed claims. The
total amount that members of the class will receive is contingent
on the final determination of the Class 3(a) allowed claim and thus
it is impossible to estimate with particularity the percentage that
members of this class will receive. The Debtor's best estimate is
that members of the class will receive approximately 25% on their
allowed claims. The percentage could increase if the allowed amount
of the Class 3(a) claim is reduced.
Class 3(c) consists of the equity interest holders in the Debtor.
Peter Rogers is the only member of this class, having a 100%
ownership interest. Mr. Rogers shall retain his equity interest in
Mustant Shop of San Diego, Inc. Mr. Rogers shall contribute any and
all claims he has against the Debtor, estimated to be $30,000, with
the money to be used to help fund the Debtor's Plan and may
constitute new value in satisfaction of the Absolute Priority
Rule.
The Plan will be funded from the Debtor's future income from
business operations.
A full-text copy of the Amended Subchapter V Plan dated October 10,
2024 is available at https://urlcurt.com/u?l=GH4C6R from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Andrew S. Bisom, Esq.
The Bisom Law Group
300 Spectrum Center Drive, Suite 400
Irvine, CA 92618
Telephone: (714) 643-8900
Facsimile: (714) 643-8901
Email: abisom@bisomlaw.com
About The Mustang Shop of San Diego
The Mustang Shop of San Diego, Inc., operates a metal fabrication
business that specializes in customizing vintage Mustang
automobiles.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-00637) on Feb. 27,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Christopher B. Latham presides over the case.
Andrew S. Bisom, Esq., at Bisom Law Group, is the Debtor's
bankruptcy counsel.
MYSTICAL STARS: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 case
of Mystical Stars, LLC.
The committee members are:
1. Lopa B. Patel
7319 Meadow Wood Way
Clarksville, MD 21029
2. Sandeep Bhatia
610 Vale Drive
Morganville, NJ 07751
3. Naveen Modi
7614 McWeadon Lane
Springfield, VA 22150
4. Kamlesh C. Mehta Family, LLC
Attn: Kamlesh C. Mehta
22 Hemingway Drive
Dix Hills, NY 11746
Phone: 516-395-3764
5. Commercial Capital Funding Group, LLC
Attn: Deepak (Eric) Kumar
55 North Broadway, Suite, 201
Hicksville, NY 11801
Phone: 646-813-3350
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 Mystical Stars
Mystical Stars, LLC, formerly known as Arya International, Inc.,
filed Chapter 11 petition (Bankr. D.N.J. Case No. 24-18290) on
August 21, 2024, listing $1 million to $10 million in assets and
$10 million to $50 million in liabilities.
Judge Stacey L. Meisel oversees the case.
Anthony Sodono, III, Esq., at Mcmanimon, Scotland & Baumann, LLC
represents the Debtor as legal counsel.
NAKED JUICE: $1.82BB Bank Debt Trades at 32% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 67.9
cents-on-the-dollar during the week ended Friday, November 22,
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.
NEWFOLD DIGITAL: $1.94BB Bank Debt Trades at 24% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Newfold Digital
Holdings Group Inc is a borrower were trading in the secondary
market around 76.4 cents-on-the-dollar during the week ended
Friday, November 22, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $1.94 billion Term loan facility is scheduled to mature on
February 10, 2028. The amount is fully drawn and outstanding.
Newfold Digital Holdings Group, Inc. is a provider of internet
domain name registrations, web hosting and website building tools
to small businesses. The company has a portfolio of web services
brands, which include Bluehost, Network Solutions, and Web.com as
well as other regional and complementary brands.
NORTHVOLT AB: Outgoing CEO Says Restructuring in Sweden Possible
----------------------------------------------------------------
Charles Daly of Bloomberg News reports that Northvolt's outgoing
CEO, Peter Carlsson, revealed on November 24, 2024 that the company
might consider a Swedish restructuring, though no final decision
has been made.
Speaking on SVT's Agenda program after the company's Chapter 11
filing, Carlsson noted that the legal process in Sweden "could
potentially take place in a month or two," the report related.
"We underestimated the complexity of building a large-scale
factory, integrating a substantial number of new employees, and
working with entirely new equipment," the report said, citing
Carlsson.
About Northvolt AB
Northvolt AB was established in 2016 in Stockholm, Sweden.
Pioneering a sustainable model for battery manufacturing, the
company has received orders from several leading automotive
companies. The company is currently delivering batteries from its
first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from
its R&D and industrialization campus, Northvolt Labs, in Vasteras,
Sweden.
On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577).
The cases are before the Honorable Alfredo R. Perez.
Northvolt is being advised by Teneo as its restructuring and
communications advisor. Kirkland & Ellis LLP, A&O Shearman and
Mannheimer Swartling Advokatbyrå AB are serving as legal counsel.
The company has also engaged Rothschild & Co to run its marketing
process. Stretto is the claims agent.
NORTHWEST BANCORP: Court Allows $1.14-Mil. in Counsel Fees
----------------------------------------------------------
Judge Timothy A. Barnes of the United States Bankruptcy Court for
the Northern District of Illinois made findings of facts and
conclusions of law in support of the order awarding to Jenner &
Block, attorneys for Northwest Bancorporation of Illinois, Inc.'s
Chapter 11 trustee, for allowance and payment of final compensation
and reimbursement of expenses as follows:
TOTAL FEES REQUESTED: $1,143,735.00
TOTAL COSTS REQUESTED: $7,592.23
TOTAL FEES REDUCED: $11,127.00
TOTAL COSTS REDUCED: $0.00
TOTAL FEES ALLOWED: $1,132,608.00
TOTAL COSTS ALLOWED: $7,592.23
TOTAL FEES AND COSTS ALLOWED: $1,140,200.23
(1) Insufficient Description – TOTAL of disallowed amounts
(10% of affected entries): $1,812.50
The Court denies the allowance of compensation for the indicated
task(s) as the description of each task fails to identify in a
reasonable manner the service rendered.
(2) Lumping – TOTAL of disallowed amounts (10% of affected
entries): $7,458.50
The Court may impose a ten percent penalty on entries that appear
to be "lumping." The Court will reduce each entry marked as such
per the penalty.
(3) Computational or Typographical Error – TOTAL of
disallowed amounts: $1,856.00
The Court denies the allowance of compensation for the following
tasks because the amount of fees appears to be a computational or
typographical error.
A copy of the Court's decision dated November 14, 2024, is
available at https://urlcurt.com/u?l=m1CjIe
About Northwest Bancorporation of Illinois
Northwest Bancorporation of Illinois, Inc., is a bank holding
company incorporated under the laws of the state of Delaware.
Northwest Bancorporation filed its voluntary petition for Chapter
11 protection (Bankr. N.D. Ill. Case No. 21-08123) on July 2, 2021,
listing as much as $50 million in both assets and liabilities.
Judge Carol A. Doyle oversees the case.
The Debtor tapped Taft Stettinius & Hollister, LLP as legal counsel
and Janney Montgomery Scott, LLC, as financial advisor and
investment banker.
The U.S. Trustee for Region 11 appointed an official committee of
unsecured creditors on Aug. 4, 2021. The committee is represented
by Jeffrey D. Sternklar, LLC and SmithAmundsen, LLC.
Catherine Steege is the Chapter 11 trustee appointed in the
Debtor's case. Jenner & Block, LLP, serves as the trustee's legal
counsel.
NOSTRUM LABORATORIES: Asks Court to Extend Automatic Stay to CEO
----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that Nostrum
Laboratories has petitioned a New Jersey bankruptcy court to extend
the protections of its Chapter 11 automatic stay to cover its CEO
and parent company, Nostrum Pharmaceuticals LLC, both of which are
non-debtor parties.
About Nostrum Laboratories
Nostrum Laboratories Inc. operates as a pharmaceutical company. The
Company offers sucralfate, and theophylline extended release (ER)
tablets, as well as piroxicam capsules, and carbamazepine ER
capsules.
Nostrum Laboratories Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-19611) on Sept. 30,
2024. In the petition filed by James Grainer, as chief financial
officer, the Debtor estimated assets between $50,000 and $100,000
and estimated liabilities between $10 million and $50,000.
The Honorable Bankruptcy Judge John K. Sherwood handles the case.
The Debtor is represented by David L. Bruck, Esq. at Greenbaum,
Rowe, Smith, et al.
OAK MOUNTAIN: Unsecureds Will Get 10% of Claims over 60 Months
--------------------------------------------------------------
Oak Mountain Brewing Company, LLC filed with the U.S. Bankruptcy
Court for the Northern District of Alabama a Plan of Reorganization
for Small Business dated October 9, 2024.
The Debtor has been since 2017, and remains, in the business of
operating a craft beer brewing operation and taproom in Shelby
County, Alabama, consisting of both on-premises sales and
off-premises sales by way of third-party distribution throughout
Alabama and the southeast United States.
Non-priority unsecured creditors holding Allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately $0.10 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Commercial landlord claims shall continue to receive post-petition
rent payments and full cure of pre-petition rent arrearage, albeit
over a negotiated period of time. The Debtor hopes to formally
assume the commercial real property lease under Code provisions and
by agreement with Debtor's landlord.
Executory contract counter-parties, including Keg Logistics, shall
receive post-petition account payments and full cure of
pre-petition account payments, albeit over a negotiated period of
time. The Debtor hopes to formally assume the executory contract
agreement with Keg Logistics under Code provisions.
Class 5 consists of Non-priority unsecured creditors. The Debtor
proposes to issue a promissory note to Class 5 creditors holding
Allowed claims and shall within the Class 5 Note proposes to pay
holders of Allowed Class 5 claims 10% of respective Allowed Class 5
claims over 60 months. Upon successful completion of this proposed
treatment to Class 5 claimants, the Debtor shall be deemed to have
paid Class 5 n full. This Class is impaired.
The Class 6 equity/membership interests of the Debtor shall receive
no disbursement, dividend, or return on their respective Class 6
equity interests until such time as the Debtor's Plan is
consummated; provided, however, that Peter Genereux in his business
judgment as managing member and executive officer of the Debtor
shall be entitled to continue with a reasonable draw/wage/salary
for services provided by Mr. Genereux in the ordinary course of
business and as an employee of the reorganizing Debtor. Mr.
Genereux's normal bi-weekly gross salary should be $3,076.92; Mr.
Genereux has not received a full salary payment since on or around
September 5, 2024.
The Plan will be implemented by periodic payments from the Debtor's
net disposable income for each month or quarter, depending on the
treatment of the claims and from available profits derived from
business operations.
A full-text copy of the Plan of Reorganization dated October 9,
2024 is available at from PacerMonitor.com at no charge.
Counsel to the Debtor:
Gina McDonald, Esq.
Gina McDonald & Associates, LLC
2057 Valleydale Road, Suite 202
Pelham, AL 35244
Phone: (205) 982-3325
About Oak Mountain Brewing
Oak Mountain Brewing Company, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02131)
on July 15, 2024, with as much as $50,000 in both assets and
liabilities.
Judge Tamara O. Mitchell presides over the case.
Gina H. McDonald, Esq., represents the Debtor as legal counsel.
OMEROS CORP: $67.1MM Bank Debt Trades at 28% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Omeros Corp is a
borrower were trading in the secondary market around 72.4
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $67.1 million Payment in kind Term loan facility is scheduled
to mature on June 2, 2028. About $94.5 million of the loan has been
drawn and outstanding.
Seattle, Washington-based Omeros -- www.omeros.com -- is a
commercial-stage biopharmaceutical company committed to
discovering, developing and commercializing small-molecule and
protein therapeutics for large-market and orphan indications
targeting inflammation, complement-mediated diseases, disorders of
the central nervous system and immune-related diseases, including
cancers.
OPEN ARMS HEALTH: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Open Arms Health Systems, LLC received interim approval from the
U.S. Bankruptcy Court for the Southern District of Ohio, Eastern
Division to use cash collateral.
The company was authorized to use cash collateral for expenses
during a 14-day period following the entry of the interim order.
Its projected budget shows total expenses of $84,390 for this
period.
As protection to its secured creditor, Open Arms will re-grant
Byline Bank all pre-bankruptcy security interests or liens existing
pursuant to the claim of the bank. Byline Bank will also receive
payment of $3,500.
Open Arms plans to surrender its real property in Mansfield, Ohio,
and Byline Bank will receive any distribution related to this
property as additional adequate protection.
Meanwhile, the company agreed to re-grant the liens of other
creditors claiming an interest in the cash collateral, including
the U.S. Small Business Administration, Loan Builder, OnDeck,
Silverline/Zachter, and Premium Merchant Financing, in the same
manner and priority as they existed prior to the bankruptcy
filing.
About Open Arms Health Systems
Open Arms Health Systems, LLC -- https://www.oaohio.com -- is a
health care business (as defined in 11 U.S.C. Sec. 101(27A)).
Open Arms Health Systems sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio. Case No.
24-54305) on October 25, 2024, with $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. Christopher W.
Allison, a member of Open Arms Health Systems, signed the
petition.
Judge Mina Nami Khorrami oversees the case.
The Debtor is represented by David M. Whittaker, Esq., at Isaac
Wiles.
OUTPUT SERVICES: $135MM Bank Debt Trades at 36% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Output Services
Group Inc is a borrower were trading in the secondary market around
64.1 cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $135 million Term loan facility is scheduled to mature on
November 30, 2028. The amount is fully drawn and outstanding.
Output Services Group, Inc. offers printing services.
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 54% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Packers Holdings
LLC is a borrower were trading in the secondary market around 46.1
cents-on-the-dollar during the week ended Friday, November 22,
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.
PDK LLC: Creditors to Get Proceeds From Liquidation
---------------------------------------------------
PDK, LLC filed with the U.S. Bankruptcy Court for the Middle
District of Tennessee a Chapter 11 Plan of Liquidation dated
October 15, 2024.
The Debtor formerly operated three restaurant-and-market concepts
under the PDK Southern Kitchen brand. PDK was owned and operated by
the group behind the successful Demos Restaurants and other
affiliates (the "Demos Affiliates").
Cash from the Demos Affiliates kept PDK alive, to the tune of
hundreds of thousands of dollars, but PDK's ongoing struggles
drained the Demos Affiliates of their own necessary cash reserves.
PDK operated the Bellevue location through February 2024 and the
Charlotte location through July 15, 2024. PDK entered this
Subchapter V proceeding with one remaining location, Mt. Juliet,
but made the difficult decision to close all locations for good on
August 19, 2024.
As of the Petition Date, the primary assets of the Debtor consisted
of personal property including (i) cash and the balance of an
operating checking account, (ii) furniture, fixtures, and equipment
("FF&E"), (iii) leasehold interests; (iv) claims against certain
contractors and subcontractors relating to the buildout and damage
of the Charlotte space; and (v) certain other causes of action,
including against the Charlotte landlord for CAM expense
overcharges (together with the contractor claims described in item
(iv), the "Causes of Action"). The Debtor's FF&E assets are fully
encumbered.
In connection with the Debtor's bankruptcy case, the Debtor has
undertaken several efforts to maximize the value of its estate for
the benefit of creditors. While PDK thought that it might be able
to reorganize PDK Mt. Juliet if not burdened by the cash drain of
its sister restaurants, this case is now about an orderly
liquidation of PDK's assets. PDK has negotiated a termination of
its Mt. Juliet lease and is working to negotiate with the Charlotte
and Bellevue landlords. In addition, PDK has engaged McLemore
Auctions to liquidate the Debtor's remaining restaurant equipment.
Class 4 consists of General Unsecured Claims. The Class 4 Claims
shall be satisfied by the sale of the FF&E and the Debtor's pursuit
of the Causes of Action, to the extent proceeds are available after
satisfaction of approved administrative expense claims, the Class 2
Claims, priority tax claims, and the Class 3 Claims. To the extent
proceeds are unavailable to satisfy the Class 4 Claimants in full,
each of the Class 5 Claimants will each receive a pro rata
percentage of the net cash remaining for distribution. For the
avoidance of doubt, this Class includes any Claim purportedly
secured against property of the estate which Claim is not
separately classified in this Plan.
Class 5 consists of Ownership Interests. The equity structure of
Debtor shall not be altered by this Plan.
The Debtor has engaged McLemore Auctions to catalogue and sell the
Debtor's FF&E located in each of the Debtor's former operating
locations. All net proceeds from the sale of the FF&E will be paid
as set forth in the Plan.
All net proceeds after satisfaction of approved administrative
claims shall be provided to the Subchapter V Trustee to be held in
trust for distribution (or in the event of confirmation of a
consensual plan, to the Debtor). Upon a sale of the Debtor's assets
and satisfaction of the Claims in Classes 2 through 3 and
administrative expenses of the estate, the Debtor shall file a
Notice of Surplus and Motion to Distribute with the Court that
shall inform the Debtor's creditors of the amount of surplus and
proposed distribution of proceeds to the creditors in Class 4, as
applicable.
The proceeds shall respect the priority scheme of the Bankruptcy
Code and accordingly satisfy unsecured priority claims first. Any
remaining amounts shall be distributed to the Claimants in Class 4
on a pro rata basis. Absent the Confirmation Order stating
otherwise, any proceeds in the possession of the Debtor shall be
distributed pursuant to, and in accordance with, order of the Court
after all parties in interest have received notice of the hearing
on the motion and an opportunity to object thereto.
The Plan is designed to liquidate the Debtor's bankruptcy estate to
provide all creditors and parties in interest an amount that is
equal to, or in excess of, the amount they would receive or retain
if the Debtor were liquidated under Chapter 7 of Title 11.
A full-text copy of the Liquidating Plan dated October 15, 2024 is
available at https://urlcurt.com/u?l=36DaHz from PacerMonitor.com
at no charge.
Counsel for the Debtor:
R. Alex Payne, Esq.
Henry E. ("Ned") Hildebrand, IV, Esq.
Dunham Hildebrand Payne Waldron, PLLC
9020 Overlook Boulevard, Suite 316
Brentwood, TN 37027
Tel: (615) 933-5851
Email: alex@dhnashville.com
ned@dhnashville.com
About PDK, LLC
PDK, LLC is a locally-owned casual eatery serving a fresh take on
Southern favorites with its signature chicken and waffles, shrimp
and grits, and PDK burger dishes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tenn. Case No. 24-02652) on July 17,
2024, with $93,040 in assets and $2,283,108 in liabilities. Peter
Demos, managing partner, signed the petition.
Judge Randal S. Mashburn presides over the case.
Henry E. ("Ned") Hildebrand, IV, Esq. at DUNHAM HILDEBRAND PAYNE
WALDRON, PLLC, is the Debtor's legal counsel.
PERFECT VIEW: Seeks to Hire Shraiberg Page as Bankruptcy Counsel
----------------------------------------------------------------
Perfect View Aerial Media, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Shraiberg Page, PA as bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor generally regarding matters of
bankruptcy law in connection with this case;
(b) advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
bankruptcy rules pertaining to the administration of the case and
U.S. Trustee Guidelines related to the daily operation of its
business and administration of the estate;
(c) represent the Debtor in all proceedings before this
court;
(d) prepare and review legal documents arising in this case;
(e) negotiate with creditors, prepare and seek confirmation of
a plan of reorganization and related documents, and assist the
Debtor with implementation of any plan; and
(f) perform all other legal services for the Debtor, which may
be necessary herein.
The firm will be paid at these hourly rates:
John Page, Attorney $575
Attorneys $350 - $625
Legal Assistants $275
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $31,738 from the Debtor and
its sole owner, Benjamin Richardson.
Mr. Page 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:
John Page, Esq.
Shraiberg Page, PA
2385 NW Executive Center Dr., Ste. 300
Boca Raton, FL 33431
Telephone: (561) 443-0800
Facsimile: (561) 998-0047
Email: jpage@slp.law
About Perfect View Aerial Media
Perfect View Aerial Media, LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21980) on
November 15, 2024, listing up to $500,000 in assets and up to $10
million in liabilities.
Judge Peter D. Russin oversees the case.
John Page, Esq., at Shraiberg Page, PA serves as the Debtor's
counsel.
PHUNWARE INC: Incurs $2.76 Million Net Loss in Third Quarter
------------------------------------------------------------
Phunware, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $2.76
million on $665,000 of net revenues for the three months ended
Sept. 30, 2024, compared to a net loss of $18.98 million on $1.25
million of net revenues for the three months ended Sept. 30, 2023.
For the nine months ended Sept. 30, 2024, the Company reported a
net loss of $7.68 million on $2.60 million of net revenues,
compared to a net loss of $29.77 million on $3.89 million of net
revenues for the nine months ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $41.01 million in total
assets, $11.89 million in total liabilities, and $29.13 million in
total stockholders' equity.
Phunware said, "Although we expect to generate operating losses and
negative operating cash flows in the future, based on the financing
events described above, management believes it has sufficient cash
on hand for at least one year following the filing date of this
Quarterly Report on Form 10-Q.
"Our future capital requirements will depend on many factors,
including our pace of growth, subscription renewal activity, the
timing and extent of spend to support development efforts, the
expansion of sales and marketing activities and the market
acceptance of our products and services. We believe that it is
likely we will in the future enter into arrangements to acquire or
invest in complementary businesses, technologies and intellectual
property rights. We may be required to seek additional equity or
debt financing, or issue securities under our effective
registration statement...If additional financing is required from
outside sources, we may not be able to raise it on terms acceptable
to us, or at all. If we are unable to raise additional capital
when desired and/or on acceptable terms, our business, operating
results and financial condition could be adversely affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1665300/000095017024124197/phun-20240930.htm
About Phunware
Headquartered in Austin, Texas, Phunware, Inc. --
http://www.phunware.com-- offers a fully integrated software
platform that equips companies with the products, solutions, and
services necessary to engage, manage, and monetize their mobile
application portfolios globally at scale.
Phunware reported a net loss of $52.78 in 2023, a net loss of
$50.89 million in 2022, a net loss of $53.52 million in 2021, a net
loss of $22.20 million in 2020, a net loss of $12.87 million in
2019, a net loss attributable to common shares of $923,180 for the
year ended Nov. 30, 2018, and a net loss attributable to common
shares of $307,274 for the year ended Dec. 30, 2017.
PLAY DAY: Unsecured Creditors to Split $18K over 36 Months
----------------------------------------------------------
Play Day Cafe, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of Ohio a Plan of Reorganization dated October
15, 2024.
The Debtor is a small, family-owned Ohio limited liability company
formed in 2015 which owns and operates a family entertainment
center consisting of an indoor playground and a café located in
Solon, Ohio.
Prior to opening for business in 2017, the Debtor obtained a
construction loan from Huntington Bank in the amount of
$1,115,000.00, along with line of credit to assist with operating
cash needs. The Debtor's financial difficulties arose shortly after
the start of the COVID-19 pandemic in March 2020. The Debtor was
forced to close its doors for several months by the State of Ohio
and generated no revenue for several months. As a result, the
Debtor had no option but to obtain EIDL loans from the US Small
Business Administration (the "SBA") totaling $500,000.00 between
May 2020 and August 2021 to cover operating costs, including rent,
payroll and ongoing debt service payments.
Though the Debtor's operations have slowly recovered since the
passing of the COVID-19 pandemic, the increase in revenue was not
sufficient to cover the debt service for the additional loans
incurred as a result of the pandemic. In September 2023, the Debtor
borrowed $101,250 from Capital Solutions to assist with short-term
cash flow issues. Capital Solutions commenced suit against the
Debtor seeking judgment on its loan obligation. To avoid further
collection efforts which would disrupt business operations, the
Debtor had no alternative but to file the present case.
Over the life of the Plan, or until such time as Allowed Claims are
paid in full, the Debtor will pay at least the projected disposable
income as required by 1191(d) of the Bankruptcy Code, regardless of
the Debtor's actual disposable income. The final Plan payment is
expected to be paid on January 1, 2028.
This Plan of Reorganization proposes to pay creditors of the Debtor
from Debtor's projected disposable income.
Class 3 consists of General Unsecured Claims. Class 3 is Impaired
by this Plan. The Debtor shall pay Class 3 claimants a total sum of
$18,000, in equal semi-annual payments over the course of
thirty-six months, beginning January 1, 2025. The allowed unsecured
claims total $962,511.00. This Class is impaired.
Class 4 consists of Equity interest holders. Class 4 is unimpaired
by this Plan. The holder of an equity interest in the Debtor shall
retain their interest upon confirmation of the Plan.
The Debtor shall make plan payments from ordinary income of the
business and proceeds from the recovery of any avoidance actions,
if any.
The Debtor shall pay the holders of Class 3 claims the total sum of
$18,000.00, pro rata, in equal semi-annual installments for a
period of thirty-six months, beginning January 1, 2025. In
addition, the Debtor shall distribute 50% of the recovery, net of
costs, in any avoidance action to Class 3 claimants, on a pro rata
basis, upon approval of the Court.
A full-text copy of the Plan of Reorganization dated October 15,
2024 is available at https://urlcurt.com/u?l=OU3XP4 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Steven J. Heimberger, Esq.
Roderick Linton Belfance, LLP
50 S. Main Street, 10th Floor
Akron, OH 44308
Telephone: (330) 434-3000
Facsimile: (330) 434-9220
Email: sheimberger@rlbllp.com
About Play Day Cafe LLC
Play Day Cafe LLC is a privately held company that owns and
operates a recreational facility featuring a mega-sized playground,
a cafe with healthy eating choices and party rooms to host birthday
parties and other group events.
Play Day Cafe LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-51063) on
July 16, 2024. In the petition signed by Barbara A. Riles, member,
the Debtor reports total assets of $50,225 and total liabilities of
$1,145,222.
Judge Alan M. Koschik oversees the case.
Steven J. Heimberger, Esq., at Roderick Linton Belfance, LLP
represents the Debtor as legal counsel.
PLAZA MARIACHI: Seeks 90-Day Extension of Plan Filing Deadline
--------------------------------------------------------------
Plaza Mariachi, LLC is asking the U.S. Bankruptcy Court for the
Middle District of Tennessee to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof for 90
days.
The Debtor believes that a 90-day extension of the exclusive
periods in this case will facilitate confirmation of a consensual
plan of reorganization. The Debtor is actively marketing The Shops
at Plaza Mariachi, the sale of which will pay the FFB debt in full,
clean up the miscellaneous smaller dollar liens against the
Property, and provide a significant pay down on the Capital One
debt.
The Debtor explains that the factors establish good cause for the
Court to grant a 90-day extension of the exclusive periods to file
and seek acceptance of a plan of reorganization.
* The first two factors, "the size and complexity of the
case," and "the necessity of sufficient time to negotiate and
prepare adequate information" are neutral or mitigate in favor of
an extension. Although this case is not unusually large or complex
on its face, the Debtor believes that the timing of the case has
complicated its efforts to sell the Property. The Debtor believes
that the upcoming National election has caused potential buyers to
delay in making decisions regarding a purchase of The Shops at
Plaza Mariachi.
* The third factor, "the existence of good faith progress
toward reorganization" supports an extension of the exclusive
periods. The Debtor has retained a broker and has been marketing
the property for sale. The Debtor has retained special real estate
counsel to address easement issues with the eventual buyer, and to
draft sale documents and facilitate a closing of the sale. And, the
Debtor is in the process of addressing the legal boundary issue
affecting the Property, which also will facilitate a sale.
* The fourth factor "whether the debtor is paying its debts as
they come due," also supports an extension of the exclusive
periods. The Debtor is current on its monthly interest payments to
FFB, and is current on its monthly insurance premiums for the
property. The Debtor has no other material reoccurring payment
obligations on a monthly basis.
* The fifth factor, "whether the debtor has demonstrated
reasonable prospects for filing a viable plan," supports an
extension of the exclusive periods. The Debtor will sell a portion
of its Property, The Shops at Plaza Mariachi, payoff FFB and its
smaller lien creditors, and make a significant payment toward the
Capital One debt. After that sale closes, the Debtor's remaining
debt to Capital One should be reduced to a level that is capable of
either being paid in full through a refinance of Plaza Mariachi,
serviced through income from the Property and paid off over time,
or combination of the foregoing.
* The sixth factor, "whether the debtor has made progress
negotiating with creditors," also supports the requested extension
of the exclusive periods. Since the case was filed, the Debtor has
been in regular communication with FFB and Capital One, the
Debtor's largest secured creditors. Both creditors have expressed
support for a sale of The Shops at Plaza Mariachi as soon as
reasonably practicable.
* The seventh factor, "whether the debtor is seeking an
extension to pressure creditors" supports an extension of the
exclusive periods. The Debtor is not seeking the extension to put
pressure on its creditors. To the contrary, the Debtor is seeking
the extension to allow additional time to properly position the
Debtor for a successful sale of The Shops at Plaza Mariachi that
will maximize value for all creditors.
* The last factor, "whether unresolved contingencies exist,"
is neutral. Arguably, contingencies exist: (i) correction of the
legal boundary issue, and (ii) a sale of The Shops at Plaza
Mariachi, but neither issue is controversial or insurmountable by
any stretch of the imagination. There is no reason why the boundary
issue cannot be resolved within 60 days. It is just a matter of
creating an amended Final Plat and submitting the application to
the Metro Planning Department for approval.
Bankruptcy Counsel for the Debtor:
Todd Burgess, Esq.
Janel M. Glynn, Esq.
The Burgess Law Group
3131 E. Camelback Rd., Suite 224
Phoenix, AZ 85016
Phone: (602) 806-2100
Email: todd@theburgesslawgroup.com
Email: janel@theburgesslawgroup.com
Local Counsel for the Debtor:
Sean C. Wlodarczyk, Esq.
EVANS, JONES & REYNOLDS, PC
401 Commerce Street, Suite 710
Nashville, TN 37219
Telephone: (615) 259-4685
Facsimile: (615) 256-4448
Email: Swlodarczyk@ejrlaw.com
About Plaza Mariachi LLC
Plaza Mariachi is a Single Asset Real Estate debtor (as defined in
11 U.S.C. Section 101(51B)).
Plaza Mariachi LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No.
24-02441) on July 1, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Mahan Mark
Janbakhsh, member/manager.
Judge Charles M. Walker oversees the case.
Sean C. Wlodarczyk, Esq. at Evans, Jones & Reynolds, PC, is the
Debtor's counsel.
POSEIDON CHARTERS: Unsecureds to Split $40K via Quarterly Payments
------------------------------------------------------------------
Poseidon Charters, Inc., filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Chapter 11 Plan of
Reorganization dated October 10, 2024.
The Debtor is the owner and operator of the Poseidon. The Poseidon
is a 1989 48' Duffy fishing vessel.
The Debtor previously worked in the lobster fishing industry in
Maine but has not operated since prior to the Petition Date as a
result of collection proceedings in connection with an arbitration
award issued in favor of Lobster 207 against Pettegrow. Lobster 207
also asserts claims against the Debtor in the Maine Case.
Lobster 207 began collection efforts after the entry of the
arbitration award against the Pettegrow. Those collection efforts
resulted in a court order directing the Debtor to turn over the
Poseidon to Lobster 207 for liquidation. The Debtor subsequently
filed for relief under subchapter V of chapter 11 of the Code on
the Petition Date to reorganize its debts and resume operating its
business.
Class 2 consists of the Allowed General Unsecured Claims. Without
prejudice, the Debtor estimates that Class 2 may consist of Allowed
General Unsecured Claims in an amount as high as $7,151,570, which
sum includes: (i) the $7,150,250 unsecured portion of Lobster 207's
bifurcated claim and (ii) Claim No. 1-1 filed by the Internal
Revenue Service in the amount of $7,426,000. Class 2 also consists
of any Allowed Rejection Claims.
Except to the extent that a holder of an Allowed Class 2 Claim has
been paid prior to the Effective Date or agrees to a different
treatment, in full satisfaction, settlement, release,
extinguishment and discharge of such Claim, each holder of an
Allowed Class 2 Claim shall receive a Pro Rata Distribution of
$40,000 payable in nine quarterly installments of $4,444.44
beginning 45 days after the Effective Date. The Allowed Class 2
Claims are Impaired. Accordingly, each holder of an Allowed Class 5
Claim is entitled to vote to accept or reject the Plan.
Class 3 consists of the equity interests in the Debtor held by
Pettegrow. Upon the Effective Date, unless otherwise provided in
the Plan or the Confirmation Order, Pettegrow will retain his
equity interests in the Debtor.
The sources of consideration for Distributions under the Plan are
the Reorganized Debtor's income and funds contributed by the Plan
Guarantors.
Upon confirmation of the Plan, and in accordance with the
Confirmation Order, the Debtor or Reorganized Debtor will be
authorized to take all necessary steps, and perform all necessary
acts, to consummate the terms and conditions of the Plan. In
addition to the provisions set forth elsewhere in the Plan, the
following shall constitute the means for implementation of the
Plan.
Except as otherwise provided in the Plan or the Confirmation Order,
on the Effective Date, the Reorganized Debtor shall be vested with
all of the property of the Estate free and clear of all Claims,
Liens, encumbrances, charges, and other interests, including but
not limited to that of holders of Claims and holders of Equity
Interests. The Reorganized Debtor shall assume all of the Debtor's
respective rights, obligations and liabilities under the Plan and
the Confirmation Order.
A full-text copy of the Plan of Reorganization dated October 10,
2024 is available at https://urlcurt.com/u?l=vxWuFR from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Bradley S. Shraiberg, Esq.
Samuel W. Hess, Esq.
Shraiberg Page P.A.
2385 N.W. Executive Center Drive, Suite 300
Boca Raton, FL 33431
Tel: (561) 443-0800
Fax: (561) 998-0047
About Poseidon Charters
Poseidon Charters, Inc., is the owner and operator of the Poseidon,
a 1989 48' Duffy fishing vessel.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-17002) on July 12,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Warren B. Pettegrow, president, signed the
petition.
Bradley S. Shraiberg, Esq., at Shraiberg Page, PA, is the Debtor's
legal counsel.
PRECISION SWISS: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
On November 4, 2024, Precision Swiss Products Inc. filed Chapter 11
protection in the Northern District of California. According to
court documents, the Debtor reports between $10 million and $50
million in debt owed to 100 and 199 creditors. The petition states
funds will be available to unsecured creditors.
About Precision Swiss Products Inc.
Precision Swiss Products Inc. is a privately held California
corporation which specializes in the manufacturing and selling
highly specialized components and assemblies equipment for medical,
semiconductor, aviation and defense companies.
Precision Swiss Products Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-51678) on
November 4, 2024. In the petition signed by Norbert Kozar, chief
executive officer, the Debtor disclosed up to $50 million in both
assets and liabilities.
The Debtor is represented by:
Chris Kuhner, Esq.
KORNFIELD, NYBERG, BENDES, KUHNER & LITTLE P.C.
1970 Broadway, Ste 600
Oakland, CA 94612
Tel: 510-763-1000
Fax: 510-273-8669
PURDUE PHARMA: Creditors Committee's Standing Motion Granted
------------------------------------------------------------
Judge Sean H. Lane of the United States Bankruptcy Court for the
Southern District of New York granted the request of the Official
Committee of Unsecured Creditors of Purdue Pharma L.P. and its
affiliated debtors for standing to commence and prosecute estate
causes of action.
The Standing Motion is supported by the Debtors, the Ad Hoc
Committee of Governmental and Other Contingent Litigation
Claimants, the Ad Hoc Group of Individual Victims, and the
Multi-State Governmental Entities Group.
An opposition to the Standing Motion has been filed by certain
Canadian Municipal and First Nations Creditors, with a joinder to
that opposition filed by the County of Nassau, New York. While not
opposing the relief requested in the Standing Motion, statements
challenging the merits of the underlying estate causes of action
have been filed by the Raymond Sackler family and the Beacon
Company.
The Debtors currently have sole standing to pursue estate claims
and causes of action. The Standing Motion requests that the Court
grant the Committee standing under Sections 105(a), 1103(c) and
1109(b) of the Bankruptcy Code to commence and prosecute claims and
causes of action of the Debtors' estates. Most notably, the
Committee seeks authorization, among other things, to sue members
of the Sackler family and their trusts and affiliates for actions
they took with respect to the Debtors, including to recover assets
that the Committee states the Sacklers caused Purdue to transfer
offshore and to family trusts. The Committee asserts that the value
of the estate claims in question reaches into the billions of
dollars.
The CMFN objectors oppose the Standing Motion on the grounds that
standing in this case is prohibited by controlling Delaware state
law, notwithstanding longstanding Second Circuit precedent that
permits the grant of standing to official committees. The CMFN also
argues that the Committee has not met the requirements in this
jurisdiction for standing.
The Court grants the Standing Motion and overrules the objections.
The Court finds that the Committee has met the requirements for
standing under Commodore and grants it standing to pursue the
estates' causes of action.
The second prong of the Commadore test examines whether granting
standing to the Committee is in the best interest of the bankruptcy
estates and is "necessary and beneficial" to the fair and efficient
resolution of the bankruptcy proceedings. There is no doubt that
prosecuting the estate claims meets this standard in the
circumstances of these cases, the Court notes. Both the Debtors and
the Committee -- the two parties with fiduciary duties to all
creditors -- assert that the estate claims are the most valuable
asset of the Debtors' estates, estimating the claims to be valued
in the billions of dollars.
The Court also finds that the estate causes of action are
colorable.
In addition to its arguments about the Commadore standard, the CMFN
objects to the grant of standing to the Committee on the grounds
that Delaware law bars such a result. More specifically, the CMFN
argues that Delaware law does not permit a creditor of a Delaware
limited partnership to sue on behalf of the limited partnership
unless the creditor is a partner or assignee. In making this
argument, the CMFN cites to the Delaware Limited Partnership Act,
which provides that "[i]n a derivative action, the plaintiff must
be a partner or an assignee of a partnership interest at the time
of bringing the action."
The Court disagrees. The CMFN's position has been explicitly
rejected by the Court.
A copy of the Court's decision dated November 18, 2024, is
available at https://urlcurt.com/u?l=tUR54t
Counsel for the Official Committee of Unsecured Creditors of Purdue
Pharma L.P., et al.:
Mitchell P. Hurley, Esq.
Arik Preis, Esq.
Katherine Porter, Esq.
Sara L. Brauner, Esq.
Theodore James Salwen, Esq.
Erin E. Parlar, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, NY 10036
E-mail: mhurley@akingump.com
apreis@akingump.com
kporter@akingump.com
sbrauner@akingump.com
Counsel for the Official Committee of Unsecured Creditors of Purdue
Pharma L.P., et al.
Justin R. Alberto, Esq.
COLE SCHOTZ P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
E-mail: jalberto@coleschotz.com
Counsel for the Debtors, Purdue Pharma L.P., et al.:
Marshall S. Huebner, Esq.
Benjamin S. Kaminetzky, Esq.
James I. McClammy, Esq.
Marc J. Tobak, Esq.
Eric M. Kim, Esq.
Joshua N. Shinbrot, Esq.
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
E-mail: marshall.huebner@davispolk.com
ben.kaminetzky@davispolk.com
james.mcclammy@davispolk.com
Counsel to Beacon Company:
Jasmine Ball, Esq.
Maura Kathleen Monaghan, Esq.
Jeffrey J. Rosen, Esq
DEBEVOISE & PLIMPTON LLP
66 Hudson Boulevard East
New York, NY 10001
E-mail: jball@debevoise.com
mkmonaghan@debevoise.com
jrosen@debevoise.com
Counsel to the Raymond Sackler Family:
Dennis F. Dunne, Esq.
Alexander B. Lees, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
E-mail: ddunne@milbank.com
alees@milbank.com
Counsel to the Raymond Sackler Family:
Gerard H. Uzzi, Esq.
GHU ASSOCIATES LLC
One Liberty Plaza
165 Broadway, 23rd Floor
New York, NY 10006
Counsel to the Raymond Sackler Family:
Gregory P. Joseph, Esq.
Mara Leventhal, Esq.
Christopher J. Stanley, Esq.
Eric K. Stodola, Esq.
JOSEPH HAGE AARONSON LLC
800 Third Avenue, 30th Floor
New York, NY 10022
E-mail: gjoseph@jhany.com
mleventhal@jhany.com
cstanley@jhany.com
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
RANDOLPH TOWN CENTER: USLR Capital Contribution to Fund Plan
------------------------------------------------------------
Randolph Town Center Associates, L.P. ("RTCA") and Carl Weber Green
Properties ("CWG") submitted a First Modified Disclosure Statement
describing First Modified Joint Plan of Reorganization dated
October 11, 2024.
The RTCA Debtor is a limited partnership under the laws of the
State of New Jersey with it principal place of business located at
237 South Street, Morristown, New Jersey 07062.
The CWG Debtor is a limited liability company under the laws of the
State of New Jersey. As of the CWG Petition Date, the CWG Debtor's
principal place of business was located at 1185 Avenue of the
Americas, 18th Floor, New York, New York 10036.
The CWG Debtor now holds title to the Grayrock Property, Rt. 31
Property, the DoverChester Property, the Old Allerton Property, the
Sussex Property and the Brookside Property. The CWG Debtor
estimates that the value of these properties are as follows: (a)
Grayrock Property - $2,500,000; (b) the Old Allerton Property
$100,000; (c) the Dover Chester Property - $150,000; (d) the Rt. 31
Property - $3,000,000; and (e) the CWG Randolph Properties (Sussex
Property and Brookside Property) - $6,816,000, which is based upon
a per acre allocation of the $8,100,000 purchase price in the
Contract with Avalon (the "Avalon Offer").
As of the Petition Date, RTCA owed the RTCA Properties. The RTCA
Debtor previously estimated that value of the RTCA Properties to be
$1,184,000 based on the AvalonBay Offer. An allocation of this
amount based on acreage to each of the RTCA Properties would result
in the following: (a) Blk 224, Lot 4 - $61,587.96, (b) Blk 224, Lot
85 - $11,502.42, (c) Blk 224, Lot 85 - $33,273.36 and (d) Blk 224,
Lot 86 - $103,982.09.
This is a reorganizing plan. In other words, the Debtors seek to
accomplish payments under the Plan by capital contributions, third
party loan, and/or the sale of the properties that they own. The
Effective Date of the proposed Plan is the date in which the order
confirming the Plan becomes a final and non-appealable order.
Class 4A consists of General Unsecured Claims against RTCA, which
aggregate approximately $1,500,000, including $1,120,000 of alleged
Insider claims. To the extent that there are any holders of Allowed
General Unsecured Claims, such Allowed General Unsecured Claims
shall be paid (i) interest at the Interest Rate from and after the
Effective Date; (ii) quarterly principal and interest payments
starting on the first day of the third month succeeding the
Effective Date with a balloon on the earlier of the sale of the
RTCA Properties and the twentieth quarterly payment, and (iii)
amortization on a 25 year constant quarterly payment amortization
schedule.
Class 6B consists of General Unsecured Claims against CWG. The CWG
Debtor is unaware of any General Unsecured Claims. To the extent
that there are any holders of Allowed General Unsecured Claims,
such Allowed General Unsecured Claims shall be paid (i) interest at
the Interest Rate from and after the Effective Date; (ii) quarterly
principal and interest payments starting on the first day of the
third month succeeding the Effective Date with a balloon on the
twentieth quarterly payment, and (iii) amortization on a 25-year
constant quarterly payment amortization schedule.
All existing Equity Interest Holders of RTCA will be retained by
the Equity Interest Holders.
All existing Equity Interest Holders of CWG will be retained by the
Equity Interest Holders.
The monies necessary for funding this Plan will be derived from an
unsecured, post-confirmation, loan from the USLR to the Debtors in
an amount that will satisfy the Debtors' obligations set forth.
There are at least two important aspects of a feasibility analysis.
The first aspect considers whether the Debtors will have enough
cash on hand on the Effective Date of the Plan to pay all the
claims and expenses that are entitled to be paid on such date. The
Debtors believe that this aspect of the feasibility requirement is
met by the proposed funding from USLR, which will assist, if
necessary, with Plan payments that are required to be made on the
Effective Date.
The second aspect considers whether the Debtors will have enough
cash over the life of the Plan to make required Plan payments. USLR
will fund the Plan to the extent necessary.
At the confirmation hearing, if necessary, the Debtors will present
additional evidence of USLR's ability to fund all required Plan
payments and to satisfy going-forward obligations of the Debtors.
Accordingly, the Debtors believe, on the basis of the foregoing,
that the Plan is feasible.
A full-text copy of the First Modified Disclosure Statement dated
October 11, 2024 is available at https://urlcurt.com/u?l=pmpCeg
from PacerMonitor.com at no charge.
The Debtor's Counsel:
Morris Bauer, Esq.
DUANE MORRIS LLP
One Riverfront Plaza
1037 Raymond Boulevard, Suite 1800
New Ark, NJ 92101
Tel: 973-424-2000
Email: msbauer@duanemorris.com
About Randolph Town Center
Randolph Town Center Associates, L.P. owns four properties located
in Morris County, New Jersey having a total value of $935,365.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 23-15274) on June 19, 2023,
with $935,365 in assets and $2,232,241 in liabilities. Lawrence S.
Berger, president and general partner, signed the petition.
Morris Bauer, Esq., at DUANE MORRIS LLP, is the Debtor's legal
counsel.
RAPSYS INC: Court OKs Interim Use of Cash Collateral Until Jan. 10
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Rapsys, Inc. to use cash collateral on
an interim basis.
The interim order signed by Judge David Cleary approved the use of
cash collateral to pay post-petition expenses to third parties from
Nov. 12 until Jan. 10 next year in accordance with the company's
projected budget, with a 10% variance.
In return for the company's continued use of cash collateral, the
U.S. Small Business Administration was granted adequate protection
in the form of replacement liens on the agency's collateral and its
proceeds.
The next hearing is scheduled for Jan. 8. Any objections to the
continued use of cash collateral must be filed by Jan. 6.
About Rapsys Inc.
Rapsys, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code Bankr. N.D. Ill. Case No. 24-03481) on March 11,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge David D. Cleary oversees the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman represents the
Debtor as legal counsel.
RAYMOND L. BOLT: Amends IRS & Valley Bank Claims Pay
----------------------------------------------------
Raymond L. Bolt, D.M.D., PC, submitted a First Amended Subchapter V
Plan of Reorganization dated October 10, 2024.
The Amended Plan modifies only the treatment of the Internal
Revenue Service's claim based upon the amended proof of claim and
the treatment of Valley Bank's claim.
This Plan, under Subchapter V, Chapter 11 of the Bankruptcy Code
proposes to pay certain creditors of the Debtor, as provided for
herein, through cash from future earnings. The Debtor intends to
keep all assets as disclosed within its bankruptcy schedules,
unless otherwise abandoned and/or surrendered as more so necessary
disposition or liquidation.
As set forth in the Plan and unless stated otherwise, a secured
creditor's claim will be treated as secured to the extent of the
value of the creditor's interest in the estate's interest in the
subject property and as unsecured to the extent that the value of
the creditor's interest is less than the amount of the allowed
claim. A secured creditor will retain its lien on the collateral
under the Plan, to the extent of the secured value of the claim,
unless there is an express provision herein that states otherwise.
A secured creditor will receive payment on its secured claim, as
set forth in the Plan, out of the Debtor's future earnings on the
terms set forth herein the Plan. The Plan provides for payment to
creditors holding administrative and priority unsecured claims. The
Plan provides for a 0% distribution to creditors holding allowed
non-priority unsecured claims.
The Internal Revenue Service ("IRS") filed Proof of Claim number 3,
as amended, in the amount of $198,305.46 ("Claim #3"). Claim #3
represents that the amount of $194,591.11 is entitled to priority
with the remainder of $3,714.35 being non-priority. Claim #3, as
set forth therein, is based upon WT-FICA, FUTA and CORP-INC for
2022, 2023 and 2024. Upon confirmation of the Plan, the priority
unsecured portion of Claim #3 in the amount of $194,591.11 will be
paid in full, together with interest at 7.00% per annum, in equal
monthly installment payments of $4,211.26, for a period of 54
months, or until the priority unsecured claim is paid in full,
whichever occurs first. The unsecured claim or unsecured portions
thereof Claim #3 is accounted for within Class 3.
The restructuring shall be effective as of the Effective Date, with
payments to begin on the 10th day of the month following the
Effective Date, and with all future payments being due on the 10th
day of each month thereafter, until full payment of the amount
provided for in the Plan. The Debtor shall be allowed a 10-day
grace period within which to remit monthly payments. The Debtor can
satisfy the claim(s) early without penalty or unaccrued interest.
Upon payment and receipt of the final installment or amount
specified in the Plan, Claim #3 shall be deemed paid and satisfied
in full, and any liens in relation thereto shall be released.
Valley National Bank filed Proof of Claim number 7 in the amount of
$99,970.75 and therein represents that the claim is fully secured
by a lien against "all assets including inventory accounts
equipment proceeds" and perfected by a "Filed UCC-1." ("Claim #7").
Claim #7 is secured to the extent of the value of the collateral
encumbered by the UCC-1 or in the amount of $62,318.86.
Upon confirmation of this Plan, the secured claim will be paid in
full at $62,318.86, at a fixed interest rate of 9.50% per annum, in
equal monthly installments of $1,308.81 for a period of sixty
months, or until the secured claim is satisfied in full, whichever
occurs first. Once the secured claim is satisfied in full as
provided in this Plan, Valley shall release its lien on the
collateral and the Debtor will be released from any and all further
liability as to the obligations set forth with Claim #7.
Like in the prior iteration of the Plan, the creditors holding the
non-priority unsecured claims will be paid a total distribution of
0% of the amount of each respective unsecured claim.
The Debtor will retain its personal property subject to the
encumbrances and liens thereon as provided herein, which will allow
the Debtor to operate its business and pay its creditors from
future earnings derived from such operations.
A full-text copy of the First Amended Plan dated October 10, 2024
is available at https://urlcurt.com/u?l=SLE37y from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Anthony B. Bush, Esq.
The Bush Law Firm, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, AL 36116
Telephone: (334) 263-7733
Facsimile: (334) 832-4390
Email: anthonybbush@yahoo.com
About Raymond L. Bolt
Raymond L. Bolt, D.M.D., PC is a Professional Corporation that was
incorporated on or around January 4, 1988, in Montgomery County,
Alabama.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Ala. Case No. 24-80737) on June 21,
2024. In the petition signed by Raymond L. Bolt, DMD, president,
the Debtor disclosed up to $100,000 in assets and up to $1 million
in liabilities.
Judge Bess M. Parrish Creswell oversees the case.
The Debtor tapped Anthony B. Bush, Esq., at The Bush Law Firm, LLC
as counsel and Marcus E. Garrett, CPA, at JF Shirley, Inc. as
accountant.
REDSTONE HOLDCO 2: $1.11BB Bank Debt Trades at 25% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Redstone Holdco 2
LP is a borrower were trading in the secondary market around 74.6
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.11 billion Term loan facility is scheduled to mature on
April 27, 2028. The amount is fully drawn and outstanding.
Redstone Holdco 2 LP and Redstone Buyer LLC were formed as part of
the buyout of the RSA Security business from Dell Inc.
REFRESHING USA: Two New Committee Members Appointed
---------------------------------------------------
Jonas Anderson, Acting U.S. Trustee for Region 18 appointed
Sterling Davis and Ash Sheanh as new members of the official
committee of unsecured creditors in the Chapter 11 cases of
Refreshing USA, LLC and its affiliates, Water Station Management,
LLC and Creative Technologies, LLC.
The committee is now composed of:
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
8. Sterling A. Davis
Big Boy Tools LLC
12625 Hideout Dr.
Noblesville, IN 46060
(419) 352-2239
9. Ash Sheanh
3509 Nodding Pine Ct.
Fairfax, VA 22033
(303) 880-8006
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.
On November 14, 2024, the case was transferred to the U.S.
Bankruptcy Court for the Eastern District of Washington and was
assigned a new case number (Case No. 24-01863). The case is jointly
administered with the Chapter 11 cases filed by Water Station
Management, LLC and Creative Technologies, LLC (Case Nos. 24-01864
and 24-01866).
The jointly administered cases are related to the Chapter 11 case
filed by Ideal Property Investments, LLC (Bankr. E.D. Wash. Case
No. 24-01421).
Judge Frederick P. Corbit oversees the jointly administered cases.
Tonkon Torp, LLP is the Debtors' legal counsel.
RENOVARO INC: Chief Operating Officer Resigns
---------------------------------------------
Renovaro Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Nov. 15, 2024, Francois Binette PhD,
the Company's chief operating officer, tendered his resignation as
chief operating officer, effective Nov. 22, 2024.
About Renovaro Inc.
Headquartered in Los Angeles, CA, Renovaro Inc.
http://www.renovarobio.com),formerly Renovaro BioSciences Inc., is
a biotechnology company intending, if the necessary funding is
obtained, to develop advanced allogeneic cell and gene therapies to
promote stronger immune system responses potentially for long-term
or life-long cancer remission in some of the deadliest cancers, and
potentially to treat or cure serious infectious diseases such as
Human Immunodeficiency Virus (HIV) infections. As a result of the
Company's acquisition of GEDi Cube Intl on Feb. 13, 2024, the
Company has shifted the Company's primary focus and resources to
the development of the GEDi Cube Intl technologies.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Oct. 10, 2024, citing that the Company has incurred
substantial recurring losses from operations, has used cash in the
Company's continuing operations, and is dependent on additional
financing to fund operations which raises substantial doubt about
its ability to continue as a going concern.
RENOVARO INC: Incurs $44.21 Million Net Loss in First Quarter
-------------------------------------------------------------
Renovaro Inc. filed with the Securities and Exchange Commission its
Quarterly report on Form 10-Q disclosing a net loss of $44.21
million for the three months ended Sept. 30, 2024, compared to a
net loss of $9.18 million for the three months ended Sept. 30,
2023.
As of Sept. 30, 2024, the Company had $121.83 million in total
assets, $23.75 million in total liabilities, and $98.09 million in
total stockholders' equity.
As of Sept. 30, 2024, the Company had cash and cash equivalents of
$220,571 and an accumulated deficit of $368,891,461 and a working
capital deficit of $21,087,220. The Company said these conditions
raise substantial doubt about the Company's ability to continue as
a going concern for one year after the date the financial
statements are issued.
Renovaro said, "Management has reduced overhead and administrative
costs by streamlining the organization to focus around the
development and validation of its AI-driven cancer diagnostics
platform. The Company has tailored its workforce to focus on these
activities. In addition, the Company intends to secure additional
required funding through equity or debt financing. However, there
can be no assurance that the Company will be able to obtain any
sources of funding. Such additional funding may not be available
or may not be available on reasonable terms, and, in the case of
equity financing transactions, could result in significant
additional dilution to our stockholders. If we do not obtain
required additional equity or debt funding, our cash resources will
be depleted and we could be required to materially reduce or
suspend operations, which would likely have a material adverse
effect on our business, stock price and our relationships with
third parties with whom we have business relationships, at least
until additional funding is obtained. If we do not have sufficient
funds to continue operations, we could be required to seek
bankruptcy protection or other alternatives that could result in
our stockholders losing some or all of their investment in us."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1527728/000173112224001811/e6117_10-q.htm
About Renovaro Inc.
Headquartered in Los Angeles, CA, Renovaro Inc.
http://www.renovarobio.com),formerly Renovaro BioSciences Inc., is
a biotechnology company intending, if the necessary funding is
obtained, to develop advanced allogeneic cell and gene therapies to
promote stronger immune system responses potentially for long-term
or life-long cancer remission in some of the deadliest cancers, and
potentially to treat or cure serious infectious diseases such as
Human Immunodeficiency Virus (HIV) infections. As a result of the
Company's acquisition of GEDi Cube Intl on Feb. 13, 2024, the
Company has shifted the Company's primary focus and resources to
the development of the GEDi Cube Intl technologies.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Oct. 10, 2024, citing that the Company has incurred
substantial recurring losses from operations, has used cash in the
Company's continuing operations, and is dependent on additional
financing to fund operations which raises substantial doubt about
its ability to continue as a going concern.
ROCKSTAD HOLDINGS: Chapter 15 Case Summary
------------------------------------------
Ten affiliates that concurrently filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code:
Debtor Case No.
------ --------
Rokstad Holdings Corporation (Lead Case) 24-12645
1000-595 Burrard Street
Vancouver, British Columbia V7X 1S8
Rokstad Power (East), Inc. 24-12656
Rokstad Power (2018) Ltd 24-12649
Rokstad Power Inc. 24-12646
Golden Ears Painting & Sandblasting (2018) Inc. 24-12650
Plowe Power Systems (2018) Ltd. 24-12652
Rokstad Power (Prairies) Ltd. 24-12653
Rokstad Power Transmission Services Ltd 24-12654
Rokstad Power Construction Services Ltd. 24-12655
Rok Air, LLC 24-12657
Business Description: Rokstad Power is a distribution and
transmission construction company that
operates across the United States and
Canada. Rokstad offers a full suite of
power line contracting services to its
customers, including immediate emergency and
storm response, distribution, transmission,
live line work and much more. The Company
works with various public and private sector
organizations, including municipalities,
power and communication utilities, and
mining companies.
Chapter 15 Petition Date: November 21, 2024
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Mary F Walrath
Foreign Proceeding: Supreme Court of British Columbia in
Bankruptcy and Insolvency. Vancouver
Registry, Action No. B-240477
Foreign Representative: FTI Consulting Canada Inc., in its
capacity as the Court-appointed Receiver
of Rokstad Holdings Corporation, et al.
70 West Georgia Street
Vancouver, BC V7Y 1G5
Foreign
Representative's
Counsel: Steven W. Golden, Esq.
Debra I. Grassgreen, Esq.
Colin R. Robinson, Esq.
Brooke E. Wilson, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 N. Market Street, 17th Floor
Wilmington, DE 19801
Tel: (302) 652-4100
Email: sgolden@pszjlaw.com
dgrassgreen@pszjlaw.com
crobinson@pszjlaw.com
bwilson@pszjlaw.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Lead Chapter 15 petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RGBKPMA/Rokstad_Holdings_Corporation_and__debke-24-12645__0001.0.pdf?mcid=tGE4TAMA
S&B RESTAURANTS: Updates Merchant Cash Advance Claim Details
------------------------------------------------------------
S&B Restaurants, d/b/a Gio's Pizza, submitted a Combined Plan of
Reorganization and Disclosure Statement.
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 revision in this Disclosure Statement and Combined Plan from
the version dated October 4, 2024 is the update of potential claims
against the Merchant Cash Advance Lenders.
* 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. The Debtor will not prosecute action as long as the
Chapter 11 Plan is confirmed. If the Plan for any reason is not
confirmed, the Debtor reserves all rights to seek damages/file suit
for any and all applicable claims.
* 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. If the
Plan for any reason is not confirmed, the Debtor reserves all
rights to seek damages/file suit for any and all applicable
claims.
* 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. If the Plan for
any reason is not confirmed, the Debtor reserves all rights to seek
damages/file suit for any and all applicable claims.
* 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. If the
Plan for any reason is not confirmed, the Debtor reserves all
rights to seek damages/file suit for any and all applicable
claims.
Like in the prior iteration of the Plan, General Unsecured
Creditors in Class 2 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.
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 11, 2024 is available at
https://urlcurt.com/u?l=hupVCl 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.
SASSY C'S: James Cross Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 14 appointed James Cross, Esq., at
Cross Law Firm, PLC as Subchapter V trustee for Sassy C'S, LLC.
Mr. Cross will be paid an hourly fee of $525 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cross declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James E. Cross, Esq.
Cross Law Firm, PLC
P.O. Box 45469
Phoenix, AZ 85064
Phone: 602-412-4422
Email: jcross@crosslawaz.com
About Sassy C'S
Sassy C'S, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09501) on November 6,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Madeleine C. Wanslee presides over the case.
C. Lamar Hawkins, Esq., at Guidant Law, PLC represents the Debtor
as bankruptcy counsel.
SELECT MEDICAL: Moody's Rates New Senior Unsecured Notes 'B1'
-------------------------------------------------------------
Moody's Ratings assigned B1 rating to the new senior unsecured
notes issued by Select Medical Corporation's (a wholly owned
subsidiary of Select Medical Holdings Corporation, or "Select
Medical"). There are no changes to the existing ratings of Select
Medical Corporation or Select Medical Holdings Corporation
including the Ba3 corporate family rating, Ba3-PD Probability of
Default Rating, the Ba1 senior secured credit facilities and the
existing B1 senior unsecured notes rating. The outlook remains
unchanged at stable, and the Speculative Grade Liquidity Rating
("SGL") is unchanged at SGL-1.
Proceeds from the offering will be used for general corporate
purposes which includes the repayment of outstanding borrowings
under the senior notes due in 2026 and pay related fees and
expenses.
The assignment of the B1 rating on the senior unsecured notes
reflects the significant amount of secured debt that would recover
ahead of the unsecured noteholders.
RATINGS RATIONALE
The Ba3 CFR is constrained by Select Medical's moderate leverage.
Moody's anticipate margins and leverage will improve from expected
increase in reimbursement rates from Medicare. Medicare
reimbursement rates for 2025 will increase 2.6% for long-term care
facilities and rise 1.97% for inpatient rehabilitation services,
both of which will aid in margin expansion.
Supporting the rating is Select's significant scale and good
business diversity and leading market positions in each of its
business segments. The company's outpatient rehabilitation business
provides both payer and geographic diversity, with limited exposure
to government payors. Moody's anticipate that earnings growth over
the next 12-18 months will come from tuck-in acquisitions, the
maturation of recently opened critical illness recovery hospitals
and an enhanced referral network. The rating also benefits from
Select's solid free cash flow generation.
The stable outlook reflects Moody's expectation that Select Medical
will maintain solid credit metrics but will also remain highly
reliant on Medicare and vulnerable to potential reimbursement
changes. Moody's anticipate that Select Medical will continue to
operate with debt/EBITDA in the 3.5x-4.0x range.
The SGL-1 reflects Moody's view that Select Medical's liquidity
will be very good over the next 12 months. Select Medical will have
about $16 million of cash pro forma for the transaction, and $590
million of availability under its $600 million revolving credit
facility. Moody's believe that the company's operating cash flow
will be more than sufficient to cover basic cash requirements and
that the company will generate roughly $30-40 million of positive
free cash flow annually. Moody's forecast that Select Medical will
ramp up its capex spending, which will somewhat impact free cash
flow. Moody's anticipate that Select Medical will maintain good
cushion under its financial covenant following the debt pay down.
Select Medical's CIS-3 indicates that ESG considerations have a
limited impact on the current credit rating with potential for
greater negative impact over time. This reflects Select Medical's
exposure to social risk considerations (S-4) and governance risk
considerations (G-3). Social risk considerations are related to
risks associated with demographic and societal trends such as the
rising concerns around the access and affordability of healthcare
services. Select Medical is also exposed to labor pressures and
human capital constraints as the company relies on highly
specialized labor to provide its services. Governance risk
considerations reflect Select Medical's moderately aggressive
financial policy to support the company's rapid expansion through a
combination of new facilities and acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if Select Medical sustains
debt/EBITDA below 3.25x while maintaining good liquidity,
sufficient financial flexibility and good business diversification
to absorb potential future negative regulatory developments and
reimbursement changes.
The ratings could be downgraded if liquidity weakens or if Select
Medical experiences adverse developments in Medicare regulations or
reimbursement that result in contracting profit margins or cash
flow coverage metrics. A downgrade could also occur if the company
makes a material debt-funded acquisition or shareholder initiative,
or if debt/EBITDA is sustained above 4.25x.
Select Medical Corporation, headquartered in Mechanicsburg, PA,
provides long-term acute care services and inpatient acute
rehabilitative care through its critical illness recovery and
rehabilitation hospital segments. Select also provides physical,
occupational, and speech rehabilitation services through its
outpatient rehabilitation segment. As of September 30, 2024, Select
Medical operated 106 critical illness recovery hospitals in 29
states, 34 rehabilitation hospitals in 13 states, 1,925 outpatient
rehabilitation clinics in 39 states and the District of Columbia.
At September 30, 2024, Select Medical had operations in 46 states
and the District of Columbia. Pro forma for the spin-off of
Concentra, revenue is approximately $5.1 billion LTM September 30,
2024.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
SHINY HEALTH: Files for Bankruptcy, B Riley Farber Named Trustee
----------------------------------------------------------------
Shiny Health & Wellness Corp. announces that it has made an
assignment into bankruptcy pursuant to the Bankruptcy and
Insolvency Act (Canada). The Board determined that the Company
continued to experience significant financial difficulties and was
no longer able to meet its financial and continuous disclosure
obligations as they became due.
B Riley Farber Inc. has been appointed as the Licensed Insolvency
Trustee. For more information about the Company's bankruptcy
filing, please contact Nerina Jahja at -- njahja@brileyfin.com.
About Shiny Health & Wellness
Shiny Health & Wellness is on a mission to help people Never
Settle, Live Fully by being a trusted source for health and
wellness solutions and services. It first established itself as a
retail cannabis company centered on becoming a premier adult-use
cannabis retailer.
SIDHU TRANSPORTS: Judy Wolf Weiker Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 10 appointed Judy Wolf Weiker of
Manewitz Weiker Associates, LLC as Subchapter V trustee for Sidhu
Transports, LLC.
Ms. Weiker will be paid an hourly fee of $375 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Weiker declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Judy Wolf Weiker
Manewitz Weiker Associates, LLC
P.O. Box 40185
Indianapolis, IN 46240
Phone: 973-768-2735
Email: JWWtrustee@manewitzweiker.com
About Sidhu Transports
Sidhu Transports, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
24-06022) on Nov. 6, 2024, listing up to $50,000 in assets and up
to $10 million in liabilities. The petition was signed by Sukhdev
Singh as owner.
Judge Jeffrey J Graham presides over the case.
Harley K. Means, Esq., at Kroger, Gardis & Regas, L.L.P. represents
the Debtor as legal counsel.
SKS BOTTLE: Hires Nolan Heller Kauffman as Bankruptcy Counsel
-------------------------------------------------------------
SKS Bottle and Packaging, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of New York to employ
Nolan Heller Kauffman LLP as bankruptcy counsel.
The firm will render these services:
(a) give the Debtor legal advice with respect to its powers
and duties;
(b) prepare on behalf of the Debtor necessary legal papers;
(c) represent the Debtor in litigation;
(d) represent the Debtor in various transactional and other
legal matters as may be required or desirable; and
(e) perform all legal services for the Debtor as may be
necessary herein.
The hourly rates of the firm's counsel range from $340 to $445.
The firm received a prepetition retainer of $30,000 from the
Debtor.
Justin Heller, Esq., an attorney at Nolan Heller Kauffman,
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:
Justin A. Heller, Esq.
Nolan Heller Kauffman LLP
80 State St. 11th Floor
Albany, NY 12207
Telephone: (518) 449-3300
About SKS Bottle and Packaging
SKS Bottle and Packaging, Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11283) on
Nov. 18, 2024, listing up to $10 million in both assets and
liabilities.
Justin A. Heller, Esq., at Nolan Heller Kauffman LLP serves as the
Debtor's counsel.
SOLDIER OPERATING: Seeks to Hire Texas Well Consulting as Broker
----------------------------------------------------------------
Soldier Operating, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Louisiana to employ Texas Well
Consulting as equipment broker.
The Debtor needs a broker to take inventory and organize its
equipment, market and show the equipment to potential buyers, and
negotiate and coordinate its sales.
The broker will receive a commission of 30 percent of the
equipment's selling price.
Aimee Thomas, principal of Texas Well Consulting, 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:
Aimee Thomas
Texas Well Consulting
2905 Newton Dr.
Lago Vista, TX 78645
Telephone: (512) 944-5866
Facsimile:(512) 368-5709
About Soldier Operating
Soldier Operating, LLC and Viceroy Petroleum, LP filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. La. Lead Case No. 24-50387) on May 13, 2024. At the
time of the filing, Soldier Operating disclosed $5,615,631 in
assets and $6,089,722 in liabilities.
Viceroy Petroleum owns certain interests in oil, gas and/or mineral
leases, subleases, leasehold and contractual rights in mineral
interests, and other leasehold interests related to State Lease No.
340, Cote Blanche Island (CBI) field, St. Mary Parish, Louisiana.
Judge John W. Kolwe presides over the cases.
The Debtors tapped Bradley L. Drell, Esq., at Gold, Weems, Bruser,
Sues & Rundell, APLC as legal bankruptcy counsel. Viceroy Petroleum
retained Chaffe & Associates, Inc. as investment broker.
The U.S. Trustee appointed an official committee of unsecured
creditors in these Chapter 11 cases. The committee tapped H. Kent
Aguillard, Esq., and Caleb K. Aguillard, Esq., and Stewart Robbins
Brown & Altazan, LLC as co-counsel.
SOUND INPATIENT: $215MM Bank Debt Trades at 84% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Sound Inpatient
Physicians Holdings LLC is a borrower were trading in the secondary
market around 15.8 cents-on-the-dollar during the week ended
Friday, November 22, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $215 million Term loan facility is scheduled to mature on June
29, 2026. The amount is fully drawn and outstanding.
Sound Inpatient Physicians, Inc. is a provider of physician
services in acute, post-acute, emergency medicine, and intensivist
facilities through its wholly owned subsidiaries and affiliated
companies. Sound Inpatient’s principal business is to provide
hospitalist services to hospitals and health plans designed to
improve the well-being of patients while reducing their associated
costs through the management of medical care. The company is
primarily owned by private equity sponsor Summit Partners and Optum
Health.
SOUTH BROADWAY: Unsecured Creditors Unimpaired in Plan
------------------------------------------------------
South Broadway Realty Enterprise Inc. submitted a Second Amended
Disclosure Statement describing Second Amended Plan of
Reorganization dated October 11, 2024.
The Debtor's Plan is a liquidating plan with the centerpiece being
the sale of the Debtor's real property located in the County of
Nassau, State of New York, known by the street address of 640-654
South Broadway, Hicksville, New York 11801, and formally described
on the tax and land maps of the County of Nassau as Section 46,
Block 510, Lots 26C, 26D and 44 (the "Property").
To that end, the Debtor has commenced negotiations with Jairam D.
Thakral, or an entity to be created (the "Purchaser"), to purchase
the Property, which includes a cash payment to satisfy the existing
real estate tax debt together with Dime's and the SBA's mortgages
and the Debtor taking back a first lien priority note and mortgage
for the balance of the Purchase Price to pay the remaining sale
price to the Debtor.
The Debtor intends to use the Purchaser as a stalking horse bidder
and market the Property, for a period of not less than 60 days, and
then hold an auction sale. The Debtor will seek to retain MYC &
Associates Inc., to market and sell the Property.
In addition, the Debtor has negotiated a lease term with a new
tenant, IMAB Inc., d/b/a Laundromat (the "Laundromat Tenant"), to
occupy the laundromat storefront. The Lease was executed and the
terms are set forth in exhibit E (the "Lease"). The Lease required
the Laundromat Tenant to pay the first 5 years of rent up front
with key money for a total amount of $150,000.00. These funds have
been received by the Debtor. The Debtor intents to use the
$150,000.00 to pay all remaining creditors (other than Dime, SBA
and taxes) 100% of the Allowed Claims.
The Debtor is also negotiating with a prospective tenant to lease
the remaining units: (i) the salon; and (ii) the restaurant unit,
which is currently occupied by Holy Grail Restaurant Group LLC
d/b/a The Rabbit's Foot (the "HGRG").
The estimated value of the Property is $3,400,000.00. The Debtor
acquired a payoff from Dime for each loan encumbering the Property.
Accordingly, the Debtor estimates that as of February 15, 2024 the
payoff for: (i) the P & F Bakers Loan will be approximately
$683,490.87 (exclusive of post petition legal fees and interest
rate adjustment); and (ii) the South Broadway Loan will be
approximately $1,494,597.33 (exclusive of post petition legal fees
and interest rate adjustment). The tax lien on the Premises is
$56,849.14. Thus, the Debtor intends to receive $2,234,937.34 (the
"Sale Proceeds") from the stalking horse Purchaser, at the closing
to satisfy the above secured claims. The balance of the Purchase
Price shall be in the aforesaid Note and Mortgage in the amount of
approximately $1,165,062.66. The initial bidding price will be
selected by the Debtor and its real estate broker, MYC, based on
the above calculation.
Class 5 of the Plan consists of General Unsecured Claims. In full
satisfaction, settlement, release and discharge of such Claims,
Class 5 Claimants shall receive a 100% distribution without
interest from the Debtor. This distribution will be funded from the
Laundromat Tenant's prepayment of rent and the cash infusion from
the Debtor's Principal, if necessary, and will be paid on the
Effective Date. Class 5 Claimants are unimpaired, are not eligible
to vote on the Plan.
Class 6 Claimants shall not retain their existing pre-petition
Equity Interests in the Debtor, effective as of the Effective Date.
However, they will receive a note and mortgage for their equity
interests in the Debtor in the amount of approximately
$1,165,062.66. Class 6 Claimants are unimpaired.
The Plan shall be funded by a combination of: (i) the Sale
Proceeds; (ii) the proceeds from the proposed laundromat tenant
prepaying its rent; (iii) if necessary, the cash infusion from the
Debtor's Principal.
From the Sale, the Debtor will satisfy the Dime mortgages and the
priority unpaid tax claim with the Sale Proceeds. The proceeds from
the lump sum rent payments from the Laundromat Tenants
($150,000.00) and the Debtor's Principal's cash infusion, if
necessary, will be used to contribute to paying 100% of the
remaining claims including, but not limited to: (i) the Legends on
the Broadway Partners judgments; and (ii) the General Unsecured
creditors. The cash infusion from the Debtor's Principal will only
be used in an amount sufficient to pay all Allowed Administrative
Claims in full, if necessary.
If the Debtor elects to proceed under the reinstatement, the Debtor
intends to implement the Plan by first remitting the Prepayment
Proceeds ($400,000.00) from the Laundromat Tenant and the Debtor's
proposed restaurant tenant. The Debtor will also remit, from the
Debtor's Principal's cash infusion, ($100,000.00 $150,000.00) to
contribute to the arrears of the Mortgages to reinstate the
mortgages according to its terms and also reinstate the U.S Small
Business Administration loan according to its terms.
In addition, through any rents that the Debtor has accumulated, or
by a cash infusion if the income from the Debtor's Post
confirmation operations is not sufficient, the Debtor will
distribute 100% of the Legends on the Broadway Partners judgments
and the General Unsecured creditors in equal quarterly payments
over 3 years following the Effective Date. The cash infusion from
the Debtor's Principal will be in an amount sufficient to pay all
Allowed Administrative Claims in full.
A full-text copy of the Second Amended Disclosure Statement dated
October 11, 2024 is available at https://urlcurt.com/u?l=Q5Tt3O
from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN PLLC
38 New Street
Huntington, NY 11743
Tel: (631) 423-8527
Fax: (631) 423-4356
Email: arosen@ajrlawny.com
About South Broadway Realty Enterprise Inc.
South Broadway owns a commercial building located at 640 South
Broadway Hicksville, New York 11801 valued at $2.5 million.
South Broadway Realty Enterprise, Inc. in Hicksville, NY, filed its
voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case
No. 23-74237) on November 13, 2023, listing $2,500,013 in assets
and $2,080,067 in liabilities. Francesco Guerrieri as president,
signed the petition.
Judge Alan S. Trust oversees the case.
LAW OFFICES OF AVRUM J. ROSEN, PLLC serves as the Debtor's legal
counsel.
SOUTH COAST EQUIPMENT: Gets Final Approval to Use Cash Collateral
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
granted South Coast Equipment LLC's motion to use cash collateral
on a final basis.
The final order approved the use of cash collateral for
post-petition expenses within the company's budget, with a 10%
variance allowance. The projected budget shows monthly expenses
ranging from $76,344.42 to $80,244.42.
The order includes provisions for adequate protection payments to
secured creditors. The U.S. Small Business Administration will
receive monthly interest-only payments of $2,513.82 while Wells
Fargo will receive monthly payments of $4,991.25 for equipment
financing. Meanwhile, On Deck Capital, Forward Financing LLC, and
Reliable Fast Cash, LLC will not receive payments as they are
either fully secured or unsecured.
In addition, On Deck, SBA, and Wells Fargo will be granted
replacement liens on post-petition cash collateral.
About South Coast Equipment
South Coast Equipment, LLC, a Miami-based company, filed its
voluntary petition for Chapter 11 protection (Bankr. S.D. Fla. Case
No. 24-19043) on Sept. 3, 2024, listing $618,928 in assets and
$1,219,748 in liabilities. David Presmanes, president of South
Coast Equipment, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Van Horn Law Group, P.A. serves as the Debtor's bankruptcy counsel.
SPARTAN GROUP: Selling 15 Flatbed Trailers for $103,500
-------------------------------------------------------
Spartan Group Holdings, LLC, seeks permission from the U.S.
Bankruptcy Court for the Eastern District of Texas, Sharman
Division, to sell its Trailers, free and clear of liens, claims,
and interests.
The Debtor owns different models of 15 flatbed trailers which have
been used in its business.
Westdale Capitol Investors 3, LP holds a security interest in all
of the Trailers pursuant to its purchase of the Debtors’ debt
from BMO, Harris Bank.
The Debtor seeks to sell the trailers to Superior Trailer Sales
Company for $103,500 to be remitted to Westdale to pay down its
secured claim in the Bankruptcy Case.
The Debtor provides integrated, innovative, high-quality
engineering and construction services and solutions, including
turnkey concrete and reinforcing solutions, from design, to
engineering, to fabrication, to pouring. It also fabricates steel
reinforcements and components at their fabrication plant outside of
El Paso. However, after the rapid growth and profitability,
dramatic increases in steel prices disrupted its business in 2021
and 2022.
The Debtor and its chief restructuring officer, Brad Walker, have
attempted to market the Trailers to other buyers without success.
The offer from Superior therefore represents the highest and best
offer for the Trailers.
The Debtor is in liquidation mode and already sold its fabrication
facility in El Paso, licenses, and rights to machinery in Italy.
The Debtor is working to sell its remaining assets with include the
Trailers.
About Spartan Group Holdings, LLC
Spartan Group is a family of companies that provide dependable
turnkey engineering, construction, and supply chain service
solutions.
Spartan Group Holdings, LLC and its affiliates filed their
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Tex. Lead Case No. 23-42384) on Dec. 13, 2023.
The petitions were signed by Adrian J. Cano as chief executive
officer. At the time of filing, Spartan estimated $50 million to
$100 million in assets and $100 million to $500 million in
liabilities.
Judge Brenda T. Rhoades presides over the case.
Davor Rukavina, Esq. at MUNSCH HARDT KOPF & HARR, P.C., is the
Debtor's counsel.
SPIRIT AIRLINES: Fitch Lowers LongTerm IDR to 'CC'
--------------------------------------------------
Fitch Ratings has downgraded Spirit Airlines' Long-Term Issuer
Default Rating (IDR) to 'CC' from 'CCC'. Fitch has also downgraded
Spirit IP Cayman Ltd.'s and Spirit Loyalty Cayman Ltd.'s senior
secured debt to 'CCC' with a Recovery Rating of 'RR2' from
'B-'/'RR2'.
The downgrade follows Spirit's announcement that negotiations with
its noteholders had advanced and that an agreement, if reached,
would be effectuated through a statutory restructuring. A near-term
default now appears probable.
Fitch has downgraded Spirit's 2017-1 class B certificates to 'B-'
from 'B+'; and placed the rating on Rating Watch Negative (RWN).
The downgrade and RWN is driven by Fitch's downgrade of Spirit's
IDR to 'CC' from 'CCC', following its announcement of potential
restructuring. Fitch has also affirmed the 2017-1 class AA, 2017-1
class A, and 2015-1 class A certificates ratings as listed below.
Key Rating Drivers
Constrained Financial Flexibility: Spirit faces the near-term
maturity of its 2025 loyalty bonds and 2026 convertible notes.
Refinancing efforts have been hampered by ongoing operating losses
and cash outflows. The company reported sharply negative operating
margins through the first six months of the year and expects to
generate a negative operating margin of roughly -26% for the third
quarter on lower yields and higher total operating expenses
compared to the prior year. Spirit now faces the risk that
customers may increasingly opt to book away towards other carriers,
fearing a potential bankruptcy, thus accelerating the company's
cash burn.
Fitch expects cash outflow to be around -$600 million for the year,
partly offset by proceeds from asset sales and compensation from
Pratt & Whitney. In a recent release, Spirit re-iterated its
expectation to end the year with over $1 billion in total
liquidity, though that figure is contingent upon pending cash
raising initiatives whose likelihood is uncertain.
Shrinking Footprint: Spirit recently announced an agreement to sell
23 aircraft, or nearly 11% of its fleet, to GA Telesis, LCC
consisting of a mix of A320 and A321 CEOs. The sale is expected to
generate gross proceeds of $519 million. Spirit estimates the net
proceeds of the sale combined with discharging aircraft-related
debt will benefit its liquidity by approximately $225 million
through YE 2025.
The company announced in October that it would furlough about 330
pilots effective January 2025 and downgrade 120 captains to first
officers. For the full-year 2025, Spirit expects its capacity to be
down in the mid-teens compared to 2024. Capacity reductions follow
a history of rapid growth. Spirit generated roughly 33% more
available seat miles (ASMs) in 2023 than prior to the pandemic,
while struggling to deploy capacity profitably.
Pratt & Whitney Engine Issues: Aircraft availability remains one of
Spirit's headwinds. As of Aug. 1, 2024, Spirit estimated that
geared-turbofan (GTF) engine inspection issues would take an
average of 20 of its aircraft out of service through 2024, and it
expected to end the year with 35 aircraft on the ground, rising to
about 67 by the end of 2025. Visibility into engine availability is
limited, adding a layer of uncertainty to Fitch's forecast, as it
is difficult to predict Spirit's ability to deploy aircraft.
Uncertainty also drives complexity into network planning and hiring
decisions for the year. Spirit operated a fleet of 210 aircraft as
of June 30, 2024. The A320 NEO family aircraft supported by the GTF
engines represent the most efficient planes in Spirit's fleet, and
the grounding of such a material portion of these planes
constitutes a material headwind.
EETC RATINGS
2017-1 Class AA and Class A Certificates: The class AA certificate
ratings are primarily driven by Fitch's top-down approach, which
implies a 'AA-' rating. However, Spirit's IDR of 'CC' caps the
class AA certificates at 'A+', given senior tranches are precluded
from reaching the 'AA' category under Fitch's EETC criteria if the
underlying airline is rated 'B-' or lower.
The ratings for the class A certificates for both the 2017-1 and
2015-1 transactions are derived through Fitch's top-down approach.
Loan-to-values (LTVs) for both transactions have declined slightly
since Fitch's last review, continuing to maintain a moderate level
of cushion at the current rating category. Both also benefit from
strong levels of overcollateralization with LTVs at 84.3% for the
2015-1 certificates and 88.4% for the 2017-1 certificates in
Fitch's 'A' level stress scenario.
The ratings for the senior tranches continue to be supported strong
market values for the A320 and A321 CEO aircraft, which are trading
3.5% to 9.4% above current base values used in Fitch's models.
Class B Certificate Ratings: Fitch typically notches subordinated
tranche EETC ratings from the airline's IDR based on three primary
variables: 1) the affirmation factor (0-3 notches) 2) the presence
of a liquidity facility, (0-1 notch) and 3) recovery prospects (0-1
notch). The four-notch uplift from Spirit's 'CC' IDR reflects a
moderate-to-high affirmation factor (+2 notches), the benefit of a
liquidity facility (+1 notch), and solid recovery prospects in a
stress scenario (+1).
Affirmation Factor: Fitch chose not to assign the maximum +3 notch
affirmation factor uplift for the 2017-1s. While Fitch views the
likelihood of affirmation in a bankruptcy scenario as high, there
remains possibility of aircraft rejection resulting in
liquidation.
The collateral aircraft are becoming marginally less attractive as
Spirit takes delivery of more A320 and A321 NEOs, which are more
fuel efficient. However, the deferral of most of 2025 and 2026
deliveries of the NEOs coupled with recent asset sale of 23 A320
and A321 CEOs will increase likelihood of affirmation from Spirit
following bankruptcy. Pro forma for the aircraft sales, the 2017-1
collateral pool represents approximately half of remaining owned
aircraft in Spirit's fleet, supporting the moderate-to-high
affirmation factor.
Derivation Summary
Spirit's 'CC' rating is below members of its North American peer
group reflecting the company's heightened near-term default risk.
EETC RATINGS
The class AA certificates and class A certificates rated in both of
Spirit's EETC transactions are in line with other EETC class AA and
A certificate ratings in Fitch's coverage. The level of
overcollateralization and LTVs are consistent with similar-rated
certificates.
The class B certificates are rated lower than other subordinated
EETC certificates with similar credit profiles, given Spirit's
constrained IDR (CC).
Key Assumptions
CORPORATE
- Fitch's base case incorporates flat capacity growth in 2024
followed by capacity declining in the mid-teens in 2025;
- Fitch expects modestly softer unit revenues in 2024, followed by
improvement thereafter driven by capacity limitations and various
revenue initiatives;
- Jet fuel is assumed at $2.80/gallon in 2024 declining modestly
thereafter.
EETC RATINGS
Key assumptions within the rating case for the issuer include a
harsh downside scenario in which Spirit declares bankruptcy,
chooses to reject the collateral aircraft, and where the aircraft
are remarketed in the midst of a severe slump in aircraft values.
Fitch's models also incorporate a full draw on liquidity facilities
and include assumptions for repossession and remarketing costs.
Recovery Analysis
Fitch's recovery analysis assumes Spirit would be reorganized as a
going concern (GC) in bankruptcy rather than liquidated. The
analysis incorporates a going-concern EBITDA estimate of $220
million and a 5x multiple.
Fitch's GC EBITDA estimate of $220 million remains the same as
prior estimates and reflects Spirit's recent track record of
operating losses and uncertainty around its turnaround plans. The
GC EBITDA assumption is below levels generated through the pandemic
downturn and forecast EBITDA for 2024. Fitch believes that pandemic
period profits through 2023 are temporarily depressed due to a
confluence of factors but profits may continue to be constrained by
intense competition and rising costs.
The choice of this multiple considered the following factors:
- Historical bankruptcy case study exit multiples for peer
companies ranged from 3.1x to 6.8x;
- Spirit's 5x multiple is at the mid-point of the range, which
given the company's potential growth over time, is offset by
profitability and competitive headwinds;
- The value available to holders of the loyalty program assets is
dependent upon the size of Spirit's loyalty member base and
associated cash flows.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Successful refinancing of Spirit's 2025 and 2026 bonds;
- Demonstrated progress towards improving cash flow while
maintaining adequate liquidity.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Commencement of a formal restructuring process or entering into a
debt restructuring agreement that Fitch considers to be a
distressed debt exchange.
EETC RATINGS
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Class AA and A Certificates:
The class AA and A certificate ratings are primarily based on a
top-down analysis based on the value of the collateral. Upgrades
may be driven by stable or increasing values for the A321 and A320
along with continued principal amortization leading to improved
collateral coverage. An upgrade to the class AA certificates is
unlikely, given Spirit's IDR is at 'CC'.
Class B Certificates:
The class B certificates are linked to Spirit's corporate rating.
Therefore, if Spirit were upgraded , the class B certificates would
likely be upgraded as well.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Class AA and A Certificates:
Negative rating actions could be driven by an unexpected decline in
collateral values. Senior tranche ratings could also be affected by
a perceived change in the affirmation factor or deterioration in
the underlying airline credit.
Fitch may place the senior tranche ratings on RWN if Spirit files
for bankruptcy. Rejection of the aircraft through bankruptcy could
lead to downgrades, though actual rating actions will depend on
prevailing aircraft market values and ability to liquidate aircraft
in a timely fashion ahead of a missed interest payment.
Class B Certificates:
The 2017-1 class B certificates are linked to Spirit's corporate
rating. If Spirit were downgraded, the class B certificates would
be downgraded as well. Fitch currently views the Affirmation Factor
for each Spirit EETC as moderate-high. This could weaken over time
as the collateral aircraft ages.
Negative actions could be driven by lower recovery prospects driven
by weaker aircraft values. If the aircraft are rejected through
restructuring, notching based on affirmation will no longer be
applied and Fitch will rate the 2017-1 class B certificates in
accordance with the Corporate Recovery Ratings Criteria,
effectively capping the ratings at 'CCC' during the bankruptcy
process.
Liquidity and Debt Structure
Declining Liquidity: As of June 30, 2024, Spirit had cash and cash
equivalents of $724.8 million plus $115.3 million in short-term
investments. The company had full availability under its $300
million revolving credit facility. Subsequent to quarter-end, the
company reported that it had fully drawn down its revolver. The
revolver matures in September 2025 and has a minimum liquidity
covenant of $450 million. Spirit's short-term investments consist
of U.S. treasury and government agency securities with maturities
of less than 12 months.
Spirit's total liquidity (cash plus short-term investments) has
come down over the past year driven by operating cash outflows and
debt repayment. Setting aside changes that may come during a
pending restructuring, Fitch expects Spirit to continue to generate
substantial negative FCF through 2025.
EETC RATINGS
Liquidity Facilities:
2017-1:
The AA, A, and B certificates benefit from dedicated 18-month
liquidity facilities which will be provided by Commonwealth Bank of
Australia, New York Branch (AA-/F1+/Stable).
2015-1:
The class A and B certificates feature an 18-month liquidity
facility provided by Natixis (A/F1/Stable).
Issuer Profile
Spirit Airlines, Inc. is a Florida-based ultra-low-cost air
carrier.
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
----------- ------ -------- -----
Spirit Airlines, Inc. LT IDR CC Downgrade CCC
Spirit Loyalty
Cayman Ltd.
senior secured LT CCC Downgrade RR2 B-
Spirit IP Cayman Ltd.
senior secured LT CCC Downgrade RR2 B-
Spirit Airlines
Pass Through
Trust Certificates
Series 2017-1
senior secured LT A+ Affirmed A+
senior secured LT A Affirmed A
senior secured LT B- Downgrade B+
Spirit Airlines
Pass Through
Trust Certificates
Series 2015-1
senior secured LT A Affirmed A
SPIRIT AIRLINES: Hires Ernst & Young LLP as Audit and Tax Provider
------------------------------------------------------------------
Spirit Airlines, Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Ernst & Young LLP
as audit and tax services provider.
The firm will provide these services:
(a) audit and report the consolidated financial statements of
the Debtor as of and for the year ended December 31, 2024;
(b) audit and report the effectiveness of the Debtor's
internal control over financial reporting as of December 31, 2024;
and
(c) review the Debtor's unaudited interim financial
information before the company files its Form 10-Q.
The firm will be paid at these hourly rates:
Partner/Principal $1,150
Managing Director $975
Senior Manager $825
Manager $675
Senior $500
Staff $275
The firm's hourly rates for on-call tax services are as follows:
Partner/Principal $1,450
Managing Director $1,350
Senior Manager $1,050
Manager $940
Senior $660
Staff $440
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received payments from the
Debtor totaling $946,515, of which approximately $237,225
constituted the retainer.
Ryan Shedd, a partner at Ernst & Young, 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:
Ryann Shedd
Ernst & Young LLP
401 9th Ave.
New York, NY 10001
Telephone: (212) 773-3000
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.
SPIRIT AIRLINES: Wants Speedy Chapter 11 Bankruptcy Exit
--------------------------------------------------------
Steven Church of Bloomberg News reports that Spirit Airlines Inc.
is seeking court approval to transfer ownership to creditors and
accelerate its bankruptcy exit, the company's lead restructuring
lawyer told the court on Monday, November 25, 2024.
According to Bloomberg Law, U.S. Bankruptcy Judge Sean H. Lane
agreed to consider holding a single hearing in the coming weeks to
review two essential documents needed for the company to exit
bankruptcy.
Attorney Marshall Huebner informed the court that more than 90% of
the airline's bondholders are in favor of its reorganization plan
under Chapter 11, the report states.
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.
SQRL SERVICE: Court OKs Appointment of Anne Burns as Trustee
------------------------------------------------------------
Judge Michelle Larson of the U.S. Bankruptcy Court for the Northern
District of Texas approved the appointment of Anne Burns as Chapter
11 trustee for SQRL Service Stations, LLC.
Ms. Burns was appointed on Nov. 6 by the U.S. Trustee for Region 6,
the Justice Department's bankruptcy watchdog overseeing SQRL's
Chapter 11 case.
Ms. Burn disclosed in a court filing that she does not have any
connection with SQRL, creditors and other parties involved in the
company's Chapter 11 case.
About SQRL Service Stations
SQRL Service Stations, LLC, a convenience store chain, sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.
Texas Case No. 24-32457) on August 16, 2024, with $10 million to
$50 million in assets and $1 billion to $10 billion in liabilities.
Jamal Hizam, managing member, signed the petition.
Judge Stacey G. Jernigan oversees the case.
The Debtor is represented by Joyce Lindauer, Esq., at Joyce W.
Lindauer Attorney, PLLC.
STARSHIP LOGISTICS: Court Approves Interim Use of Cash Collateral
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division granted Starship Logistics, LLC interim
authorization to use cash collateral pending a final hearing.
The interim order authorized the company to use cash collateral
until Dec. 3 to pay expenses set forth in its projected budget.
Starship can deviate from the total expenses by no more than 15% on
a cumulative basis and by category without the need for further
court approval.
Mass Transit Properties, LLC, a secured creditor, will be granted
replacement liens on Starship's post-petition assets except for any
avoidance actions.
A final hearing is scheduled for Dec. 3.
About Starship Logistics
Starship Logistics, LLC, a company in Long Beach, Calif., offers
freight transportation arrangement services.
Starship Logistics sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-18834) on October
28, 2024, with $1 million to $10 million in both assets and
liabilities. Clarence Xu, chief executive officer and managing
director, signed the petition.
The Debtor is represented by Susan K. Seflin, Esq., at BG Law, LLP.
STG LOGISTICS: $750MM Bank Debt Trades at 45% Discount
------------------------------------------------------
Participations in a syndicated loan under which STG Logistics Inc
is a borrower were trading in the secondary market around 54.5
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $750 million Term loan facility is scheduled to mature on March
24, 2028. About $731.3 million of the loan has been drawn and
outstanding.
STG Logistics, Inc., also known as St. George Logistics, is a
logistics company with a corporate office in North Bergen, New
Jersey.
STOOL AND DINETTE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Stool and Dinette Factory, Inc.
About Stool and Dinette Factory
Stool and Dinette Factory, Inc. a company in Scottsdale, Ariz.,
filed its voluntary petition for Chapter 11 protection (Bankr. D.
Ariz. Case No. 24-06900) on August 21, 2024, with $100,001 to
$500,000 in assets and $500,001 to $1 million in liabilities.
Kenneth L. Felder, president, signed the petition.
Judge Paul Sala oversees the case.
James F. Kahn, Esq., at Kahn & Ahart, PLLC serves as the Debtor's
legal counsel.
TENABLE HOLDINGS: S&P Alters Outlook to Pos., Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Tenable Holdings Inc. to
positive and affirmed all ratings.
S&P said, "The positive outlook is based on our expectation that
continued earnings growth will enable the firm to generate healthy
free operating cash flow (FOCF) and sustain leverage below 3x over
the next 12 months, even with a modest amount of tuck-in
acquisitions and shareholder returns.
"We expect Tenable will continue to grow earnings over the next
year on continued margin expansion, even as sales cycles lengthen.
Tenable has benefitted from a balanced growth strategy initiated in
2023, seeing EBTIDA margins expand to the low 20% area, up from
around 10% in 2022. This focus has enabled the company to continue
rapidly growing earnings and cash generation even as revenue growth
has moderated to the mid-to-low teens. We expect these dynamics to
extend into 2025, with longer sales cycles and broader pressure on
IT budgets continuing to pressure revenue growth while expense
discipline and operating leverage enable further margin expansion.
"We expect Tenable will meet or beat its midpoint guidance and
generate revenue growth of 12% in 2024, which will continue to grow
8%-9% in 2025 as exposure management and cloud security remain
growth drivers. We currently forecast EBITDA margins for the year
of about 20%, an improvement of almost 500 basis point (bps) from
about 15% in 2023, after expanding by about 450 bps in the prior
year. The company has been able to drive better operating
efficiency and go-to-market leverage due to its broader product
suite and continued growth in scale. We believe Tenable, even with
some moderation in revenue growth in 2025, will still drive further
EBITDA margins expansion and grow FOCF generation as its operating
leverage continues to improve. With that, absent any substantial
acquisitions or shareholder returns, we expect Tenable’s leverage
will be about 2.3x by the end of 2024 and further improve in 2025
and beyond.
"We believe Tenable is well positioned to benefit from
cybersecurity demand tailwinds over the longer term. In spite of
near-term challenges from crowded IT budgets, lengthening sales
cycles, and macroeconomic uncertainty, Tenable continues to report
growing adoption of its platform offering (Tenable One) and strong
growth momentum in its cloud security and other exposure management
product offerings. We see a market trend of vendors shifting toward
a more holistic approach to build out broader platform offerings by
incorporating additional security posture management tools. Tenable
has been reporting growing momentum in its cloud security offering
(either stand-alone or as part of its platform package) after
integrating Ermetic. We believe continued expansion of product
capabilities and the pricing upside potentials with higher product
penetrations and platform consolidations (through cross-sell/upsell
opportunities on Tenable One) could allow Tenable to remain
competitive and accelerate revenue growth longer term.
"Consistent cash generation and moderate financial policies further
support our positive outlook. We believe our expectation of
Tenable’s continued revenue growth and improving profitability
provides an ample cushion to our leverage forecast on the company;
its rising FOCF generation will also provide the company with
flexibility to pursue its tuck-in acquisition strategy and expand
its product capabilities. We expect Tenable will generate over $200
million of FOCF over the next 12-18 months. Along with cash and
short-term investments of about $550 million as of Sept. 30, 2024,
we expect the company will have a more-than-sufficient cushion to
execute its tuck-in acquisition strategy without incurring
meaningful releveraging risks. After acquiring Ermetic, a
cloud-native application protection platform company, for about
$240 million in 2023 with cash on hand, Tenable has only completed
one acquisition so far in 2024, Eureka Security, a provider of data
security posture management for cloud environments, for about $30
million in June.
"The positive outlook reflects our expectation that Tenable will
continue revenue growth, EBITDA margin expansion, and solid FOCF
generation. We expect the company will reduce leverage further over
the next 12 months, largely driven by continued EBITDA growth."
S&P could revise its outlook to stable if Tenable sustains S&P
Global Ratings-adjusted leverage above 3.0x. This could happen if:
-- The company undertakes larger acquisitions that require
additional debt or take longer to transition to a positive EBITDA
position; or
-- The company adopts an aggressive financial policy, including
significant shareholder returns, such that it sustains S&P Global
Ratings-adjusted leverage of more than 3.0x.
S&P said, "We could raise our ratings over the next 12 months if
the company continues to demonstrate its ability to grow revenue
and expand EBITDA margin such that we believe its S&P Global
Ratings-adjusted leverage will remain below 3.0x even after
acquisitions or shareholder returns."
THE LINK UP: Craig Geno Named Subchapter V Trustee
--------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Craig Geno, Esq., at
the Law Offices of Craig M. Geno, PLLC, as Subchapter V trustee for
The Link Up, LLC.
Mr. Geno will be paid an hourly fee of $250 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geno declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (601) 427-0048
Facsimile: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About The Link Up
The Link Up, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-25404) on October
31, 2024, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Jennie D. Latta presides over the case.
Curtis D. Johnson, Jr., at the Law Office Of Johnson And Brown,
P.C. represents the Debtor as bankruptcy counsel.
THREE PARTRIDGE: Amends Hanover Bank Secured Claim Pay
------------------------------------------------------
Three Partridge Road Inc. submitted an Amended Plan of
Reorganization for Small Business under Subchapter V dated October
15, 2024.
This amended plan differs from the original plan of reorganization,
as follows: (1) it includes a $15,000 initial contribution from the
Debtor's principal and a slower ramp-up of his compensation,
resulting in a larger cash cushion to ensure payments to
administrative, secured, and unsecured creditors; (2) it shortens
the repayment schedule for Hanover Bank from nine to seven years;
(3) it removes former ¶ 10.02, which contained a non-standard
provision regarding the termination of the Subchapter V Trustee in
the event of a nonconsensual confirmation; and (4) it is updated to
reflect an amended tax claim, according to a footnote in the
Amended Plan.
The Debtor has modest priority tax claims. The California Franchise
Tax Board ("CA FTB") filed a claim for $856.78. Claim 6. The
Internal Revenue Service ("IRS") filed an amended claim for 2024
estimated corporate income, FICA, and FUTA taxes in the amount of
$15,273.51. Claim 1. The Debtor is anticipating that the IRS claim
will be reduced to zero or near-zero once its tax returns are filed
and processed, due to its net operating losses and the fact that it
terminated its remaining employee in early 2024.
This Plan of Reorganization proposes to pay creditors of the Debtor
from future income deriving from the Debtor's continued business
operations, as well as any net recovery from its claims against the
MCA Providers.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 1.7 to 2.4 cents on the dollar. This Plan also
provides for the payment of administrative and priority claims.
Class 2(b) consists of the Secured claim of Hanover Bank. Hanover
Bank has a secured claim in the amount of $99,617.55. Hanover
Bank’s secured claim will be paid in full with interest at the
rate of 5% per annum over seven years. Hanover Bank shall retain
its lien on the Debtor's assets until paid in full.
Beginning in the month following the Effective Date of this Plan,
the Debtor will make monthly payments. The first five years (sixty
months) of payments will be made monthly in the amount of
$1,147.32, followed by two years (24 months) of payments in the
amount of $2,294.64. The monthly payments will be due on the first
day of each month and will be deemed late if not received by the
tenth day of the month.
Like in the prior iteration of the Plan, Class 3(b) consists of
Non-priority unsecured claims of the MCA Providers. The MCA
Providers shall each and individually have the option to select one
of two treatments for their non-priority unsecured claims. They
must each make such selection prior to or at the time of the
deadline for voting on the Plan. If no selection is made, then the
first option shall be the default choice.
* Option 1: Plan payments and retention of the Debtor's claims
against the MCA Provider. The MCA Provider claim, to the extent it
is not disallowed, will be converted to a Class 3(a) claim and paid
accordingly. The Debtor will retain its claims against the MCA
Provider, including for usury and a failure to make adequate
disclosures. To the extent that the Debtor recovers on its claims
against the MCA Provider, the Debtor shall pay one half of the net
recovery (which shall be the recovery left after payment of all
attorneys' fees and costs) to Class 3(a) creditors.
* Option 2: Elimination of claim and release of the Debtor's
claims against the MCA Provider. The MCA Provider's unsecured claim
will be reduced to zero and it will not receive any distributions,
and the Debtor will release all claims against the MCA Provider.
The Plan will be funded from Debtor's ongoing operations. As
evidenced in the projected budget attached to this Plan, the Debtor
will operate profitability and be able to make the payments.
Finally, the Debtor asserts claims against the MCA Providers. If
the Debtor recovers anything on those claims, the Plan provides for
the recovery to be shared with Class 3(a) creditors holding
non-priority unsecured claims, though the Plan is not dependent
upon such recovery against the MCA Providers.
A full-text copy of the Amended Plan dated October 15, 2024 is
available at https://urlcurt.com/u?l=nOiG7q from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Stephen D. Finestone, Esq.
Ryan A. Witthans, Esq.
Finestone Hayes LLP
456 Montgomery Street, Floor 20
San Francisco, CA 94104
Tel: (415) 421-2624
Fax: (415) 398-2820
Email: sfinestone@fhlawllp.com
rwitthans@fhlawllp.com
About Three Partridge Road
Three Partridge Road, Inc., is an e-commerce logistics company in
San Francisco, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-30440) on June 11,
2024, with $238,980 in assets and $2,093,743 in liabilities. Yong
Soo Chung, chief executive officer, signed the petition.
Judge Dennis Montali presides over the case.
Stephen D. Finestone, Esq., at Finestone Hayes, LLP, is the
Debtor's legal counsel.
TRINITY EXCAVATORS: Seeks Bankruptcy Protection in Texas
--------------------------------------------------------
On November 6, 2024, Trinity Excavators LLC filed Chapter 11
protection in the Southern District of Texas. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 50 and 99 creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 6,
2024 at 9:30 AM.
About Trinity Excavators LLC
Trinity Excavators LLC is part of the nonresidential building
construction industry.
Trinity Excavators LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-35266) on November 6,
2024. In the petition signed by Brian Buttry, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Jeffrey P. Norman handles the case.
The Debtor's counsel is Harrison A. Pavlasek, Esq., at FORSHEY
PROSTOK LLP, in Fort Worth, Texas, and CAROTHERS & HAUSWIRTH LLP.
TUPPERWARE BRANDS: Dec. 13, 2024 Claims Filing Deadline Set
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set Dec. 13,
2024, at 11:59 p..m (Prevailing Eastern Time) as the last date and
time for creditors to file proofs of claim against Tupperware
Brands Corporation and its debtor-affiliates.
The Court also set March 17, 2024, at 11:59 p.m. (Prevailing
Eastern Time) as the deadline for governmental units to file their
claims against the Debtors.
Each proof of claim must be filed, including supporting
documentation, so as to be actually received by Epiq on or before
the General Bar Date or the Governmental Bar Date either (i)
electronically through the Online Portal at
https://dm.epiq11.com/case/tupperware/info under "Case Actions" and
by clicking on "File a Claim" or (ii) by U.S. Mail, overnight mail,
or other hand delivery system at the following address:
a) By First Class Mail to:
Tupperware Brands Corporation Claims
Processing Center
c/o Epiq Corporate Restructuring, LLC
P.O. Box 4419
Beaverton, OR 97076-4419
b) If by Overnight Courier or Hand Delivery:
Tupperware Brands Corporation
Claims Processing Center
c/o Epiq Corporate Restructuring, LLC
10300 SW Allen Blvd.
Beaverton, OR 97005
About Tupperware Brands
Tupperware Brands Corporation (NYSE: TUP) --
https://www.tupperwarebrands.com/ -- is a global consumer products
company that designs innovative, functional, and environmentally
responsible products. Founded in 1946, Tupperware's signature
container created the modern food storage category that
revolutionized the way the world stores, serves, and prepares food.
Today, this iconic brand has more than 8,500 functional design and
utility patents for solution-oriented kitchen and home products.
The company distributes its products into nearly 70 countries,
primarily through independent representatives around the world.
Tupperware Brands sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12166) on Sept. 17,
2024. In the bankruptcy petition, Tupperware reported more than
$1.2 billion in total debts and $679.5 million in total assets.
Kirkland & Ellis LLP is serving as legal advisor to Tupperware,
Moelis & Company LLC is serving as the Company's investment banker,
and Alvarez & Marsal is serving as the Company's financial and
restructuring advisor. Epiq is the claims agent and has put up the
page https://dm.epiq11.com/Tupperware
UNIVERSAL SCREEN: Court Orders Involuntary Liquidation
------------------------------------------------------
Mary Vanac of Cleveland Business Journal reports that a U.S.
bankruptcy court judge in Akron has ruled for the involuntary
liquidation of Universal Screen Arts Inc., the former catalog
retailer based in Hudson, which laid off most of its workforce in
September 2024.
The company, which previously sold and shipped products like books,
DVDs, clothing, and gifts under names like Shop PBS and Daedalus
Books & Music, closed its Hudson facilities around November 1, as
reported by CEO David Frankel, the report says.
The November 15, 2024 ruling followed the company's failure to
respond to an involuntary bankruptcy petition filed in October 2024
by seven creditors, who claim Universal Screen Arts owes them
$175,000 for goods and services, according to the report.
About Universal Screen Arts Inc.
Universal Screen Arts, Inc. is an Internet retailer and mail-order
cataloguer.[BN]
Universal Screen Arts Inc. sought relief under Chapter 7 of the
U.S. Bankruptcy Code (Bankr. D. Ohio. Case No. 24-51641) on October
23, 2024.
Honorable Bankruptcy Judge Alan M. Koschik handles the case.
UPSTREAM NEWCO: $140MM Bank Debt Trades at 22% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Upstream Newco Inc
is a borrower were trading in the secondary market around 78.5
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $140 million Term loan facility is scheduled to mature on
November 22, 2027. The amount is fully drawn and outstanding.
Upstream Newco, Inc., headquartered in Birmingham, Alabama, is a
provider of outpatient rehabilitation services — primarily
physical therapy. Through its subsidiaries, Upstream operates about
1,150 clinics in 28 states, with a strong presence in the
Southeast.
UPSTREAM NEWCO: $883MM Bank Debt Trades at 17% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Upstream Newco Inc
is a borrower were trading in the secondary market around 83.2
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $883 million Term loan facility is scheduled to mature on
November 20, 2026. The amount is fully drawn and outstanding.
Upstream Newco, Inc., headquartered in Birmingham, Alabama, is a
provider of outpatient rehabilitation services — primarily
physical therapy. Through its subsidiaries, Upstream operates about
1,150 clinics in 28 states, with a strong presence in the
Southeast.
WCCM GROUP: Unsecured Creditors Will Get 100% of Claims in Plan
---------------------------------------------------------------
WCCM Group, LLC, filed with the U.S. Bankruptcy Court for the
District of Arizona a Plan of Reorganization dated October 9,
2024.
The Debtor was formed in 2020 to own and operate properties as
short term vacation rentals through the Airbnb platform. Debtor
owns one property in Nevada and four properties in Arizona.
Three of the Arizona properties are operated as Airbnb's and rented
on a per room, short term basis. The fourth Arizona property is a
long-term rental. The Las Vegas, Nevada property was originally
operated as an Airbnb, however, a change in Las Vegas regulations
related to short term rental properties required Debtor to rent the
Las Vegas property on a long-term basis.
During the transition from a short-term rental to a long-term
rental, the Las Vegas property was vacant for some time and
Debtor's income was significantly reduced. Debtor was ultimately
able to lease the Las Vegas property, however the combined effects
of the significant decline in rental income and the period with no
income caused the Debtor to fall behind on secured debt payments,
necessitating this Chapter 11 case.
The Debtor seeks to utilize the Subchapter V provisions of the
Bankruptcy Code to restructure its debt obligations and pay all
claims in full over time. Pursuant to this Plan of Reorganization,
the Debtor will make plan payments from the rental income generated
by the Debtor's properties and will sell certain properties to pay
all claims in full.
Class 4 consists of Allowed Unsecured Claims. These Claims shall be
paid in full in three equal payments from the sale of the Milada
Property, the Minton Property and the 19th Street Property.
Payments to Class 4 Claimants will begin no later than fifteen days
after the closing of the sale of the first of the Arizona
Properties. The allowed unsecured claims total $67,105.17. This
Class will receive a distribution of 100% of their allowed claims.
The Debtor will contribute its future rental income along with the
proceeds of the sales of one or more parcels of real property to
fund the Plan. The Debtor will implement certain changes to its
business to effectuate the terms of this Plan. On or before the
Effective Date, the Debtor intends to convert the Carter Property
from a short-term rental property to a long term rental property.
This change will increase rent for the Carter Property from
$2,200.00 per month to $2,300.00 per month and will provide an
accompanying reduction in expenses from $880.00 to $225.00.
At this time, the Carter Property generates $1,320 in net rental
income, which the Debtor expects will increase to $2,075 in net
rental income. After the Effective Date, Debtor plans to list the
19th Street Property, the Minton Property and the Milada Property
for sale and expects that these properties will sell after a
90-to-180-day exposure period.
A full-text copy of the Plan of Reorganization dated October 9,
2024 is available at https://urlcurt.com/u?l=y13lQQ from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Katherine E. Anderson, Esq.
KATHERINE ANDERSON LAW PLLC
7508 N. 59th Avenue
Glendale, AZ 85301
Phone: (602) 459-4112
Email: katey@katherineandersonlaw.com
About WCCM Group
WCCM Group, LLC was formed in 2020 to own and operate properties as
short term vacation rentals through the Airbnb platform.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05598) on July 11,
2024. Judge Brenda K. Martin presides over the case.
WELLPATH HOLDINGS: $500MM Bank Debt Trades at 70% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Wellpath Holdings
Inc is a borrower were trading in the secondary market around 29.9
cents-on-the-dollar during the week ended Friday, November 22,
2024, according to Bloomberg's Evaluated Pricing service data.
The $500 million Term loan facility is scheduled to mature on
October 1, 2025. 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.
WELLPATH HOLDINGS: Court Stays Fahrni, et al. Due to Bankruptcy
---------------------------------------------------------------
Magistrate Judge Stanley A. Boone of the United States District
Court for the Eastern District of California stayed all proceedings
in the matter, TIFFANY FAHRNI, et al., Plaintiffs, v. COUNTY OF
TULARE, et al., Defendants, Case No. 1:23-cv-01265-KES-SAB (E.D.
Calif.) against Defendant Wellpath, LLC pursuant to Section 362(a)
of the Bankruptcy Code.
Plaintiffs filed this action on August 23, 2023. The operative
first amended complaint asserts claims against Defendants: (1)
County of Tulare; (2) Precision Psychiatric Services, Inc.; (3)
Anthony Ceja; (4) Sureshbabu Kurra; (5) Adolfo Gallardo, Jr.; (6)
Salvador Santillan; (7) Anyval Suarez; (8) Wellpath, LLC; and (9)
Alla Liberstein, MD. The initial scheduling conference was held on
December 5, 2023.
On November 15, 2024, Defendant Wellpath filed a suggestion of
bankruptcy and notice of stay indicating that on November 11, 2024,
Wellpath filed for bankruptcy in the United States Bankruptcy Court
for the Southern District of Texas (Houston Division) for relief
under chapter 11 of the United States Bankruptcy Code. The
bankruptcy case is pending under case number 24-90563-(ARP).
Pursuant to Section 362, all actions against a defendant who has
filed a bankruptcy petition are automatically stayed once the
petition is filed. Accordingly, all proceedings in this matter
against Defendant Wellpath shall be stayed pursuant to Section
362(a).
No pretrial conference or trial has been set in this action. The
Court tentatively orders a stay of this action against Wellpath
only and that the action proceed against the other eight
defendants.
A copy of the Court's decision dated November 18, 2024, is
available at https://urlcurt.com/u?l=JMYiIk
About Wellpath Holdings
Wellpath Holdings, Inc. f/k/a CCS-CMGC Holdings, Inc. is a provider
of medical and mental healthcare in jails, prisons, and inpatient
and residential treatment facilities.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90533) on
November 11, 2024, with $1 billion to $10 billion in assets and
liabilities. Timothy Dragelin, chief restructuring officer and
chief financial officer, signed the petitions.
The Debtor tapped Marcus A. Helt, Esq. at McDERMOTT WILL & EMERY
LLP as bankruptcy counsel; FTI CONSULTING, INC. as financial
advisor; and LAZARD FRERES & CO. LLC and MTS PARTNERS, LP as
investment bankers.
WOOF HOLDINGS: $138.5MM Bank Debt Trades at 32% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Woof Holdings Inc
is a borrower were trading in the secondary market around 67.8
cents-on-the-dollar during the week ended Friday, November 22,
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.
ZACHRY HOLDINGS: Unsecureds Will Get 100% of Claims in Plan
-----------------------------------------------------------
Zachry Holdings, Inc. and its affiliates filed with the U.S.
Bankruptcy Court for the Southern District of Texas a Disclosure
Statement for the Joint Chapter 11 Plan of Reorganization dated
October 11, 2024.
Zachry Industrial (headquartered in San Antonio, Texas) is the
engineering, construction, maintenance, turnaround, and fabrication
services offshoot of the storied family-owned business that began
as H.B. Zachry Company one hundred years ago.
The Debtors entered Chapter 11 cases on May 21, 2024 (the "Petition
Date") as a result of the financial distress caused by one of their
major projects, the liquefied natural gas ("LNG") project that
would, upon completion, treat, process, and liquefy domestic
natural gas in Sabine Pass, Texas (the "GPX Project"). Prior to the
Petition Date, the Debtors and interested parties, including the
project owners and Debtor Zachry Industrial, Inc.’s ("ZII") joint
venture partners, mediated disputes relating to the GPX Project
without reaching a resolution.
After the commencement of these cases, however, and approximately
two months of arm's-length, hard-fought negotiations under the
guidance of mediator Judge Christopher M. Lopez, the Debtors and
interested parties agreed to a comprehensive settlement (the "GPX
Settlement"). As discussed in more depth throughout this Disclosure
Statement, the GPX Settlement provided for, among other things, the
orderly transition of ZII's responsibility as the lead contractor
on the GPX Project to its joint venture partners and the direct
payment of GPX Project vendor claims by the project owner. The
Bankruptcy Court approved the GPX Settlement on an interim basis on
July 25, 2024 and on a final basis on August 12, 2024. By August
26, 2024, ZII had completely demobilized from the GPX Project.
Following the GPX Settlement, the Debtors began discussions with
their stakeholders, including the Prepetition Lenders and the
Committee, regarding a framework for a consensual plan of
reorganization. That general framework is set forth in the current
version of the Plan, which generally includes the following terms:
* The Prepetition Credit Facility will be amended and restated
and deemed binding on the Debtors and Holders of Prepetition Credit
Facility Claims as of the Plan's Effective Date. The material terms
of that amended and restated facility will be set forth in the A&R
Credit Facility Term Sheet.
* The Debtors will enter into a new money Junior Exit Facility
that will fund additional capital needs for Plan-related
distributions and the Reorganized Debtors' go-forward business. The
material terms of the Junior Exit Facility will be set forth in the
Junior Exit Facility Term Sheet to be filed in the Plan
Supplement.
* Holders of Allowed General Unsecured Claims will receive
deferred cash payments in an amount equal to the Allowed amount of
their Claims, in a manner that satisfies the requirements of
section 1129(b)(2)(B)(i) of the Bankruptcy Code.
* The Debtors will assume all executory contracts and
unexpired leases that are not otherwise rejected pursuant to the
Plan or a separate motion.
* Interests in Debtor Zachry Holdings, Inc., will be
reinstated and the legal, equitable, and contractual rights
associated with such interests shall remain unaltered.
The Plan will provide the Reorganized Debtors with sufficient
liquidity to continue providing first-class services to their
customers, while also ensuring the Company's long-term viability.
Distributions to all stakeholders, including Holders of Allowed
Prepetition Credit Facility Claims and General Unsecured Claims
will be significantly greater under the Plan than in a chapter 7
liquidation.
Class 6 consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive, in exchange for full
and final satisfaction, settlement, release, and discharge of such
Claim, cash payments in an amount equal to the Allowed amount of
such Claim as of the Effective Date to be paid in a manner that
satisfies the requirements of section 1129(b)(2)(B)(i) of the
Bankruptcy Code.
Notwithstanding anything to the contrary in the Plan, all Allowed
General Unsecured Claims that are GPX Claims shall be paid by
Golden Pass in accordance with the terms of the GPX Settlement.
This Class will receive a distribution of 100% of their allowed
claims.
Zachry Interests shall be Reinstated on the Plan Effective Date,
and the legal, equitable, and contractual rights to which Holders
of Zachry Interests are entitled shall remain unaltered.
Each distribution and issuance referred to in Article VI of the
Plan shall be governed by the terms and conditions set forth in the
Plan applicable to such distribution or issuance and by the terms
and conditions of the instruments or other documents evidencing or
relating to such distribution or issuance, which terms and
conditions shall bind each Entity receiving such distribution or
issuance. The Debtors and the Reorganized Debtors, as applicable,
shall fund distributions under the Plan with (a) Cash on hand, and
(b) proceeds from the Exit Facilities.
A full-text copy of the Disclosure Statement dated October 11, 2024
is available at https://urlcurt.com/u?l=wyuLto from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Charles R. Koster, Esq.
WHITE & CASE LLP
609 Main Street, Suite 2900
Houston, Texas 77002
Tel: (713) 496-9700
Fax: (713) 496-9701
E-mail: charles.koster@whitecase.com
- and -
Bojan Guzina, Esq.
Andrew F. O'Neill, Esq.
RJ Szuba, Esq.
Barrett Lingle, Esq.
111 South Wacker Drive, Suite 5100
Chicago, Illinois 60606
Tel: (312) 881-5400
E-mail: bojan.guzina@whitecase.com
aoneill@whitecase.com
rj.szuba@whitecase.com
barrett.lingle@whitecase.com
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008. The Zachry Group
provides engineering and construction services to clients in the
energy, chemicals, power, manufacturing, and industrial sectors
across North America.
None of the entities affiliated with Zachry Construction are
Debtors in the chapter 11 cases.
Zachry Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90377) on May 21, 2024, with $1 billion to $10 billion in
assets and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
ZANO INDUSTRIES: Hires Goldberg Weprin Finkel Goldstein as Counsel
------------------------------------------------------------------
Zano Industries, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Goldberg Weprin
Finkel Goldstein LLP as its special real estate counsel.
The Debtor needs a special real estate counsel to assist in the
sale of its property located at 20-35 130th Street, College Point,
New York.
The firm's counsel and staff will be paid at these hourly rates:
Partners $685
Associates $250 - $525
Paraprofessionals and Law Clerks $85 - $120
In addition, the firm will seek reimbursement for expenses
incurred.
Kevin Nash, Esq., an attorney at Goldberg Weprin Finkel Goldstein,
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:
Kevin Nash, Esq.
Goldberg Weprin Finkel Goldstein LLP
125 Park Ave., 12th Floor
New York, NY 10017
Telephone: (212) 221-5700
About Zano Industries
Zano Industries, Inc. filed its voluntary petition for protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case
No. 24-43903) on Sept. 19, 2024. In the petition signed by
Ferdinand Provenzano, president, the Debtor disclosed up to $50
million in assets and up to $10 million in liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped Ronald Terenzi, Esq., at Terenzi & Confusione, PC
as bankruptcy counsel and Kevin Nash, Esq., at Goldberg Weprin
Finkel Goldstein LLP as special real estate counsel.
*********
Monday's edition of the TCR delivers a list of indicative prices
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